American Express (AXP) 21 Jul 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q2 2023 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's call is being recorded.

the Ms. to turn of host, now Relations, Investor will conference our over Head I Bernstein. Kerri you. Thank Please go ahead.

Thank for joining Donna, today's you, and call. thank you all

today's contains are subject the actual with materially reminder, slides forward-looking our based financial could presentation on a before cause expectations begin, results included and are (ph) As from reports and uncertainties. current are that we performance. These differ statements risks in these future company's file discussion about in management's business to statements and to and today’s on certain SEC. Factors the

today measures. the measures earnings financial contains periods materials discussion The this as materials, also prior non-GAAP earnings The comparable quarter's discussed. in included financial for GAAP as well the are we

Difficulty] today Chief our will We'll about CEO, the our on that, we'll on more Chairman and move the ir.americanexpress.com. at And performance. detailed with After Campbell, results Steve review Financial results. will and Squeri; a both then [Technical session start some Q&A begin who to with Jeff. website Jeff company's Officer, All and with remarks a financial Steve of provide of progress

let me over to turn Steve. it that, With

also This of XX% today is reached high quarter up announced the for year. Good joining everyone. for $X.XX quarter. Revenues quarterly is record per year-over-year earnings a sixth $XX XXXX. billion grew share plan in our growth and of last XX% of the the fifth straight record over Earnings also a and us Thanks quarter second call. strong morning, performance we was consecutive for since January of

revenue EPS of the we to are of year XX% first to on Based of our reaffirming half, and the guidance through $XX $XX.XX. XX% our for growth delivering performance

macroenvironment. and aspirations, these growth EPS state remain plan also let in aspirations continue tell you XX% why. good about to in growth revenue of achieve to long-term achieving ability in our a very growth XXXX excess steady of I beyond feel our annual and mid-teens on We me focused

model said from some investor in As industry, calls business the that's differentiated and have a us I've at others gives previous on important advantages. conferences, we which

model and of Our premium products, economics fast fee-based built -- growing produce centric which largely our like premium a our drive a revenues. spend stream business fee-based subscription is around

largest for revenues, This lending built modest on us. brand. our Spending is the key while model. a a which base, role differentiator premium starts more all of mix trusted contributor plays It our is revenue customer in with our is

build range unmatched global a customers. high-quality the grow attract over industry We through customers constantly and our in unique model, evolve membership of with and have long-term new scale to with time. a them We that's relationships we diverse leadership positions which

merchants to Card cycle us, spending attract virtuous our role wider business with model. in and partners, growth. of even giving importance stay and and customers Members a our more high a reasons play fuels which Partnerships Our (ph) important an

have long-term a partnering with who us. who broad-based relationships and We world-class banking and with of developing value services values with brands customers share our long and products of history

one partnerships. of long-standing Hilton is those

into opened has then customers evolve co-brand first became we relationship we a in office a over what center ago, Madrid, travel together Hilton do. ‘XXs. partner started relationship the Our when of our The the Hotel then because and our and a began XX we in grew we And cards. years partnership at time grown at issuing after merchant lasted put

extensions attract and strong the new services a customers invest Hilton over long Difficulty] of and exclusive deepen of co-brand runway years gives to us and XX-year continuing issuer as our This builds we've pleased I'm announce well products Hilton of which to a relationships relationship small that extension signed with Today, States, business the extension Hilton, existing travel built cards ones. as on and and the relationships. the consumer that in in with our merchant foundation United and includes we've our with as [Technical

It's all and the partner a business of great example providing of virtually aspects it strength value. customers our our business, with our exceptional that of model our and touches

our of to is making strategic our philosophy what's way the forward. and going growth business Our continuous today, investments our we business in model, it's plan driving run

member billings growing which card softness members double-digits, in For the can Gen spending U.S., high both our in outside in U.S. differentiated by quarter, Z of power with and the Card of business. model with offset all-time seen consumers and portion XX% some U.S. results. up Member Millennial be second U.S. small quarter fastest in up another base our our performance, to the quarter. continue hit be consumers the our card the

