Revenue and Income Growth - Total revenues net of interest expense increased by 9% YoY to $17.179 billion in Q4'24, driven by growth in non-interest revenues and interest income[1] - Net income attributable to common shareholders rose 12% YoY to $2.139 billion in Q4'24, with diluted EPS increasing 16% to $3.04[1] - Total revenues net of interest expense after provisions for credit losses rose by 14% YoY in the U.S. Consumer Services segment, amounting to $7,468 million in Q4'24[14] - Non-interest revenues increased by 11% YoY to $5,314 million in Q4'24, contributing to a total of $20,137 million for FY'24, up 9% from FY'23[16] - Net interest income grew by 12% YoY to $2,938 million in Q4'24, with FY'24 total reaching $11,290 million, a 17% increase from FY'23[16] - Total revenues net of interest expense rose by 12% YoY to $8,252 million in Q4'24, with FY'24 total at $31,427 million, up 12% from FY'23[16] - Non-interest revenues increased by 4% YoY to $3,388 million in Q4'24, with FY'24 total reaching $13,219 million, up 2% from FY'23[17] - Net interest income grew by 35% YoY to $734 million in Q4'24, with FY'24 total at $2,640 million, a 43% increase from FY'23[17] - Total revenues net of interest expense rose by 8% YoY to $4,122 million in Q4'24, with FY'24 total at $15,859 million, up 7% from FY'23[17] - Non-interest revenues for Q4'24 increased by 11% YoY to $2,725 million, with FY'24 reaching $10,369 million, a 9% increase from FY'23[18] - Net interest income for Q4'24 rose by 17% YoY to $265 million, with FY'24 totaling $1,092 million, a 14% increase from FY'23[18] - Annualized Net Income for Q4'24 was $10,129 million, with a Return on Average Equity (ROE) of 34.6%[21] - Net Interest Income for Q4'24 was $4,038 million, with a Net Interest Yield on Average Card Member Loans of 11.8%[23] - U.S. Consumer Services Net Interest Income for Q4'24 was $2,938 million, with a Net Interest Yield of 12.7%[23] - Commercial Services Net Interest Income for Q4'24 was $734 million, with a Net Interest Yield of 11.1%[23] - International Card Services Net Interest Income for Q4'24 was $265 million, with a Net Interest Yield of 8.7%[23] - Adjusted Net Interest Income for FY'24 was $15,543 million, compared to $13,181 million in FY'23[23] Card Member Loans and Spending - Card Member loans grew 11% YoY to $133.995 billion in Q4'24, reflecting strong customer acquisition and spending[2] - Card Member loans increased to $139.674 billion in Q4'24, an 11% year-over-year growth[6] - Total Card Member loans increased by 11% YoY to $139,674 million in Q4'24[10] - Average proprietary basic Card Member spending in Q4'24 was $6,378, up 3% year-over-year[6] - Average proprietary basic Card Member spending for Q4'24 rose by 6% YoY to $6,003, with FY'24 reaching $22,965, a 7% increase from FY'23[18] - Average Card Member Loans for U.S. Consumer Services in Q4'24 were $89,178 million, up from $80,304 million in Q4'23[23] - Average Card Member Loans for Commercial Services in Q4'24 were $30,392 million, up from $25,608 million in Q4'23[23] - Average Card Member Loans for International Card Services in Q4'24 were $17,591 million, up from $15,862 million in Q4'23[23] Credit Quality and Provisions - Total provisions for credit losses decreased 10% YoY to $1.292 billion in Q4'24, reflecting improved credit quality[1] - Net write-off rate (principal, interest, and fees) for Card Member loans remained stable at 2.2% in Q4'24, consistent with Q4'23[10] - Credit loss reserves for Card Member loans grew by 11% YoY to $5,679 million in Q4'24[10] - Total other loans surged by 30% YoY to $9,232 million in Q4'24[12] - Credit loss reserves for other loans increased by 54% YoY to $194 million in Q4'24[12] - Net write-offs for other loans rose by 56% YoY to $53 million in Q4'24[12] - Total other receivables decreased by 2% YoY to $3,587 million in Q4'24[12] - Credit loss reserves for other receivables remained unchanged at $27 million in Q4'24 compared to Q4'23[12] - Net write-offs for other receivables increased by 75% YoY to $28 million in Q4'24[12] - Net write-off rate (principal, interest, and fees) remained stable at 2.6% in Q4'24, with FY'24 average at 2.7%, compared to 2.2% in FY'23[16] - Net write-off rate (principal, interest, and fees) increased to 2.7% in Q4'24, compared to 2.0% in FY'23[17] - Net write-off rate (principal only) for small business improved to 1.6% in Q4'24, down from 2.0% in Q4'23[17] - 30+ days past due as a % of total for small business decreased to 1.3% in Q4'24, down from 1.5% in Q4'23[17] - Net write-off rate (principal and fees) for Q4'24 decreased to 1.3%, with FY'24 reaching 1.4%, a decrease from 2.1% in FY'23[18] Expenses and Costs - Card Member rewards expenses increased 15% YoY to $4.430 billion in Q4'24, driven by higher customer spending[1] - Marketing expenses rose 31% YoY to $1.614 billion in Q4'24, supporting business growth initiatives[1] - Marketing expenses surged by 49% YoY in the U.S. Consumer Services segment, reaching $813 million in Q4'24[14] - Card Member rewards, business development, and Card Member services expenses grew by 15% YoY, reaching $7,345 million in Q4'24[14] - Salaries