Revenue and Income Growth - Total revenues net of interest expense increased by 9% YoY to 17.179billioninQ4′24,drivenbygrowthinnon−interestrevenuesandinterestincome[1]−Netincomeattributabletocommonshareholdersrose122.139 billion in Q4'24, with diluted EPS increasing 16% to 3.04[1]−Totalrevenuesnetofinterestexpenseafterprovisionsforcreditlossesroseby147,468 million in Q4'24[14] - Non-interest revenues increased by 11% YoY to 5,314millioninQ4′24,contributingtoatotalof20,137 million for FY'24, up 9% from FY'23[16] - Net interest income grew by 12% YoY to 2,938millioninQ4′24,withFY′24totalreaching11,290 million, a 17% increase from FY'23[16] - Total revenues net of interest expense rose by 12% YoY to 8,252millioninQ4′24,withFY′24totalat31,427 million, up 12% from FY'23[16] - Non-interest revenues increased by 4% YoY to 3,388millioninQ4′24,withFY′24totalreaching13,219 million, up 2% from FY'23[17] - Net interest income grew by 35% YoY to 734millioninQ4′24,withFY′24totalat2,640 million, a 43% increase from FY'23[17] - Total revenues net of interest expense rose by 8% YoY to 4,122millioninQ4′24,withFY′24totalat15,859 million, up 7% from FY'23[17] - Non-interest revenues for Q4'24 increased by 11% YoY to 2,725million,withFY′24reaching10,369 million, a 9% increase from FY'23[18] - Net interest income for Q4'24 rose by 17% YoY to 265million,withFY′24totaling1,092 million, a 14% increase from FY'23[18] - Annualized Net Income for Q4'24 was 10,129million,withaReturnonAverageEquity(ROE)of34.64,038 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 2,938million,withaNetInterestYieldof12.7734 million, with a Net Interest Yield of 11.1%[23] - International Card Services Net Interest Income for Q4'24 was 265million,withaNetInterestYieldof8.715,543 million, compared to 13,181millioninFY′23[23]CardMemberLoansandSpending−CardMemberloansgrew11133.995 billion in Q4'24, reflecting strong customer acquisition and spending[2] - Card Member loans increased to 139.674billioninQ4′24,an11139,674 million in Q4'24[10] - Average proprietary basic Card Member spending in Q4'24 was 6,378,up36,003, with FY'24 reaching 22,965,a789,178 million, up from 80,304millioninQ4′23[23]−AverageCardMemberLoansforCommercialServicesinQ4′24were30,392 million, up from 25,608millioninQ4′23[23]−AverageCardMemberLoansforInternationalCardServicesinQ4′24were17,591 million, up from 15,862millioninQ4′23[23]CreditQualityandProvisions−Totalprovisionsforcreditlossesdecreased101.292 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 5,679millioninQ4′24[10]−Totalotherloanssurgedby309,232 million in Q4'24[12] - Credit loss reserves for other loans increased by 54% YoY to 194millioninQ4′24[12]−Netwrite−offsforotherloansroseby5653 million in Q4'24[12] - Total other receivables decreased by 2% YoY to 3,587millioninQ4′24[12]−Creditlossreservesforotherreceivablesremainedunchangedat27 million in Q4'24 compared to Q4'23[12] - Net write-offs for other receivables increased by 75% YoY to 28millioninQ4′24[12]−Netwrite−offrate(principal,interest,andfees)remainedstableat2.64.430 billion in Q4'24, driven by higher customer spending[1] - Marketing expenses rose 31% YoY to 1.614billioninQ4′24,supportingbusinessgrowthinitiatives[1]−Marketingexpensessurgedby49813 million in Q4'24[14] - Card Member rewards, business development, and Card Member services expenses grew by 15% YoY, reaching 7,345millioninQ4′24[14]−Salariesandemployeebenefitsandotheroperatingexpensesdecreasedby14,172 million in Q4'24[14] - Total expenses increased by 11% YoY across all segments, reaching 13,131millioninQ4′24[14]−Marketingexpensessurgedby49813 million in Q4'24, contributing to a total of 3,051millionforFY′24,up181,035 million, with FY'24 totaling 3,044million,an1831.1 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 814millioninQ4′24[14]−PretaxincomeintheInternationalCardServicessegmentdeclinedby7634 million in Q4'24[14] - Pretax segment income increased by 5% YoY to 1,545millioninQ4′24,withFY′24totalreaching6,377 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 853million,withFY′24reaching4,398 million, a 20% increase from FY'23[20] - Segment assets for Q4'24 in Global Merchant and Network Services decreased by 25% YoY to 17,712million,withFY′24reaching17,712 million, a 25% decrease from FY'23[20] Network Volumes and Billed Business - Network volumes in Q4'24 reached 464billion,a7408.4 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 174.0billioninQ4′24,withFY′24totalreaching654.8 billion, a 7% increase from FY'23[16] - Billed business increased by 4% YoY to 136.0billioninQ4′24,withFY′24totalat526.5 billion, up 2% from FY'23[17] - Billed business for Q4'24 grew by 11% YoY to 97.7billion,withFY′24reaching366.9 billion, an 11% increase from FY'23[18] - Total network volumes for Q4'24 increased by 7% YoY to 464.0billion,withFY′24reaching1,764.8 billion, a 5% increase from FY'23[20] Dividends and Shareholder Returns - Cash dividends declared per common share increased 17% YoY to 0.70inQ4′24,reflectingstrongcashgeneration[1]−Earningsallocatedtoparticipatingshareawardswere17M, 18M,23M, 18M,and14M in Q4'24, Q3'24, Q2'24, Q1'24, and Q4'23, respectively[15] - Dividends on preferred shares were 14M,15M, 15M,14M, and 15MinQ4′24,Q3′24,Q2′24,Q1′24,andQ4′23,respectively[15]OtherFinancialMetrics−Totalassetsincreased4271.461 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 24,945millioninQ4′24,withFY′24totalat24,945 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]
American Express(AXP)2025-01-24 12:04