01—Abstract
Summary
Summary of the 10-K filed February 9, 2024. Cited figures are marked; the original filing is the authoritative source.
American Express Company (AXP) reported a strong financial performance for the fiscal year ended December 31, 2023.
Total revenues net of interest expense grew by 14% year-over-year to $60.5 billiona, driven by a 9% increase in billed business and robust growth in net card fees. The company's net income reached $8.4 billion, translating to diluted earnings per share of $11.21, a 14% increase from the previous year. This performance reflects the company's successful strategy in broadening its customer appeal, particularly among younger demographics and small-to-medium enterprises, and leveraging its integrated payments platform.
Provisions for credit losses increased significantly due to higher net write-offs and reserve builds, reflecting loan growth and rising delinquencies, although these rates remain best-in-class. AXP demonstrated effective capital management, returning $5.3 billionb to shareholders through dividends and share repurchases, and announced a planned 17% increase in its quarterly dividend. The company's robust capital, funding, and liquidity positions provide significant flexibility.
While facing a dynamic competitive and macroeconomic environment, American Express remains focused on strategic imperatives including expanding its premium consumer base, strengthening its commercial payments offerings, and enhancing its global network. The company also continues to invest in technology and customer experience to drive sustainable long-term growth.
02—Key points
Key Highlights
- Total revenues net of interest expense increased 14% to $60.5 billion.
- Net income grew 11% to $8.4 billion, with diluted EPS up 14% to $11.21.
- Billed business increased 9% to $1.46 trillion.
- Card Member loans and receivables grew 13% to $186.4 billion.
- Provisions for credit losses more than doubled to $4.9 billion, driven by higher net write-offs and reserve builds.
- The company returned $5.3 billion in capital to shareholders through dividends and share repurchases.
- American Express plans to increase its quarterly dividend by 17%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 9, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $37.22B$34.22B | +8.8% |
| Interest Expense | $6.85B$2.76B | +147.9% |
| Net Income | $8.37B$7.51B | +11.4% |
| EPS (Basic) | $11.23$9.86 | +13.9% |
| EPS (Diluted) | $11.21$9.85 | +13.8% |
| Shares Outstanding (Basic) | 735.00M751.00M | −2.1% |
| Shares Outstanding (Diluted) | 736.00M752.00M | −2.1% |
05—Questions
Frequently Asked Questions
What was American Express's revenue growth in 2023?
American Express reported a 14% increase in total revenues net of interest expense, reaching $60.5 billion for the year ended December 31, 2023.
How did credit losses perform in 2023?
Provisions for credit losses increased significantly to $4.9 billion in 2023, up from $2.2 billion in 2022. This increase was primarily driven by higher net write-offs and a higher reserve build, reflecting the growth in loans outstanding and an increase in delinquencies, though the company states that net write-off and delinquency rates remained best-in-class.
What is American Express's strategy for returning capital to shareholders?
American Express returned $5.3 billion to shareholders in 2023 through dividends ($1.8 billion) and share repurchases ($3.5 billion). The company plans to continue returning excess capital to shareholders and announced a planned 17% increase in its regular quarterly dividend for 2024.
How is American Express positioning itself for future growth?
American Express is focusing on four strategic imperatives: expanding leadership in the premium consumer space, building on its strong position in commercial payments, strengthening its global integrated network by increasing merchant acceptance and providing enhanced services, and leveraging its unique global position and business model. Key growth areas include attracting Millennial and Gen Z customers and expanding its offerings for small and mid-sized enterprises.
06—Continue