American Express Bank Ltd., the international banking arm of American Express Co., is realigning its operations according to products rather than geographic units.
The company announced this week that it will divide operations into three categories - correspondent banking, commercial banking, and private banking - and has named Robert V. Sicina president.
Mr. Sicina and Steven D. Goldstein, chairman and chief executive, will jointly share responsibility for the reorganization, which is expected to be completed this year.
Chartered in Connecticut in 1919, American Express Bank has $13 billion in assets but is only allowed to operate outside the United States. It has long been run as a series of semi-autonomous entities in different countries around the world.
In a telephone interview, Mr. Sicina said the reorganization will not "automatically" lead to any cuts in the bank's 4,000 employees but will likely result in a further reduction in assets. The bank may withdraw from some activities such as lending to government agencies, he said.
"We intend to be a niche player, focusing on banks and wealthy private customers," he said. The bank will mainly direct future expansion to developing markets in Asia, Latin America, and Eastern Europe, he added.
American Express Bank lost heavily on lending to developing countries in the 1980s. It began reorganizing four years ago in an effort to reduce risks. Analysts said the latest reorganization is aimed at improving earnings and comes as part of a broader reengineering of American Express Co.
"It's consistent with what's going on at the rest of American Express and part of a slimming down of the operation so that expenses fit the revenue stream and they can meet their earnings per share growth rate target," said Susan Roth, an analyst with Bear Stearns & Co.
Mr. Sicina, a 20-year veteran of Citicorp, joined American Express Bank in 1992 and subsequently served as chief financial officer and managing director.
American Express Bank this week also named Bill Blomquist, former managing director for Europe, Middle East, and Africa as managing director for worldwide correspondent banking. Barry Brokaw was named head of private banking and Lach Hough was given responsibility for commercial banking.
