American Express Q2 2024: Revenue & Receivables Update

TL;DR

**AXP Q2 2024: Credit card & loan portfolios show activity. Revenue & receivables detailed vs. last year.**

AI Summary

American Express Co. reported its Q2 2024 results on July 19, 2024. For the quarter ending June 30, 2024, the company saw significant activity in its credit card and loan portfolios. Key financial metrics related to revenue and receivables were detailed for both the current quarter and the comparable period in 2023.

Why It Matters

This filing provides insight into American Express's financial performance and the health of its lending and merchant services businesses, which are key indicators for the broader consumer spending and financial services sectors.

Risk Assessment

Risk Level: low — This is a routine quarterly filing (10-Q) providing standard financial disclosures.

Key Numbers

• 2024-06-30 — Reporting Period End (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2023-06-30 — Prior Year Period End (Used for comparative financial analysis against the current reporting period.)
• 2024-04-01 — Current Quarter Start (Marks the beginning of the fiscal quarter being reported.)
• 2023-04-01 — Prior Year Quarter Start (Marks the beginning of the comparable fiscal quarter in the previous year.)

Key Players & Entities

• AMERICAN EXPRESS CO (company) — Filer
• 20240630 (date) — Reporting Period End Date
• 20240719 (date) — Filing Date
• 2126402000 (dollar_amount) — Business Phone Number

FAQ

Key Financial Figures

• $0.20 — ch registered Common shares (par value $0.20 per share) AXP New York Stock Exchange
• $250 b — our total consolidated assets exceeding $250 billion, calculated based on a daily aver
• $23 million — ocated to participating share awards of $23 million and $17 million for the three months en
• $17 million — ipating share awards of $23 million and $17 million for the three months ended June 30, 202
• $41 million — ne 30, 2024 and 2023, respectively, and $41 million and $31 million for the six months ende
• $31 million — 2023, respectively, and $41 million and $31 million for the six months ended June 30, 2024
• $15 million — d (ii) dividends on preferred shares of $15 million for both the three months ended June 30
• $29 million — onths ended June 30, 2024 and 2023, and $29 million for both the six months ended June 30,
• $531 million — May 1, 2024, and resulted in a gain of $531 million ($479 million after tax; $0.66 per shar
• $479 million — and resulted in a gain of $531 million ($479 million after tax; $0.66 per share). Net income
• $0.66 — f $531 million ($479 million after tax; $0.66 per share). Net income for the quarter
• $3.0 b — share). Net income for the quarter was $3.0 billion, or $4.15 per share, compared wit
• $4.15 — me for the quarter was $3.0 billion, or $4.15 per share, compared with net income of
• $2.2 b — per share, compared with net income of $2.2 billion, or $2.89 per share, a year ago.
• $2.89 — red with net income of $2.2 billion, or $2.89 per share, a year ago. Billed business

Filing Documents

• axp-20240630.htm (10-Q) — 3183KB
• axpq224ex311.htm (EX-31.1) — 9KB
• axpq224ex312.htm (EX-31.2) — 9KB
• axpq224ex321.htm (EX-32.1) — 5KB
• axpq224ex322.htm (EX-32.2) — 5KB
• 0000004962-24-000052.txt ( ) — 13279KB
• axp-20240630.xsd (EX-101.SCH) — 61KB
• axp-20240630_cal.xml (EX-101.CAL) — 101KB
• axp-20240630_def.xml (EX-101.DEF) — 387KB
• axp-20240630_lab.xml (EX-101.LAB) — 752KB
• axp-20240630_pre.xml (EX-101.PRE) — 576KB
• axp-20240630_htm.xml (XML) — 2779KB

Financial Statements

Financial Statements Consolidated Statements of Income – Three Months Ended June 30 , 2024 and 2023 38 Consolidated Statements of Income – Six Months Ended June 30, 202 4 and 202 3 39 Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30 , 2024 and 202 3 40 Consolidated Balance Sheets – June 30 , 2024 and December 31, 202 3 41 Consolidated Statements of Cash Flows – Six Months Ended June 30 , 2024 and 202 3 42 Consolidated Statements of Shareholders' Equity – Three and Six Months Ended June 3 0 , 2024 and 202 3 43

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 45 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 73 Item 4.

Controls and Procedures

Controls and Procedures 73 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 74 Item 1A.

Risk Factors

Risk Factors 74 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 75 Item 5. Other Information 76 Item 6. Exhibits 77

Signatures

Signatures 78 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. We are a leader in providing credit and charge cards to consumers, small businesses, mid-sized companies and large corporations 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, fraud prevention, and point-of-sale marketing and information products and services for merchants Network services Travel and lifestyle services Expense management products and services Other fee services, such as the design and operation of customer loyalty programs 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 payments. Refer to the "Glossary of Selected Terminology" for the definitions of certain key terms and related information appearing within this Form 10-Q.

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. We will become a Category III bank holding company in the third quarter of 2024 as a result of our total consolidated assets exceeding $250 billion, calculated based on a daily average of total consolidated assets for the four quarters ended June 30, 2024, and thus become subject to heightened capital, liquidity and prudential requirements. See "Certain Legislative, Regulatory and Other Developments" for further information. 1 Table of Contents Table 1: Summary of Financial Performance As of or for the Three Months Ended June 30, Change 2024 vs. 2023 As of or for the Six Months Ended June 30, Change 2024 vs. 2023 (Millions, except percentages, per share amounts and where indicated) 2024 2023 2024 2023 Selected Income Statement Data Total revenues net of interest expense $ 16,333 $ 15,054 $ 1,279 8 % $ 32,134 $ 29,335 $ 2,799 10 % Provisions for credit losses 1,268 1,

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