American Express CFO Touts Strong Spending, Platinum Refresh Success and Resilient Credit at Conference

Core Insights - American Express is experiencing strong and consistent spending trends across its customer base, particularly in premium products, travel, and entertainment, with a notable increase in credit performance [3][6] - The company reported a global spending increase of 7% to 8% for the year, with travel and luxury lodging seeing significant gains [2][6] - The Platinum Card refresh has driven higher-value growth, resulting in increased engagement and retention rates among card members [5][12] Financial Performance - American Express customers have a strong balance sheet characterized by low write-off and delinquency rates [1] - The company ended the year with a 9% increase in U.S. consumer spending during the holiday season, with Platinum Card members spending 12% more [1] - Operating expenses as a ratio of revenue improved from 26% to 22% over the last three years, attributed to operational efficiency and technology investments [4][18] Product Strategy - The company is prioritizing fee-paying accounts, especially the Platinum Card, leading to a significant rise in average fees per newly acquired account [10][11] - Travel bookings increased by 30% year-over-year in the fourth quarter, driven by the new Platinum value proposition [20] - The current Platinum refresh is reported to be more successful than previous refreshes, with strong acquisition and engagement metrics [12] International Growth - International expansion remains a key growth opportunity, with a focus on premium products and younger demographics, particularly Gen Z and millennials [14] - The company noted a 20% growth in Gen Z and millennial segments internationally, compared to 15% in the U.S. [14] - American Express is working towards increasing its acceptance coverage internationally, currently at about 6% across major markets [15] Technology and Efficiency - The company invests approximately $5 billion annually in technology, which has improved operating efficiency and customer engagement [4][18] - Digital servicing capabilities have led to a decline in customer service calls, with a significant portion of Gen Z interactions occurring online [19] - The company expects variable customer engagement expenses to be 44% of revenues in 2026, driven by premiumization and rewards costs [17] Capital Management - American Express plans to continue share buybacks and remains open to acquisitions, including the recent Center acquisition [21] - The company has achieved a return on equity of 36% and has guided for revenue growth of 9% to 10% for the coming year [20]