American Express (AXP) is a globally integrated payments company that provides a wide range of financial products and services, including credit and charge cards, banking, and other payment and financing products **[0000004962-24-000013_axp-20231231.htm:190]** **[0000004962-24-000013_axp-20231231.htm:75]** **[0000004962-24-000013_axp-20231231.htm:4]**. The company also offers merchant acquisition and processing services, network services, travel and lifestyle services, and expense management products **[0000004962-24-000013_axp-20231231.htm:75]** **[0000004962-24-000013_axp-20231231.htm:4]** **[0000004962-24-000068_axp-20240930.htm:1]**. American Express operates through four primary reportable operating segments, focusing on premium consumer and small business segments as key growth areas due to their higher spending and better credit performance **[AXP_3381666_16]**.

1. **U.S. Consumer Services (USCS)** - Offers credit and charge cards, banking, and payment products to U.S. consumers, focusing on premium services and benefits.
2. **Commercial Services (CS)** - Provides payment and financing products, expense management solutions, and other services to small and large businesses.
3. **International Card Services (ICS)** - Delivers credit and charge card products and services to consumers and businesses outside the U.S.
4. **Global Merchant and Network Services (GMNS)** - Facilitates transactions between card members and merchants, offering merchant acquisition, processing, and network services.

ee905b83e35ec28b8b8d62f76e97d40166ba17dae05c47242d8c98e5ae48325b

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

c68687fe2695aa4fed8c0df8ed5060b08e561a73ba57a85afc10489095419118

| Metric / Period | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Net write-off rate — principal, interest and fees (%)** | **1.3%**    | **1.7%**  **[0000004962-23-000016_axp-20230331.htm:8]**  | **2.0%**  **[0000004962-23-000028_axp-20230630.htm:11]**  | **2.0%**  **[0000004962-23-000038_axp-20230930.htm:10]**  | **2.2%**  **[0000004962-24-000008_q423exhibit992.htm:4]**  | **2.3%**  **[0000004962-24-000031_axp-20240331.htm:9]**  | **2.4%**  **[0000004962-24-000052_axp-20240630.htm:11]**  | **2.2%**  **[0000004962-24-000068_axp-20240930.htm:11]**  |
| **Net write-off rate — principal only — consumer and small business (%)** | **1.1%**  **[0000004962-23-000004_q422exhibit992.htm:6]**  | **1.6%**  **[0000004962-23-000016_axp-20230331.htm:8]**  | **1.8%**  **[0000004962-23-000028_axp-20230630.htm:11]**  | **1.8%**  **[0000004962-23-000038_axp-20230930.htm:10]**  | **2.1%**  **[0000004962-24-000008_q423exhibit992.htm:9]**  | **2.1%**  **[0000004962-24-000031_axp-20240331.htm:9]**  | **2.1%**  **[0000004962-24-000052_axp-20240630.htm:11]**  | **1.9%**  **[0000004962-24-000068_axp-20240930.htm:11]**  |
| **30+ days past due as a % of total — consumer and small business (%)** | **1.0%**  **[0000004962-23-000002_axp-20230117.htm:1]**  | **1.2%**  **[0000004962-23-000016_axp-20230331.htm:8]**  | **1.2%**  **[0000004962-23-000028_axp-20230630.htm:11]**  | **1.2%**  **[0000004962-23-000038_axp-20230930.htm:10]**  | **1.3%**  **[0000004962-24-000008_q423exhibit992.htm:9]**  | **1.3%**  **[0000004962-24-000031_axp-20240331.htm:9]**  | **1.2%**  **[0000004962-24-000052_axp-20240630.htm:3]**  | **1.3%**  **[0000004962-24-000068_axp-20240930.htm:11]**  |
| **Billed business (billions)** | **$357**  **[AXP_3184475_0]**  | **$345.5**  **[0000004962-23-000015_q123exhibit992.htm:1]**  | **$426.6**  **[0000004962-23-000027_q223exhibit991.htm:1]**  | **$366.2**  **[0000004962-23-000038_axp-20230930.htm:9]**  | **$379.8**  **[0000004962-24-000008_q423exhibit991.htm:1]**  | **$367.0**  **[0000004962-24-000029_q124exhibit991.htm:1]**  | **$388.2**  **[0000004962-24-000051_q224exhibit991.htm:1]**  | **$387.3**  **[0000004962-24-000067_q324exhibit991.htm:1]**  |
| **Proprietary cards-in-force (millions)** | **76.7**  **[0000004962-23-000004_q422exhibit992.htm:2]**  | **78.0**  **[0000004962-23-000015_q123exhibit992.htm:1]**  | **79.3**  **[0000004962-23-000027_q223exhibit992.htm:2]**  | **79.6**  **[0000004962-23-000037_q323exhibit992.htm:2]**  | **80.2**  **[0000004962-24-000008_q423exhibit992.htm:2]**  | **81.1**  **[0000004962-24-000029_q124exhibit992.htm:1]**  | **82.1**  **[0000004962-24-000051_q224exhibit992.htm:3]**  | **82.9**  **[0000004962-24-000067_q324exhibit992.htm:3]**  |
| **Proprietary basic cards-in-force (millions)** | **59.1**  **[0000004962-23-000006_axp-20221231.htm:5]**  | **29.7**  **[0000004962-23-000027_q223exhibit992.htm:6]**  | **61.0**  **[0000004962-23-000027_q223exhibit992.htm:2]**  | **61.2**  **[0000004962-23-000038_axp-20230930.htm:9]**  | **61.7**  **[0000004962-24-000008_q423exhibit992.htm:2]**  | **62.3**  **[0000004962-24-000031_axp-20240331.htm:8]**  | **63.1**  **[0000004962-24-000051_q224exhibit992.htm:3]**  | **63.7**  **[0000004962-24-000067_q324exhibit992.htm:3]**  |
| **Average proprietary basic Card Member spending (dollars)** | **$6,087**  **[0000004962-23-000004_q422exhibit992.htm:2]**  | **$5,792**  **[0000004962-23-000016_axp-20230331.htm:7]**  | **$6,075**  **[0000004962-23-000027_q223exhibit992.htm:2]**  | **$6,000**  **[0000004962-23-000038_axp-20230930.htm:9]**  | **$6,179**  **[0000004962-24-000008_q423exhibit992.htm:2]**  | **$5,919**  **[0000004962-24-000031_axp-20240331.htm:8]**  | **$6,192**  **[0000004962-24-000051_q224exhibit992.htm:3]**  | **$6,110**  **[0000004962-24-000067_q324exhibit992.htm:3]**  |
| **Net interest yield on average Card Member loans (%)** | **10.8%**  **[0000004962-23-000004_q422exhibit992.htm:10]**  | **11.3%**  **[0000004962-23-000015_q123exhibit992.htm:8]**  | **11.2%**  **[0000004962-23-000027_q223exhibit992.htm:10]**  | **11.7%**  **[0000004962-23-000038_axp-20230930.htm:11]**  | **11.7%**  **[0000004962-24-000008_q423exhibit992.htm:11]**  | **12.0%**  **[0000004962-24-000029_q124exhibit992.htm:9]**  | **11.7%**  **[0000004962-24-000052_axp-20240630.htm:12]**  | **12.0%**  **[0000004962-24-000068_axp-20240930.htm:12]**  |
| **Network volumes (billions)** | **$413.3**  **[0000004962-23-000004_q422exhibit992.htm:3]**  | **$398.9**  **[0000004962-23-000015_q123exhibit991.htm:1]**  | **$426.6**  **[0000004962-23-000027_q223exhibit991.htm:1]**  | **$420.2**  **[0000004962-23-000038_axp-20230930.htm:9]**  | **$434.4**  **[0000004962-24-000008_q423exhibit992.htm:2]**  | **$419.2**  **[0000004962-24-000031_axp-20240331.htm:8]**  | **$440.6**  **[0000004962-24-000051_q224exhibit992.htm:3]**  | **$441.0**  **[0000004962-24-000067_q324exhibit992.htm:3]**  |
| **Processed volumes (billions)** | **N/A** | **N/A** | **$58.5**  **[0000004962-23-000027_q223exhibit992.htm:2]**  | **$54.0**  **[0000004962-23-000038_axp-20230930.htm:9]**  | **$54.6**  **[0000004962-24-000008_q423exhibit992.htm:2]**  | **$52.2**  **[0000004962-24-000029_q124exhibit992.htm:1]**  | **$52.4**  **[0000004962-24-000051_q224exhibit992.htm:3]**  | **$53.7**  **[0000004962-24-000067_q324exhibit992.htm:3]**  |
| **Proprietary new cards acquired (millions)** | **3.0**  **[AXP_3184475_0]**  | **3.4**  **[0000004962-23-000015_q123exhibit991.htm:1]**  | **3.0**  **[AXP_3383996_6]**  | **2.9**  **[AXP_3337886_5]**  | **2.9**  **[AXP_3370979_3]**  | **3.4**  **[0000004962-24-000031_axp-20240331.htm:4]**  | **3.3**  **[0000004962-24-000052_axp-20240630.htm:5]**  | **3.3**  **[0000004962-24-000068_axp-20240930.htm:5]**  |

