Ladies and gentlemen, thank you for standing by and welcome to the American Express First Quarter 2016 Earnings Call. At this time, all lines are in a listen-only mode. Later, there will be an opportunity for your questions and instructions will be given at that time. And as a reminder, this conference is being recorded. I'll now turn the conference over to Head of Investor Relations, Toby Willard. Please go ahead, sir.

Thanks, Cathy. Welcome. We appreciate all of you joining us for today's call. The discussion contains certain forward-looking statements about the company's future financial performance and business prospects which are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements are set forth within today's presentation slides and in the company's reports on file with the Securities and Exchange Commission. The discussion today also contains certain non-GAAP financial measures. Information relating to comparable GAAP financial measures may be found in the first quarter 2016 earnings release and presentation slides as well as the earnings materials for prior periods that may be discussed, all of which are posted on our website at ir.americanexpress.com. We encourage you to review that information in conjunction with today's discussion. Today's discussion will begin with Jeff Campbell, Executive Vice President and Chief Financial Officer, who will review some key points related to the quarter's results through the series of presentation slides. Once Jeff completes his remarks, we'll move to a Q&A session. With that, let me turn the discussion over to Jeff. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, thanks, Toby, and good afternoon, everyone. Overall, our first quarter results were consistent with the expectations we've provided just last month at Investor Day. As a reminder, we closed our presentation at Investor Day by highlighting our focus on accelerating revenue growth, optimizing investments and resetting our cost base. In addition, I made some specific remarks about Q1, including updates on volume trends and several significant quarterly items such as the close of the JetBlue portfolio sale and the modest restructuring charge, all of which came in about as we expected, and all of which I will…

Great. Thanks, Jeff. As a reminder, our ongoing goal is to provide a greater opportunity for more analysts to ask a question during the Q&A session. Therefore, before we open up the lines for Q&A, I will ask those in the queue to please limit yourself to just one question. Thank you for your cooperation in this process. With that, the operator will now open up the line for questions. Cathy?

Thank you. And our first question will come from Chris Brendler with Stifel. Go ahead, please. Christopher Brendler - Stifel, Nicolaus & Co., Inc.: Hey, thanks. Good afternoon. Thanks for all the detail on Costco and JetBlue. I guess, my one question would be, when you think about the growth rate in the second half of the year, you saw a little pickup this quarter. Do you think that the trends you're seeing in the business, the investments you're making, we can see the billed business continue to accelerate all else being equal? Or is it too early to say at this point? And also when it comes to the international markets, what do you expect to the interchanges in the EU, has that had the impact on billed business at this point? Or is it only on the interchange on the discount revenue side? Thank you. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Thanks, Chris. A couple of questions there. So, we tried last month at our Investor Day to lay out some level of detail, both our expectations for 2016 and 2017, as well as the really key initiatives that we are focused on in both the accelerating revenue side as well as the cost side to achieve those results. As I sit here this afternoon and talk about our first quarter results, as I said in my remarks, I'd say we're tracking with all the both initiatives we're focused on, and we're tracking with the expectations we laid out. You are correct that we feel good today about our efforts to accelerate growth, and we feel good, in particular, about some of our ability to put other AmEx cards into the hands of Costco co-brand Card Members. Clearly, in the second half of…

Thank you. Our next question will come from Craig Maurer with Autonomous Broker. Please go ahead.

