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FY 2024 Earnings Per Share Increased 25% to $14.01 |
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FY 2025 Guidance for Revenue Growth of 8% to 10% and EPS of $15.00 to $15.50 |
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Company Plans to Increase Quarterly Dividend by 17% to $0.82 Per Common Share |
| American Express Company (NYSE: AXP) today reported full-year net income of $10.1 billion, or $14.01 per share, compared with net income of $8.4 billion, or $11.21 per share, a year ago. |
| “2024 was another strong year for American Express. We delivered record revenues of $65.9 billion, up 10 per cent on an FX-adjusted basis, record net income of $10.1 billion, and earnings per share of $14.01, up 25 per cent year-over-year,” said Stephen J. Squeri, Chairman and Chief Executive Officer. |
| “We also saw record levels of annual Card Member spending, record net card fee revenues, and a record 13 million new card acquisitions, and we continued to add millions of merchant locations to our network globally. We exited the year with increased momentum, with billings growth accelerating to 8per cent in the fourth quarter, driven by stronger spending from our consumer and commercial customers during the holiday season. We maintained our best-in-class credit performance and disciplined expense management throughout the year. |
| “As we prepare to celebrate the 175th anniversary of American Express in March, we will continue to build on our history of growth and innovation by investing in our premium value propositions, coverage, marketing, technology, and talent. For the full year 2025, we expect revenue growth of between 8 to 10 per cent and EPS in the range of $15.00 to $15.50, and we plan to increase our quarterly common stock dividend by 17 per cent. |
| “I am confident that we can sustain our strong momentum over the long term, driven by the many attractive opportunities we see across our premium customer base, particularly with Millennial and Gen Z consumers and in key international markets, along with our operating expense leverage which enables us to continue investing at high levels to drive growth.” |
| Full Year 2024 Results |
| Consolidated total revenues net of interest expense for the full year were $65.9 billion, up 9per cent year-over-year, or 10 per cent on an FX-adjusted basis. The increase was primarily driven by higher net interest income supported by growth in revolving loan balances, increased Card Member spending, and continued strong card fee growth. |
| Consolidated provisions for credit losses for the full year were $5.2 billion, compared with $4.9 billion a year ago. The increase reflected higher net write-offs driven by growth in Total loans and Card Member receivables, partially offset by a lower reserve build year-over-year. The full-year net write-off rate was 2.0 per cent, compared to 1.8per centt a year ago.4 |
| Consolidated expenses for the full year were $47.9 billion, up 6 per cent year-over-year. 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, partially offset by lower operating expenses due to the gain on sale of Accertify in the second quarter. |
| The consolidated effective tax rate for the full year was 21.5 per cent, up from 20.3 per cent a year ago, primarily reflecting discrete tax benefits recognized in the prior year. |
| Fourth Quarter 2024 Results |
| For the fourth quarter of 2024, the company reported net income of $2.2 billion, or $3.04 per share, compared with net income of $1.9 billion, or $2.62 per share, a year ago. |
| Fourth quarter consolidated total revenues net of interest expense were $17.2 billion, up 9per cent year-over-year, or 10 per cent on an FX-adjusted basis. The increase was primarily driven by strong Card Member spending, higher net interest income supported by growth in revolving loan balances, and accelerated card fee growth. |
| Consolidated provisions for credit losses were $1.3 billion, compared with $1.4 billion a year ago. The decrease reflected a lower net reserve build year-over-year, partially offset by higher net write-offs. The fourth quarter net write-off rate was 1.9per cent, compared to 2.0 per cent a year ago.4 |
| Consolidated expenses were $13.1 billion, up 11pecenttt year-over-year. The increase was driven by higher variable customer engagement costs and marketing investments, partially offset by a decrease in operating expenses. |
| The consolidated effective tax rate was 21.3 per cent, down from 23.0 per cent a year ago, primarily reflecting discrete tax charges in the prior year. |
| Planned Dividend Increase |
| The company plans to increase the regular quarterly dividend on its common shares outstanding by 17 per cent, from $0.70 to $0.82 per share, beginning with the first quarter of 2025 dividend declaration. |
| This earnings release should be read in conjunction with the company’s statistical tables for the fourth quarter of 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. |
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| American Express Company |
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American Express: Announces Record FY 2024 Revenue, Up 9%, or 10% On An FX-Adjusted Basis