5e3ece48ea729f76438dbba8ea8d2637813c9d8af4be65d5cad861643b53b414

| Segment/Quarter                          | Q4 2022  **[0000004962-23-000004_q422exhibit992.htm:5]** **[0000004962-23-000004_q422exhibit992.htm:5]**  | Q1 2023  **[0000004962-23-000016_axp-20230331.htm:68]** **[0000004962-23-000015_q123exhibit992.htm:3]**  | Q2 2023  **[0000004962-23-000028_axp-20230630.htm:79]** **[0000004962-23-000028_axp-20230630.htm:79]**  | Q3 2023  **[0000004962-23-000038_axp-20230930.htm:79]** **[0000004962-23-000038_axp-20230930.htm:79]**  | Q4 2023  **[0000004962-24-000008_q423exhibit992.htm:6]** **[0000004962-24-000008_q423exhibit992.htm:6]**  | Q1 2024  **[0000004962-24-000029_q124exhibit992.htm:4]** **[0000004962-24-000029_q124exhibit992.htm:4]**  | Q2 2024  **[0000004962-24-000051_q224exhibit992.htm:6]** **[0000004962-24-000051_q224exhibit992.htm:6]**  | Q3 2024  **[0000004962-24-000067_q324exhibit992.htm:6]** **[0000004962-24-000067_q324exhibit992.htm:6]**  |
|------------------------------------------|-----------------------|-----------------------|-----------------------|---------------------|---------------------|---------------------|---------------------|---------------------|
| **U.S. Consumer Services (USCS)**        | **$6,523 million**    | **$6,583 million**    | **$6,930 million**    | **$7,208 million**  | **$7,395 million**  | **$7,499 million**  | **$7,732 million**  | **$7,944 million**  |
| **Commercial Services (CS)**             | **$3,557 million**    | **$3,492 million**    | **$3,729 million**    | **$3,747 million**  | **$3,808 million**  | **$3,785 million**  | **$3,954 million**  | **$3,998 million**  |
| **International Card Services (ICS)**    | **$2,406 million**    | **$2,510 million**    | **$2,585 million**    | **$2,643 million**  | **$2,692 million**  | **$2,713 million**  | **$2,822 million**  | **$2,936 million**  |
| **Global Merchant and Network Services (GMNS)** | **$1,758 million**    | **$1,741 million**    | **$1,863 million**    | **$1,851 million**  | **$1,941 million**  | **$1,870 million**  | **$1,873 million**  | **$1,847 million**  |
| **Corporate and Other**                  | **$(68) million**     | **$(45) million**     | **$(53) million**     | **$(68) million**   | **$(37) million**   | **$(66) million**   | **$(48) million**   | **$(89) million**   |

605e683c049b8ad33a581bb34d8dfd3e5223a33db5194065f9515927d620e2ef

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Property, Plant, and Equipment (PP&E) [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Long-term Debt [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

04b1b1cca75035df02176cebdaf8662d43e8dcac0d150a302d8850ab9284b8de

1. Given that billing growth has remained at around 6% for the past year, what specific strategies are you implementing to achieve your aspirational goal of 10% revenue growth, especially in a softer spending backdrop?  **[AXP_3403068_8]** **[AXP_3403068_9]** 

2. If billing growth does not accelerate, how sustainable is your mid-teens EPS growth target, and what other drivers can you leverage to maintain this growth in a challenging economic environment?  **[AXP_3403068_8]** **[AXP_3403068_9]** 

3. Can you provide more details on the lifetime value and spending behaviors of customers as they move from Green to Gold to Platinum Cards, and how this progression impacts your overall revenue growth strategy?  **[AXP_3403068_15]** 

4. With your recent investments in dining platforms like Resy, Tock, and Rooam, how do you anticipate these acquisitions will contribute to restaurant spending growth, and should we expect an acceleration in this category despite the slight deceleration observed this quarter?  **[AXP_3403068_19]** **[AXP_3403068_3]** 

5. Given that you expect modest upward bias in delinquency and write-off rates as you grow lending through your premium customer base, how are you adjusting your risk management strategies to maintain strong credit performance and profitability?  **[AXP_3403068_5]** 

4b83edaeec44a8ccf11197e0933b275a5a450eb187d9db02d65e54351c3cf017

United States

EMEA

APAC

JAPA

LACC

Other Unallocated

Total Revenue

0cc93500921a0b58cd1b91cc1add586e77d90adacfe22d179665b308ebf2033c

U.S. Consumer Services

Global Consumer Services Group (GCSG)

- Total Non-Interest Revenues

- Interest Income

Commercial Services

International Card Services

Global Merchant and Network Services

Global Commercial Services (GCS)

Global Merchant and Network Services (GMNS)

Corporate & Other

U.S. Card Services (USCS)

International Card Services (ICS)

3331529243633ba657773eee75f7fa4b66084bce66052e6fff46962e5a98964c

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Growth**: Expect full-year revenue growth of around **9%**  **[AXP_3403068_7]** **[AXP_3403068_1]** .
  2. **Earnings Per Share (EPS)**: Raised full-year EPS guidance to between **$13.75 and $14.05**, reflecting 23% to 25% year-over-year growth  **[AXP_3403068_7]** **[AXP_3403068_1]** .
  3. **Marketing Spend**: Expect full-year marketing spend for 2024 to be around **$6 billion**  **[AXP_3403068_7]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Earnings Per Share (EPS)**: Raised full-year EPS guidance to a range of **$13.30 to $13.80**, including the $0.66 EPS impact from the sale of Accertify  **[AXP_3393633_1]** **[AXP_3393633_5]** .
  2. **Revenue Growth**: Expect revenue growth in line with the initial range of **9% to 11%**  **[AXP_3393633_1]** **[AXP_3393633_5]** .
  3. **Marketing Spend**: Anticipate full-year marketing spend to be around **$6 billion**  **[AXP_3393633_4]** **[AXP_3393633_5]** .
  4. **Credit and Provision**: Expect write-off rates to remain generally stable for the remainder of 2024  **[AXP_3393633_4]** .
  5. **Net Interest Income (NII)**: Expect growth rate of net interest income to moderate but remain in double digits  **[AXP_3393633_3]** **[AXP_3393633_17]** .
  6. **Operating Expenses**: Excluding the Accertify gain, expect operating expenses to be fairly flat compared to 2023  **[AXP_3393633_5]** .
  7. **Capital Management**: Plan to continue returning excess capital to shareholders with no material near-term changes expected  **[AXP_3393633_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Growth**: Reaffirmed guidance for full-year 2024 revenue growth of **9% to 11%**  **[AXP_3380111_1]** **[AXP_3380111_4]** .
  2. **Earnings Per Share (EPS)**: Set full-year 2024 EPS guidance between **$12.65 and $13.15**  **[AXP_3380111_1]** **[AXP_3380111_4]** .
  3. **Impact of Accertify Sale**: Guidance does not include the potential impact from the sale of Accertify, expected to close in Q2  **[AXP_3380111_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Growth**: Expect annual revenue growth between **9% and 11%**  **[AXP_3370979_5]** **[AXP_3370979_3]** **[AXP_3380111_4]** .
  2. **Earnings Per Share (EPS)**: Anticipate full-year EPS to be between **$12.65 and $13.15**  **[AXP_3370979_5]** **[AXP_3370979_3]** **[AXP_3380111_4]** .
  3. **Dividend Increase**: Plan to increase quarterly dividend to **$0.70 per share**, up from $0.60  **[AXP_3370979_1]** .
  4. **Reserve Rate**: Expect reserve rate to increase modestly through 2024  **[AXP_3370979_3]** .

