8-K
AMERICAN EXPRESS CO (AXP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 18, 2024
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
| New York | 1-7657 | 13-4922250 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
200 Vesey Street,
New York, New York 10285
(Address of principal executive offices and zip code)
(212) 640-2000
(Registrant's telephone number, including area code)
| Not Applicable |
|---|
| (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Shares (par value $0.20 per Share) | AXP | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure
The following information is furnished under Item 2.02 – Results of Operations and Financial Condition and Item 7.01 – Regulation FD Disclosure:
On October 18, 2024, American Express Company (the “Company”) issued a press release regarding its financial results for the third quarter of 2024. A copy of such press release is attached to this report as Exhibit 99.1. The Company also made available additional information relating to the financial results for the third quarter of 2024. Such additional financial information is attached to this report as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit | Description |
|---|---|
| 99.1 | Press Release, dated October 18, 2024, of American Express Company regarding its financial results for the third quarter of 2024. |
| 99.2 | Additional information relating to the financial results of American Express Company for the third quarter of 2024. |
| 104 | The cover page of this Current Report on Form 8-K, formatted as inline XBRL. |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Current Report on Form 8-K (including the exhibits attached hereto) includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address the Company’s current expectations regarding business and financial performance, including management’s outlook for 2024 and long-term growth aspiration, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:
•the Company’s ability to achieve its 2024 earnings per common share (EPS) outlook and grow EPS in the future, which will depend in part on revenue growth, credit performance and the effective tax rate remaining consistent with current expectations and the Company’s ability to continue investing at high levels in areas that can drive sustainable growth (including its brand, value propositions, customers, colleagues, marketing, technology and coverage), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs as well as the following: macroeconomic conditions, such as recession risks, higher rates of unemployment, changes in interest rates, effects of inflation, supply chain issues, energy costs, tariffs and fiscal and monetary policies; geopolitical instability, including the ongoing Ukraine and Israel wars, broader regional hostilities and tensions involving China and the U.S.; the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and the Company’s reputation; impacts related to sales and acquisitions and new or renegotiated cobrand and other partner agreements and joint ventures; and the impact of regulation and litigation, which could affect the profitability of the Company’s business activities, limit the Company’s ability to pursue business opportunities, require changes to business practices or alter the Company’s relationships with Card Members, partners and merchants;
•the Company’s ability to achieve its 2024 revenue growth outlook and grow revenues net of interest expense in the future, which could be impacted by, among other things, the factors identified above and in the subsequent paragraphs, as well as the following: spending volumes and the spending environment not being consistent with expectations, including a decline in spending by U.S. small and mid-sized enterprise Card Members, or a slowdown in U.S. consumer or international spending volumes; an inability to address competitive pressures, attract and retain customers, invest in and enhance the Company’s Membership Model of premium products, differentiated services and partnerships, successfully refresh its card products, grow spending and lending with customers across age cohorts, including Millennial and Gen-Z customers, and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the effects of regulatory initiatives, including pricing and network regulation; merchant coverage growing less than expected or the reduction of merchant acceptance; increased surcharging, steering, suppression or differential acceptance of the Company’s products; merchant discount rates changing by a greater or lesser amount than expected; and changes in foreign currency exchange rates;
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•net card fees not performing consistently with expectations, which could be impacted by, among other things, a deterioration in macroeconomic conditions impacting the ability and desire of Card Members to pay card fees; higher Card Member attrition rates; the pace of Card Member acquisition activity and demand for the Company’s fee-based products; and the Company’s inability to address competitive pressures, develop attractive premium value propositions and implement its strategy of refreshing card products and realize its anticipated growth from those refreshes, enhancing and delivering benefits and services and continuing to innovate with respect to its products;
•net interest income, the effects of changes in interest rates and the growth of loans and Card Member receivables outstanding, being higher or lower than expectations, which could be impacted by, among other things, the behavior and financial strength of Card Members and their actual spending, borrowing and paydown patterns; the effectiveness of the Company’s strategies to enhance Card Member value propositions, capture a greater share of Card Members’ spending and borrowings, and attract new, and retain existing, customers; the Company’s ability to effectively manage underwriting risk; changes in benchmark interest rates, including where such changes affect the Company’s assets or liabilities differently than expected; changes in capital and credit market conditions and the availability and cost of capital; credit actions, including line size and other adjustments to credit availability; the yield on Card Member loans not remaining consistent with current expectations; and the Company’s deposit levels or the interest rates it offers on deposits changing from current expectations;
•future credit performance, the level of future delinquency, reserve and write-off rates and the amount and timing of future reserve builds and releases, which will depend in part on macroeconomic factors such as unemployment rates, GDP and the volume of bankruptcies; the ability and willingness of Card Members to pay amounts owed to the Company; changes in loans and receivables outstanding, such as from the implementation of the Company’s strategy to capture spending and borrowings, or from changes in consumer behavior that affect loan and receivable balances (e.g., paydown and revolve rates); changes in the levels of customer acquisitions and the credit profiles of new customers acquired; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; the impact of the usage of debt settlement companies; collections capabilities and recoveries of previously written-off loans and receivables; and governmental actions providing forms of relief with respect to certain loans and fees;
•the actual amount to be spent on Card Member rewards and services and business development, and the relationship of these variable customer engagement costs to revenues, which could be impacted by continued changes in macroeconomic conditions and Card Member behavior as it relates to their spending patterns (including the level of spend in bonus categories), the redemption of rewards and offers (including travel redemptions) and usage of travel-related benefits; the costs related to reward point redemptions; further enhancements to product benefits to make them attractive to Card Members and prospective customers, potentially in a manner that is not cost effective; new and renegotiated contractual obligations with business partners, which may be affected by business partners with greater scale and leverage; the Company’s ability to identify and negotiate partner-funded value for Card Members; and the pace and cost of the expansion of the Company’s global lounge collection;
•the actual amount the Company spends on marketing in 2024 and beyond and the effectiveness and efficiency of its marketing spending, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance, including the levels of demand for the Company’s products; management’s decisions regarding the timing of spending on marketing and the effectiveness of management’s investment optimization process; management’s identification and assessment of attractive investment opportunities; management’s ability to develop premium value propositions and drive customer demand, including continued customer spend growth and retention; the receptivity of Card Members and prospective customers to advertising and customer acquisition initiatives; and the Company’s ability to realize marketing efficiencies and balance expense control and investments in the business;
•the Company’s ability to control operating expenses, including relative to revenue growth, and the actual amount spent on operating expenses in 2024 and beyond, which could be impacted by, among other things, salary and benefit expenses to attract and retain talent; the Company’s ability to realize operational efficiencies, including through increased scale and automation; management’s decision to increase or decrease spending in such areas as technology, business and product development, sales force, premium servicing and digital capabilities; the Company’s ability to innovate efficient channels of customer interactions and the willingness of Card Members to self-service and address issues through digital channels; restructuring activity; fraud costs; inflation; supply chain issues; expenses related to control and compliance and consulting, legal and other professional services fees, including as a result of litigation or internal and regulatory reviews; regulatory assessments; the level of M&A activity and related expenses; information
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or cybersecurity incidents; the payment of fines, penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; the performance of Amex Ventures and other of the Company’s investments; impairments of goodwill or other assets; and the impact of changes in foreign currency exchange rates on costs, such as due to the devaluation of foreign currencies;
•the Company’s tax rate not remaining consistent with expectations, which could be impacted by, among other things, further changes in tax laws and regulation (or the expiration of provisions of tax laws or regulations), the implementation of tax guidelines by jurisdictions, the Company’s geographic mix of income, unfavorable tax audits and assessments and other unanticipated tax items;
•changes affecting the Company’s plans regarding the return of capital to shareholders, which will depend on factors such as the Company’s capital levels and regulatory capital ratios; changes in the stress testing and capital planning process and new rulemakings and guidance from the Federal Reserve and other banking regulators, including changes to regulatory capital requirements, such as from Basel III rulemaking; results of operations and financial condition; credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;
•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure and competitor settlements and mergers that may materially impact the prices charged to merchants that accept American Express cards, surcharging, steering and suppression by merchants and merchant acceptance, the desirability of the Company’s premium card products, competition for new and existing cobrand relationships, competition with respect to new products, services and technologies, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;
•the Company’s ability to successfully implement its dining strategy and grow its dining platform, which will depend in part on the Company’s ability to grow the number of diners, restaurants and other bookable venues using the platform and transactions on the platform; expand and innovate in the tools and capabilities offered through the platform, including integrating the Tock and Rooam acquisitions and benefiting from their added capabilities, users and/or bookable venues; successfully compete with other dining platforms and means of booking venues; and effectively utilize its dining platform to provide value to Card Members and merchants and sell its products and services;
•a failure in or breach of the Company’s operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks or outages, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt the Company’s operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;
•legal and regulatory developments, which could affect the profitability of the Company’s business activities; limit the Company’s ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or governance, or alter the Company’s relationships with Card Members, partners, merchants and other third parties, including affecting its network operations and practices governing merchant acceptance, as well as its ability to continue certain cobrand relationships in the EU; impact card fees and rewards programs; exert further pressure on merchant discount rates and the Company’s GNS business, as well as result in an increase in surcharging or steering; alter the competitive landscape; subject the Company to heightened regulatory scrutiny and result in increased costs related to regulatory oversight and compliance, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or monetary penalties; materially affect capital or liquidity requirements, results of operations or ability to pay dividends; or result in harm to the American Express brand; and
•factors beyond the Company’s control such as global economic and business conditions, consumer and business spending generally, unemployment rates, geopolitical conditions, including further escalations or widening of ongoing military conflicts and regional hostilities, the effects of U.S. elections, adverse developments affecting third parties, including other financial institutions, merchants or vendors, as well as severe weather conditions, natural disasters, power loss, disruptions in telecommunications, health pandemics, terrorism and other catastrophic events, any of which could significantly affect demand for and spending on American Express cards, delinquency rates, loan and receivable balances, deposit levels and other aspects of the Company’s business and results of operations or disrupt its global network systems and ability to process transactions.