Yeah. Hi. Thanks. Loan growth was definitely accelerated faster than we had expected. Could you talk about perhaps the breakdown of loan growth coming from new card holders versus growing lending balances with existing cardholders? And if there's any change in the credit profile of these incoming balances? Thanks. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Sure. Thanks for the question, Craig. Yeah, we do feel good about the last several years. I do want to keep coming back to our performance and our ability to grow our lending book, which is predominantly U.S. consumer, at rates above what you're seeing in the industry is not a new trend. It's something we've been doing for a few years. You've seen a modest increase in the differential between us and the industry, but the whole industry, as you know, Craig, has also trended up a little bit this year. When you look at the composition of the Q1 increases, as Doug Buckminster talked about it at Investor Day, it's about one-third coming from existing customers and about two-thirds from new customers. And when you look at the credit profile, we continue to feel really good about our success in achieving these growth rates some time ago, sustaining them, and doing it in a way that keeps our average credit profile quite consistent with our history. So we think there's a lot of reasons we've been able to do this, and there's a lot of reasons we should be able to continue to do it for a long time, when you look at the fact that we historically under-index on the portion of our own customers and people who look like our customers' borrowing behaviors. And so we think with our renewed focused on having the right products, the right marketing, the right offers, out in the marketplace to better attract our fair share of those behaviors that we have a long runway to continue to achieve the kind of performance you saw in Q1.

Thank you.

Thank you. And we'll go next to Sanjay Sakhrani with KBW. Go ahead, please. Sanjay Sakhrani - Keefe, Bruyette & Woods, Inc.: Thank you. Good evening. So, just a question on the new account conversion, the spending, that seems a little bit slower than years past. And I was just wondering is that because of the core shrinking kind of offsetting that? Or is it just that those new accounts aren't converting the spending as quick as in the past? And then just a very quick clarification on the caution, Jeff, that you cited in the second half. Is that just that those Costco card holders that have new AmEx card products stopped using that product or are there other items that we should be considering? Thanks. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Two good questions, Sanjay. I think when you look at the cycle, if you will, from when you put a new card into someone's hand to when it begins to get used, when for those who are going to be revolvers, balances begin to build up, there is a historical average that would probably cause us to say you're going to see the real meaningful financial impact begin to – or positive financial impact begin to happen more in the second year and third year, partly driven by the fact that historically in the industry we have a range of incentives and offers that go with the card acquisition. In the current competitive environment, I would say that's true now. So one of the factors, as you think, Sanjay, about some of the comments we've made about being very focused on seeing acceleration in our revenue growth, adjusting for Costco, in the back half of the year is as we just look…

Thank you. Our next question is from Bob Napoli with William Blair. Go ahead, please. Bob P. Napoli - William Blair & Co. LLC: Thank you. The OptBlue program and other merchant expansion programs, as you said, Jeff, have been a huge initiative for American Express. Can you give us some feel for the uplift in spend that you're seeing from the merchant expansion efforts that you're making in the U.S. and in other markets and any update on your progress. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: So let me focus, Bob, mostly on the U.S. You're correct. We're rolling out programs similar in spirit to OptBlue in various other countries. They have to vary because the acquiring landscape, the regulatory landscape varies in every country, but those programs tend to be newer than OptBlue which we've now been at for a couple years. That said, we've said from the beginning that it's a multi-year effort to get to where we want to get to with OptBlue. One of the targets we laid out for the first time at Investor Day, you know, Bob, a few weeks ago, was saying we think we can get to parity coverage in the U.S. by 2019. And I think we're always cautious in saying you have to get to parity coverage in reality first, and then you have to also take some time to let the perception of that coverage also catch up to the reality. So this is a long game we're playing. We are pleased with how it's going in terms of our ability at this point to say we have merchant acquirers who are part of the program who basically cover 99% of the merchants in the U.S. Not all of those acquirers, though, a…

Thank you. We'll go next to Rick Shane with JPMorgan. Go ahead, please.

Hey, Jeff. Thanks for taking my question this afternoon. The 3 million new account number that you cite, I assume, is a gross number. And I'd like to parse that a little bit. You made the comment that if there's about 2.1 million domestic and that that number is being influenced by the conversion of some of the Costco customers. As I recall, there were about 10 million accounts. So I'd love to get a sense of where you stand, sort of how far along you think you are in potentially converting those customers so that we get a sense of how much of that's organic growth versus how much is retention of those existing customers. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, that's a good question, Rick, and I think you're probably not surprised to say I'm a little cautious about giving you precise numbers right now for competitive reasons. But let me try to help you and others think a little bit about the magnitude here. We showed a slide, not this quarter but I think the last two quarters a little bit of his – two quarters ago, with a little bit of history on card acquisitions and you're right. These are gross numbers. We don't net out attrition through attrition hasn't changed a lot the last couple of years. There's some lumpiness and attrition because there are times when we'll embark on a program where we take inactive accounts and terminate them. But attrition materially hasn't changed much in a few years. So that slide two quarters ago will give you a little bit of a sense for some of the historical numbers to compare that 2.1 million to. And as I said in my remarks, some good portion of the…