and employee benefits and other operating expenses decreased by 1% YoY, totaling $4,172 million in Q4'24[14] - Total expenses increased by 11% YoY across all segments, reaching $13,131 million in Q4'24[14] - Marketing expenses surged by 49% YoY to $813 million in Q4'24, contributing to a total of $3,051 million for FY'24, up 18% from FY'23[16] - Total expenses for Q4'24 in Global Merchant and Network Services decreased by 6% YoY to $1,035 million, with FY'24 totaling $3,044 million, an 18% decrease from FY'23[20] Capital and Liquidity - Common Equity Tier 1 capital ratio remained strong at 10.5% in Q4'24, with total capital of $31.1 billion[4] - Return on average common equity improved to 36.1% in Q4'24, up from 33.0% in Q4'23, demonstrating strong profitability[2] - Return on Average Common Equity (ROCE) for Q4'24 was 36.1%, up from 33.0% in Q4'23[21] - Supplementary Leverage Ratio is calculated as Tier 1 capital divided by total leverage exposure, with a minimum requirement from Q4'24 onwards[15] - Interest expense for maintaining corporate liquidity pool and funding Card Member receivables is primarily represented[25] - Interest income from Other loans, interest-bearing deposits, and fixed income investment portfolios is primarily represented[25] Business Growth and Customer Acquisition - Cards-in-force grew to 146.5 million in Q4'24, a 4% increase year-over-year[6] - Proprietary new cards acquired in FY'24 totaled 13.0 million, compared to 12.2 million in FY'23[6] - Proprietary cards-in-force grew by 6% YoY to 46.3 million in Q4'24, with FY'24 total at 46.3 million, up 6% from FY'23[16] - Proprietary cards-in-force for Q4'24 increased by 4% YoY to 21.9 million, with FY'24 reaching 21.9 million, a 4% increase from FY'23[18] - Proprietary new cards acquired measure the effectiveness of the company's customer acquisition strategy[15] Segment Performance - International Card Services reported a 15% FX-adjusted growth in Q4'24[9] - Pretax income in the Commercial Services segment increased by 22% YoY, totaling $814 million in Q4'24[14] - Pretax income in the International Card Services segment declined by 76% YoY, amounting to $34 million in Q4'24[14] - Pretax segment income increased by 5% YoY to $1,545 million in Q4'24, with FY'24 total reaching $6,377 million, a 17% increase from FY'23[16] - Pretax segment income for Q4'24 in Global Merchant and Network Services grew by 4% YoY to $853 million, with FY'24 reaching $4,398 million, a 20% increase from FY'23[20] - Segment assets for Q4'24 in Global Merchant and Network Services decreased by 25% YoY to $17,712 million, with FY'24 reaching $17,712 million, a 25% decrease from FY'23[20] Network Volumes and Billed Business - Network volumes in Q4'24 reached $464 billion, a 7% year-over-year increase[6] - Billed business in Q4'24 was $408.4 billion, up 8% year-over-year[6] - Goods & Services spend accounted for 74% of Q4'24 billed business, growing 7% year-over-year[9] - Travel & Entertainment spend grew 10% year-over-year in Q4'24, accounting for 26% of billed business[9] - Billed business increased by 9% YoY to $174.0 billion in Q4'24, with FY'24 total reaching $654.8 billion, a 7% increase from FY'23[16] - Billed business increased by 4% YoY to $136.0 billion in Q4'24, with FY'24 total at $526.5 billion, up 2% from FY'23[17] - Billed business for Q4'24 grew by 11% YoY to $97.7 billion, with FY'24 reaching $366.9 billion, an 11% increase from FY'23[18] - Total network volumes for Q4'24 increased by 7% YoY to $464.0 billion, with FY'24 reaching $1,764.8 billion, a 5% increase from FY'23[20] Dividends and Shareholder Returns - Cash dividends declared per common share increased 17% YoY to $0.70 in Q4'24, reflecting strong cash generation[1] - Earnings allocated to participating share awards were $17M, $18M, $23M, $18M, and $14M in Q4'24, Q3'24, Q2'24, Q1'24, and Q4'23, respectively[15] - Dividends on preferred shares were $14M, $15M, $15M, $14M, and $15M in Q4'24, Q3'24, Q2'24, Q1'24, and Q4'23, respectively[15] Other Financial Metrics - Total assets increased 4% YoY to $271.461 billion in Q4'24, supported by growth in Card Member loans and cash equivalents[2] - Net interest yield on average Card Member loans including loans held for sale increased to 11.8% in Q4'24, up from 11.7% in Q4'23[10] - Net interest yield on average Card Member loans improved to 12.7% in Q4'24, with FY'24 average at 12.8%, up from 12.4% in FY'23[16] - Net interest yield on average Card Member loans including loans held for sale rose to 11.1% in Q4'24, up from 10.3% in Q4'23[17] - Card Member receivables decreased by 5% YoY to $24,945 million in Q4'24, with FY'24 total at $24,945 million, down 5% from FY'23[17] - Average fee per card in Q4'24 was $108, a 14% increase year-over-year[6] - Average fee per card is computed annually based on proprietary net card fees divided by average proprietary total cards-in-force[15] - Network volumes include billed business (Card Member spending) and processed volumes on cards issued under network partnerships[15] - Cards-in-force represent the number of issued and outstanding cards, excluding supplemental cards on consumer accounts[15]

