American Express Company reported strong third-quarter 2024 financial results on October 18, 2024, with net income reaching $2.51 billion, or $3.49 per share. This represents a 6% increase in diluted earnings per common share compared to $3.30 per share in the prior year.
The company achieved record total revenues net of interest expense of $16.6 billion, an 8% increase year-over-year. This growth was primarily driven by higher net interest income from increased loan volumes, stable Card Member spending, and an accelerated 18% growth in card fee revenue.
American Express also raised its full-year 2024 EPS guidance to a range of $13.75 to $14.05, up from the previous range of $13.30 to $13.80. The company continues to expect full-year revenue growth of approximately 9%, reflecting confidence in its core business and product refresh strategy.
Card Member spending increased by 6% in the third quarter, with 3.3 million new card acquisitions. Consolidated provisions for credit losses increased to $1.4 billion from $1.2 billion a year ago, primarily due to higher net write-offs driven by loan balance growth. However, the net write-off rate improved to 1.9% from 2.1% in the prior quarter.
Consolidated expenses rose 9% to $12.1 billion, mainly due to higher variable customer engagement costs and increased marketing investments. The company highlighted that its product refresh strategy, including the new U.S. Consumer Gold Card, is fueling growth with Millennial and Gen-Z consumers, who accounted for 80% of new accounts on the Gold Card.
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