Okay. And in the context of the idea that you want to convert existing charge card customers to borrowers, when a card customer elects to have the option to pay over time, does that count as a new card? Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, I think – so you're correct, Rick. If you are a charge card holder we have a product, we call LOC, lending on charge, that allows you to carry a balance. And some portion of our loan growth comes from our probably renewed focus on both marketing that product, making it easy for our customers to use, and some of our customers really like that. That would not count as a new card. But it is one of the things – one of the many things we're doing to help drive a little higher growth in our loan balances. I think it is important to point out though, Rick, another change though you have seen really over the last couple of years is a little bit of a renewed focus by us on making sure we also have the right lending-oriented products. And I think the launch of the EveryDay card is a good example of that in recent years. Clearly, there's a lot of focus these days on the cash-back market and we think our Blue Cash card is a very competitive and generally lending-oriented card in that space. So, yeah, we talk a lot about the breadth of our product line and we really believe in the breadth of our product line, because it allows us to have many different kinds of value propositions so we can reach out to many different segments of the marketplace. And I think our efforts around lending, whether it be what we're doing for charge Card Members through LOC, or some new products like EveryDay, or some products that have been around for a little while like Blue Cash are all manifestations of that strategy of having a very targeted and broad product strategy.

Great. Jeff, thank you, as always for the time.

Thank you. And our next question will come from David Ho with Deutsche Bank. Go ahead, please.

Hey. Thanks for taking my question. Circling back on, again, the variability and your ability to forecast customer behavior in the second half of the year, and really getting to the Costco card that has been offered, the replacement card, was the value proposition that meaningfully different than what you were expecting? And how does that impact the range of rewards and investment spend as part of your strategy? Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, let me maybe, David, make a few comments. I don't want to make too many specific comments about a competitor's product. I would point out though that obviously we were quite engaged in negotiations with Costco ourselves. And as part of any co-brand negotiations, you talk a lot about the value proposition as part of the negotiation. So I don't think we were particularly surprised. I'd make a few other points, though, and I'm going to go back actually to something I just said in response to Rick. We really focus on and think a strength of ours is the breadth of our product line and the way that allows us to have different value propositions for different segments of the market. There is not one cash-back market. There's not one rewards market. There's lots of different customer segments, and they value different things. The Citi Costco product will be a good product that will appeal to a certain demographic, a certain segment. I would point out it's sort of a cash-back product. You can actually only use it, including our co-brand card, at Costco in terms of the rewards. And if you look at our cash-back portfolio, the Blue Cash product, we feel really good about that value proposition. It has been a real – one of the…

Okay. That's very helpful. And then your comments about the rewards and kind of the diversity of your programs versus the industry, what do you think are some of the key enhancements? We've seen some merchant-funded rewards that are obviously enabled and facilitated by your closed loop. You've seen a little bit on the coalition rewards. Does part of the strategy entail making certainly the spend activity and lend activity from every dollar of rewards more meaningful than your competitors? Is that something that you're focused on, not just the earn rate? Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, I think, David, that's a good question. I think I'd actually broaden your statement a little bit. So in our experience, customers make decisions for many different reasons and value different things. And we really try to focus on both having different products that target what each customer segment most values and trying to think about and really leverage the things that we can most uniquely offer. So the strength of our brand is the first thing I think you always have to start with, which is the strength of our brand and its reputation for high-level service, and trust, and really taking the side of our customers is something that I think is hard for others to match, and we think is something that allows us to appeal to customers as something that is difficult for a competitor to copy. When you look at the rewards oriented customer, the breadth and depth and size of our membership rewards program allows us to offer a range of ways for people to use what's really an alternative currency in some way. It is very difficult for others to match, because they just don't have the size and scale of the program we have. When you look at our closed loop network, you're correct. It allows us to do some things on the offer side in particular not only do some things that are merchant funded, but also do some things that use our evolving big data capabilities to be very targeted in ways that are difficult for others to match. We have the lowest fraud rates in the industry, which is part – one part of the advantages of our closed loop, very difficult for others to match. So I could go on, and we should go on to the next question, but the point I'm trying to make is we are all about trying to think about the unique things we can offer to a customer that derive from our unique position as a closed loop global network with a great brand and great reach, rather than just say this is about mathematically competing on one particular aspect of a card's economics.

