Financial Data and Key Metrics Changes - Revenues reached a record $17.9 billion, up 9% year over year [5] - Earnings per share (EPS) was $4.8, up 17% excluding last year's gain from the sale of Certify [5][14] - Total card member spending increased by 7%, consistent with previous patterns [6][15] - The company reaffirmed its full-year revenue growth and EPS guidance provided in January [6] Business Line Data and Key Metrics Changes - Spending in travel categories like airlines and lodging was softer overall, while restaurant spending was strong, up 8% FX adjusted [15] - The U.S. Consumer business saw millennial spending up 10% and Gen Z spending growing around 40% [16] - New card acquisitions totaled 3.1 million in Q2, with 1.5 million in the U.S. Consumer business [18] Market Data and Key Metrics Changes - International business continued to grow in double digits, up 12% FX adjusted [16] - The premium products drove around 80% of growth in card member revolving loans [19] - Delinquency rates remained low, with U.S. millennial and Gen Z customers showing better credit performance than older age groups [20] Company Strategy and Development Direction - The company is focusing on refreshing its U.S. Consumer and Business Platinum cards this fall to maintain leadership in the premium card space [7][12] - The strategy includes enriching value propositions with more benefits and offerings, attracting premier partners to enhance customer value [10][12] - The competitive landscape has shifted towards partner-rated value, access, experiences, and superior customer service [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite macroeconomic uncertainties [15] - The company anticipates continued strong performance in the premium card segment, supported by a growing addressable market [12][28] - Management acknowledged the competitive environment but emphasized the importance of delivering value to maintain pricing power [46][67] Other Important Information - The company returned $2 billion of capital to shareholders, including $600 million in dividends and $1.4 billion in share repurchases [27] - The CET1 ratio was 10.6%, within the target range of 10% to 11% [26] Q&A Session Summary Question: How does the company plan for intermediate term spending trends? - Management expects spending trends to remain consistent, with some softness in airline and lodging but resilience in goods and services [31][32] Question: How does the company view competition in the premium card space? - Management believes that competition has been beneficial for customers and that as long as value is delivered, pricing power will remain intact [46][67] Question: What is the outlook for international growth and acceptance? - Management is optimistic about international growth, noting double-digit growth and ongoing improvements in merchant acceptance [58][60] Question: How does the company address concerns about lounge access and overcrowding? - Management is expanding lounge sizes and innovating with new concepts to manage demand effectively [77][78] Question: How does the company view the dynamics of net card fee growth? - Management expects some moderation in card fee growth rates in the second half of the year, with potential acceleration in 2026 [105][106]

Financial Performance - Revenue growth was 9%, reaching $17.856 billion, compared to $16.333 billion in the prior year [7] - Adjusted EPS increased by 17% to $4.08, up from $3.49 in Q2'24, excluding the Accertify gain [5, 7] - Net income decreased by 4% to $2.885 billion [7] - The company reaffirmed its full-year guidance of 8-10% revenue growth and $15.00-$15.50 EPS [5] Billed Business - Total billed business grew by 7% year-over-year (FX-adjusted) [9] - U S Consumer Services billed business also increased by 7% year-over-year [12] - International Card Services billed business grew by 12% year-over-year (FX-adjusted) [17] - Commercial Services billed business increased by 2% year-over-year (FX-adjusted) [14] Credit Metrics - The net write-off rate for Card Member Loans was 2.2% [67] - The net write-off rate for Card Member Receivables was 1.4% [67] - Total provision increased by 11% year-over-year, driven by a larger net reserve build and higher net write-offs [77] Capital and Guidance - The company's CET1 ratio was 10.6% [53] - The company projects an EPS of $15.00 - $15.50 for 2025 [56]