American Express Company (AXP) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered record revenue of $16.3 billion, up 8% year-over-year (9% FX-adjusted), and net income rose 39% to $3.0 billion, with diluted EPS up 44% to $4.15, including a $0.66 per share gain from the Accertify sale.

• Adjusted EPS excluding the Accertify gain was $3.49, up 21% year-over-year.

• Billed business grew 6% FX-adjusted, with U.S. Consumer Services up 6%, Commercial Services up 2%, and International Card Services up 13%.

• Premium customer engagement, scale, and disciplined expense management drive sustainable growth and operating leverage.

• Core business momentum enables a $6 billion marketing investment for 2024, up 15% from last year, fully funded by core earnings.

Financial highlights

• Q2 revenue reached $16.3 billion, up 8% year-over-year, with net income of $3.0 billion and EPS of $4.15, including $0.66 from the Accertify sale.

• Net card fee revenue exceeded $2 billion, up 16% year-over-year, and net interest income grew 20% to $3.7 billion.

• Billed business grew 6% year-over-year FX-adjusted; transaction volume rose 9%.

• Provisions for credit losses increased 6% to $1.3 billion, driven by higher net write-offs.

• Operating expenses decreased 13% due to the Accertify gain; adjusted operating expenses rose 3%.

Outlook and guidance

• Full-year EPS guidance raised to $13.30–$13.80, including the full Accertify gain.

• Revenue growth expected within the 9%–11% range for 2024.

• Marketing spend to reach $6 billion, a 15% increase over 2023.

• Write-off rates and reserve ratios expected to remain stable for the rest of 2024.

• Management remains confident in sustainable, profitable long-term growth despite macroeconomic and regulatory uncertainties.