Summary by Moomoo AI
American Express reported Q3 2024 net income of $2.51 billion ($3.49 per share), up 2% from $2.45 billion ($3.30 per share) a year ago. Total revenues net of interest expense increased 8% to $16.64 billion, driven by 6% growth in billed business and 18% higher net card fees. Net interest income rose 16% to $4.01 billion on higher revolving loan balances.Card Member loans and receivables grew 10% year-over-year while maintaining best-in-class credit metrics, with net write-off rates remaining relatively stable. Provisions for credit losses increased 10% to $1.36 billion, primarily due to higher net write-offs, partially offset by lower reserve builds. Total expenses rose 9% to $12.08 billion, reflecting increased Card Member rewards, marketing investments and higher operating costs.The company maintained its CET1 capital ratio within the 10-11% target range and returned $2.4 billion to shareholders through dividends and share repurchases. Management expressed confidence in the business model's earnings power while acknowledging macroeconomic uncertainties. The company acquired 3.3 million new proprietary cards in Q3 while continuing investments in premium products and digital capabilities.