Great. Thank you.

Thank you. Our next question comes from Moshe Orenbuch with Credit Suisse. Go ahead, please. Moshe Ari Orenbuch - Credit Suisse Securities (USA) LLC (Broker): Great. Thanks. Jeff, you clearly spent a lot of time thinking about the revenue and spend and lend contribution from Costco. Could you give us a sense, maybe even if it's not a precise number, as to how much of the remainder is actually due to those customers that have taken an AmEx card in replacement of the Costco card? And therefore, what it might have – what benefit it might have been to the company's growth in the first quarter. And similarly, did you also analyze what the leap year impact was on this year's – on the acceleration of the growth rate? Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Yeah. So two good questions, Moshe. So the leap year, there's a little bit of arc but obviously it's somewhere around 1% in terms of billings. You could have an interesting discussion about customer behaviors, so there's an extra day in a month, but it's probably somewhere around 1%. You have other year-over-year factors as you think about the quarter as well. I would point out you have lower gas prices, we're particularly T&E oriented probably more than most, so lower airline ticket prices in my old industry probably impact us as well. When you think about Costco, as I said in my remarks, when you look at the incremental cards we're acquiring, a significant portion of the increment is driven by those efforts but other AmEx products into the hands of Costco co-brand Card Members. I don't want to be more specific for competitive reasons beyond that. What I would say is that's also part of what drives our statement as I said earlier that we'd expect as you get into the back half of this year and next year, a little bit further uptick in the financial metrics, because as we put those cards in the hands of people, it does take some time before you really see a meaningful financial impact, you've got to put the card in people's hands. They slowly start to build spend, lend takes a while to build, et cetera. So those are probably the added comments I would make about our Q1 metrics, Moshe. Moshe Ari Orenbuch - Credit Suisse Securities (USA) LLC (Broker): Okay. Thanks.

Thank you. And we'll go next to James Friedman with Susquehanna. Go ahead, please.

Hi. I just wanted to ask about the target, the eventual parity in merchant acceptance. Is all of that incremental parity going to come through OptBlue? And would it make sense at some point to re-compete part of the GMS portfolio with outsourced merchant acquirer processing? Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, let me – again, let me make sure I know exactly where you're going with the question. The answer to the first part is pretty straightforward. Yes. When you look at our coverage today versus that of the two dominant networks, it's really – the gap is all about small merchants for the most part with very rare exceptions like Costco which only accepts AmEx today. And medium and large size merchants generally we deal with directly and our coverage is pretty much at parity. So it's really all about the small merchants, and that's where we clearly concluded that we need the arms and legs and help of the third-party merchant acquirers to reach the many, many, many millions of small merchants where there is a fair amount of churn as well to get them into our network. That's also why as we just look at the sheer math the fact that we now have agreements with merchant acquirers who cover 99% of the merchants in the U.S., we feel pretty confident in saying it's a matter of time before they are able to put us into all of those merchants. So that's the logic behind OptBlue and how the small merchants fit in with the medium to large merchants. So the question is, are we learning anything in OptBlue that would cause us to change our view about the direct connections we have with the larger merchants? I would say the short answer is no. We really value those connections. I think the merchants value them. We are able because of the closed loop – this goes to some of the comments I made earlier we think to bring some value to those relationships that are not always easy for others to match and so we very much want to keep those connections.