Building wealth through dividend investing hinges on identifying companies that can sustain and grow their payouts over long periods. This strategy, known as dividend growth investing, offers investors a powerful combination of rising income streams and the potential for substantial capital appreciation over time. Companies capable of consistently raising dividends often exhibit robust free cash flow, healthy profit margins, and management teams committed to rewarding shareholders.Two critical metrics can h ...

Quarterly results from several of the major credit card companies will be a highlight of this week’s earnings lineup with a spotlight on American Express (AXP)  in particular.Hitting fresh 52-week highs of $319 a share on Tuesday, AXP has soared over +70% in the last year. This has impressively outperformed the broader indexes and many of its credit card peers including Capital One’s (COF)  +49% and Mastercard’s (MA)  +20%.That said, let’s see if the surge in American Express stock can continue as its Q4 ea ...

The 2024 Q4 earnings season has entered full swing, with this week’s reporting docket stacked with many notable companies. Two financial giants, Discover Financial Services (DFS) and American Express (AXP) , are among the bunch.See the Zacks Earnings Calendar to stay ahead of market-making news. Both stocks have been big-time outperformers over the last year relative to the S&P 500, as shown below.Image Source: Zacks Investment ResearchThe big banks already helped kick off the Q4 cycle for the broader finan ...

Shares of American Express Company (AXP) have gained 69% in the past year compared with the industry’s 22.3% growth. The Finance sector and the S&P 500 composite index rallied 25% and 24.8%, respectively, in the same time frame. With a market capitalization of $220.2 billion, the average volume of shares traded in the last three months was 2.5 million.American Express benefits from rising consumer spending, sustained travel demand, enhanced digital services and adequate cash generation abilities supporting ...

Wall Street analysts expect American Express (AXP) to post quarterly earnings of $3.03 per share in its upcoming report, which indicates a year-over-year increase of 15.7%. Revenues are expected to be $17.19 billion, up 8.8% from the year-ago quarter.The current level reflects an upward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a comp ...