5c0b40d9fa9ea690dfb1700d19cbeb53f93f32a3228d9b437e2888d8b802e3e9

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

35b1b22f5778ca133f5b1f34c17e4bd5ebaf9170e08c6aa2392907bbe75b8aaa

**Annual guidance for FY 2024:**
- **Revenue Growth**: 9%  **[AXP_3403068_7]** **[AXP_3403068_1]**  (lowered from 9%–11%  **[AXP_3393633_1]** **[AXP_3393633_5]** )  
- **Earnings Per Share (EPS)**: $13.75 to $14.05  **[AXP_3403068_7]** **[AXP_3403068_1]**  (raised from $13.30 to $13.80  **[AXP_3393633_1]** **[AXP_3393633_5]** )  
- **Marketing Spend**: $6 billion  **[AXP_3403068_7]**  (no change from $6 billion  **[AXP_3393633_4]** **[AXP_3393633_5]** )  

2f0f3f70637c35779bb97ff24bc36fe112101fa658a9004df352a3648d68f8b5

**Net write-off rate — principal, interest and fees (%)**

**Net write-off rate — principal only — consumer and small business (%)**

**Billed business (billions)**

**Proprietary cards-in-force (millions)**

**Proprietary basic cards-in-force (millions)**

**Average proprietary basic Card Member spending (dollars)**

**Net interest yield on average Card Member loans (%)**

**Network volumes (billions)**

**Processed volumes (billions)**

**Proprietary new cards acquired (millions)**

c6e1ae8d00b330ebdbc569956c15adc4ba983f80da9f8f590ddf8baf196f0884

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- China UnionPay, Visa, Mastercard, JCB, Discover, Diners Club International - Compete in the global payments industry with American Express's global card network  **[0000004962-24-000013_axp-20231231.htm:13]** .
- Alipay, PayPal, Venmo - Web- and mobile-based payment platforms that carry out activities similar to those performed by American Express's GMNS business  **[0000004962-24-000013_axp-20231231.htm:13]** .
- Delta, Marriott, Hilton, British Airways - Partners for cobranded cards and benefits/rewards programs  **[0000004962-24-000013_axp-20231231.htm:39]** .

1cf413bdd26de52b2bde59e4252dcec94406d8bc4d5151036f7b246b08974f89

| Name                  | Position                                              | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|-------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stephen J. Squeri     | Chairman and Chief Executive Officer                  | 2018             | Stephen J. Squeri has been the Chairman and CEO since 2018. He joined American Express in 1985 and has held various senior roles, including Vice Chairman and Group President of Global Corporate Services  **[0001193125-24-068837_d558747ddef14a.htm:57]** **[0001193125-23-073923_d326074ddef14a.htm:55]** **[0001193125-23-073923_d326074ddef14a.htm:12]** .                             |
| Christophe Y. Le Caillec | Chief Financial Officer                              | August 2023      | Christophe Y. Le Caillec has been the CFO since August 2023. He oversees the company's financial operations and has held various global business roles since joining American Express in 1997  **[0001193125-24-068837_d558747ddef14a.htm:57]** **[0000004962-24-000013_axp-20231231.htm:11]** .                                           |
| Douglas E. Buckminster | Vice Chairman                                         | April 2021       | Douglas E. Buckminster has been Vice Chairman since April 2021. He previously served as Group President of Global Consumer Services Group and has held various leadership positions within the company  **[0000004962-24-000013_axp-20231231.htm:11]** **[0001193125-24-068837_d558747ddef14a.htm:57]** **[0001193125-23-073923_d326074ddef14a.htm:56]** .                                |
| Howard Grosfield      | President, U.S. Consumer Services                     | May 2022         | Howard Grosfield has been President of U.S. Consumer Services since May 2022. He previously served as Executive Vice President and General Manager of U.S. Consumer Marketing and Global Premium Services  **[0000004962-24-000013_axp-20231231.htm:11]** **[0000004962-23-000006_axp-20221231.htm:10]** .                               |
| Monique Herena        | Chief Colleague Experience Officer                    | April 2019       | Monique Herena has been the Chief Colleague Experience Officer since April 2019. Before joining American Express, she was the Chief Human Resources Officer at BNY Mellon  **[0000004962-24-000013_axp-20231231.htm:11]** **[0000004962-23-000006_axp-20221231.htm:10]** .                                                              |
| Raymond Joabar        | Group President, Global Merchant and Network Services | April 2021       | Raymond Joabar has been Group President, Global Merchant and Network Services since April 2021. He previously served as President of Global Risk and Compliance and Chief Risk Officer  **[0000004962-24-000013_axp-20231231.htm:11]** **[0000004962-23-000006_axp-20221231.htm:10]** .                                                  |
| Rafael Marquez        | President, International Card Services                | May 2022         | Rafael Marquez has been President, International Card Services since May 2022. He previously served as President of International Consumer Services and Global Loyalty Coalition  **[0000004962-24-000013_axp-20231231.htm:11]** **[0000004962-23-000006_axp-20221231.htm:10]** .                                                       |
| Anna Marrs            | Group President, Commercial Services and Credit & Fraud Risk | April 2021       | Anna Marrs has been Group President, Commercial Services and Credit & Fraud Risk since April 2021. She joined American Express in 2018 as President, Commercial Services  **[0000004962-24-000013_axp-20231231.htm:11]** **[0000004962-23-000006_axp-20221231.htm:10]** **[AXP_3400583_1]** .                                                             |
| Glenda McNeal         | Chief Partner Officer                                 | February 2024    | Glenda McNeal has been Chief Partner Officer since February 2024. She was previously President of Enterprise Strategic Partnerships  **[0000004962-24-000013_axp-20231231.htm:11]** .                                                                                                        |
| David Nigro           | Chief Risk Officer                                    | April 2021       | David Nigro has been Chief Risk Officer since April 2021. He previously served as Executive Vice President and Chief Credit Officer, Global Consumer Services and Credit and Fraud Risk Capability  **[0000004962-24-000013_axp-20231231.htm:11]** .                                         |
| Denise Pickett        | President, Global Services Group                      | September 2019   | Denise Pickett has been President, Global Services Group since September 2019. She was previously Chief Risk Officer and President, Global Risk, Banking & Compliance  **[0000004962-24-000013_axp-20231231.htm:11]** **[0000004962-23-000006_axp-20221231.htm:10]** .                                                                  |
| Ravi Radhakrishnan    | Chief Information Officer                             | January 2022     | Ravi Radhakrishnan has been the CIO since January 2022. Before joining American Express, he held senior technology roles at Wells Fargo and Citigroup  **[0000004962-24-000013_axp-20231231.htm:12]** **[0001193125-23-073923_d326074ddef14a.htm:56]** **[0001193125-23-073923_d326074ddef14a.htm:68]** .                                                                                |
| Elizabeth Rutledge    | Chief Marketing Officer                               | February 2018    | Elizabeth Rutledge has been Chief Marketing Officer since February 2018. She previously served as Executive Vice President, Global Advertising & Media  **[0000004962-23-000006_axp-20221231.htm:11]** .                                                                                     |
| Laureen E. Seeger     | Chief Legal Officer                                   | July 2014        | Laureen E. Seeger has been Chief Legal Officer since July 2014. She oversees the Legal, Government Affairs, Global Security, and Corporate Secretarial functions  **[0001193125-24-068837_d558747ddef14a.htm:58]** **[0000004962-24-000013_axp-20231231.htm:12]** .                                                                       |
| Jennifer Skyler       | Chief Corporate Affairs Officer                       | October 2019     | Jennifer Skyler has been Chief Corporate Affairs Officer since October 2019. Prior to joining American Express, she was the Chief Communications Officer at WeWork  **[0000004962-24-000013_axp-20231231.htm:12]** **[0000004962-23-000006_axp-20221231.htm:11]** .                                                                     |
| Anré Williams         | Group President, Enterprise Services                  | April 2021       | Anré Williams is Group President of Enterprise Services and CEO of American Express National Bank since April 2021. He leads the company's largest shared services organizations globally  **[0001193125-24-068837_d558747ddef14a.htm:58]** **[0000004962-24-000013_axp-20231231.htm:12]** **[0001193125-23-073923_d326074ddef14a.htm:55]** **[0000004962-24-000013_axp-20231231.htm:11]** .                                        |