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A further description of these uncertainties and other risks can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2024 and the Company’s other reports filed with the Securities and Exchange Commission.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERICAN EXPRESS COMPANY | |
|---|---|
| (REGISTRANT) | |
| By: | /s/ James J. Killerlane III |
| Name: James J. Killerlane III | |
| Title: Corporate Secretary |
Date: October 18, 2024
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Document
EXHIBIT 99.1
| NEWS RELEASE | NEWS RELEASE | NEWS RELEASE | NEWS RELEASE |
|---|
Media Contacts:
Melanie Backs, Melanie.L.Backs@aexp.com, +1.212.640.2164
Deniz Yigin, Deniz.Yigin@aexp.com, +1.332.999.0836
Investors/Analysts Contacts:
Kartik Ramachandran, Kartik.Ramachandran@aexp.com, +1.212.640.5574
Kristy Ashmawy, Kristy.Ashmawy@aexp.com, +1.212.640.5574
AMERICAN EXPRESS REPORTS THIRD-QUARTER EARNINGS PER SHARE OF $3.49, AND RAISES FULL-YEAR 2024 EPS GUIDANCE
10TH CONSECUTIVE QUARTER OF RECORD REVENUE, RISING 8% OVER PRIOR YEAR TO $16.6 BILLION
(Millions, except per share amounts, and where indicated)
| Quarters Ended<br><br>September 30, | Percentage Inc/(Dec) | Nine Months Ended September 30, | Percentage Inc/(Dec) | ||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | |||||
| Billed Business (Billions)<br><br>FX-adjusted1 | $387.3 | $366.2<br><br>$366.4 | 6%<br><br>6% | 1,142.5 | $1,079.8<br><br>$1,076.4 | 6%<br><br>6% | |
| Total Revenues Net of Interest Expense<br><br>FX-adjusted1 | $16,636 | $15,381<br><br>$15,348 | 8%<br><br>8% | 48,770 | $44,716<br><br>$44,535 | 9%<br><br>10% | |
| Net Income | $2,507 | $2,451 | 2% | 7,959 | $6,441 | 24% | |
| Diluted Earnings Per Common Share (EPS)2 | $3.49 | $3.30 | 6% | 10.97 | $8.59 | 28% | |
| Adjusted EPS Excluding Transaction Gain3 | $3.49 | $3.30 | 6% | 10.31 | $8.59 | 20% | |
| Average Diluted Common Shares Outstanding | 709 | 733 | (3)% | 716 | 739 | (3)% |
All values are in US Dollars.
New York – October 18, 2024 – American Express Company (NYSE: AXP) today reported third-quarter net income of $2.51 billion, or $3.49 per share, compared with net income of $2.45 billion, or $3.30 per share, a year ago.
“We had another strong quarter that reflects the earnings power of our business model and our continued investments for growth. Third-quarter revenue reached another record of $16.6 billion, up 8 percent, and earnings per share of $3.49 was up 6 percent, year-over-year,” said Stephen J. Squeri, Chairman and Chief Executive Officer.
“Based on our performance to date and the strong earnings our core business is generating, we are raising our full-year EPS guidance to $13.75 - $14.05, up from $13.30 - $13.80 previously. We continue to expect full-year revenue growth that is within the annual guidance range we provided in the beginning of the year, at around 9 percent.
“In the third quarter, total Card Member spending increased 6 percent, and card fee revenue growth accelerated to 18 percent. We continued to attract large numbers of new premium Card Members with 3.3 million new card acquisitions, while maintaining our high retention rates, excellent credit performance, and expense discipline.
“Our continued momentum demonstrates the sustainability of our product refresh strategy and the growth it is driving in our portfolio. We have already completed 40 product refreshes globally since the beginning of the year, including the recent launch of our new U.S. Consumer Gold Card. The new benefits and capabilities we have added in popular categories like dining are fueling our growth with Millennial and Gen-Z consumers, who represent 80 percent of the new accounts acquired on the U.S. Consumer Gold Card, and remain our fastest growing consumer cohort overall in the U.S. The strong early results we’re seeing from our product refreshes reinforce my confidence that we’re investing in the right areas to enhance our value propositions and meet the financial and lifestyle needs of our customers.”
Third-quarter consolidated total revenues net of interest expense were $16.6 billion, up 8 percent from $15.4 billion a year ago. The increase was primarily driven by higher net interest income supported by growth in loan volumes, stable growth in Card Member spending, and accelerated card fee revenue growth.
Consolidated provisions for credit losses were $1.4 billion, compared with $1.2 billion a year ago. The increase reflected higher net write-offs driven by growth in loan balances, partially offset by a lower net reserve build year-over-year. The third-quarter net write-off rate was 1.9 percent, compared to 1.8 percent a year ago, and down from 2.1 percent in the prior quarter.4
Consolidated expenses were $12.1 billion, up 9 percent from $11.0 billion a year ago. The increase primarily reflected higher variable customer engagement costs driven by higher Card Member spending and usage of travel-related benefits, as well as increased marketing investments and operating expenses.
The consolidated effective tax rate was 21.8 percent, up from 20.9 percent a year ago, primarily reflecting discrete tax benefits in the prior-year period.
#
This earnings release should be read in conjunction with the company’s statistical tables for the third quarter 2024, which include information regarding our reportable operating segments, available on the American Express Investor Relations website at http://ir.americanexpress.com and in a Form 8-K furnished today with the Securities and Exchange Commission.
An investor conference call will be held at 8:30 a.m. (ET) today to discuss third-quarter results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned American Express Investor Relations website. A replay of the conference call will be available later today at the same website address.
________________________________
| 1 | As used in this release, FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for current period apply to the corresponding prior-year period against which such results are being compared). FX-adjusted revenues is a non-GAAP measure. The company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the company’s performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates. |
|---|---|
| 2 | Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards of $18 million and $19 million for the three months ended September 30, 2024 and 2023, respectively, and $59 million and $50 million for the nine months ended September 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million and $14 million for the three months ended September 30, 2024 and 2023, respectively, and $44 million and $43 million for the nine months ended September 30, 2024 and 2023, respectively. |
| 3 | Adjusted diluted earnings per common share, a non-GAAP measure, excludes the $0.66 per share impact of the gain from the sale of Accertify, Inc. recognized in the second quarter of 2024. See Appendix I for a reconciliation to EPS on a GAAP basis. Management believes adjusted EPS is useful in evaluating the ongoing operating performance of the company. |
| 4 | Net write-off rates are based on principal losses only (i.e., excluding interest and/or fees) and represent consumer and small business Card Member loans and receivables (net write-off rates based on principal losses only are unavailable for corporate). We present a net write-off rate based on principal losses only to be consistent with industry convention. Net write-off rates including interest and fees are presented in the Statistical Tables for the third quarter of 2024 available on the above-mentioned American Express Investor Relations website, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses. |
As used in this release:
•Card Member spending (billed business) represents transaction volumes, including cash advances, on payment products issued by American Express.
•Operating expenses represent salaries and employee benefits, professional services, data processing and equipment, and other, net.
•Reserve releases and reserve builds represent the portion of the provisions for credit losses for the period related to increasing or decreasing reserves for credit losses as a result of, among other things, changes in volumes, macroeconomic outlook, portfolio composition, and credit quality of portfolios. Reserve releases represent the amount by which net write-offs exceed the provisions for credit losses. Reserve builds represent the amount by which the provisions for credit losses exceed net write-offs.
•Variable customer engagement costs represent the aggregate of Card Member rewards, business development, and Card Member services expenses.
ABOUT AMERICAN EXPRESS
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, X.com/americanexpress, and youtube.com/americanexpress.
Key links to products, services and corporate sustainability information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Business Blueprint, Resy, corporate card, business travel, diversity and inclusion, corporate sustainability and Environmental, Social, and Governance reports.
Source: American Express Company
Location: Global
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address American Express Company’s current expectations regarding business and financial performance, including management’s outlook for 2024 and long-term growth aspiration, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, those that are set forth under the caption “Cautionary Note Regarding Forward-Looking Statements” in the company’s current report on Form 8-K filed with the Securities and Exchange Commission (SEC) on October 18, 2024 (the Form 8-K Cautionary Note), which are incorporated by reference into this release. Those factors include, but are not limited to, the following:
•the company’s ability to achieve its 2024 earnings per common share (EPS) outlook and grow EPS in the future, which will depend in part on revenue growth, credit performance and the effective tax rate remaining consistent with current expectations and the company’s ability to continue investing at high levels in areas that can drive sustainable growth (including its brand, value propositions, customers, colleagues, marketing, technology and coverage), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraph and the Form 8-K Cautionary Note, as well as the following: macroeconomic conditions, such as recession risks, higher rates of unemployment, changes in interest rates, effects of inflation, supply chain issues, energy costs, tariffs and fiscal and monetary policies; geopolitical instability, including the ongoing Ukraine and Israel wars, broader regional hostilities and tensions involving China and the U.S.; the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and the company’s reputation; impacts related to sales and acquisitions and new or renegotiated cobrand and other partner agreements and joint ventures; and the impact of regulation and litigation, which could affect the profitability of the company’s business activities, limit the company’s ability to pursue business opportunities, require changes to business practices or alter the company’s relationships with Card Members, partners and merchants; and
•the company’s ability to achieve its 2024 revenue growth outlook and grow revenues net of interest expense in the future, which could be impacted by, among other things, the factors identified above and in the Form 8-K Cautionary Note, as well as the following: spending volumes and the spending environment not being consistent with expectations, including a decline in spending by U.S. small and mid-sized enterprise Card Members, or a slowdown in U.S. consumer or international spending volumes; an inability to address competitive pressures, attract and retain customers, invest in and enhance the company’s Membership Model of premium products, differentiated services and partnerships, successfully refresh its card products, grow spending and lending with customers across age cohorts, including Millennial and Gen-Z customers, and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the effects of regulatory initiatives, including pricing and network regulation; merchant coverage growing less than expected or the reduction of merchant acceptance; increased surcharging, steering, suppression or differential acceptance of the company’s products; merchant discount rates changing by a greater or lesser amount than expected; and changes in foreign currency exchange rates.