Thank you.

Thank you. Our next question is from Matthew Howlett with UBS. Go ahead, please.

Thanks. Jeff, just a clarification on the provision for loan losses. Has the reserve release fully come out of the Costco sale now? Just want to get a starting point in terms of how we think about building provisions going forward once the Costco is out and that 12% adjusted that you kind of – will we see any more reserve releases? Is that part of the $1 billion gain? And where should we look at the starting point for that? And then just one follow-up on just interest rates, how do we think about that in your guidance? Thanks. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: So, let me make sure I – jump in if I don't quite answer this or your whole question. But I think you're just after – if you look at Costco, the provision now all appears down in OpEx and is treated in effect as a valuation allowance against the held-for-sale portfolio that is on the balance sheet net, if you will. So that's why in the [storage] slides we had kind of a left-hand side which shows you the GAAP numbers, and the right-hand side were to provide you comparability if we stripped all the Costco-related provision out of the prior year, because that should give you a very clean view into the run rate that you will see beginning in the third quarter, because that will be the first quarter where the Costco portfolio was gone for the entire quarter. So I think if you just trend off that right-hand side of the slide, that should give you a pretty clean view into Costco. And I think your second question was around interest rates?

Right, yes, just – yeah, the outlook there, are you just looking at the forward curve, and is that kind of all there is to it? Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: You know, we certainly don't profess to have any view that others don't that allows us to forecast interest rates. I'd also remind you of two things. Because our company economics are 75% to 80% discount revenue and fee revenue driven, we are far less interest rate sensitive than our competitors and peers, and because of our charge card franchise, we're the opposite of most of our peers in that a rising interest rate environment is not positive for us. That said, if you looked to Q1, the reality is it takes a while for particularly our funding rates to adjust much, so I would guess that the Fed's December rate rise was probably pretty neutral for us on balance in Q1. I don't think it really had a material impact one way or the other.

Great. Thanks, Jeff.

Thank you. And our next question is from Don Fandetti with Citigroup. Please go ahead.

Yes, Jeff, do you have any updated thoughts on the timing of the DOJ case? I know there was some talk around it at the Investor Day. And then in relation to that, how should we think about your 2017 guidance? Do you have enough cushion built in should you lose that case, or is it more of a long-term issue where we don't need to worry about that for guidance? Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, in terms of the case, I'd say we could hear anywhere from tomorrow morning to a year from now. There's just no way to know really what the timeline is, the appellate court finished their hearings some months back. As you recall, very importantly, and very unusually, after or around the hearing, they chose to reinstate a stay on the district judge's order. That's quite unusual for a court to do. But we'll have to see where the opinion comes out and as I said we really just have no insights into the timing. You know, is it contemplated in our 2016 and 2017 outlook? Obviously, we'll have to see what the judge says. I guess I'd make a couple of comments. One, the district judge's order was fully implemented for some number of months until the appellate court put a stay back on it. So it's not – there you certainly didn't see any immediate impact in that instance. And clearly, we wouldn't be fighting this case and going to court with the federal government if we didn't think there was a very important and fundamental issue at stake here. I would say it's a very important and fundamental long-term issue.

Okay. I got the sense at the Investor Day that was more of a – you thought you could hear something in the very short term, but I guess that's not the case. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, yeah, that was some weeks ago and we haven't heard a word. And truly we have no insights into when the court might issue. I'm not even sure we get any advanced notice. I think they just posted to their website. We see it as others see it, so...

Thank you.

Thank you. We have a question from Bill Carcache with Nomura. Go ahead, please.