25275939f76592310bea3ffbf46cb709866091db3efa967a629a9cf605b861b7

| Program Details         | Program 1       |
|-------------------------|-----------------|
| Approval Date           | March 8, 2023  **[0000004962-24-000068_axp-20240930.htm:85]**  |
| End Date/Duration       | N/A             |
| Total additional amount | 120 million shares  **[0000004962-24-000068_axp-20240930.htm:85]**  |
| Remaining authorization amount | 78,658,960 shares  **[0000004962-24-000068_axp-20240930.htm:85]**  |
| Details                 | Return capital to shareholders, reduce outstanding shares, offset new share issuance for employee compensation  **[0000004962-24-000013_axp-20231231.htm:74]** **[0000004962-24-000013_axp-20231231.htm:93]**  |

b51e7e99550a8ab197f7ef0abf8d134eae796925d2cdb9dc2582a3ac7a3d5add

- **Rising consumer and small business confidence** is leading to increased spending, which bodes well for American Express's revenues. For example, U.S. consumer spend was up **9% year-over-year in the quarter**, and small business sentiment is "really, really good, and it's higher than it's been in a long time."  **[AXP_3413226_9]**
- **Strong and sustainable growth in international markets**, driven by increasing merchant acceptance and investment in card acquisition. American Express has achieved over **80% LIF coverage** in key international markets, with merchant acceptance increasing by **8 percentage points over the last 3 years**. With less than **6% market share** in their top five international markets, there is significant room for growth, particularly in SME and consumer segments.  **[AXP_3413226_15]**
- Consistent **double-digit growth in net card fees** over **26 consecutive quarters**, supported by **70% of new accounts** being on fee-paying products and very strong renewal rates. This sustained growth in card fees contributes significantly to revenue growth and is expected to continue into 2025.  **[AXP_3413226_15]**

fdfc915aca39a2404151470b889f2c3aa9db001d632e87e7ae86e3eddba0c956

- **Uncertainty around sustaining elevated spending levels into 2025 could lead to lower revenue growth.** Management acknowledges that the strong holiday spending in Q4 2024 may not continue throughout 2025, stating it's "really hard to answer this in a definitive way" and that "we don't know how it's going to play." This uncertainty could result in revenue growth at the lower end of guidance.  **[AXP_3413226_8]**
- **Expected moderation in net card fee growth after Q1 2025 may impact revenue growth momentum.** The acceleration in net card fee growth seen in Q3 and Q4 2024 is anticipated to slow down post-Q1 2025, trending back to mid-teens growth rates, which could reduce overall revenue growth compared to previous quarters.  **[AXP_3413226_15]**
- **Increased competition in the SME segment from emerging fintechs could pressure growth.** Competitors like Ramp and Brex are making inroads into the SME market with innovative products, and while American Express is "keeping an eye" on them, the company may face challenges in maintaining its market share in this segment.  **[AXP_3413226_10]**

95b19c8e0faaf2d9bffe24d6efd7ecb34aabaf07e9d3b05472ac84a030b4a1af

1. **Revenue Growth Guidance**  
   **Q:** What could be potential headwinds to revenue growth?  
   **A:** Revenue growth depends on billings. If billings continue at the level of the fourth quarter, we expect to be at the top end of our **8–10%** revenue growth guidance for 2025. If billings are lower, we may be at the lower end. It's truly a billing story.  **[AXP_3413226_7]** 

2. **EPS Guidance Upside**  
   **Q:** If revenues exceed expectations, will EPS increase?  
   **A:** If revenue growth reaches the high end, we'll decide whether to reinvest in the business or let it flow to EPS. The top end of the EPS range is **$15.50**, representing **16%** growth. It's plausible we could exceed that if conditions are favorable.  **[AXP_3413226_8]** 

3. **Spending Acceleration**  
   **Q:** Where did the spending acceleration come from, and is it sustainable?  
   **A:** The acceleration was balanced across consumer, SME, and international segments. Consumer billings increased to **9%**, up **2 points**. Organic spend in SME rose from **1% to 3%**. International continued strong growth. Early January trends align with Q4, but it's hard to definitively predict sustainability over the full year.  **[AXP_3413226_8]** 

4. **Consumer and Business Confidence**  
   **Q:** How is rising confidence affecting billed business?  
   **A:** Increased consumer confidence in Q4 led to higher spending, notably in front-of-cabin airline purchases, which were up **19%**. Small business sentiment is strong, offering hope for continued growth, but we'll assess sustained trends before adjusting plans.  **[AXP_3413226_9]** 

5. **SME Business Momentum**  
   **Q:** Can you discuss SME business trends and plans?  
   **A:** SME acquisition and attrition rates remain steady, but organic spending hasn't fully returned to pre-COVID levels. It's truly an organic story. As small business confidence improves, we expect SME to contribute more to overall billings.  **[AXP_3413226_14]** 

6. **Capital One-Discover Merger Impact**  
   **Q:** Thoughts on Capital One-Discover merger's competitive impact?  
   **A:** The merger makes Capital One a more formidable competitor with increased scale. We'll continue to compete effectively, especially in the premium space, and will evolve our products to meet competition.  **[AXP_3413226_11]** 

7. **Competition from Fintechs**  
   **Q:** How is fintech competition evolving, especially cash-back offers?  
   **A:** Our customers value a balance of rewards, experiences, and service over cash back. We haven't seen significant impact from fintechs on the consumer side but remain aware and responsive. On the SME side, we acknowledge fintechs integrating technology with cards and will take appropriate steps.  **[AXP_3413226_16]** 

8. **International Business Growth**  
   **Q:** Comment on drivers of international business momentum.  
   **A:** International growth is strong, with top five markets growing in the mid to high teens. Merchant acceptance now covers **80%** in key markets. With less than **6%** market share, we see significant opportunities and expect sustained double-digit growth.  **[AXP_3413226_15]** 

9. **Net Card Fee Growth Expectations**  
   **Q:** Why will net card fee growth moderate in 2025?  
   **A:** After reaching **19%** growth in Q4 2024 due to product refresh cycles, we expect net card fee growth to moderate to mid-to-high teens in 2025. The acceleration will continue into Q1 but should normalize thereafter, supported by high renewal rates and **70%** of new customers choosing fee-paying products.  **[AXP_3413226_16]** 

10. **Operating Leverage from Experiences**  
    **Q:** Does focusing on experiences provide higher operating leverage?  
    **A:** Investing in experiences and lounges involves more fixed costs than variable rewards, allowing us to leverage these costs over a wider base as we grow. This balance gives cardmembers the best of both worlds and can enhance operating leverage over time.  **[AXP_3413226_12]** 

