                         AMERICAN EXPRESS COMPANY

                                10/26/93

             10/25/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
American Expr   34.00   36-20   12/4   2.90   3.25 10.5   0.74  0.15


FS YR        Q1         Q2         Q3        Q4
Dec         March      June       Sept       Dec      Annual
XXX         XXXX       XXXX       XXXX       XXXX      XXXX

1994                                                    3.25E
1993        0.49A      0.83A      0.83A      0.74E      2.90E
1992        0.51A      0.63A     -0.45A      0.15A      0.88

  Stronger than expected Lehman results boost 3rd quarter above consensus by
$0.08.

  Analysts are raising estimates to reflect an improved outlook on Lehman.
Higher multiple businesses such as TRS are reporting earnings and fundamentals
in line with expectations.

  Card trends remain relatively lackluster, reflecting weak conditions
internationally, strong competition domestically, continued improvement in
credit quality.

  As the economy strengthens, investors will become increasingly selective in
financial services.  Analysts think MBNA continues to strengthen its growth
prospects in line with or ahead of the actual economic recovery.

1)  Investors have begun to rotate away from certain financial stocks, such as
those which will not benefit from an economic recovery in the U.S., or away
from those stocks which have benefited from wider than normal rate relationship
as interest rates have dropped.  In the case of the credit card industry, there
is evidence of higher spending per card, declining delinquencies, and
acceleration in card outstandings, all of which strengthen prospects more than
somewhat higher rates hurt. Further, selected card companies are benefiting
from market share shifts, a trend which we highlighted in our recent industry
study.  In the case of American Express, the international economic outlook
could stay relatively weak even as the domestic economy shows further signs of
strength.  Further, upward estimate revisions are strengthening on a somewhat
better outlook at Lehman, a portion of their business which is seemingly going
into the sharpest market rotation.

2)  Accordingly, the credit card industry is an excellent vehicle to benefit
from a stronger economy and certain companies are growing event faster through
market share strides.  In the case of American Express, its international
business continues to shrink with both cards in force and spending down year
over year, and continued pressure on discount rates abroad.  The rate of growth
in its billed business and spending new card decelerated to 8% in the third
quarter, and competitive pressures will continue to have an adverse effect on
the company's discount rate.  In the case of MBNA, which declined more than
$2.00 yesterday, it too has a stock yield of about 2.8%, but its receivable
growth has accelerated to the low 20's year over year, a domestic economic
recovery will improve prospects even further, and its international growth and
prospects is a potential "add-on".

