EXHIBIT 99.1
Release News Release News Release News Release News Release News
[LOGO OF AMERICAN EXPRESS COMPANY] American Express Company
American Express Tower
World Financial Center
New York, N.Y. 10285-4805
Contact:
Mike O'Neill Susan Atran Robert Glick (London)
American Express Company American Express Bank American Express Company
+ 1 212 640 5951 + 1 212 640 2639 +44 207 931 5894
mike.o'neill@aexp.com susan.j.atran@aexp.com robert.a.glick@aexp.com
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FOR IMMEDIATE RELEASE
AMERICAN EXPRESS COMPANY AGREES TO SELL
AMERICAN EXPRESS BANK LTD. TO STANDARD CHARTERED PLC.
Sale Reflects American Express' Continued Focus on
High-Growth, High-Return Payments Businesses
NEW YORK, September 18, 2007 - American Express Company today
announced that it has entered into an agreement to sell its international
banking subsidiary, American Express Bank Ltd. (AEB) to Standard Chartered
PLC. The approximate value of the transaction is $1.1 billion. The sale is
subject to certain regulatory approvals and is expected to be completed in the
first quarter of 2008.
"Today's agreement reflects our strategic focus on the high-growth,
high-return payments businesses that have been driving our performance in
recent years," said Kenneth I. Chenault, Chairman and Chief Executive Officer,
American Express Company. "It will also allow AEB to become part of an
outstanding financial institution with similar core businesses and strategies."
Standard Chartered will pay American Express an amount equal to the net
asset value of the AEB businesses that are being sold at the closing date plus
$300 million. At June 30, 2007, this would have amounted to approximately $860
million. American Express also expects to realize an additional amount
representing the net asset value of American Express International Deposit
Company (AEIDC), a subsidiary which issues investment certificates to AEB's
customers. As of June 30, 2007, the net asset value of that business was $212
million. This value is expected to be realized through dividends from the
subsidiary to American Express and by a subsequent payment from Standard
Chartered when the business is transferred to them 18 months after the
completion of the sale of AEB.
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American Express Bank Ltd. serves financial institutions and
high-net-worth customers through its global correspondent banking and
full-service private banking businesses operating in 47 countries. The sale
will not include any of the Company's card or travel businesses, nor its
international financial services businesses that operate separately from AEB.
In the aggregate, the transaction is expected to have an approximate
break-even impact on the earnings of American Express, although separate
components will be recognized in different periods.
The first component is an after-tax charge of approximately $50
million in the current quarter related to the agreement and its impact on the
Company's strategy with respect to the holding period for certain investments
supporting AEIDC. The Company expects to report a net gain in subsequent
quarters from the disposition of AEB and other related activities.
W. Richard Holmes, Chairman and Chief Executive Officer, American
Express Bank, added, "Once the deal closes, AEB's loyal customer base will
gain access to an even broader array of product offerings and our employees
will benefit from being part of an organization committed to growing its
correspondent and private banking services."
American Express Company (www.americanexpress.com) is a leading
global payments, network and travel company founded in 1850.
THIS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS, WHICH ARE SUBJECT TO RISKS
AND UNCERTAINTIES. THE WORDS "BELIEVE," "EXPECT," "ANTICIPATE," "OPTIMISTIC,"
"INTEND," "PLAN," "AIM," "WILL," "MAY," "SHOULD," "COULD," "WOULD," "LIKELY"
AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS.
READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING
STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. AMERICAN
EXPRESS UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING
STATEMENTS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THESE FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED TO: (I) THE
UNDERLYING ASSUMPTIONS AND EXPECTATIONS RELATED TO THE TRANSACTION PROVING TO
BE INACCURATE OR UNREALIZED, INCLUDING, AMONG OTHER THINGS, THE LIKELIHOOD OF
AND EXPECTED TIMING FOR COMPLETION OF THE TRANSACTION, THE PROCEEDS TO BE
RECEIVED BY AMERICAN EXPRESS IN THE TRANSACTION AND THE TRANSACTION'S IMPACT
ON THE EARNINGS OF AMERICAN EXPRESS; (II) FLUCTUATIONS IN INTEREST RATES,
WHICH CAN IMPACT THE VALUE OF THE INVESTMENTS OF AMERICAN EXPRESS; (III) THE
ACCURACY OF ESTIMATES MADE BY MANAGEMENT IN CONNECTION WITH THE TRANSACTION
AND (IV) ACCOUNTING CHANGES.
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