American Express Co. Files 10-Q for Q1 2024

TL;DR

<b>American Express Co. released its Q1 2024 10-Q filing, detailing financial performance and balance sheet information.</b>

AI Summary

AMERICAN EXPRESS CO (AXP) filed a Quarterly Report (10-Q) with the SEC on April 19, 2024. American Express Co. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. Key financial data points such as Credit Card Merchant Discount, Credit Card Member revenue, and Card Member Receivables are detailed. The report includes balance sheet information as of March 31, 2024, and December 31, 2023. Shareholder equity components like Common Stock and Retained Earnings are presented for both periods.

Why It Matters

For investors and stakeholders tracking AMERICAN EXPRESS CO, this filing contains several important signals. This filing provides investors with the latest quarterly financial performance and position of American Express, crucial for assessing investment value and trends. The detailed breakdown of revenue streams and receivables offers insights into the company's core business operations and credit risk exposure.

Risk Assessment

Risk Level: low — AMERICAN EXPRESS CO shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain unusual or high-risk disclosures.

Analyst Insight

Monitor future filings for trends in credit card receivables and net income growth to assess the company's ongoing financial health.

Key Numbers

• 2024-03-31 — Report Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-19 — Filing Date (FILED AS OF DATE)
• 2024-01-01 — Quarter Start Date (2024 Q1)
• 2024-03-31 — Quarter End Date (2024 Q1)

Key Players & Entities

• AMERICAN EXPRESS CO (company) — FILER
• 200 VESEY STREET (address) — BUSINESS ADDRESS
• NEW YORK (location) — BUSINESS ADDRESS CITY
• 10285 (postal_code) — BUSINESS ADDRESS ZIP
• 2126402000 (phone_number) — BUSINESS PHONE

FAQ

Industry Context

American Express operates in the financial services sector, primarily focused on credit card services, payment processing, and lending.

Regulatory Implications

The company is subject to regulations governing financial institutions, including those related to consumer credit, data privacy, and anti-money laundering.

What Investors Should Do

1. Review the detailed revenue segments for Q1 2024 to understand growth drivers.
2. Analyze the changes in Card Member Receivables and Loans between Q4 2023 and Q1 2024 for credit risk assessment.
3. Compare key balance sheet items (assets, liabilities, equity) to the prior year-end to identify significant shifts.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-04-19: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly update after the full-year 2023 report.

Key Financial Figures

• $0.20 — ch registered Common shares (par value $0.20 per share) AXP New York Stock Exchange
• $18 million — ocated to participating share awards of $18 million and $14 million for the three months en
• $14 million — ipating share awards of $18 million and $14 million for the three months ended March 31, 20
• $2.4 b — ted business model, drove net income of $2.4 billion, or $3.33 per share, compared wit
• $3.33 — l, drove net income of $2.4 billion, or $3.33 per share, compared with net income of
• $1.8 b — per share, compared with net income of $1.8 billion, or $2.40 per share, a year ago.
• $2.40 — red with net income of $1.8 billion, or $2.40 per share, a year ago. Billed business
• $1.6 billion — range of 10 to 11 percent and returned $1.6 billion of capital to our shareholders in the f
• $137 m — increase in cobrand rewards expense of $137 million, largely offset by a decrease in
• $129 million — back rewards expenses, collectively, of $129 million. The increase in cobrand rewards expens
• $196 million — bership Rewards expense was driven by a $196 million benefit from enhancements to the models

Filing Documents

• axp-20240331.htm (10-Q) — 2376KB
• axpq124ex311.htm (EX-31.1) — 9KB
• axpq124ex312.htm (EX-31.2) — 9KB
• axpq124ex321.htm (EX-32.1) — 5KB
• axpq124ex322.htm (EX-32.2) — 5KB
• 0000004962-24-000031.txt (&nbsp;) — 11208KB
• axp-20240331.xsd (EX-101.SCH) — 60KB
• axp-20240331_cal.xml (EX-101.CAL) — 100KB
• axp-20240331_def.xml (EX-101.DEF) — 381KB
• axp-20240331_lab.xml (EX-101.LAB) — 724KB
• axp-20240331_pre.xml (EX-101.PRE) — 562KB
• axp-20240331_htm.xml (XML) — 2195KB