Of particular the International prior and fastest for our business growing years our recall the Card was several pandemic again note, that segment you'll fastest it's to growing.

customer quarter Travel record highest a strong continue business and geographies. Entertainment in pandemic. categories since spending, before remains our the by travel We and was quarter the growth for through reservations see through Resy across QX platform their and to reached double-digits levels bookings increased and consumer strong in restaurant our which

new our quarter. are With from We XX% Millennials also accounts products the and saw in continued over of the acquired Zs. acquired we strong than globally XX% premium fee-based demand more new and customer for products coming of Gen on accounts

attention over we the up represent. to of comparable revenue they to The pay period those revenues these acquired particular important, overall a and by acquired you pre-pandemic. year compared when we've the last a accounts accounts the number And generated XXXX. over potential look quality new being substantially While over is we accounts is at new

thoughtful be to results. continue And our we in how. that about you and see with grow who we Importantly,

remain customer the our base. metrics best-in-class, nature by of supported credit premium Our

underwriting management actions we we've on last the that the take several Our thoughtful with robust over capabilities an basis calls risk these on ongoing and you discussed quarters.

it over want minutes Jeff, our turn take to couple of about to I I transition. a Before to talk CFO

CFO, our our CFO August on Christophe the company. Caillec at of down last which Le CFO time, stepping will become Deputy as we Control, announced month, be As our Jeff XX, will deputy

and He's I thank to to invaluable his for recognize been an Express outstanding First, company. Jeff decade. at his the and our want him partner friend American CFO as to throughout time tenure me past and the for

acumen strengthening Jeff's pandemic, of company calm insights, the unprecedented company's focused model. COVID overall person because financial our stronger our us the him. Jeff today while including through has and approach and flexibility challenges, navigate helped business is is of and numerous a strategic of exceptional integrity position the

matters he down Committee me, in working stepping be Christophe officially and the Chairman I on be company. available staying American as last honor will be I next time we Jeff the these our say you work until Jeff, CFO our mid-August, he'll which on CFO as March, for speak will to during truly Executive of a pleasure as us of our facing it's important at XX years. Vice and as with While an many that been all Express when

I also company's our to years. want for been a a XX to who contributor has welcome to trusted Christophe, our partner and growth leadership key team

Deputy our and knowledge all him. aspects sure and all I'm getting thoughtful deep strategic you enjoy in of roles of with served financial decision our company. Committee leadership our CFO, closely key experience Over role has Christophe a tenure, finance Difficulty] analysis in our his making. business As to Executive play works across [Technical a the gained his he Christophe our performance. has strategy to and drive know

his Jeff CFO over a call and CFO public With that, and XXth Express. XXst of call for earnings as I'll his turn now final it the as to American company

results, and second here full thank quarter progress talk to year good against Well, which aspirations. are we good guidance steady the the reflects be morning, and about our to gave Steve growth you, our everyone. long-term tracking with It's for

Starting summary financials with on our X. Slide

up quarter, year-over-year momentum for an reported and basis. on quarter billion, $XX.X second XX% This drove a were straight fifth income up record net revenues earnings $X.X per XX% year-over-year. Our revenue of high share of FX-adjusted billion reaching $X.XX, the

last the EPS record last This reflecting $X.X company momentum does it sequential underlying Pretax period time I earnings. year, through growth income also pre-provision versus quarter. the XX% mentioned the move a we reflects the year expected and our same strengthening strong billion, represent we that the as was for in up quarterly