11. **Product Refresh Strategy**  
    **Q:** Can you shed light on planned product refreshes?  
    **A:** We plan to do between **35 and 50** product refreshes this year but won't specify which ones. We aim to refresh products when needed and have eleven more months to implement them.  **[AXP_3413226_13]** 

12. **FX Impact**  
    **Q:** What is the impact of FX on revenue and EPS?  
    **A:** FX movements can impact revenue growth by about **1 percentage point**, as seen in Q4 where FX-adjusted revenue growth was **10%** and GAAP reported was **9%**. A **10%** increase in the dollar could negatively affect pretax income by around **$136 million**. Predicting exact impacts is difficult due to global expense distributions.  **[AXP_3413226_14]** 

25e6aec7865c4b83f803d4a162d8e2983628919e89179e40b3f501fade02bab1

61899ce838e460592410472358e11ac48668e50be96eba89a8f8bb5d1c95a15a

9574c3031a572d4aba9ac2e8eb57338b56be5a02b357720e12ff2b4ac5f9883b

AXP Q4 ‘24: US consumer spend rose 9% YoY, international coverage hit 80%, and net card fees delivered 26 straight quarters of double-digit growth. Management guides 8–10% revenue gains in 2025 if billings stay strong. Biggest risk? Sustaining Q4’s elevated spending.

c17f4c3d6b8043bab5570816ea0ceb852dc44fb764ba792fda81f0daba0e6236

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2005  **[0000004962-24-000013_axp-20231231.htm:127]**  | Present  | Current auditor   |

21738925d22d702f333fb0e17b5debe46efb3a2b4781bef8c25167ebfc787ede

9fcd64989cdc3444a134beaaa39bab8b313e35041205b2046a268e4d2ad15648

- Total Revenue: $16.636 billion (**+8% YoY**)  **[0000004962-24-000068_axp-20240930.htm:47]** **[0000004962-23-000038_axp-20230930.htm:45]**   
- GCSG Interest Income: $686 million (+19% YoY)  **[0000004962-24-000068_axp-20240930.htm:80]** **[0000004962-23-000038_axp-20230930.htm:79]**   
- Interest Expense: $2.143 billion (**+19% YoY**)  **[0000004962-24-000068_axp-20240930.htm:47]** **[0000004962-23-000038_axp-20230930.htm:45]**   
- Diluted EPS: $3.49 (**+6% YoY**)  **[0000004962-24-000068_axp-20240930.htm:47]** **[0000004962-23-000038_axp-20230930.htm:45]**   

58cd6fa435b33fdbe2ab4fdb354ad98b64d63062c9eca4183e2d4fa46113f4fd

f657e6e45e6a9bc740cc1c0317b55c54d77253be8d24b3f81fa81741e1c12490

7547dbcc7027d4bbdfa5dcb99cd4ec3bbb4506525ca5b3b6a40970f0f9dc00a0

d397fd434476a22ad1a82724b7929f2dfdcced3e0aa3a6f915eb8c91b50a508f

7f7adbe740ddfdb6659d321169e2dd38b50e8266eb8680922dbe5a761930e9ac

| Year | Amount Due (Millions) | Debt Type           | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|-------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | 1,810 **[0000004962-24-000068_axp-20240930.htm:66]**             | Certificates of Deposit | N/A                   | 3.3% = (1,810 / 55,003) * 100 **[0000004962-24-000068_axp-20240930.htm:49]** **[0000004962-24-000068_axp-20240930.htm:66]**                                     |
| 2024     | 1,457 **[0000004962-24-000068_axp-20240930.htm:49]**             | Short-Term Borrowings   | N/A                   | 2.6% = (1,457 / 55,003) * 100 **[0000004962-24-000068_axp-20240930.htm:49]**                                             |
| 2025     | 6,575 **[0000004962-24-000068_axp-20240930.htm:66]**             | Certificates of Deposit | N/A                   | 11.9% = (6,575 / 55,003) * 100 **[0000004962-24-000068_axp-20240930.htm:49]** **[0000004962-24-000068_axp-20240930.htm:66]**                                    |
| N/A      | 53,546 **[0000004962-24-000068_axp-20240930.htm:49]**            | Long-Term Debt          | N/A                   | 97.4% = (53,546 / 55,003) * 100 **[0000004962-24-000068_axp-20240930.htm:49]**                                           |

99dafa3749117f368683d1ad1ebd13f4641692262b664522ed4a441ade324a47

- **American Express anticipates a moderation in net interest income (NII) growth due to slower loan and asset growth, which could suppress revenue growth in 2024.**  **[AXP_3370979_3]**
- **The company expects an increase in delinquency and write-off rates in 2024 as credit normalization continues, potentially impacting profitability.**  **[AXP_3370979_3]** ,  **[AXP_3370979_4]**
- **Organic spending among existing small business customers is flat, indicating potential headwinds in the small business segment, with billings growth relying more heavily on new card acquisitions.**  **[AXP_3370979_9]** ,  **[AXP_3370979_10]**

47dbc6718471d333176809dc4002c50c1e4ddf675f2f7af2627a27a21b82f6aa

- **American Express reaffirmed its full-year 2024 revenue growth guidance of 9% to 11%**, with Q1 results validating the trends and guidance provided at the beginning of the year.  **[AXP_3380111_17]**
- **The company achieved strong growth in International Card Services**, which continues to be the fastest-growing segment, providing significant opportunity for future growth, with international acceptance and coverage improving.  **[AXP_3380111_14]**
- **American Express acquired 3.4 million new cards in Q1, with 70% being fee-paying premium products**, demonstrating strong demand and quality customer acquisition driven by product refreshes and increased marketing investments.  **[AXP_3380111_6]**

e80e27b3c0ad02dadfd6eca48dbe245b535275da3e9cc851029a1ea3e3faf126

1. **Revenue Growth Drivers**  
   **Q:** What are the drivers of revenue growth, including discount revenues, card fees, and NII outlook?  
   **A:** The building blocks of our revenue growth remain the same. We expect billing and discount revenue to grow at a similar pace to recent quarters.  **[AXP_3370979_6]**  In Q4, card fees grew by **17%**, and **20%** for the full year.  **[AXP_3370979_6]**  We anticipate card fees will continue to be a key contributor to growth, supported by strong premium acquisitions, product refreshes, renewals, and very strong retention rates.  **[AXP_3370979_6]**  Net Interest Income (NII) growth is expected to moderate due to the moderation in asset and lending growth rates over past quarters, as we return to more normal levels post-COVID.  **[AXP_3370979_6]**  We believe interest rate dynamics from the Fed won't significantly impact NII.  **[AXP_3370979_6]**  Overall, running multiple scenarios, we land in the revenue guidance range of **9% to 11%** growth.  **[AXP_3370979_6]** 

2. **Loan Growth and Credit Quality**  
   **Q:** Where is loan growth coming from, and are there differences in credit performance between new and tenured customers?  
   **A:** About **70%** of our loan growth comes from tenured card members who've been with us for more than 12 months.  **[AXP_3370979_6]**  We focus on nurturing relationships with existing card members, offering cross-sell products, increasing credit lines, and understanding their spending patterns better.  **[AXP_3370979_6]**  We don't engage much in balance transfers or promotional offers.  **[AXP_3370979_6]**  Regarding credit profiles of new card members, we haven't changed our underwriting models or marketing channels; we continue to attract customers with positive credit profiles.  **[AXP_3370979_6]** 

3. **Reserve Rate Increase and Credit Normalization**  
   **Q:** Why is the reserve rate expected to increase or drift up in 2024?  
   **A:** The write-off rate in Q4 was **2%**, below the pre-pandemic level of **2.2%**, indicating historically low delinquency and write-off rates.  **[AXP_3370979_6]**  The slight uptick is due to normalization from unsustainably low sub-1% write-off rates during the pandemic.  **[AXP_3370979_6]**  The biggest contributors to loan balances are the pay-over-time facility on charge products and co-brand cards, both with very strong credit profiles.  **[AXP_3370979_6]**  The portfolio mix is shifting towards products with strong credit profiles, causing a slight increase in reserve rates as normalization occurs, but we feel comfortable with this trend.  **[AXP_3370979_6]** 

