Amex Bank (American Express Bank)
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
American Express Company (NYSE: AXP) is a global financial services giant that was established in 1850. Amex Bank (American Express Bank) is a key component in the Dow Jones Industrial Average (DJIA). Amex is renowned for its credit card, charge card, and traveler’s checks businesses. The total assets of Amex as on 2008 were more than $126 billion and the bank had a client base of more than 67,000 professionals worldwide.[br]
Amex Bank (American Express Bank): A Brief History
American Express Company was a pioneer in the US express delivery businesses in the 1850s. American Express revolutionized the US postal network and this acted as lifeblood for the nation’s growing economy. The network of expressmen on horseback and driving stagecoaches delivered tons of mail, parcels, gold and currency through the length and breadth of the US.
In 1882, American Express launched its money order business and introduced the world’s first traveler’s check in 1891. In 1895, the institution opened its first overseas branch in Paris. In 1896, American Express had a London office in Waterloo Place. By 1910, the bank’s operations spread across Europe in Southampton, Liverpool, Berlin, Rotterdam and Naples. In 1904, the Rotterdam office started the group’s first overseas commercial banking operations.
Back in the US, the Immigration Department awarded a contract to American Express in 1905 to provide official currency exchange services to the wave of immigrants coming into New York. Amex built its offices in Ellis Island in New Jersey.
Amex survived the World Wars and the Great Depression of 1929 and launched its charge card services in 1958. It became an instant success with customers. Taking cue from this, the bank launched its American Express Gold Card in 1966. Within ten years, the card business was growing steadily and generating a healthy profit. And, to the surprise of many, so was the company’s traveler’s check business.[br]
In the 1970s, Amex became a global conglomerate with operations in many foreign lands. During the next several years, the company made several large acquisitions, including Shearson Loeb Rhoades, First Data Resources, Trade Development Bank, Lehman Brothers Kuhn Loeb and Investors Diversified Services.
In 1986, Amex’s earnings exceeded $1 billion and more diversified businesses took shape. Amex survived 9/11 and the global credit crunch of 2008-2009 and has emerged stronger and more solid than before.
Amex Bank (American Express Bank): Credit Cards
Amex is known for its credit cards business. It provides credit cards for personal, small business, corporate and gift cards. Some of them are listed here:
· Gold Delta SkyMiles Credit Card
· Delta Reserve Credit Card
· American Express Gold Card
· Business Platinum Card
· The Plum Card
· American Express Classic Gift Card