A further description of these uncertainties and other risks can be found in American Express Company’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2024 and the company’s other reports filed with the SEC, including in the Form 8-K Cautionary Note.
| (Preliminary) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| American Express Company | ||||||||||
| Appendix I | ||||||||||
| Reconciliation of Adjusted EPS Excluding Transaction Gain | ||||||||||
| Quarters Ended<br>September 30, | Nine Months Ended<br>September 30, | |||||||||
| 2024 | 2023 | YoY%<br>Inc/(Dec) | 2024 | 2023 | YoY%<br>Inc/(Dec) | |||||
| GAAP Diluted EPS | $ | 3.49 | $ | 3.30 | 6% | $ | 10.97 | $ | 8.59 | 28% |
| Accertify Gain on Sale (pretax) | $ | — | $ | — | $ | 0.73 | $ | — | ||
| Tax Impact of Accertify Gain on Sale | $ | — | $ | — | $ | (0.07) | $ | — | ||
| Accertify Gain on Sale (after tax) | $ | — | $ | — | $ | 0.66 | $ | — | ||
| Adjusted Diluted EPS Excluding the Impact of Accertify Gain on Sale | $ | 3.49 | $ | 3.30 | 6% | $ | 10.31 | $ | 8.59 | 20% |
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Document
| EXHIBIT 99.2 | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| American Express Company | (Preliminary) | |||||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||||||
| (Millions, except percentages and per share amounts) | ||||||||||||||||||||||||
| Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | YTD'24 | YTD'23 | YOY % change | ||||||||||||||||
| Non-interest revenues | ||||||||||||||||||||||||
| Discount revenue | $ | 8,780 | $ | 8,855 | $ | 8,380 | $ | 8,580 | $ | 8,408 | 4 | $ | 26,015 | $ | 24,836 | 5 | ||||||||
| Net card fees | 2,170 | 2,060 | 1,974 | 1,907 | 1,846 | 18 | 6,204 | 5,348 | 16 | |||||||||||||||
| Service fees and other revenue | 1,267 | 1,280 | 1,292 | 1,294 | 1,261 | — | 3,839 | 3,711 | 3 | |||||||||||||||
| Processed revenue | 413 | 408 | 386 | 414 | 424 | (3) | 1,207 | 1,291 | (7) | |||||||||||||||
| Total non-interest revenues | 12,630 | 12,603 | 12,032 | 12,195 | 11,939 | 6 | 37,265 | 35,186 | 6 | |||||||||||||||
| Interest income | ||||||||||||||||||||||||
| Interest on loans | 5,442 | 5,092 | 5,058 | 4,910 | 4,635 | 17 | 15,592 | 12,787 | 22 | |||||||||||||||
| Interest and dividends on investment securities | 18 | 25 | 25 | 31 | 33 | (45) | 68 | 97 | (30) | |||||||||||||||
| Deposits with banks and other | 689 | 677 | 692 | 611 | 572 | 20 | 2,058 | 1,547 | 33 | |||||||||||||||
| Total interest income | 6,149 | 5,794 | 5,775 | 5,552 | 5,240 | 17 | 17,718 | 14,431 | 23 | |||||||||||||||
| Interest expense | ||||||||||||||||||||||||
| Deposits | 1,446 | 1,425 | 1,427 | 1,385 | 1,290 | 12 | 4,298 | 3,480 | 24 | |||||||||||||||
| Long-term debt and other | 697 | 639 | 579 | 563 | 508 | 37 | 1,915 | 1,421 | 35 | |||||||||||||||
| Total interest expense | 2,143 | 2,064 | 2,006 | 1,948 | 1,798 | 19 | 6,213 | 4,901 | 27 | |||||||||||||||
| Net interest income | 4,006 | 3,730 | 3,769 | 3,604 | 3,442 | 16 | 11,505 | 9,530 | 21 | |||||||||||||||
| Total revenues net of interest expense | 16,636 | 16,333 | 15,801 | 15,799 | 15,381 | 8 | 48,770 | 44,716 | 9 | |||||||||||||||
| Provisions for credit losses | ||||||||||||||||||||||||
| Card Member receivables | 170 | 226 | 196 | 222 | 206 | (17) | 592 | 658 | (10) | |||||||||||||||
| Card Member loans | 1,114 | 970 | 1,014 | 1,148 | 982 | 13 | 3,098 | 2,691 | 15 | |||||||||||||||
| Other | 72 | 72 | 59 | 67 | 45 | 60 | 203 | 137 | 48 | |||||||||||||||
| Total provisions for credit losses | 1,356 | 1,268 | 1,269 | 1,437 | 1,233 | 10 | 3,893 | 3,486 | 12 | |||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 15,280 | 15,065 | 14,532 | 14,362 | 14,148 | 8 | 44,877 | 41,230 | 9 | |||||||||||||||
| Expenses | ||||||||||||||||||||||||
| Card Member rewards | 4,168 | 4,227 | 3,774 | 3,851 | 3,794 | 10 | 12,169 | 11,516 | 6 | |||||||||||||||
| Business development | 1,430 | 1,427 | 1,392 | 1,483 | 1,393 | 3 | 4,249 | 4,174 | 2 | |||||||||||||||
| Card Member services | 1,179 | 1,154 | 1,171 | 1,063 | 973 | 21 | 3,504 | 2,905 | 21 | |||||||||||||||
| Marketing | 1,470 | 1,480 | 1,476 | 1,228 | 1,236 | 19 | 4,426 | 3,985 | 11 | |||||||||||||||
| Salaries and employee benefits | 2,049 | 1,949 | 2,098 | 2,131 | 2,047 | — | 6,096 | 5,936 | 3 | |||||||||||||||
| Professional services | 579 | 542 | 455 | 645 | 477 | 21 | 1,576 | 1,384 | 14 | |||||||||||||||
| Data processing and equipment | 725 | 701 | 657 | 764 | 704 | 3 | 2,083 | 2,041 | 2 | |||||||||||||||
| Other, net | 476 | (205) | 364 | 685 | 424 | 12 | 635 | 1,288 | (51) | |||||||||||||||
| Total expenses | 12,076 | 11,275 | 11,387 | 11,850 | 11,048 | 9 | 34,738 | 33,229 | 5 | |||||||||||||||
| Pretax income | 3,204 | 3,790 | 3,145 | 2,512 | 3,100 | 3 | 10,139 | 8,001 | 27 | |||||||||||||||
| Income tax provision | 697 | 775 | 708 | 579 | 649 | 7 | 2,180 | 1,560 | 40 | |||||||||||||||
| Net income | $ | 2,507 | $ | 3,015 | $ | 2,437 | $ | 1,933 | $ | 2,451 | 2 | $ | 7,959 | $ | 6,441 | 24 | ||||||||
| Net income attributable to common shareholders (A) | $ | 2,474 | $ | 2,977 | $ | 2,405 | $ | 1,904 | $ | 2,418 | 2 | $ | 7,856 | $ | 6,348 | 24 | ||||||||
| Effective tax rate | 21.8 | % | 20.4 | % | 22.5 | % | 23.0 | % | 20.9 | % | 21.5 | % | 19.5 | % | ||||||||||
| Earnings Per Common Share | ||||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 3.50 | $ | 4.16 | $ | 3.34 | $ | 2.63 | $ | 3.30 | 6 | $ | 10.99 | $ | 8.60 | 28 | ||||||||
| Average common shares outstanding | 708 | 716 | 721 | 725 | 732 | (3) | 715 | 738 | (3) | |||||||||||||||
| Diluted | ||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 3.49 | $ | 4.15 | $ | 3.33 | $ | 2.62 | $ | 3.30 | 6 | $ | 10.97 | $ | 8.59 | 28 | ||||||||
| Average common shares outstanding | 709 | 717 | 722 | 726 | 733 | (3) | 716 | 739 | (3) | |||||||||||||||
| Cash dividends declared per common share | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 0.60 | $ | 0.60 | 17 | $ | 2.10 | $ | 1.80 | 17 |
See Appendix III for footnote references
1
| American Express Company | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Balance Sheets and Related Statistical Information | |||||||||||||||||||
| (Millions, except percentages, per share amounts and where indicated) | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Assets | |||||||||||||||||||
| Cash & cash equivalents | $ | 47,918 | $ | 52,895 | $ | 54,213 | $ | 46,596 | $ | 43,908 | 9 | ||||||||
| Card Member receivables, less reserves | 58,886 | 59,485 | 59,624 | 60,237 | 58,651 | — | |||||||||||||
| Card Member loans, less reserves | 128,960 | 125,530 | 121,348 | 120,877 | 113,257 | 14 | |||||||||||||
| Investment securities | 1,268 | 1,210 | 2,232 | 2,186 | 3,160 | (60) | |||||||||||||
| Other (B) | 33,947 | 33,099 | 31,844 | 31,212 | 31,611 | 7 | |||||||||||||
| Total assets | $ | 270,979 | $ | 272,219 | $ | 269,261 | $ | 261,108 | $ | 250,587 | 8 | ||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Customer deposits | $ | 135,438 | $ | 133,746 | $ | 134,418 | $ | 129,144 | $ | 124,439 | 9 | ||||||||
| Short-term borrowings | 1,457 | 1,639 | 1,742 | 1,293 | 1,613 | (10) | |||||||||||||
| Long-term debt | 53,546 | 51,521 | 48,826 | 47,866 | 46,447 | 15 | |||||||||||||
| Other (B) | 50,831 | 55,773 | 55,511 | 54,748 | 50,764 | — | |||||||||||||
| Total liabilities | 241,272 | 242,679 | 240,497 | 233,051 | 223,263 | 8 | |||||||||||||
| Shareholders' Equity | 29,707 | 29,540 | 28,764 | 28,057 | 27,324 | 9 | |||||||||||||
| Total liabilities and shareholders' equity | $ | 270,979 | $ | 272,219 | $ | 269,261 | $ | 261,108 | $ | 250,587 | 8 | ||||||||
| Return on average equity (C) | 33.9 | % | 41.4 | % | 34.3 | % | 31.5 | % | 36.3 | % | |||||||||