The most recent trading session ended with American Express (AXP) standing at $297.02, reflecting a +1.27% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq lost 0.38%.The credit card issuer and global payments company's shares have seen a decrease of 2.93% over the last month, surpassing the Finance sector's loss of 5.04% and falling behind the S&P 500's loss of 2.2%.The upcoming earnings re ...

Warren Buffett's Investment Philosophy - Warren Buffett's investment strategy focuses on understanding a company's business and execution capabilities, and purchasing at a reasonable valuation [1] Bank of America (BAC) - Bank of America is a significant holding in Berkshire Hathaway's portfolio, making up 11.3% of its investments [4] - The bank has shown resilience and financial strength despite macroeconomic challenges [4] - Revenue and earnings per share are expected to reach $25.1 billion and $0.77, respectively, in Q4 2024, representing a 14.3% year-over-year revenue increase and a 133% earnings jump [2] - Customer deposits grew from $750 billion pre-pandemic to $940 billion by Q3 2024, with 360,000 net new checking accounts added in Q3, marking 23 consecutive quarters of growth [3] - Net interest income (NII) is projected to reach $14.3 billion in Q4 2024, following a trough in Q2 2024 and an inflection point in Q3 2024 [8] - The bank benefits from an uninverted yield curve and increased loan volumes in 2025, allowing it to borrow short-term and lend long-term [5] - Digitization efforts are strong, with 75% to 95% digital adoption across business lines and 2.4 billion client interactions through its AI-powered virtual assistant, Erica, by Q3 2024 [6] - The stock trades at 1.26 times its book value, below its 2022 peak of 1.6, indicating a reasonable valuation [9] - Berkshire Hathaway sold 235 million shares in 2024 but still owns nearly 10% of the bank, suggesting potential upside for investors [10] American Express (AXP) - American Express delivered strong Q3 2024 results with earnings per share of $3.49, despite only a 6% year-over-year rise in billings [11] - The company raised its 2024 earnings guidance from $13.30-$13.80 to $13.75-$14.05 [12] - Credit quality is strong, with a 1.9% write-off rate in Q3 and a robust reserve rate of 2.9% [13] - Spending by millennial and Gen Z customers grew 12% year-over-year in Q3, with higher retention rates and expected double lifetime value compared to older generations [13] - A product refresh strategy has been successful, with 40 products refreshed globally by Q3 2024, including the U.S. Consumer Gold card, which saw 30% higher acquisitions than the Platinum Card [14] - The stock trades at just 3 times sales, making it an attractive buy given its premium customer base, loyal younger clientele, and strong business model [15]

The most recent trading session ended with American Express (AXP) standing at $301.88, reflecting a -0.4% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.55%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq increased by 1.24%.The upcoming earnings release of American Express will be of great interest to investors. The company's earnings report is expected on January 24, 2025. The company is expected to report EPS of $3 ...

Berkshire Hathaway's Stock Portfolio Adjustments - Warren Buffett's Berkshire Hathaway sold $133 billion worth of stocks in the first nine months of 2024, including reducing its stake in Apple and selling nearly a quarter of its Bank of America holdings [1] - Apple, American Express, Bank of America, and Coca-Cola accounted for 70% of Berkshire's $271 billion stock portfolio in Q3 2024 [2] - Buffett is raising cash as the S&P 500 trades at a historically high 30 times earnings [2] Coca-Cola Investment Analysis - Coca-Cola remains a core holding for Berkshire, with 400 million shares worth $25 billion and paying $776 million in annual dividends as of Q3 2024 [6] - Coca-Cola's unit case volume declined slightly last quarter due to weak consumer spending, but management expects long-term revenue growth slightly above the global beverage industry's 4% historical rate [7] - The stock trades at 21 times 2025 earnings estimates with a 3.14% dividend yield, offering steady passive income despite limited growth potential [8] American Express Investment Analysis - Berkshire holds 151 million shares of American Express, a position it has maintained for 30 years [9] - American Express reported $9.9 billion in earnings over the past year, reflecting strong growth from $12.5 million in 1964 and $1.4 billion in 1994 [9] - Net card fees grew 18% YoY to $2.2 billion in Q3, driven by strong customer service and a card membership model [10] - Total transaction volumes grew 6% YoY, with earnings expected to grow 25% in 2024 due to strong card fee growth and low delinquency rates [11] - The stock trades at 20 times 2025 earnings estimates, above its 10-year average P/E of 18, but long-term earnings growth is expected at 14% annually [12]