Thank you. Good evening. Hi, Jeff. I was hoping that you could help us think through the Costco gain in a little bit more detail. And I guess when we think about this quarter, we saw that JetBlue gain was entirely offset by marketing and promotion. And that seems very consistent with how AmEx has handled similar types of gains in the past. But as we look ahead at Costco, that's going to be a much larger gain. And you also said that you were going to be spreading out your investment spending more evenly. So should we, putting those pieces together, conclude that we're going to see potentially a bigger portion of the Costco gain next quarter drop to the bottom line? And maybe you'll kind of save some of the reinvestment opportunity for later quarters? Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: So, Bill, I think you got it just right. Just to confirm, and I'd play back what you said using slightly different words. So, yes, we expect the Costco gain to come in, in June, approximately $1 billion. Unlike previous years, we are spreading across evenly throughout the year our investment or growth-oriented spend, the biggest chunk of which appears in marketing and promotion. So to be very granular, that means that if you just look at our marketing and promotional line for all of 2016, you should expect it to look about like it did in 2015. And in fact, you just saw us in Q1 raise Q1 closer to an average level that you will see across the next three quarters. So that's what you'll see on the marketing and promotional line. And so really, the gain will mostly, to your point, fall to the bottom line in the second quarter although I do think there's one other important caveat to remind people, which is we do expect more restructuring charges, including some, hard to quantify right now, in the second quarter and those would be some incremental offset to the gain as well. And those restructuring charges, just to be crystal clear, because of the challenge in trying to estimate them, we have, as we provided our $5.40 to $5.70 EPS outlook, said that excludes all restructuring charges this year, just to give you a clearer, cleaner view into the performance of the company.

That's great. Thank you. And maybe if I could dovetail off of Rick's question earlier. Could you also add what customer acquisition costs looked like relative to history? I just wanted to follow up with that and that's it. Thank you very much. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Yeah. I guess a way, if you – the way to think about that, Bill, would be to say if you go to Investor Day, I made the point that as you roll into 2017, you should expect to see our marketing and promotional costs come down $200 million to $400 million. And most, though not 100%, but most of our customer acquisition costs appear in that line. And so that gives you maybe some rough sense of the level of elevation. If that line is $3.5 billion this year and you're talking about a $300 million, let's pick a midpoint, decrease that says maybe you're coming down 10% next year, which also implies that you're sort of elevated 10% this year. So it's an important increment in light of the goal we have around the spend and lend of the Costco co-brand Card Members. It's an important percentage in terms of the competitive environment. But I think sometimes people overplay just how big that increment is as we get ever more efficient with our acquisition efforts every year, and I made the point that two-thirds of our consumer acquisitions in Q1 were digital. It's those kind of statistics that would give us confidence that we can continue to edge that number down without seeing a significant impact on our acquisition efforts.

Thanks, Jeff.

And I think we have time, Cathy, for just one more question.

Thank you. That will come from Mark DeVries with Barclays. Please go ahead.

Yes, thanks. I was hoping to get a little bit more color and commentary around the economics of the Cash Blue card, which sounds like it's a pretty meaningful contributor here to loan growth. And also the impact on rewards costs if you factored in cash-backs, I believe you treat those as a contra-revenue. And the reason I'm asking is because it seems like it has the potential to be maybe the most expensive product you have if customers look to optimize. I'm just looking at the current offer and it's 0% on balances for the first 12 months, 10% cash-back on wireless phone service, 6% on supermarket spend, and 3% on gas. So, if a customer really optimized, you could have cash-back expense far in excess of what your blended discount rate is. So, just interested to hear your thoughts on that. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Well, I'm going to go back a little bit, Mark, to some of my earlier comments about what we try to do at American Express with all of our products is leverage all of the attributes of the company and our brand. And so, we are not particularly trying to target, to use your term, the gamers. And in fact, we'll work a little bit to specifically not attract the gamers. So, we feel pretty good, I would say, on balance about the economics of the Blue Cash card. And certainly one of the things we watch is the overall portfolio of consumer cards that we have in the U.S. or for that matter in any market. And so when you look at our card acquisitions, yes, the Blue Cash card has been a particular important acquisition engine in recent quarters, but I'd point out to…

Okay. Thanks. Jeffrey C. Campbell - Chief Financial Officer & Executive Vice President: Thanks, Mark.

Great. Thanks, everybody, for joining the call tonight, and we appreciate your continued interest in American Express. That's all for us, Cathy.

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for choosing AT&T Executive Teleconference. You may now disconnect.