American Express Company (AXP) Barclays 23rd Annual Global Financial Services Conference summary

Consumer spending and engagement

• Consumer spend remains stable in a slow growth economy, with transaction growth outpacing billings and strong engagement across all generations, especially Millennials and Gen Z, who are growing at a faster pace.

• Card fee revenue is up 16% and expected to increase further, with high engagement in dining and travel categories.

• Credit metrics and write-off rates remain very strong, reflecting responsible borrowing and repayment behavior.

SME segment and product refreshes

• SME segment shows strong acquisition and credit performance, but organic spend growth among tenured card members remains negative, with recovery efforts ongoing.

• About 40 product refreshes are planned for 2024, with recent launches like the Gold Card and Delta portfolio performing well and driving demand, especially for limited editions.

• Product refreshes focus on adding value, such as new credits, and have proven accretive to key metrics and customer engagement.

Card fees, value proposition, and lending

• Card fee increases are justified by added value, with no evidence of consumer resistance; international markets support higher fees, and the playbook remains successful.

• Value is delivered through a mix of merchant-funded and proprietary credits, leveraging platforms like Resy to enhance dining benefits and synergies.

• Lending growth is driven by premium card members, with most revolving balances paid off quickly; the business remains spend-centric but is capturing more of customers' borrowing needs.