Q4 2024 American Express Co Earnings Call Transcript
Key Points
- American Express Co (AXP) achieved record revenues of $66 billion in 2024, marking a 10% increase on an FX-adjusted basis.
- The company reported a record net income of $10 billion, with earnings per share rising by 25% to $14.01.
- American Express Co (AXP) saw record levels of annual Card Member spending, net card fees, and 13 million new card acquisitions.
- The company experienced strong growth in its international segment, with a 15% increase in Q4 2024 on an FX-adjusted basis.
- American Express Co (AXP) maintained best-in-class credit performance and disciplined expense management, contributing to a 35% return on equity.
- The company anticipates a modest increase in marketing expenses for 2025, which could impact profit margins.
- There is uncertainty in the economic environment, including potential impacts from tax policy, interest rates, and currency movements.
- American Express Co (AXP) expects some upward pressure on write-off and reserve rates as it continues to acquire new customers.
- The company faces competitive pressures, particularly in the SME sector from fintechs like Ramp and Brex.
- FX-adjusted revenue growth was 10% in Q4, but GAAP-reported growth was only 9%, indicating a material impact from currency fluctuations.
Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q4 2024 earnings call. (Operator Instructions) As a reminder, today's call is being recorded.
I would now like to turn the conference over to our host, Head of Investor Relations, Mr. Kartik Ramachandran. Please go ahead.
Thank you, Daryl, and thank you all for joining today's call.
As a reminder, before we begin, today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and in our reports on file with the SEC.
The discussion today also contains non-GAAP financial measures. The comparable GAAP financial measures are included in this quarter's earnings materials, as well as the earnings materials for
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