| Return on average common equity (C) | 35.3 | % | 43.2 | % | 35.9 | % | 33.0 | % | 38.0 | % | |||||||||
| Book value per common share (dollars) | $ | 39.92 | $ | 39.26 | $ | 37.79 | $ | 36.61 | $ | 35.32 | 13 |
See Appendix III for footnote references
2
| American Express Company | (Preliminary) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Capital | ||||||||||||||
| Q2'24 | Q1'24 | Q4'23 | Q3'23 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Shares Outstanding (in millions) | ||||||||||||||
| Beginning of period | 719 | 723 | 729 | 736 | ||||||||||
| Repurchase of common shares | (7) | (5) | (6) | (8) | ||||||||||
| Net impact of employee benefit plans and others | — | 1 | — | 1 | ||||||||||
| End of period | 712 | 719 | 723 | 729 | ||||||||||
| Risk-Based Capital Ratios - Basel III ( in billions) | ||||||||||||||
| Common Equity Tier 1/Risk Weighted Assets (RWA) | % | 10.8 | % | 10.6 | % | 10.5 | % | 10.7 | % | |||||
| Tier 1 | % | 11.5 | % | 11.3 | % | 11.3 | % | 11.5 | % | |||||
| Total | % | 13.5 | % | 13.2 | % | 13.1 | % | 13.4 | % | |||||
| Common Equity Tier 1 | 24.6 | $ | 24.6 | $ | 23.7 | $ | 23.2 | $ | 22.5 | |||||
| Tier 1 Capital | 26.2 | $ | 26.1 | $ | 25.3 | $ | 24.8 | $ | 24.0 | |||||
| Tier 2 Capital | 4.6 | $ | 4.6 | $ | 4.1 | $ | 4.0 | $ | 4.0 | |||||
| Total Capital | 30.8 | $ | 30.7 | $ | 29.4 | $ | 28.8 | $ | 28.0 | |||||
| RWA | 229.9 | $ | 227.8 | $ | 223.4 | $ | 219.7 | $ | 209.4 | |||||
| Tier 1 Leverage | % | 9.9 | % | 9.8 | % | 9.9 | % | 10.0 | % | |||||
| Average Total Assets to calculate the Tier 1 Leverage Ratio (D) | 267.6 | $ | 263.3 | $ | 257.6 | $ | 249.6 | $ | 240.9 |
All values are in US Dollars.
See Appendix III for footnote references
3
| American Express Company | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Card Related Statistical Information | |||||||||||||||||||
| (Millions, except percentages and where indicated) | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | YTD'24 | YTD'23 | YOY % change | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Network volumes (Billions) (E) | $ | 441.0 | $ | 440.6 | $ | 419.2 | $ | 434.4 | $ | 420.2 | 5 | $ | 1,300.8 | $ | 1,245.7 | 4 | |||
| Billed business (E) | $ | 387.3 | $ | 388.2 | $ | 367.0 | $ | 379.8 | $ | 366.2 | 6 | $ | 1,142.5 | $ | 1,079.8 | 6 | |||
| Processed volumes (E) | $ | 53.7 | $ | 52.4 | $ | 52.2 | $ | 54.6 | $ | 54.0 | (1) | $ | 158.3 | $ | 165.9 | (5) | |||
| Card Member loans | $ | 134,548 | $ | 130,851 | $ | 126,619 | $ | 125,995 | $ | 117,978 | 14 | $ | 134,548 | $ | 117,978 | 14 | |||
| Cards-in-force (F) | 145.5 | 144.3 | 142.4 | 141.2 | 138.2 | 5 | 145.5 | 138.2 | 5 | ||||||||||
| Proprietary cards-in-force | 82.9 | 82.1 | 81.1 | 80.2 | 79.6 | 4 | 82.9 | 79.6 | 4 | ||||||||||
| Basic cards-in-force (F) | 122.4 | 121.4 | 119.8 | 118.7 | 115.9 | 6 | 122.4 | 115.9 | 6 | ||||||||||
| Proprietary basic cards-in-force | 63.7 | 63.1 | 62.3 | 61.7 | 61.2 | 4 | 63.7 | 61.2 | 4 | ||||||||||
| Proprietary new cards acquired (G) | 3.3 | 3.3 | 3.4 | 2.9 | 2.9 | 14 | 10.0 | 9.4 | 6 | ||||||||||
| Average proprietary basic Card Member spending (dollars) | $ | 6,110 | $ | 6,192 | $ | 5,919 | $ | 6,179 | $ | 6,000 | 2 | $ | 18,224 | $ | 17,879 | 2 | |||
| Average fee per card (dollars) (H) | $ | 105 | $ | 101 | $ | 98 | $ | 95 | $ | 93 | 13 | $ | 101 | $ | 91 | 11 |
See Appendix III for footnote references
4
| American Express Company | (Preliminary) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Network Volumes Related Growth | ||||||||||||
| YOY % change | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reported | FX-Adjusted (I) | Reported | FX-Adjusted (I) | |||||||||
| Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YTD'24 | YTD'24 | |
| Network volumes (E) | 5% | 3% | 5% | 5% | 7% | 5% | 4% | 6% | 5% | 6% | 4% | 5% |
| Billed business (E) | 6 | 5 | 6 | 6 | 8 | 6 | 6 | 7 | 6 | 7 | 6 | 6 |
| U.S. Consumer Services | 6 | 6 | 8 | 7 | 9 | n/a | n/a | n/a | n/a | n/a | 7 | n/a |
| Commercial Services | 1 | 2 | 2 | 1 | 1 | 1 | 2 | 2 | 1 | 1 | 1 | 2 |
| International Card Services | 13 | 10 | 11 | 14 | 18 | 13 | 13 | 13 | 13 | 15 | 12 | 13 |
| Processed volumes (E) | (1) | (10) | (2) | (2) | (3) | 1 | (7) | 2 | (1) | (1) | (5) | (1) |
| Merchant industry billed business | ||||||||||||
| Goods & Services (G&S) spend (73% of Q3'24 billed business) | 6 | 5 | 6 | 5 | 6 | 6 | 6 | 6 | 5 | 6 | 6 | 6 |
| T&E spend (27% of Q3'24 billed business) | 6 | 6 | 8 | 9 | 13 | 6 | 7 | 8 | 9 | 13 | 7 | 7 |
| Airline spend (6% of Q3'24 billed business) | 6 | 4 | 8 | 7 | 13 | 6 | 5 | 9 | 6 | 12 | 6 | 7 |
See Appendix III for footnote references
5
| American Express Company | (Preliminary) | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Credit Related Statistical Information | ||||||||||||||||||||||||||
| Card Member Loans and Card Member Receivables | ||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | YTD'24 | YTD'23 | YOY % change | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Card Member loans and receivables | ||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (J) | 2.2 | % | 2.4 | % | 2.3 | % | 2.2 | % | 2.0 | % | 2.3 | % | 1.9 | % | ||||||||||||
| Net write-off rate (principal only) (J)(K) | 1.9 | % | 2.1 | % | 2.1 | % | 2.0 | % | 1.8 | % | 2.1 | % | 1.7 | % | ||||||||||||
| 30+ days past due as a % of total (K) | 1.3 | % | 1.2 | % | 1.3 | % | 1.3 | % | 1.2 | % | 1.3 | % | 1.2 | % | ||||||||||||
| Card Member loans | ||||||||||||||||||||||||||
| Total Card Member loans | $ | 134,548 | $ | 130,851 | $ | 126,619 | $ | 125,995 | $ | 117,978 | 14 | $ | 134,548 | $ | 117,978 | 14 | ||||||||||
| Credit loss reserves | ||||||||||||||||||||||||||
| Beginning balance | $ | 5,321 | $ | 5,271 | $ | 5,118 | $ | 4,721 | $ | 4,390 | 21 | $ | 5,118 | $ | 3,747 | 37 | ||||||||||
| Provisions - principal, interest and fees | 1,114 | 970 | 1,014 | 1,148 | 982 | 13 | 3,098 | 2,691 | 15 | |||||||||||||||||
| Net write-offs - principal less recoveries | (701) | (753) | (705) | (631) | (525) | 34 | (2,159) | (1,412) | 53 | |||||||||||||||||
| Net write-offs - interest and fees less recoveries | (152) | (160) | (150) | (133) | (114) | 33 | (462) | (310) | 49 | |||||||||||||||||
| Other (L) | 6 | (7) | (6) | 13 | (12) | # | (7) | 5 | # | |||||||||||||||||
| Ending balance | $ | 5,588 | $ | 5,321 | $ | 5,271 | $ | 5,118 | $ | 4,721 | 18 | $ | 5,588 | $ | 4,721 | 18 | ||||||||||
| % of loans | 4.2 | % | 4.1 | % | 4.2 | % | 4.1 | % | 4.0 | % | 4.2 | % | 4.0 | % | ||||||||||||
| % of past due | 297 | % | 312 | % | 297 | % | 297 | % | 316 | % | 297 | % | 316 | % | ||||||||||||
| Average loans | $ | 132,956 | $ | 128,321 | $ | 124,720 | $ | 121,774 | $ | 116,626 | 14 | $ | 128,652 | $ | 112,350 | 15 | ||||||||||
| Net write-off rate (principal, interest and fees) (J) | 2.6 | % | 2.8 | % | 2.7 | % | 2.5 | % | 2.2 | % | 2.7 | % | 2.0 | % | ||||||||||||
| Net write-off rate (principal only) (J)(K) | 2.1 | % | 2.3 | % | 2.3 | % | 2.1 | % | 1.8 | % | 2.2 | % | 1.7 | % | ||||||||||||
| 30+ days past due as a % of total (K) | 1.4 | % | 1.3 | % | 1.4 | % | 1.4 | % | 1.3 | % | 1.4 | % | 1.3 | % | ||||||||||||
| Net interest income divided by average Card Member loans (M) | 12.0 | % | 11.7 | % | 12.2 | % | 11.7 | % | 11.7 | % | 11.9 | % | 11.3 | % | ||||||||||||
| Net interest yield on average Card Member loans (M) | 12.0 | % | 11.7 | % | 12.0 | % | 11.7 | % | 11.7 | % | 11.9 | % | 11.4 | % | ||||||||||||
| Card Member receivables | ||||||||||||||||||||||||||
| Total Card Member receivables | $ | 59,042 | $ | 59,656 | $ | 59,775 | $ | 60,411 | $ | 58,825 | — | $ | 59,042 | $ | 58,825 | — | ||||||||||
| Credit loss reserves | ||||||||||||||||||||||||||
