The FINANCIAL -- NEW YORK, June 28, 2018 -- American Express Company said on June 28, that the Board of Governors of the Federal Reserve System did not object to its adjusted capital plan submitted as part of the 2018 Comprehensive Capital Analysis and Review.
The plan included:
Increasing the Company’s quarterly dividend to 39 cents per share beginning with the third quarter 2018 dividend declaration, subject to approval by the Company’s board of directors;
Repurchasing up to $3.4 billion of common shares during the CCAR approval period of Q3’18 to Q2’19. This new authorization enables the Company to repurchase up to $1.6 billion of common shares in calendar year 2018, and up to an additional $1.9 billion in the first half of 2019.
The plan supports the Company’s objectives to restore capital to target levels while supporting asset growth and distributing capital to shareholders. As previously announced, the Company plans to resume share repurchases in the second half of the year.
The timing and amount of common shares purchased under the Company’s authorized capital plans will depend on various factors, including the Company’s business plans, financial performance and market conditions. Repurchase of common shares will be pursuant to the share repurchase program previously authorized by the Company’s board of directors on September 26, 2017.
As required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Company has also published on June 21, 2018 a summary of the results of the Company-run stress tests performed under the Federal Reserve’s severely adverse scenario. These disclosures do not reflect the capital plan described above, but reflect certain assumptions and capital actions as required under the Federal Reserve’s rules.