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## Summary 

In many ways, 2002 was a transformational year for American Express. We made fundamental changes to our business models, increased our financial strength, and enhanced our ability to generate growth over the moderate to long term. 

Given the challenges we faced throughout 2001 and 2002, our organization has become stronger. Our sense of urgency has increased, but we have not lost sight of our fundamental character in the process. 

We gained a great deal of momentum in 2002, both in terms of our financial performance, and in the actions we took in the marketplace to build competitive advantages, add and deepen customer relationships, broaden our array of products and services that offer superior value, and expand partnerships that benefit our customers. We are on the offense at a time when many of our competitors are distracted with the pressures of the difficult environment or are dealing with some fundamental questions about their business models or practices. 

Overall, we adapted well to the challenging environ- ment. Nevertheless, we started 2003 with the same cautious views that we held in 2002, and we expect continued uncertainty in the economy, consumer con- fidence and the financial markets. In addition, we face the prospect of war in Iraq and other geopolitical uncertainty, which could have a negative impact on the economy and our business. 

While I am not optimistic about a recovery in the economy during 2003, I remain very optimistic about our future for a number of reasons, including: the strength and flexibility of our business models; the range of growth opportunities we have and the priority we have placed on pursuing them; and the talent and direction of our organization. I believe these elements will enable us to win in the marketplace and to deliver strong, long-term value to our shareholders. 

Sincerely, 

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FEBRUARY 24, 2003 