| Beginning balance | $ | 171 | $ | 151 | $ | 174 | $ | 174 | $ | 210 | (19) | $ | 174 | $ | 229 | (24) | ||||||||||
| Provisions - principal and fees | 170 | 226 | 196 | 222 | 206 | (17) | 592 | 658 | (10) | |||||||||||||||||
| Net write-offs - principal and fees less recoveries | (187) | (205) | (217) | (223) | (241) | (22) | (609) | (714) | (15) | |||||||||||||||||
| Other (L) | 2 | (1) | (2) | 1 | (1) | # | (1) | 1 | # | |||||||||||||||||
| Ending balance | $ | 156 | $ | 171 | $ | 151 | $ | 174 | $ | 174 | (10) | $ | 156 | $ | 174 | (10) | ||||||||||
| % of receivables | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | ||||||||||||
| Net write-off rate (principal and fees) (J) | 1.3 | % | 1.4 | % | 1.5 | % | 1.5 | % | 1.7 | % | 1.4 | % | 1.7 | % | ||||||||||||
| Net write-off rate (principal only) (J)(K) | 1.4 | % | 1.5 | % | 1.7 | % | 1.7 | % | 1.9 | % | 1.6 | % | 1.9 | % | ||||||||||||
| 30+ days past due as a % of total (K) | 0.9 | % | 0.9 | % | 1.1 | % | 1.1 | % | 1.1 | % | 0.9 | % | 1.1 | % | # - Denotes a variance of 100 percent or more. | |||||||||||
| --- |
See Appendix III for footnote references
6
| American Express Company | (Preliminary) | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Credit Related Statistical Information | ||||||||||||||||||||||||||
| Other Loans and Other Receivables | ||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | YTD'24 | YTD'23 | YOY % change | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Other loans (B) | ||||||||||||||||||||||||||
| Total other loans | $ | 8,460 | $ | 8,157 | $ | 7,601 | $ | 7,086 | $ | 6,591 | 28 | $ | 8,460 | $ | 6,591 | 28 | ||||||||||
| Credit loss reserves | ||||||||||||||||||||||||||
| Beginning balance | $ | 140 | $ | 136 | $ | 126 | $ | 108 | $ | 98 | 43 | $ | 126 | $ | 59 | # | ||||||||||
| Provisions | 60 | 49 | 53 | 52 | 39 | 54 | 162 | 122 | 33 | |||||||||||||||||
| Net write-offs | (46) | (45) | (43) | (34) | (29) | 59 | (134) | (73) | 84 | |||||||||||||||||
| Other (L) | — | — | — | — | — | — | — | — | — | |||||||||||||||||
| Ending balance | $ | 154 | $ | 140 | $ | 136 | $ | 126 | $ | 108 | 43 | $ | 154 | $ | 108 | 43 | ||||||||||
| % of other loans | 1.8 | % | 1.7 | % | 1.8 | % | 1.8 | % | 1.6 | % | 1.8 | % | 1.6 | % | ||||||||||||
| Other receivables (B) | ||||||||||||||||||||||||||
| Total other receivables | $ | 3,800 | $ | 3,889 | $ | 3,785 | $ | 3,654 | $ | 4,384 | (13) | $ | 3,800 | $ | 4,384 | (13) | ||||||||||
| Credit loss reserves | ||||||||||||||||||||||||||
| Beginning balance | $ | 44 | $ | 27 | $ | 27 | $ | 27 | $ | 24 | 83 | $ | 27 | $ | 22 | 23 | ||||||||||
| Provisions | 12 | 23 | 6 | 15 | 6 | # | 41 | 15 | # | |||||||||||||||||
| Net write-offs | (6) | (4) | (6) | (16) | (3) | # | (16) | (10) | 60 | |||||||||||||||||
| Other (L) | (1) | (2) | — | 1 | — | — | (3) | — | — | |||||||||||||||||
| Ending balance | $ | 49 | $ | 44 | $ | 27 | $ | 27 | $ | 27 | 81 | $ | 49 | $ | 27 | 81 | ||||||||||
| % of other receivables | 1.3 | % | 1.1 | % | 0.7 | % | 0.7 | % | 0.6 | % | 1.3 | % | 0.6 | % | # - Denotes a variance of 100 percent or more. | |||||||||||
| --- |
See Appendix III for footnote references
7
| American Express Company | (Preliminary) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement Information by Segment | |||||||||||||||
| (Millions) | U.S. Consumer Services<br>(USCS) | Commercial Services<br>(CS) | International Card Services<br>(ICS) | Global Merchant and Network Services<br>(GMNS) | Corporate and Other | Consolidated | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Q3'24 | |||||||||||||||
| Non-interest revenues | $ | 5,028 | $ | 3,304 | $ | 2,659 | $ | 1,667 | $ | (28) | $ | 12,630 | |||
| Interest income | 3,722 | 1,142 | 588 | 11 | 686 | 6,149 | |||||||||
| Interest expense | 806 | 448 | 311 | (169) | 747 | 2,143 | |||||||||
| Total revenues net of interest expense | 7,944 | 3,998 | 2,936 | 1,847 | (89) | 16,636 | |||||||||
| Total provisions for credit losses | 812 | 374 | 158 | 10 | 2 | 1,356 | |||||||||
| Total revenues net of interest expense after provisions for credit losses | 7,132 | 3,624 | 2,778 | 1,837 | (91) | 15,280 | |||||||||
| Card Member rewards, business development, Card Member services and marketing | 4,325 | 1,935 | 1,583 | 381 | 23 | 8,247 | |||||||||
| Salaries and employee benefits and other operating expenses | 1,148 | 781 | 740 | 465 | 695 | 3,829 | |||||||||
| Total expenses | 5,473 | 2,716 | 2,323 | 846 | 718 | 12,076 | |||||||||
| Pretax income (loss) | $ | 1,659 | $ | 908 | $ | 455 | $ | 991 | $ | (809) | $ | 3,204 | |||
| Q3'23 | |||||||||||||||
| Non-interest revenues | $ | 4,680 | $ | 3,257 | $ | 2,390 | $ | 1,656 | $ | (44) | $ | 11,939 | |||
| Interest income | 3,228 | 881 | 538 | 14 | 579 | 5,240 | |||||||||
| Interest expense | 700 | 391 | 285 | (181) | 603 | 1,798 | |||||||||
| Total revenues net of interest expense | 7,208 | 3,747 | 2,643 | 1,851 | (68) | 15,381 | |||||||||
| Total provisions for credit losses | 752 | 323 | 154 | 6 | (2) | 1,233 | |||||||||
| Total revenues net of interest expense after provisions for credit losses | 6,456 | 3,424 | 2,489 | 1,845 | (66) | 14,148 | |||||||||
| Card Member rewards, business development, Card Member services and marketing | 3,804 | 1,818 | 1,376 | 390 | 8 | 7,396 | |||||||||
| Salaries and employee benefits and other operating expenses | 1,068 | 754 | 726 | 469 | 635 | 3,652 | |||||||||
| Total expenses | 4,872 | 2,572 | 2,102 | 859 | 643 | 11,048 | |||||||||
| Pretax income (loss) | $ | 1,584 | $ | 852 | $ | 387 | $ | 986 | $ | (709) | $ | 3,100 | |||
| YOY % change | |||||||||||||||
| Non-interest revenues | 7 | 1 | 11 | 1 | 36 | 6 | |||||||||
| Interest income | 15 | 30 | 9 | (21) | 18 | 17 | |||||||||
| Interest expense | 15 | 15 | 9 | 7 | 24 | 19 | |||||||||
| Total revenues net of interest expense | 10 | 7 | 11 | — | (31) | 8 | |||||||||
| Total provisions for credit losses | 8 | 16 | 3 | 67 | # | 10 | |||||||||
| Total revenues net of interest expense after provisions for credit losses | 10 | 6 | 12 | — | (38) | 8 | |||||||||
| Card Member rewards, business development, Card Member services and marketing | 14 | 6 | 15 | (2) | # | 12 | |||||||||
| Salaries and employee benefits and other operating expenses | 7 | 4 | 2 | (1) | 9 | 5 | |||||||||
| Total expenses | 12 | 6 | 11 | (2) | 12 | 9 | |||||||||
| Pretax income (loss) | 5 | 7 | 18 | 1 | (14) | 3 | # - Denotes a variance of 100 percent or more. | ||||||||
| --- |
See Appendix III for footnote references
8
| U.S. Consumer Services | (Preliminary) | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement and Statistical Information | ||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | YTD'24 | YTD'23 | YOY % change | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Non-interest revenues | $ | 5,028 | $ | 5,029 | $ | 4,766 | $ | 4,782 | $ | 4,680 | 7 | $ | 14,823 | $ | 13,682 | 8 | ||||||||||
| Interest income | 3,722 | 3,474 | 3,481 | 3,399 | 3,228 | 15 | 10,677 | 8,937 | 19 | |||||||||||||||||
| Interest expense | 806 | 771 | 748 | 786 | 700 | 15 | 2,325 | 1,898 | 22 | |||||||||||||||||
| Net interest income | 2,916 | 2,703 | 2,733 | 2,613 | 2,528 | 15 | 8,352 | 7,039 | 19 | |||||||||||||||||
| Total revenues net of interest expense | 7,944 | 7,732 | 7,499 | 7,395 | 7,208 | 10 | 23,175 | 20,721 | 12 | |||||||||||||||||
| Total provisions for credit losses | 812 | 706 | 727 | 860 | 752 | 8 | 2,245 | 1,995 | 13 | |||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 7,132 | 7,026 | 6,772 | 6,535 | 6,456 | 10 | 20,930 | 18,726 | 12 | |||||||||||||||||
| Card Member rewards, business development, Card Member services and marketing | 4,325 | 4,351 | 4,075 | 3,811 | 3,804 | 14 | 12,751 | 11,582 | 10 | |||||||||||||||||
