|
FINANCIAL RESULTS
American Express' financial results for 2000 were very strong:
- Net income was $2.81 billion, up 14 percent from $2.48 billion in 1999. Diluted earnings per share rose 14 percent to $2.07, from $1.81.
- Net revenues on a managed basis for the year totaled $22.1 billion, up 13 percent from $19.5 billion in 1999.
- Return on equity was 25.3 percent, unchanged from 1999.
In January 2000, our board of directors approved a three-for-one split of
American Express common shares, and shareholders of record on April 25 received
two additional common shares for each share they held.
Our capital position remained strong. Consistent with our philosophy of returning
excess equity to shareholders by repurchasing shares, during 2000 we bought back
approximately 25 million shares. As of year end, we had repurchased a total of
343 million shares since the inception of the repurchase program in September 1994.
Notwithstanding our solid financial results, our share price dropped slightly
from $55 at the start of last year to $5415/16 at year end. We did reach an
all-time high of $63 per share in October, but our stock declined along with most
of the financial service companies during the last few months of the year.
However, over a five-year period, our stock price appreciation was greater than
both the S&P Financials and the S&P 500 Index.
Cumulative Total Return
American Express' cumulative total return to shareholders has exceeded both the
S&P Financial Index and the S&P 500 Index for the past five-year period.
Including share price appreciation and the reinvestment of dividends, an
investment of $100 in American Express stock at year-end 1995 was worth $420.69
at year-end 2000, compared with $292.50 for the S&P Financial Index and $231.93
for the S&P 500.
|
