Summary
American Express Company (AXP) reported solid financial results for the third quarter and first nine months of 2024, demonstrating continued momentum and the strength of its business model. Total revenues net of interest expense increased by 8% for the quarter and 9% year-to-date, driven by strong billings growth across its segments, particularly in International Card Services and U.S. Consumer Services. The company saw robust new card acquisitions and sustained excellent credit performance, with net write-off and delinquency rates remaining best-in-class. Key drivers for revenue growth included a 4% increase in Discount revenue, a 18% surge in Net card fees reflecting strong acquisition and retention, and a 16% rise in Net interest income, attributable to growth in revolving loan balances. Marketing expenses increased significantly by 19% for the quarter to support customer acquisition and growth initiatives, while overall operating expenses grew at a slower pace (5%) than revenue, underscoring expense discipline. The company successfully returned $2.4 billion to shareholders in the third quarter through dividends and share repurchases, maintaining its capital ratios within its target range.
Financial Highlights
39 data points| Revenue | $9.72B |
| Net Income | $2.51B |
| EPS (Basic) | $3.50 |
| EPS (Diluted) | $3.49 |
| Shares Outstanding (Basic) | 708.00M |
| Shares Outstanding (Diluted) | 709.00M |
Key Highlights
- 1Total revenues net of interest expense grew 8% year-over-year for Q3 2024 to $16.6 billion, and 9% year-over-year for the nine months ended September 30, 2024, to $48.8 billion.
- 2Net income for Q3 2024 was $2.51 billion, or $3.49 per diluted share, a 2% and 6% increase, respectively, compared to the prior year.
- 3Billed business increased by 6% year-over-year for Q3 2024, with strong performance in U.S. Consumer Services and International Card Services.
- 4Net card fees accelerated to an 18% year-over-year increase in Q3 2024, driven by high new card acquisitions and retention.
- 5Provisions for credit losses increased by 10% for Q3 2024, primarily due to higher net write-offs, though net write-off and delinquency rates remain strong.
- 6Marketing expense increased by 19% in Q3 2024, reflecting continued investment in customer acquisition and growth initiatives.
- 7The company returned $2.4 billion to shareholders in Q3 2024 through share repurchases ($1.9 billion) and dividends ($0.5 billion).