Financial Statements

Financial Statements Consolidated Statements of Income – Three Months Ended March 31, 2024 and 2023 36 Consolidated Statements of Comprehensive Income – Three Months Ended March 3 1 , 202 4 and 202 3 37 Consolidated Balance Sheets – March 3 1 , 202 4 and December 31, 202 3 38 Consolidated Statements of Cash Flows – Three Months Ended March 3 1 , 202 4 and 202 3 39 Consolidated Statements of Shareholders' Equity - Three Months Ended March 31, 2024 and 2023 40

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 41 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) 1 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 68 Item 4.

Controls and Procedures

Controls and Procedures 68 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 69 Item 1A.

Risk Factors

Risk Factors 69 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 70 Item 5. Other Information 71 Item 6. Exhibits 72

Signatures

Signatures 73 Throughout this report the terms "American Express," "we," "our" or "us," refer to American Express Company and its subsidiaries on a consolidated basis, unless stated or the context implies otherwise. The use of the term "partner" or "partnering" in this report does not mean or imply a formal legal partnership, and is not meant in any way to alter the terms of American Express' relationship with any third parties. Refer to the "MD&A Glossary of Selected Terminology" for the definitions of other key terms used in this report. Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A) Business Introduction American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are credit and charge card products, along with travel and lifestyle related services, offered to consumers and businesses around the world. Our range of products and services includes: Credit card, charge card, banking and other payment and financing products Merchant acquisition and processing, servicing and settlement, and point-of-sale marketing and information products and services for merchants Network services Other fee services, including fraud prevention services and the design and operation of customer loyalty programs Expense management products and services Travel and lifestyle services Our various products and services are offered globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. We compete in the global payments industry with card networks, issuers and acquirers, paper-based transactions (e.g., cash and checks), bank transfer models (e.g., wire transfers and Automated Clearing House (ACH)), as well as evolving and growing alternative mechanisms, systems and products that leverage new technologies, business models and customer relationships to create payment, financing or banking solutions. The payments industry continues to undergo dynamic changes in response to evolving technologies, consumer habits and merchant needs, such as an increased shift to digital pay

Forward-Looking Statements and Non-GAAP Measures

Forward-Looking Statements and Non-GAAP Measures Certain of the statements in this Form 10-Q are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the "Cautionary Note Regarding Forward-Looking Statements" section. We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included within this Form 10-Q constitutes non-GAAP financial measures. Our calculations of non-GAAP financial measures may differ from the calculations of similarly titled measures by other companies. Bank Holding Company American Express is a bank holding company under the Bank Holding Company Act of 1956 and The Board of Governors of the Federal Reserve System (the Federal Reserve) is our primary federal regulator. As such, we are subject to the Federal Reserve's regulations, policies and minimum capital standards. We are also subject to evolving and extensive government regulation and supervision in jurisdictions around the world. 1 Table of Contents Table 1: Summary of Financial Performance As of or for the Three Months Ended March 31, Change 2024 vs. 2023 (Millions, except percentages, per share amounts and where indicated) 2024 2023 Selected Income Statement Data Total revenues net of interest expense $ 15,801 $ 14,281 $ 1,520 11 % Provisions for credit losses 1,269 1,055 214 20 Total expenses 11,387 11,059 328 3 Pretax income 3,145 2,167 978 45 Income tax provision 708 351 357 # Net income 2,437 1,816 621 34 Earnings per common share — diluted (a) $ 3.33 $ 2.40 $ 0.93 39 % Selected Balance Sheet Data Cash and cash equivalents $ 54,213 $ 40,836 $ 13,377 33 % Card Member receivables 59,775 57,494 2,281 4 Card Member loans 126,619 109,050 17,569 16 Customer deposits 134,418 120,806 13,612 11 Long-term debt $ 48,826 $ 41,138 $ 7,688 19 % Common Share Statistics (b) Cash dividends

View Full Filing

View this 10-Q filing on SEC EDGAR