01—Abstract
Summary
Summary of the 10-K filed February 7, 2025. Cited figures are marked; the original filing is the authoritative source.
American Express Company (AXP) reported a strong financial performance for the year ended December 31, 2024, driven by record levels of Card Member spending, robust new card acquisitions, and excellent credit performance.
Total revenues net of interest expense grew by 9% year-over-year (10% on a foreign currency-adjusted basis), reaching $65.9 billiona. Net income increased by 21% to $10.1 billion, or $14.01 per diluted share, boosted by the sale of Accertify and disciplined expense management. The company saw broad-based growth across its segments, with U.S. Consumer Services billed business up 7% and International Card Services up 11% (14% FX-adjusted).
Commercial Services experienced more modest growth of 2%. This growth was supported by strategic investments in value propositions, marketing, and talent, leading to a record 13 million proprietary new cards acquired during the year. American Express also continued its commitment to returning capital to shareholders, repurchasing $5.9 billionb in shares and increasing its common stock dividend by 17% starting in Q1 2025.
02—Key points
Key Highlights
- Total revenues net of interest expense increased 9% to $65.9 billion, with international growth notably strong at 11% (14% FX-adjusted).
- Net income rose 21% to $10.1 billion, translating to diluted EPS of $14.01.
- Billed business grew 6% year-over-year, demonstrating continued consumer and business spending momentum.
- The company acquired a record 13 million proprietary new cards in 2024, indicating effective customer acquisition strategies.
- Provisions for credit losses increased 5% to $5.2 billion, reflecting higher loan volumes, though net write-off and delinquency rates remained best-in-class.
- Marketing expenses increased 16% as the company invested in growth initiatives and customer acquisition.
- AXP returned $7.9 billion to shareholders through $5.9 billion in share repurchases and $2.0 billion in dividends, signaling a commitment to capital return.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 7, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $38.83B$37.22B | +4.3% |
| Net Income | $10.13B$8.37B | +21.0% |
| EPS (Basic) | $14.04$11.23 | +25.0% |
| EPS (Diluted) | $14.01$11.21 | +25.0% |
| Shares Outstanding (Basic) | 712.00M735.00M | −3.1% |
| Shares Outstanding (Diluted) | 713.00M736.00M | −3.1% |
05—Questions
Frequently Asked Questions
What were the primary drivers of American Express's revenue growth in 2024?
Revenue growth was primarily driven by a 6% increase in billed business, which fueled a 5% rise in Discount revenue. Additionally, Net card fees saw a significant 16% increase due to strong new card acquisitions and premium portfolio growth. Interest income also contributed positively, increasing 19% due to higher revolving loan balances and interest rates.
How did American Express manage its expenses in 2024?
Total expenses increased by 6% to $47.9 billion. While Card Member rewards and services expenses grew along with volumes, Marketing expenses rose 16% due to increased investment in customer acquisition. Operating expenses decreased by 2%, partly due to a gain from the sale of Accertify and continued expense discipline.
What is American Express's outlook on returning capital to shareholders?
American Express remains committed to returning capital to shareholders. In 2024, the company returned $7.9 billion through share repurchases ($5.9 billion) and dividends ($2.0 billion). The company also plans to increase its regular quarterly dividend by 17% starting in the first quarter of 2025, indicating confidence in its ongoing capital generation.
What are the key risks that American Express highlighted in its 10-K filing?
American Express highlighted several key risks, including intense competition in the payments industry, potential impacts from macroeconomic conditions and geopolitical instability, cybersecurity threats, regulatory changes and supervision, and risks associated with its extensive network of business partners. The company also noted the potential impact of technological developments and the need for continuous investment in innovation.
06—Continue