4. **Customer Engagement Spending**  
   **Q:** Can you maintain customer engagement with elevated investment spending while offsetting margin pressure elsewhere?  
   **A:** The "premiumization" of our portfolio is the key driver behind the ratio of variable customer engagement expenses to revenue.  **[AXP_3370979_6]**  As we acquire more Platinum card members, variable customer engagement expenses increase.  **[AXP_3370979_6]**  We have initiatives to optimize this, such as the "pay with points" option, which enhances customer experience and drives efficiencies in the weighted average cost per point.  **[AXP_3370979_6]**  In Q4, we saw less point redemption with airline tickets and fewer point accelerators earned due to softness in some T&E categories, creating natural hedges in our business model.  **[AXP_3370979_6]**  We're committed to containing operating expenses, expecting 2024 operating expenses to be about flat compared to 2023.  **[AXP_3370979_6]** 

5. **Billings Growth and Card Acquisition**  
   **Q:** How much of billings growth is from new card members versus winning wallet share, and what's the outlook for card acquisitions?  
   **A:** A significant portion of our growth is coming from new card acquisitions.  **[AXP_3370979_6]**  We've consistently been acquiring around **2.9 to 3.1 million** cards per quarter, excluding an anomaly in Q1 last year.  **[AXP_3370979_6]**  As long as we can attract high credit quality premium card members, we'll continue aggressive acquisition efforts.  **[AXP_3370979_6]**  While we don't provide specific guidance on acquisition numbers, this range is a fair assumption based on our planned spending.  **[AXP_3370979_6]**  In a stronger economy, we expect more organic growth from existing cardholders.  **[AXP_3370979_6]**  Our millennial and Gen Z customers now account for **32%** of total spending in Q4, and we have confidence in their long-term value.  **[AXP_3370979_6]**  As the economy improves, we anticipate an organic step-up in spending, supporting our confidence in future growth and our aspiration for **10% plus** revenue growth.  **[AXP_3370979_6]** 

6. **Softness in T&E and Airline Spend**  
   **Q:** What are you seeing regarding softness in T&E trends, particularly airline spend, and what's your outlook?  
   **A:** While T&E growth rate sequentially came down, it is still up **9%** year-over-year, indicating strong performance.  **[AXP_3370979_6]**  There has been some softness in airline spending due to decreased demand, as noted by airlines themselves.  **[AXP_3370979_6]**  Since many customers use our cards for airline tickets, we've observed a similar trend.  **[AXP_3370979_6]**  However, bookings remain very strong in our Travel and Lifestyle Services segment.  **[AXP_3370979_6]**  Our partnership with Delta is performing well, with strong new card originations.  **[AXP_3370979_6]**  We'll monitor if this softness is a trend or a data point, but overall, we're not worried as our card members love traveling.  **[AXP_3370979_6]** 

7. **Pay Over Time Facility Growth**  
   **Q:** Can you discuss the characteristics, yield, and growth of your pay-over-time business?  
   **A:** The pay-over-time facility is attached to our charge products, allowing card members to revolve a portion of their bill.  **[AXP_3370979_6]**  It is the fastest-growing category in terms of loan growth and has been very well received by card members.  **[AXP_3370979_6]**  Since charge cards have no preset spending limit, this facility offers premium Gold Card members flexibility to revolve balances over time.  **[AXP_3370979_6]**  The credit profile of users is very strong, as it caters to our premium customer base.  **[AXP_3370979_6]** 

8. **Delta Partnership and Small Business Spending**  
   **Q:** With airline spend slowing, does the benefit from the Delta partnership diminish, and what's happening with small business spending?  
   **A:** The Delta co-brand product remains very strong, with total billing growth up **15%** for the full year.  **[AXP_3370979_6]**  We're continuing to originate a significant number of new cards, and the partnership is thriving.  **[AXP_3370979_6]**  While there was some softness in Q4, it's unclear if this is a trend or a temporary blip.  **[AXP_3370979_6]**  Regarding small businesses, the main driver is organic spend, and we're not seeing existing small businesses spend more than the previous year, which is an industry-wide phenomenon.  **[AXP_3370979_6]**  Card acquisition within small businesses remains strong, and credit quality is solid.  **[AXP_3370979_6]**  We believe the issue is organic spending, not specific to American Express, and we're confident in our ongoing engagement with small businesses.  **[AXP_3370979_6]** 

9. **Total vs. Proprietary Card Growth**  
   **Q:** Why might total card growth diverge from proprietary card growth, and what's your strategy regarding proprietary cards?  
   **A:** We have about **140 million** cards that can transact on our network, with approximately **80 million** issued by American Express as proprietary cards.  **[AXP_3370979_6]**  These proprietary cards account for the bulk of spending and drive the majority of our economics.  **[AXP_3370979_6]**  Proprietary cards in force grew by **5%** year-over-year, while total cards in force, including those issued by network partners, increased by **6%**.  **[AXP_3370979_6]**  The slight divergence is due to growth in cards issued by network partners, but our focus remains on growing our proprietary card base.  **[AXP_3370979_6]** 

10. **Platinum Card Refresh Plans**  
    **Q:** Are there plans to refresh the U.S. Platinum card this year, and is that included in your guidance?  
    **A:** We've committed to refreshing **40 products** this year as part of our strategy to keep products fresh and aligned with customer needs and trends.  **[AXP_3370979_6]**  We generally refresh products every 3 to 4 years.  **[AXP_3370979_6]**  Regarding the specific plans for the Platinum card, we don't preannounce such updates, so you'll have to wait and see.  **[AXP_3370979_6]** 

e6c1b59f11ce5b243a4534cfa2a6e9173912c525c34df68cd0ee362847868126

1. **Revenue Guidance**  
   **Q:** Is the 9%-11% revenue growth guidance still on track?  
   **A:** Yes, we are comfortable with our **9%-11%** revenue growth guidance for 2024.  **[AXP_3393633_7]**  Quarter-to-date growth is about **10%**, both reported and FX adjusted.  **[AXP_3393633_7]**  Depending on organic growth, we expect to wind up within that range.  **[AXP_3393633_7]** 

2. **Credit Quality Outlook**  
   **Q:** How are write-offs and reserves expected to trend?  
   **A:** We now expect credit write-offs to remain stable at around **2.1%** for the rest of the year.  **[AXP_3393633_11]**  Delinquency rates may tick up, driving incremental reserves, but overall reserve rate should stay around **2.8%** to **2.9%**.  **[AXP_3393633_11]** 

3. **Marketing Spend Increase**  
   **Q:** Why are you increasing marketing spend, and how is it funded?  
   **A:** We are increasing marketing spend to a record **$6 billion** for the year, an **$800 million** year-over-year increase.  **[AXP_3393633_9]**  This is funded organically by stronger core earnings, not the one-time Accertify gain.  **[AXP_3393633_10]**  We see opportunities to acquire more cardholders without compromising on credit.  **[AXP_3393633_9]** 

4. **EPS Growth and One-Time Gain**  
   **Q:** Will you achieve mid-teens EPS growth despite the Accertify gain?  
   **A:** Yes, we expect to deliver mid-teens EPS growth off the adjusted 2024 EPS, excluding the one-time Accertify gain.  **[AXP_3393633_12]**  By funding increased marketing from core earnings, we can sustain higher marketing levels and drive future growth.  **[AXP_3393633_12]** 

5. **Net Interest Income Outlook**  
   **Q:** How will net interest income growth trend relative to loans?  
   **A:** We expect loan growth to moderate but remain in double digits.  **[AXP_3393633_16]**  Net interest income growth will also moderate due to funding mix shifts towards high-yield savings accounts and changes in yield.  **[AXP_3393633_16]** 

