American Express Q2 2024 – Revenue Up 10%

By Tamara Parker • Saturday, July 20 15:17 • Permanent Link

American Express reported strong financial performance in its latest 10-Q filing for the three and six months ended June 30, 2024, with total revenues net of interest expense increasing by 8% and 10% respectively compared to the same periods in 2023. Here are the key financial highlights:

Total revenues net of interest expense for the three months ended June 30, 2024, stood at $16.33 billion, representing an increase of $1.28 billion or 8% compared to the same period in 2023. For the six months ended June 30, 2024, total revenues net of interest expense were $32.13 billion, reflecting a $2.80 billion or 10% increase from the same period in 2023.
Net income for the quarter was $3.0 billion, or $4.15 per share, compared with net income of $2.2 billion, or $2.89 per share, a year ago, representing a 39% increase in net income and a 44% increase in earnings per share.
Billed business grew by 5% year-over-year, with Global Services (G&S) and Travel & Entertainment (T&E) spending growing by 5% and 6% respectively. U.S. Consumer Services billed business grew by 6% year-over-year, and International Card Services billed business grew by 10% year-over-year.
Total loans and Card Member receivables increased by 14% year-over-year, with growth continuing to moderate sequentially.
Provisions for credit losses increased, primarily driven by higher net write-offs, partially offset by a lower reserve build compared to last year. Net write-off and delinquency rates remained best-in-class, supported by the premium global customer base and a strong focus on risk management.
Operating expenses decreased by 13%, primarily reflecting the gain recognized on the sale of Accertify, partially offset by higher compensation costs to support business growth.
American Express returned $2.3 billion of capital to shareholders in the form of share repurchases and common stock dividends during the quarter.
The company maintained its capital ratios within its target range of 10 to 11% and plans to continue returning excess capital to shareholders while managing its CET1 capital ratio within its target range and supporting balance sheet growth.

Following these announcements, the company's shares moved -2.7%, and are now trading at a price of $242.38. For more information, read the company's full 10-Q submission here.

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