American Express’ Q1 revenue starts strong with an 11% increase

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on Apr 19, 2024
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  • The net income of the first quarter is $2.4 billion, or $3.33 per share.
  • Consolidated expenses were $11.4 billion, with an increase of 3%.
  • The consolidated effective tax rate rose to 22.5% from 16.2% in 2023.

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American Express on April 19 reported an 11% increase to $15.8 billion in its FY24’s first-quarter revenue as compared with $14.3 billion in the previous year. The EPS also saw an increase of 39% to $3.33, reflecting a continued business momentum.

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American Express’ net income

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The net income of the first quarter is $2.4 billion, or $3.33 per share, compared with net income of $1.8 billion, or $2.40 per share in 2023.

Credit loss provisions

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Credit loss provisions totalled $1.3 billion, compared with $1.1 billion a year ago. The increase can be attributed to higher net write-offs, partially offset by a reduced net reserve build of $148 million, compared with a net reserve build of $320 million in 2023.

Consolidated expenses and tax

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Consolidated expenses were $11.4 billion, with an increase of 3% in comparison to $11.1 billion a year ago.

The consolidated effective tax rate rose to 22.5% from 16.2% in 2023.

The company expects a full-year revenue growth of 9% to 11% and EPS of $12.65 to $13.15.

American Express Chairman and Chief Executive Officer Stephen J. Squeri says,

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Our continued investments in our value propositions, marketing, brand and technology capabilities have helped drive high levels of engagement with our premium customers. Overall Card Member spending grew 7 percent on an FX-adjusted basis, with spending by U.S. consumer Card Members up 8 percent from a year earlier and spending in our International Card Services segment increasing 13 percent on an FX-adjusted basis.

We continue to attract high-spending, high credit-quality customers to the franchise, with new card acquisitions accelerating sequentially to 3.4 million in the quarter. Our fee-based products accounted for around 70 percent of the new account acquisitions we saw in the quarter, and we continue to see strong demand from Millennial and Gen Z consumers, who accounted for over 60 percent of new consumer account acquisitions globally. Our credit metrics remain best in class.

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