American Express Company (AXP) Goldman Sachs 2024 U.S. Financial Services Conference summary

2024 performance and outlook

• Achieved 10% FX-adjusted revenue growth through Q3, with EPS running at 20% and guidance raised to reflect strong performance.

• End-of-year revenue growth expected at 9%, with EPS between 23% and 25%.

• Customer acquisition remains robust, targeting over 13 million new cards in 2024.

• Product refreshes and international expansion have been key growth drivers.

• Economic environment has been a headwind, but scale and focus on Millennials and Gen Z provide resilience.

Growth strategy and revenue drivers

• Maintains a 10%+ aspirational revenue growth target, requiring high single-digit billings and continued card fee growth.

• Card fee revenue has grown 10%+ for 25 consecutive quarters, supporting recurring revenue.

• Lending growth is in line with industry, with a focus on maintaining credit quality.

• Scale enables mid-teens EPS growth even if revenue growth is slightly below target.

Operational efficiency and technology

• Investments in technology and AI have driven servicing efficiency and operating leverage.

• Marketing spend increased to $6 billion, with a focus on efficiency and retention.

• AI and machine learning are integral to credit and fraud decisions, with generative AI enhancing customer service.