10-KPeriod: FY2024

AMERICAN EXPRESS CO Annual Report, Year Ended Dec 31, 2024

Filed February 7, 2025For Securities:AXP

Summary

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 billion. 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 billion in shares and increasing its common stock dividend by 17% starting in Q1 2025.

Financial Highlights

41 data points
Beta

Revenue

$38.83B

Net Income

$10.13B

26.1% Net Margin

EPS (Diluted)

$14.01

Total Assets

$271.46B

Cash & Equivalents

$40.64B

Free Cash Flow

$12.14B

Financial Statements
Beta
Revenue$38.83B
Net Income$10.13B
EPS (Basic)$14.04
EPS (Diluted)$14.01
Shares Outstanding (Basic)712.00M
Shares Outstanding (Diluted)713.00M

Key Highlights

  • 1Total revenues net of interest expense increased 9% to $65.9 billion, with international growth notably strong at 11% (14% FX-adjusted).
  • 2Net income rose 21% to $10.1 billion, translating to diluted EPS of $14.01.
  • 3Billed business grew 6% year-over-year, demonstrating continued consumer and business spending momentum.
  • 4The company acquired a record 13 million proprietary new cards in 2024, indicating effective customer acquisition strategies.
  • 5Provisions for credit losses increased 5% to $5.2 billion, reflecting higher loan volumes, though net write-off and delinquency rates remained best-in-class.
  • 6Marketing expenses increased 16% as the company invested in growth initiatives and customer acquisition.
  • 7AXP 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.

Frequently Asked Questions

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.

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.

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.

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.