| Salaries and employee benefits and other operating expenses | 1,148 | 1,115 | 1,084 | 1,255 | 1,068 | 7 | 3,347 | 3,180 | 5 | |||||||||||||||||
| Total expenses | 5,473 | 5,466 | 5,159 | 5,066 | 4,872 | 12 | 16,098 | 14,762 | 9 | |||||||||||||||||
| Pretax segment income | $ | 1,659 | $ | 1,560 | $ | 1,613 | $ | 1,469 | $ | 1,584 | 5 | $ | 4,832 | $ | 3,964 | 22 | ||||||||||
| Billed business (billions) (E) | $ | 162.3 | $ | 165.1 | $ | 153.4 | $ | 159.7 | $ | 153.5 | 6 | $ | 480.8 | $ | 451.1 | 7 | ||||||||||
| Proprietary cards-in-force (F) | 45.7 | 45.2 | 44.4 | 43.8 | 43.4 | 5 | 45.7 | 43.4 | 5 | |||||||||||||||||
| Proprietary basic cards-in-force (F) | 32.1 | 31.7 | 31.1 | 30.7 | 30.4 | 6 | 32.1 | 30.4 | 6 | |||||||||||||||||
| Average proprietary basic Card Member spending (dollars) | $ | 5,091 | $ | 5,258 | $ | 4,962 | $ | 5,229 | $ | 5,062 | 1 | $ | 15,313 | $ | 15,072 | 2 | ||||||||||
| Segment assets | $ | 106,201 | $ | 108,224 | $ | 104,297 | $ | 107,158 | $ | 98,218 | 8 | $ | 106,201 | $ | 98,218 | 8 | ||||||||||
| Card Member loans | ||||||||||||||||||||||||||
| Total loans | $ | 86,752 | $ | 84,958 | $ | 82,255 | $ | 83,207 | $ | 77,718 | 12 | $ | 86,752 | $ | 77,718 | 12 | ||||||||||
| Average loans | $ | 86,223 | $ | 83,452 | $ | 81,746 | $ | 80,304 | $ | 77,080 | 12 | $ | 83,847 | $ | 74,418 | 13 | ||||||||||
| Net write-off rate (principal, interest and fees) (J) | 2.6 | % | 2.9 | % | 2.8 | % | 2.5 | % | 2.2 | % | 2.8 | % | 2.0 | % | ||||||||||||
| Net write-off rate (principal only) (J) | 2.1 | % | 2.4 | % | 2.3 | % | 2.1 | % | 1.7 | % | 2.2 | % | 1.6 | % | ||||||||||||
| 30+ days past due as a % of total | 1.4 | % | 1.3 | % | 1.4 | % | 1.4 | % | 1.3 | % | 1.4 | % | 1.3 | % | ||||||||||||
| Net interest income divided by average Card Member loans (M) | 13.5 | % | 13.0 | % | 13.4 | % | 12.9 | % | 13.0 | % | 13.3 | % | 12.6 | % | ||||||||||||
| Net interest yield on average Card Member loans (M) | 13.0 | % | 12.6 | % | 13.0 | % | 12.7 | % | 12.7 | % | 12.9 | % | 12.4 | % | ||||||||||||
| Card Member receivables | ||||||||||||||||||||||||||
| Total receivables | $ | 13,168 | $ | 13,796 | $ | 13,588 | $ | 14,789 | $ | 13,211 | — | $ | 13,168 | $ | 13,211 | — | ||||||||||
| Net write-off rate (principal and fees) (J) | 1.2 | % | 1.2 | % | 1.5 | % | 1.3 | % | 1.3 | % | 1.3 | % | 1.3 | % | ||||||||||||
| Net write-off rate (principal only) (J) | 1.1 | % | 1.1 | % | 1.3 | % | 1.2 | % | 1.2 | % | 1.2 | % | 1.2 | % | ||||||||||||
| 30+ days past due as a % of total | 0.7 | % | 0.7 | % | 0.8 | % | 0.8 | % | 0.9 | % | 0.7 | % | 0.9 | % |
See Appendix III for footnote references
9
| Commercial Services | (Preliminary) | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement and Statistical Information | ||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | ||||||||||||||||||||||||
| Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | YTD'24 | YTD'23 | YOY % change | ||||||||||||||||
| Non-interest revenues | $ | 3,304 | $ | 3,333 | $ | 3,194 | $ | 3,266 | $ | 3,257 | 1 | $ | 9,831 | $ | 9,665 | 2 | ||||||||
| Interest income | 1,142 | 1,051 | 1,005 | 949 | 881 | 30 | 3,198 | 2,379 | 34 | |||||||||||||||
| Interest expense | 448 | 430 | 414 | 407 | 391 | 15 | 1,292 | 1,076 | 20 | |||||||||||||||
| Net interest income | 694 | 621 | 591 | 542 | 490 | 42 | 1,906 | 1,303 | 46 | |||||||||||||||
| Total revenues net of interest expense | 3,998 | 3,954 | 3,785 | 3,808 | 3,747 | 7 | 11,737 | 10,968 | 7 | |||||||||||||||
| Total provisions for credit losses | 374 | 349 | 355 | 368 | 323 | 16 | 1,078 | 945 | 14 | |||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 3,624 | 3,605 | 3,430 | 3,440 | 3,424 | 6 | 10,659 | 10,023 | 6 | |||||||||||||||
| Card Member rewards, business development, Card Member services and marketing | 1,935 | 1,958 | 1,819 | 1,855 | 1,818 | 6 | 5,712 | 5,567 | 3 | |||||||||||||||
| Salaries and employee benefits and other operating expenses | 781 | 742 | 733 | 919 | 754 | 4 | 2,256 | 2,261 | — | |||||||||||||||
| Total expenses | 2,716 | 2,700 | 2,552 | 2,774 | 2,572 | 6 | 7,968 | 7,828 | 2 | |||||||||||||||
| Pretax segment income | $ | 908 | $ | 905 | $ | 878 | $ | 666 | $ | 852 | 7 | $ | 2,691 | $ | 2,195 | 23 | ||||||||
| Billed business (billions) (E) | $ | 131.0 | $ | 132.3 | $ | 127.1 | $ | 131.3 | $ | 129.5 | 1 | $ | 390.4 | $ | 384.7 | 1 | ||||||||
| Proprietary cards-in-force (F) | 15.5 | 15.4 | 15.4 | 15.4 | 15.4 | 1 | 15.5 | 15.4 | 1 | |||||||||||||||
| Average proprietary basic Card Member spending (dollars) | $ | 8,474 | $ | 8,588 | $ | 8,261 | $ | 8,515 | $ | 8,434 | — | $ | 25,319 | $ | 25,234 | — | ||||||||
| Segment assets | $ | 59,716 | $ | 58,993 | $ | 58,143 | $ | 55,361 | $ | 56,585 | 6 | $ | 59,716 | $ | 56,585 | 6 | ||||||||
| Card Member loans | ||||||||||||||||||||||||
| Total loans | $ | 29,869 | $ | 28,621 | $ | 27,634 | $ | 25,838 | $ | 25,150 | 19 | $ | 29,869 | $ | 25,150 | 19 | ||||||||
| Average loans | $ | 29,428 | $ | 28,031 | $ | 26,553 | $ | 25,608 | $ | 24,415 | 21 | $ | 27,979 | $ | 23,312 | 20 | ||||||||
| Net write-off rate (principal, interest and fees) (J) | 2.6 | % | 2.7 | % | 2.6 | % | 2.4 | % | 2.0 | % | 2.7 | % | 1.8 | % | ||||||||||
| Net write-off rate (principal only) (J) | 2.2 | % | 2.3 | % | 2.3 | % | 2.1 | % | 1.8 | % | 2.3 | % | 1.5 | % | ||||||||||
| 30+ days past due as a % of total | 1.5 | % | 1.4 | % | 1.5 | % | 1.4 | % | 1.2 | % | 1.5 | % | 1.2 | % | ||||||||||
| Net interest income divided by average Card Member loans (M) | 9.4 | % | 8.9 | % | 9.0 | % | 8.4 | % | 8.0 | % | 9.1 | % | 7.5 | % | ||||||||||
| Net interest yield on average Card Member loans (M) | 10.9 | % | 10.5 | % | 10.6 | % | 10.3 | % | 10.1 | % | 10.7 | % | 9.7 | % | ||||||||||
| Card Member receivables | ||||||||||||||||||||||||
| Total receivables | $ | 26,341 | $ | 26,737 | $ | 27,024 | $ | 26,222 | $ | 28,280 | (7) | $ | 26,341 | $ | 28,280 | (7) | ||||||||
| Net write-off rate (principal and fees) (J) | 1.3 | % | 1.4 | % | 1.4 | % | 1.5 | % | 1.5 | % | 1.4 | % | 1.5 | % | ||||||||||
| Net write-off rate (principal only) - small business (J) | 1.8 | % | 2.0 | % | 2.1 | % | 2.0 | % | 2.1 | % | 2.0 | % | 2.1 | % | ||||||||||
| 30+ days past due as a % of total - small business | 1.2 | % | 1.2 | % | 1.4 | % | 1.5 | % | 1.4 | % | 1.2 | % | 1.4 | % | ||||||||||
| 90+ days past billing as a % of total - corporate | 0.4 | % | 0.4 | % | 0.5 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % |
See Appendix III for footnote references
10
| International Card Services | (Preliminary) | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement and Statistical Information | ||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | YTD'24 | YTD'23 | YOY % change | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Non-interest revenues | $ | 2,659 | $ | 2,548 | $ | 2,437 | $ | 2,466 | $ | 2,390 | 11 | $ | 7,644 | $ | 7,006 | 9 | ||||||||||
| Interest income | 588 | 577 | 583 | 574 | 538 | 9 | 1,748 | 1,502 | 16 | |||||||||||||||||
| Interest expense | 311 | 303 | 307 | 348 | 285 | 9 | 921 | 770 | 20 | |||||||||||||||||
| Net interest income | 277 | 274 | 276 | 226 | 253 | 9 | 827 | 732 | 13 | |||||||||||||||||
| Total revenues net of interest expense | 2,936 | 2,822 | 2,713 | 2,692 | 2,643 | 11 | 8,471 | 7,738 | 9 | |||||||||||||||||
| Total provisions for credit losses | 158 | 192 | 182 | 194 | 154 | 3 | 532 | 533 | — | |||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 2,778 | 2,630 | 2,531 | 2,498 | 2,489 | 12 | 7,939 | 7,205 | 10 | |||||||||||||||||
| Card Member rewards, business development, Card Member services and marketing | 1,583 | 1,592 | 1,555 | 1,488 | 1,376 | 15 | 4,730 | 4,181 | 13 | |||||||||||||||||