6. **Spending Trends and Billings**  
   **Q:** Are you planning for a continued softer spending environment?  
   **A:** We see stability in spending levels and have assumed current trends in our revenue guidance.  **[AXP_3393633_17]**  Discount revenue growth is expected to remain at current quarter levels.  **[AXP_3393633_17]** 

7. **Card Fee Growth and Product Refreshes**  
   **Q:** How are product refreshes impacting card fee growth?  
   **A:** Net card fee growth is at **16%** FX adjusted and is expected to tick up in the second half of the year.  **[AXP_3393633_14]**  This is driven by product refreshes and strong cardmember renewals.  **[AXP_3393633_14]**  We are halfway through refreshing **40** products, with the Gold Card refresh coming soon.  **[AXP_3393633_14]** 

8. **Competitive Environment**  
   **Q:** Are competitors pulling back, affecting your marketing strategy?  
   **A:** No, the competitive environment is as intense as ever.  **[AXP_3393633_9]**  We are increasing marketing spend because we see opportunities, not due to competitors pulling back.  **[AXP_3393633_9]** 

9. **Digital Banking Investments**  
   **Q:** What are your goals with digital banking investments?  
   **A:** We aim to enhance engagement with consumers and small businesses.  **[AXP_3393633_13]**  We are investing in capabilities and encouraging customers to use our multiple accounts.  **[AXP_3393633_13]**  This is a journey, and there's more to come.  **[AXP_3393633_13]** 

10. **Large and Global Spend Deceleration**  
    **Q:** Why did large and global spend decelerate this quarter?  
    **A:** Large and global spend growth decreased from **5%** last quarter to **0%** this quarter due to a significant drop in usage by one specific client.  **[AXP_3393633_17]**  There is no broader trend or inflection point in corporate card spend.  **[AXP_3393633_17]** 

2096b633ebdddf0e8052b9f7e38f35a046d83d857472bf420eb1264acb28f8cc

- **American Express expects revenue growth between 9% and 11% in 2024**, driven by **continued strength in card fees**, resilient billing growth, and higher spending from tenured card members.  **[AXP_3370979_6]** **[AXP_3370979_8]** **[AXP_3370979_11]**
- **Best-in-class credit metrics** with **write-off rates lower than pre-pandemic levels** support earnings, as **70% of loan growth comes from tenured card members**, indicating disciplined risk management and strong credit quality.  **[AXP_3370979_6]** **[AXP_3370979_8]** **[AXP_3370979_7]**
- **Strong partnerships**, such as with **Delta Airlines (billing growth on Delta products up 15% for the full year)**, and continued **acquisition of premium card members, especially millennials and Gen Z**, position American Express for future growth.  **[AXP_3370979_10]** **[AXP_3370979_11]**

4526ee82481e91e0f3ae80dd5b1a460173dc7aa0c0d27cb8e82bee76d6ed3faf

- **Millennial and GenZ spending increased by 13%** and now account for **33% of total billings**, indicating strong growth among younger customers and positioning American Express for long-term success.  **[AXP_3393633_6]**
- **Net card fee revenues grew by 16% FX-adjusted** and are expected to increase further, driven by product refreshes (with **40 products being refreshed**, including the upcoming **Gold Card**) and strong customer retention, evidenced by **3.3 million new cards acquired** and high retention rates.  **[AXP_3393633_15]**
- **Marketing investment increased to $6 billion** for the year, an **$800 million year-over-year increase**, demonstrating confidence in growth opportunities and commitment to gaining market share in a highly competitive environment.  **[AXP_3393633_9]**

a9ed7140643f5822907cd24b4cb3f04197ee5efce158610180ab65178aa74e6f

- The decline in **organic spending**, particularly among **tenured Card Members and small businesses**, is impacting overall spend per customer, potentially signaling a slowdown in engagement and future revenue growth.  **[AXP_3403068_12]**
- The company acknowledges that current **organic spend levels are insufficient** to meet its long-term revenue aspirations, indicating potential challenges in achieving future growth targets without a rebound in customer spending.  **[AXP_3403068_13]**
- Despite strong earnings, the company is not significantly **increasing investments in marketing and technology** due to capacity limitations, which may limit future growth opportunities and suggests diminishing marginal returns on additional investments.  **[AXP_3403068_11]**

652bb392f1cbf74636b0aeec22a2737be4291fee60719051698f3d78e5dfc9cf

- **Strong Card Fee Growth Driving Revenue**: American Express has achieved **25 consecutive quarters of double-digit growth** in card fees, with an **18% increase this quarter**  **[AXP_3403068_8]** . This consistent growth contributes significantly to revenue and is fueled by successful product refreshes that enhance value propositions and drive higher adoption and engagement among customers  **[AXP_3403068_17]** .
- **Robust New Customer Acquisition Among Premium Segments**: The company continues to acquire a substantial number of new cardholders, adding **over 3 million cards each quarter**  **[AXP_3403068_9]** . Significant growth is seen particularly among Millennials and Gen-Z customers, who are more engaged and transact more frequently, laying a strong foundation for future growth  **[AXP_3403068_12]** .
- **Ability to Sustain Mid-Teens EPS Growth Despite Modest Billing Increases**: Even with billing growth of around **6%** for the past year, American Express is delivering on its **mid-teens EPS growth** targets  **[AXP_3403068_9]** . This demonstrates the strength and resilience of their business model, with disciplined expense management and continued investments generating solid earnings  **[AXP_3403068_4]** .

e460fee84ac709fb5b2e0963fca2d77d06c67bd7a915c3c9ebdd03f28476d007

- American Express is experiencing a **softer spending environment**, with U.S. consumer spending growth slowing from **8% to 6%**  **[AXP_3393633_6]** , and large corporate spend growth dropping to **0% from 5% last quarter**.  **[AXP_3393633_18]**  The company anticipates this softer environment to continue, which may negatively impact revenue growth.
- The company is significantly **increasing its marketing spend** to **$6 billion** for the year, an **$800 million increase** over last year.  **[AXP_3393633_9]**  This increased spending may weigh on profitability and suggests increased competition for customers.
- American Express expects to **build additional credit reserves (CECL reserves)** in the second half of the year, which will **put pressure on EPS**.  **[AXP_3393633_16]**  Additionally, **operating expenses are expected to increase** due to investments in technology and control management capabilities, which may further impact profitability.

568490cc2991eef00dd756d5b2bf4f95a8089cbb140c787d9e4aed0bfc876f1e

- **Weakness in SME spending growth:** American Express reported that **small- and medium-sized enterprise (SME) billed business has been growing at only 1%-2% for the past year**, reflecting particularly weak growth in SME spending.  **[AXP_3380111_16]**
- **Softer overall spending environment:** The company acknowledged a **softer spending environment**, especially impacting the SME segment, which could affect revenue growth moving forward.  **[AXP_3380111_16]** **[AXP_3380111_5]**
- **Rising delinquency and write-off rates:** **Delinquency and write-off rates have increased modestly** quarter-over-quarter, and the company expects this trend to continue in 2024, potentially indicating increasing credit risk.  **[AXP_3380111_2]**

8b366b7d33eceb0bcde75196fb46167917fd6fa08578c5cb39b5875341a595bf

1. **Revenue Growth Aspiration**  
   **Q:** Can 10% revenue growth be achieved in current environment?  
   **A:** Management stated that to reach their **10% revenue growth** aspiration, they would need an acceleration in billings from the current **6% growth** level.  **[AXP_3403068_8]**  They acknowledged that this goal was set in a more robust environment, and achieving it now would require increased billing growth.  **[AXP_3403068_8]** 

2. **Sustaining Mid-Teens EPS Growth**  
   **Q:** Can mid-teens EPS growth continue with slower billings?  
   **A:** Despite billings growth at **6%**, management believes they can continue to deliver **mid-teens EPS growth**.  **[AXP_3403068_9]**  They highlighted ongoing card acquisitions, with **3.3 million new cards** acquired in the third quarter, mainly among Millennials and Gen-Zs, which will drive future growth.  **[AXP_3403068_9]**  Even after increasing marketing investments by **$800 million**, they are growing EPS north of mid-teens.  **[AXP_3403068_9]** 

