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American Express Company

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American Express' risk of below-average long-term growth in 2016 led by higher expected loan loss provisions,stiff competition, strong U.S. dollar, loss of Costco client, higher expected expenses and regulatory compliance raise concerns. The company is also exposed to the risk of any adverse ruling in the ongoing legal case with Department of Justice. Also co-brand renewal costs are likely to pressure EPS growth over the next year. The company is, however, set to grow over the long term from a secular shift towards digital payment methods. Its spend-centric business model, improved credit profile, new business initiatives and products would drive returns.

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