Clarification: Amex Bank of Canada not affected by sale of American Express Bank to Standard Chartered Bank

    MARKHAM, ON, Sept. 18 /CNW/ - Amex Bank of Canada, which provides card
payment products and services for consumers and companies in Canada, is not
affected by an announcement earlier today that American Express has agreed to
sell its international banking subsidiary American Express Bank, Ltd (AEB) to
Standard Chartered Bank.
    American Express in Canada operates as Amex Bank of Canada and Amex
Canada Inc. Both are wholly-owned subsidiaries of American Express Travel
related Services Company, Inc., the largest operating unit of American Express
    American Express Bank, Ltd, provides private banking and correspondent
banking services in a number of international markets. The sale of AEB will
not include any of Amex's card or travel businesses internationally, nor
international financial services businesses that operate separately from AEB.

    Media contact:

    David Barnes,
    (905) 474-8012,


    Following is a copy of the US announcement that went out earlier today.


    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
    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.
    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 ( is a leading global
payments, network and travel company founded in 1850.

    Media contacts:

    Mike O'Neill

    Susan Atran

    Robert Glick (London)
    +44 207 931 5894


    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.

For further information:

For further information: Media contact: David Barnes, (905) 474-8012,

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