3. **Investment Levels and Earnings**  
   **Q:** Why not pull forward investments with strong earnings?  
   **A:** Management is ramping up investments, including an additional **$800 million** in marketing and increased technology spend.  **[AXP_3403068_11]**  They prefer to layer investments over time rather than accelerating abruptly.  **[AXP_3403068_11]**  They plan to grow investment levels further in 2025, focusing on marketing and technology.  **[AXP_3403068_11]** 

4. **Health of Affluent Consumer**  
   **Q:** Any concerns about affluent consumer spending sustainability?  
   **A:** Management feels confident about the consumer, noting U.S. spending has been stable at around **6% growth**.  **[AXP_3403068_13]**  The international consumer business is growing at **13%** over the last four quarters.  **[AXP_3403068_13]**  They see no signs of declining spending or worsening credit metrics, with write-offs decreasing sequentially.  **[AXP_3403068_13]** 

5. **Spend Per Member and Customer Growth**  
   **Q:** Can you maintain spend growth if spend per member is flat?  
   **A:** While organic spend per member is less robust, they have a clear path to acquiring more cardholders.  **[AXP_3403068_12]**  New Card Members are more engaged, with **30% more transactions per new member** compared to five years ago.  **[AXP_3403068_12]**  They completed over **40 product refreshes** this year, enhancing customer engagement.  **[AXP_3403068_12]** 

6. **Net Interest Income Outlook**  
   **Q:** How will NII evolve heading into 2025?  
   **A:** The company is slightly liability sensitive, with minimal impact from Fed rate cuts on NII.  **[AXP_3403068_16]**  Revolving balances are expected to moderate in growth as normalization is mostly behind them.  **[AXP_3403068_16]**  They're shifting funding towards high-yield savings accounts, lowering funding costs and supporting yields.  **[AXP_3403068_16]** 

7. **Revenue Growth Guidance**  
   **Q:** Is revenue growth reacceleration expected in Q4?  
   **A:** Management expects stability, with Q4 trends continuing from Q3, guiding towards **9% revenue growth** for the year.  **[AXP_3403068_14]**  Despite revenue growth at 9%, EPS performance is well above initial guidance.  **[AXP_3403068_14]** 

8. **Business Development Spend**  
   **Q:** Why did business development spend come in lower?  
   **A:** The lower spend is due to reduced incentives paid back to customers, as billing on the corporate side is at a lower level.  **[AXP_3403068_10]**  Expenses related to agreements with customers and co-brand partners decreased because of this reduced billing.  **[AXP_3403068_10]** 

9. **Card Fee Revenue Growth**  
   **Q:** Are product refreshes exceeding expectations in adoption?  
   **A:** Adoption and engagement are meeting expectations.  **[AXP_3403068_17]**  Product refreshes create more market demand and enhance marketing effectiveness.  **[AXP_3403068_17]**  Card fee revenue has grown to over **$2 billion** this quarter, driven by fee-paying members who are highly engaged.  **[AXP_3403068_17]** 

10. **Customer Lifetime Value**  
    **Q:** How does spend vary across card categories?  
    **A:** As customers upgrade from Green to Gold to Platinum cards, their spending increases.  **[AXP_3403068_15]**  Platinum Card Members engage more with travel benefits, leading to higher spending.  **[AXP_3403068_15]**  Customers moving up have a higher lifetime value, especially if they enter the franchise earlier.  **[AXP_3403068_15]** 

ad93ea214c15799d7681299467d065b833500821886ad406401f9fa88e844ab4

1. **EPS Guidance and Rewards Benefit**  
   **Q:** Why hold EPS guidance flat despite better macro and rewards benefit?  
   **A:** We're sticking to our EPS guidance as there's still much to play out this year, and although we had a **$196 million** one-time benefit from Membership Rewards adjustments, a significant portion was reinvested in marketing, so it doesn't meaningfully impact EPS for the full year.  **[AXP_3380111_9]** 

2. **Spending Trends and Softness in SME**  
   **Q:** What's driving softer spending; is SME a concern?  
   **A:** Overall spending is up **7%**, with consumer spending up **8%** and international consumer spending up **14%**. The softness is in SME, which is up only **1%**, but we see this as an opportunity as SME spending recovers.  **[AXP_3380111_5]** 

3. **Loan Workout Program Trends**  
   **Q:** How are trends in your loan workout program?  
   **A:** Our financial relief program is working well, with enrollment moderating in Q1. Performance of Card Members in the program is very strong, contributing to our strong credit metrics.  **[AXP_3380111_9]** 

4. **Funding Costs and Pay Over Time Performance**  
   **Q:** Can you discuss opportunities to lower funding costs and Pay Over Time?  
   **A:** Our funding mix is shifting towards more deposits, which are a stable and economical source, with **92%** below the FDIC cap. Pay Over Time is performing strongly, being the fastest-growing segment of balances and attached to premium Card Members, leading to excellent credit performance.  **[AXP_3380111_15]** 

5. **International Growth and Acceptance Initiatives**  
   **Q:** How is international billed business growth impacting guidance?  
   **A:** International growth is very strong and presents a massive opportunity that's baked into our guidance. We're investing proportionally more internationally, and acceptance continues to improve, offering a long runway for future growth.  **[AXP_3380111_14]** 

6. **New Card Growth Acceleration and Product Refreshes**  
   **Q:** What drove the reacceleration in new card growth?  
   **A:** We acquired **3.4 million** cards this quarter by investing more in marketing and leveraging product refreshes like Delta, Hilton, and British Airways cards, which stimulate demand and enhance marketing efficiency.  **[AXP_3380111_6]** 

7. **Impact of Visa/Mastercard Settlement**  
   **Q:** Thoughts on Visa/Mastercard settlement and interchange reductions?  
   **A:** It's hard to predict the impact as it still requires court approval. However, it doesn't change our strategy; we're focused on premium customers, and our pricing structures differ fundamentally from the networks.  **[AXP_3380111_10]** 

8. **SME Spending Weakness and Prospects**  
   **Q:** When might SME spending improve?  
   **A:** SME billed business growth has been weak, around **1%-2%**, driven by macro factors affecting the industry. We're acquiring new SME customers strongly and are confident we'll win them back as they manage through funding cost pressures and return to spending more.  **[AXP_3380111_16]** 

9. **Rewards Program and Potential to Reduce Costs**  
   **Q:** Can rewards cost pressures abate as customers find value elsewhere?  
   **A:** We're seeing increased embedded value from partners and innovating in the Membership Rewards program, like allowing points to pay for transactions. This enhances loyalty and could ease rewards cost pressures over time.  **[AXP_3380111_13]** 

10. **Revenue Growth Trajectory and Expectations**  
    **Q:** How do you see revenue growth trajectory given NII moderation?  
    **A:** Q1 was as expected, with billed business steady and card fee growth moderating slightly. We maintain our full-year revenue growth guidance of **9%-11%**, expecting card refreshes and premium acquisitions to support growth as NII moderates.  **[AXP_3380111_17]** 

11. **Maintaining Loyalty and Retention**  
    **Q:** How are you investing to maintain loyalty and retention?  
    **A:** We focus on constant engagement using analytics to offer upgrades and new products, ensuring customers remain active and embedded in our franchise, which fuels a virtuous cycle of loyalty.  **[AXP_3380111_12]** 

12. **Card Refresh Plans and Response**  
    **Q:** What's the status and response to card refresh plans?  
    **A:** We're proceeding with approximately **40** product refreshes this year. Early results, especially from the Delta Reserve card refresh, have exceeded expectations, driving demand and engagement.  **[AXP_3380111_11]** 

a2fac09ef2d1e741f7b5f5288692f35b74f5d735b98b0f8512961be7c3ecf89f

American Express Co (AXP)

Financials