| Salaries and employee benefits and other operating expenses | 740 | 748 | 724 | 866 | 726 | 2 | 2,212 | 2,195 | 1 | |||||||||||||||||
| Total expenses | 2,323 | 2,340 | 2,279 | 2,354 | 2,102 | 11 | 6,942 | 6,376 | 9 | |||||||||||||||||
| Pretax segment income (loss) | $ | 455 | $ | 290 | $ | 252 | $ | 144 | $ | 387 | 18 | $ | 997 | $ | 829 | 20 | ||||||||||
| Billed business (billions) (E) | $ | 93.6 | $ | 90.2 | $ | 85.4 | $ | 88.1 | $ | 82.7 | 13 | $ | 269.2 | $ | 241.4 | 12 | ||||||||||
| Proprietary cards-in-force (F) | 21.7 | 21.5 | 21.3 | 21.0 | 20.8 | 4 | 21.7 | 20.8 | 4 | |||||||||||||||||
| Proprietary basic cards-in-force (F) | 16.2 | 16.0 | 15.8 | 15.6 | 15.4 | 5 | 16.2 | 15.4 | 5 | |||||||||||||||||
| Average proprietary basic Card Member spending (dollars) | $ | 5,829 | $ | 5,681 | $ | 5,436 | $ | 5,684 | $ | 5,382 | 8 | $ | 16,956 | $ | 15,861 | 7 | ||||||||||
| Segment assets | $ | 43,073 | $ | 41,982 | $ | 41,472 | $ | 42,234 | $ | 38,553 | 12 | $ | 43,073 | $ | 38,553 | 12 | ||||||||||
| Card Member loans - consumer and small business | ||||||||||||||||||||||||||
| Total loans | $ | 17,927 | $ | 17,272 | $ | 16,730 | $ | 16,950 | $ | 15,110 | 19 | $ | 17,927 | $ | 15,110 | 19 | ||||||||||
| Average loans | $ | 17,305 | $ | 16,838 | $ | 16,422 | $ | 15,862 | $ | 15,131 | 14 | $ | 16,826 | $ | 14,620 | 15 | ||||||||||
| Net write-off rate (principal, interest and fees) (J) | 2.4 | % | 2.5 | % | 2.6 | % | 2.5 | % | 2.6 | % | 2.5 | % | 2.5 | % | ||||||||||||
| Net write-off rate (principal only) (J) | 2.0 | % | 2.1 | % | 2.2 | % | 2.1 | % | 2.1 | % | 2.1 | % | 2.1 | % | ||||||||||||
| 30+ days past due as a % of total | 1.2 | % | 1.2 | % | 1.3 | % | 1.3 | % | 1.4 | % | 1.2 | % | 1.4 | % | ||||||||||||
| Net interest income divided by average Card Member loans (M) | 6.4 | % | 6.5 | % | 6.8 | % | 5.6 | % | 6.6 | % | 6.6 | % | 6.7 | % | ||||||||||||
| Net interest yield on average Card Member loans (M) | 8.8 | % | 9.0 | % | 9.5 | % | 9.1 | % | 9.4 | % | 9.1 | % | 9.2 | % | ||||||||||||
| Card Member receivables | ||||||||||||||||||||||||||
| Total receivables | $ | 19,533 | $ | 19,123 | $ | 19,163 | $ | 19,400 | $ | 17,334 | 13 | $ | 19,533 | $ | 17,334 | 13 | ||||||||||
| Net write-off rate (principal and fees) (J) | 1.3 | % | 1.5 | % | 1.6 | % | 1.8 | % | 2.2 | % | 1.5 | % | 2.2 | % | ||||||||||||
| Net write-off rate (principal only) - consumer and small business (J) | 1.4 | % | 1.6 | % | 1.7 | % | 1.8 | % | 2.4 | % | 1.6 | % | 2.4 | % | ||||||||||||
| 30+ days past due as a % of total - consumer and small business | 0.9 | % | 0.9 | % | 1.0 | % | 1.0 | % | 1.1 | % | 0.9 | % | 1.1 | % | ||||||||||||
| 90+ days past billing as a % of total - corporate | 0.4 | % | 0.4 | % | 0.5 | % | 0.5 | % | 0.6 | % | 0.4 | % | 0.6 | % |
See Appendix III for footnote references
11
| Global Merchant and Network Services | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement and Statistical Information | |||||||||||||||||||
| (Millions, except percentages and where indicated) | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YOY % change | YTD'24 | YTD'23 | YOY % change | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Non-interest revenues | $ | 1,667 | $ | 1,684 | $ | 1,655 | $ | 1,693 | $ | 1,656 | 1 | $ | 5,006 | $ | 4,927 | 2 | |||
| Interest income | 11 | 13 | 17 | 15 | 14 | (21) | 41 | 42 | (2) | ||||||||||
| Interest expense | (169) | (176) | (198) | (233) | (181) | 7 | (543) | (486) | (12) | ||||||||||
| Net interest income | 180 | 189 | 215 | 248 | 195 | (8) | 584 | 528 | 11 | ||||||||||
| Total revenues net of interest expense | 1,847 | 1,873 | 1,870 | 1,941 | 1,851 | — | 5,590 | 5,455 | 2 | ||||||||||
| Total provisions for credit losses | 10 | 20 | 6 | 14 | 6 | 67 | 36 | 13 | # | ||||||||||
| Total revenues net of interest expense after provisions for credit losses | 1,837 | 1,853 | 1,864 | 1,927 | 1,845 | — | 5,554 | 5,442 | 2 | ||||||||||
| Business development, Card Member services and marketing | 381 | 374 | 352 | 457 | 390 | (2) | 1,107 | 1,198 | (8) | ||||||||||
| Salaries and employee benefits and other operating expenses | 465 | (58) | 495 | 648 | 469 | (1) | 902 | 1,410 | (36) | ||||||||||
| Total expenses | 846 | 316 | 847 | 1,105 | 859 | (2) | 2,009 | 2,608 | (23) | ||||||||||
| Pretax segment income | $ | 991 | $ | 1,537 | $ | 1,017 | $ | 822 | $ | 986 | 1 | $ | 3,545 | $ | 2,834 | 25 | |||
| Total network volumes (billions) (E) | $ | 441.0 | $ | 440.6 | $ | 419.2 | $ | 434.4 | $ | 420.2 | 5 | $ | 1,300.8 | $ | 1,245.7 | 4 | |||
| Segment assets | $ | 17,739 | $ | 24,446 | $ | 24,885 | $ | 23,714 | $ | 20,764 | (15) | $ | 17,739 | $ | 20,764 | (15) | # - Denotes a variance of 100 percent or more. | ||
| --- |
See Appendix III for footnote references
12
| American Express Company | (Preliminary) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Appendix I | ||||||||||||||||||
| Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE) | ||||||||||||||||||
| (Millions, except percentages) | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| ROE | ||||||||||||||||||
| Annualized Net income | $ | 10,028 | $ | 12,060 | $ | 9,748 | $ | 8,374 | $ | 9,804 | ||||||||
| Average shareholders' equity | $ | 29,623 | $ | 29,152 | $ | 28,410 | $ | 26,557 | $ | 27,013 | ||||||||
| Return on average equity (C) | 33.9 | % | 41.4 | % | 34.3 | % | 31.5 | % | 36.3 | % | ||||||||
| Reconciliation of ROCE | ||||||||||||||||||
| Annualized Net income | $ | 10,028 | $ | 12,060 | $ | 9,748 | $ | 8,374 | $ | 9,804 | ||||||||
| Preferred share dividends and equity related adjustments | 58 | 59 | 57 | 58 | 58 | |||||||||||||
| Earnings allocated to participating share awards and other | 75 | 92 | 73 | 64 | 75 | |||||||||||||
| Net income attributable to common shareholders | $ | 9,895 | $ | 11,909 | $ | 9,618 | $ | 8,252 | $ | 9,671 | ||||||||
| Average shareholders' equity | $ | 29,623 | $ | 29,152 | $ | 28,410 | $ | 26,557 | $ | 27,013 | ||||||||
| Average preferred shares | 1,584 | 1,584 | 1,584 | 1,584 | 1,584 | |||||||||||||
| Average common shareholders' equity | $ | 28,039 | $ | 27,568 | $ | 26,826 | $ | 24,973 | $ | 25,429 | ||||||||
| Return on average common equity (C) | 35.3 | % | 43.2 | % | 35.9 | % | 33.0 | % | 38.0 | % |
See Appendix III for footnote references
13
| American Express Company | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Appendix II | |||||||||||||||||||
| Net Interest Yield on Average Card Member Loans | |||||||||||||||||||
| (Millions, except percentages and where indicated) | |||||||||||||||||||
| Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | YTD'24 | YTD'23 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated | |||||||||||||||||||
| Net interest income | $ | 4,006 | $ | 3,730 | $ | 3,769 | $ | 3,604 | $ | 3,442 | 11,505 | 9,530 | |||||||
| Exclude: | |||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (N) | 940 | 912 | 882 | 821 | 770 | 2,734 | 2,122 | ||||||||||||
| Interest income not attributable to our Card Member loan portfolio (O) | (940) | (920) | (916) | (824) | (767) | (2,776) | (2,072) | ||||||||||||
| Adjusted net interest income (M) | $ | 4,006 | $ | 3,722 | $ | 3,735 | $ | 3,601 | $ | 3,445 | |||||||||
| Average Card Member loans | $ | 132,956 | $ | 128,321 | $ | 124,720 | $ | 121,774 | $ | 116,626 | |||||||||
| Net interest income divided by average Card Member loans (M) | 12.0 | % | 11.7 | % | 12.2 | % | 11.7 | % | 11.7 | % | 11.9 | % | 11.3 | % | |||||
| Net interest yield on average Card Member loans (M) | 12.0 | % | 11.7 | % | 12.0 | % | 11.7 | % | 11.7 | % | 11.9 | % | 11.4 | % | |||||
