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Extraction Summary
1
People
7
Organizations
1
Locations
2
Events
5
Relationships
4
Quotes
Document Information
Type:
Financial research report from a bank of america merrill lynch conference, identified by the footer 'house oversight 014359' as likely being part of a collection submitted to a government committee.
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Summary
This document is a page from a Bank of America Merrill Lynch report summarizing a presentation at its '2016 Future of Financials Conference'. The presentation, given by American Express CFO Jeff Campbell, covers AXP's financial outlook, investor sentiment, and the strategic implications of selling its Costco portfolio to Citi. Despite being labeled as 'Epstein-related', this specific document contains no information about or mentions of Jeffrey Epstein or any associated individuals.
People (1)
| Name | Role | Context |
|---|---|---|
| Jeff Campbell | Chief Financial Officer |
Presented on behalf of American Express Company (AXP) at the 2016 Future of Financials Conference.
|
Organizations (7)
| Name | Type | Context |
|---|---|---|
| American Express Company (AXP) | ||
| Marshall Wace | ||
| KKR | ||
| Citi | ||
| Costco | ||
| Bank of America Merrill Lynch | ||
| House Oversight Committee (inferred from footer) |
Timeline (2 events)
2004-2014
A period of healthy growth for an unnamed firm, possibly Marshall Wace or KKR.
Not specified
November 17, 2016
Bank of America Merrill Lynch hosted its '2016 Future of Financials Conference'.
Not specified
Locations (1)
| Location | Context |
|---|---|
|
Mentioned in a chart option 'Accelerating global growth' for American Express.
|
Relationships (5)
Presenting from American Express Company was Mr. Jeff Campbell, Chief Financial Officer.
AXP acknowledged the sale of the Costco portfolio to Citi...
...the loss of the Costco portfolio...
...advantages from combining the two firms.
Presenting from American Express Company... Source: BofA Merrill Lynch Global Research
Key Quotes (4)
"AXP did express caution on near-term Discount rate pressures and FX headwinds."Source
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Quote #1
"When asked what would be a key factor to increase / initiate a position in AXP, 53% of the audience said they would like to see better visibility in AXP's core growth."Source
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Quote #2
"AXP acknowledged the sale of the Costco portfolio to Citi has added complexity to reporting results..."Source
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Quote #3
"AXP also said that accelerating revenue growth is a key area of focus for management."Source
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Quote #4
Full Extracted Text
Complete text extracted from the document (2,802 characters)
large balance sheet is the ability to take advantage of market dislocation, along
with high margins.
with high margins.
The firm grew at a healthy rate from 2004-2014, and with around 1,200 people
now there doesn't need to be much growth in headcount for the time being, the
infrastructure is in place. Marshall Wace AUM has grown significantly since they did
the deal, due in part to advantages from combining the two firms. Real estate is an
area where KKR is small and could see more growth.
now there doesn't need to be much growth in headcount for the time being, the
infrastructure is in place. Marshall Wace AUM has grown significantly since they did
the deal, due in part to advantages from combining the two firms. Real estate is an
area where KKR is small and could see more growth.
Specialty Finance
American Express Company (AXP), B-2-7, Neutral
American Express Company (AXP), B-2-7, Neutral
Presenting from American Express Company was Mr. Jeff Campbell, Chief Financial
Officer. Overall we thought AXP presented a fairly upbeat outlook on billings, loan
and revenue growth. AXP did express caution on near-term Discount rate pressures
and FX headwinds.
Officer. Overall we thought AXP presented a fairly upbeat outlook on billings, loan
and revenue growth. AXP did express caution on near-term Discount rate pressures
and FX headwinds.
When asked what would be a key factor to increase / initiate a position in AXP, 53%
of the audience said they would like to see better visibility in AXP's core growth.
AXP acknowledged the sale of the Costco portfolio to Citi has added complexity to
reporting results and has provided additional disclosures on underlying trends in the
quarterly results. AXP also said that accelerating revenue growth is a key area of
focus for management.
of the audience said they would like to see better visibility in AXP's core growth.
AXP acknowledged the sale of the Costco portfolio to Citi has added complexity to
reporting results and has provided additional disclosures on underlying trends in the
quarterly results. AXP also said that accelerating revenue growth is a key area of
focus for management.
Chart 64: What would be a key factor for you to increase / initiate a position in American Express?
60%
40%
20%
0%
40%
20%
0%
29%
Accelerating global
growth
Accelerating global
growth
53%
Renewed visibility in
growth in AXP's core
business
Renewed visibility in
growth in AXP's core
business
7%
Solid execution of cost
reduction initiatives
Solid execution of cost
reduction initiatives
13%
More aggressive
capital management
More aggressive
capital management
Source: BofA Merrill Lynch Global Research
AXP was a little surprised that more investors did not view its focus on loan growth
as an appropriate strategy to increase wallet share amongst the revolving segment.
Instead a plurality of investors viewed AXP's strategy as appropriate in light of the
portfolio sale but risky due to the duration of the credit cycle. While investors were
concerned about the duration of the credit cycle, AXP emphasized its low loss rates
and premium customer base as well as the loss of the Costco portfolio to argue
that AXP's credit profile will not materially change from its current strategy to grow
revolving balances through revolving credit card customers.
as an appropriate strategy to increase wallet share amongst the revolving segment.
Instead a plurality of investors viewed AXP's strategy as appropriate in light of the
portfolio sale but risky due to the duration of the credit cycle. While investors were
concerned about the duration of the credit cycle, AXP emphasized its low loss rates
and premium customer base as well as the loss of the Costco portfolio to argue
that AXP's credit profile will not materially change from its current strategy to grow
revolving balances through revolving credit card customers.
Chart 65: How would you describe American Express' strategy to expand exposure to credit?
60%
40%
20%
0%
40%
20%
0%
8%
Timely opportunity to
grow earnings while
credit costs are low
Timely opportunity to
grow earnings while
credit costs are low
8%
Appropriate strategy to
increase wallet share
amongst revolving
segment
Appropriate strategy to
increase wallet share
amongst revolving
segment
46%
Appropriate in light of
the Costco portfolio
sale but risky due to
duration of credit cycle
Appropriate in light of
the Costco portfolio
sale but risky due to
duration of credit cycle
38%
Risky due to extended
duration of the credit
cycle
Risky due to extended
duration of the credit
cycle
Source: BofA Merrill Lynch Global Research
Bank of America
Merrill Lynch
Merrill Lynch
2016 Future of Financials Conference | 17 November 2016 45
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