American Express Company (AXP) Morgan Stanley US Financials, Payments & CRE Conference 2024 summary

Consumer and billing trends

• Q2 billing growth continues at a similar pace to Q1, with around 6-7% growth after adjusting for calendar effects.

• U.S. consumer billing rose 8% in Q1, international billing up 13%, while SME growth remains in low single digits.

• Consumer spending remains resilient, especially among high-income segments.

Premium card strategy and fee growth

• Premium card fee growth has been in double digits for six years, with 20 of 23 quarters above 13%.

• Growth is driven by acquiring new premium members, high renewal rates, and frequent product refreshes.

• 40 card refreshes are planned for the year, building on 150 refreshes over five years.

• Card fee growth is expected to accelerate exiting the year.

Younger customer acquisition and retention

• Products now resonate strongly with Millennials and Gen Z, with about 60% of new entrants paying fees.

• Younger card members typically have high FICO scores (above 750) and offer long-term value.

• The company is optimistic about continued success with younger generations.