| U.S. Consumer Services | |||||||||||||||||||
| Net interest income | $ | 2,916 | $ | 2,703 | $ | 2,733 | $ | 2,613 | $ | 2,528 | |||||||||
| Exclude: | |||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (N) | 45 | 44 | 36 | 71 | 41 | 125 | 121 | ||||||||||||
| Interest income not attributable to our Card Member loan portfolio (O) | (143) | (132) | (122) | (112) | (101) | (397) | (274) | ||||||||||||
| Adjusted net interest income (M) | $ | 2,818 | $ | 2,615 | $ | 2,647 | $ | 2,572 | $ | 2,468 | |||||||||
| Average Card Member loans | $ | 86,223 | $ | 83,452 | $ | 81,746 | $ | 80,304 | $ | 77,080 | |||||||||
| Net interest income divided by average Card Member loans (M) | 13.5 | % | 13.0 | % | 13.4 | % | 12.9 | % | 13.0 | % | 13.3 | % | 12.6 | % | |||||
| Net interest yield on average Card Member loans (M) | 13.0 | % | 12.6 | % | 13.0 | % | 12.7 | % | 12.7 | % | 12.9 | % | 12.4 | % | |||||
| Commercial Services | |||||||||||||||||||
| Net interest income | $ | 694 | $ | 621 | $ | 591 | $ | 542 | $ | 490 | |||||||||
| Exclude: | |||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (N) | 193 | 190 | 184 | 186 | 185 | 567 | 525 | ||||||||||||
| Interest income not attributable to our Card Member loan portfolio (O) | (84) | (81) | (74) | (65) | (55) | (239) | (139) | ||||||||||||
| Adjusted net interest income (M) | $ | 803 | $ | 730 | $ | 701 | $ | 663 | $ | 620 | |||||||||
| Average Card Member loans | $ | 29,428 | $ | 28,031 | $ | 26,553 | $ | 25,608 | $ | 24,415 | |||||||||
| Net interest income divided by average Card Member loans (M) | 9.4 | % | 8.9 | % | 9.0 | % | 8.4 | % | 8.0 | % | 9.1 | % | 7.5 | % | |||||
| Net interest yield on average Card Member loans (M) | 10.9 | % | 10.5 | % | 10.6 | % | 10.3 | % | 10.1 | % | 10.7 | % | 9.7 | % | |||||
| International Card Services | |||||||||||||||||||
| Net interest income | $ | 277 | $ | 274 | $ | 276 | $ | 226 | $ | 253 | |||||||||
| Exclude: | |||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (N) | 122 | 118 | 126 | 156 | 121 | 366 | 319 | ||||||||||||
| Interest income not attributable to our Card Member loan portfolio (O) | (14) | (15) | (15) | (16) | (17) | (44) | (46) | ||||||||||||
| Adjusted net interest income (M) | $ | 385 | $ | 377 | $ | 387 | $ | 366 | $ | 357 | |||||||||
| Average Card Member loans | $ | 17,305 | $ | 16,838 | $ | 16,422 | $ | 15,862 | $ | 15,131 | |||||||||
| Net interest income divided by average Card Member loans (M) | 6.4 | % | 6.5 | % | 6.8 | % | 5.6 | % | 6.6 | % | 6.6 | % | 6.7 | % | |||||
| Net interest yield on average Card Member loans (M) | 8.8 | % | 9.0 | % | 9.5 | % | 9.1 | % | 9.4 | % | 9.1 | % | 9.2 | % |
All values are in US Dollars.
See Appendix III for footnote references
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| Appendix III | (Preliminary) |
|---|---|
| All Information in the preceding tables is presented on a basis prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), unless otherwise indicated. Certain reclassifications of prior period amounts have been made to conform to the current period presentation. | |
| --- | --- |
| (A) | Represents net income, less (i) earnings allocated to participating share awards of $18 million, $23 million, $18 million, $14 million and $19 million in Q3'24, Q2'24, Q1'24, Q4'23 and Q3'23, respectively; and (ii) dividends on preferred shares of $15 million, $15 million, $14 million, $15 million and $14 million in Q3'24, Q2'24, Q1'24, Q4'23 and Q3'23, respectively. |
| (B) | Within assets, "other" includes the following items as presented in our Consolidated Balance Sheets: Other loans, less reserves for credit losses, Premises and equipment and Other assets (including Other receivables); and within liabilities, "other" includes the following items: Accounts payable and Other liabilities. |
| (C) | Return on Average Equity (ROE) is calculated by dividing annualized net income for the period by average shareholders' equity for the period. Return on Average Common Equity (ROCE) is calculated by dividing annualized net income attributable to common shareholders for the period by average common shareholders' equity for the period. |
| (D) | Presented for the purpose of calculating the Tier 1 Leverage Ratio. |
| (E) | Network volumes represent the total of billed business and processed volumes. Billed business (Card Member spending) represents transaction volumes (including cash advances) on payment products issued by American Express. Processed volumes represent transaction volumes (including cash advances) on cards issued under network partnership agreements with banks and other institutions, including joint ventures, as well as alternative payment solutions facilitated by American Express. |
| (F) | Cards-in-force represent the number of cards that are issued and outstanding by American Express (proprietary cards-in-force) and cards issued and outstanding under network partnership agreements with banks and other institutions, except for retail cobrand cards issued by network partners that had no out-of-store spending activity during the prior twelve months. Basic cards-in-force excludes supplemental cards issued on consumer accounts. Cards-in-force is useful in understanding the size of our Card Member base. |
| (G) | Proprietary new cards acquired represents the number of new cards issued by American Express during the referenced period, net of replacement cards. Proprietary new cards acquired is useful as a measure of the effectiveness of our customer acquisition strategy. |
| (H) | Average fee per card is computed on an annualized basis based on proprietary net card fees divided by average proprietary total cards-in-force. |
| (I) | FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of conversion into U.S. dollars (e.g., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared). |
| (J) | Our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses and we therefore present a net write-off rate including principal, interest and/or fees. We also present a net write-off rate based on principal losses only to be consistent with industry convention. |
| (K) | Net write-off rate for principal losses only and 30+ days past due metrics represent consumer and small business, and are not available for corporate due to system constraints. |
| (L) | Other includes foreign currency impact on balance sheet re-measurement and translation. |
| (M) | Net interest income divided by average Card Member loans, computed on an annualized basis, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans. Net interest yield on average Card Member loans, a non-GAAP measure, is computed by dividing adjusted net interest income (also a non-GAAP measure) by average Card Member loans, computed on an annualized basis. Adjusted net interest income represents net interest income attributable to our Card Member loans (which includes, on a GAAP basis, interest that is deemed uncollectible), excluding the impact of interest expense and interest income not attributable to our Card Member loans. Reserves and net write-offs related to uncollectible interest are recorded through provisions for credit losses, and thus not included in the net interest yield calculation. We believe that net interest yield on average Card Member loans is useful to investors because it provides a measure of profitability of our Card Member loan portfolio. See Appendix II for calculations of net interest income divided by average Card Member loans and net interest yield on average Card Member loans. |
| (N) | Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables. |
| (O) | Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios. |
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