So look begins spend-centric model now Slides that total, our total network you see see In on detailed with we this new let's results, business a an get which a business volumes which X X. FX-adjusted at always you did reach level a on volumes, more Slide our through look X% and quarter, network record and basis. billed into up respectively, for at on with X on in spending year-over-year, X% our

year. you the of impact course, in quarter the we that the quarter of rates growth lapped as last elevated remind I'd particularly first were Omicron prior Of

balance the the of We seeing of are growth the rates we stable expect year. representative now see we rates will in are that kind of the more more

in and saw goods of the last services while to rate XX%, second X% in in spending X% this grew down Services continue respectively, quarter. growth Card slow and quarter. did further spending in services a consumer from growth U.S. We Goods and SME overall U.S. and International bit good

growth types, very by XX% in and Entertainment and geographies overall demand spending In up dining Travel strong saw and for experiences. contrast, sustained we customer driven across travel

the to rest rate double-digits the Looking year. this through expect I would of in remain this forward, growth

segment. billing drive year-over-year. and Turning Millennial to with billed XX% business XX% our Z U.S. to our growing strongly spending largest highest customers grew at this continue within consumer segment, quarter. Gen this their growth

Services Card types. strong see again across growth customer with and both quarter International growth in You highest geographies our this

Members Spending grew continued U.S. growth about and the past from [Technical growth Card strength from consumers the international been large SME we the Difficulty] SME for in corporate in quarters. and spending grew XX%. customers few talking from our spending The while that U.S. have international spending consumers softness offset XX%, outside

at at this Commercial growth came X% U.S. in SME quarter. Services, Looking

to continue spending will we trends. forward, these Looking monitor

Our foundation U.S. particular we've in a X% for driver not second large business an as said for years, billings these and to remain customers, for also company's customers the the quarter, our grew growth business model. important while global many corporate

into long-term this our account, all guidance than tracking revenue aspirations our or and we growth seeing year rates spending greater the of sustainable pre-pandemic. Taking for to for were what volumes support

Slide to customers overall continue pre-pandemic Member sequential our on we and receivables on to growth growth, loan of Year-over-year as bit portion good balances this expected, levels. grow Now moving you but elevated Card XX%. see of as saw our well moderated balances. loans The interest-bearing continued versus We the growth receivable X. quarter year-over-year and to remains faster rebuild as as than growth a continues

loan high this our Importantly, the growth majority continues in come to U.S. customers. revolving the credit existing quality from of

Card a customers less showing included than with FICO U.S. loans that receivables Member a also (ph) X% XXX. We and our of disclosure only this comes quarter from

on credit show base credit customer our to our turn then of quality credit through Slides you best-in-class continues high and provision in this X As to XX, through performance.

below remain levels. rates Card Member delinquency pre-pandemic loans receivables Our and write-off and

rates flat you quarter Delinquency bit rates up this to X. Slide a while as write-off remained move on expected, quarter-over-quarter we continue see as can

expect Going below many XXXX. forward, we've we likely write-off to over as increase to levels now, to talked for quarters and rates delinquency these time, remain but about they are in continue pre-pandemic

accounting now quarter-over-quarter The this XX. million Slide our balances for driver build. our in reserve Turning the credit to performance of primary on the $XXX loan was of growth

this component Although, a last small incorporating slightly second outlook net reserve the to quarter relative This there in provision quarter. quarter. also a expense $X.X billion from combined with write-offs, drove of was worse build, macroeconomic

points we Slide of Member X X.X% basis total $X.X we with billion receivables. our XX, second ended This As on Card about levels you or of quarter below Day the CECL. reserve pre-pandemic and representing XX had remains loans the reserves see

increase to bit portfolio. also continue our this XXXX, reflecting as continued to we move while reserve a through of premiumization We rate expect the

second basis. Slide were quarter Total revenue Moving revenues in on on FX-adjusted XX. the XX% up an next to year-over-year

revenues Our XX, discussed revenue X% you card (ph) on on revenue year-over-year quarter largest Net driven discount as were an Slide on by XX% spending line, can FX the see earlier. trends second in adjusted basis fee QX, up Slide you as the see during grew can we XX.

bringing fee largely Growth paying remains our continues by be driven accounts products. to onto new and strong, quite

these of new strong pandemic. we acquired spend, saw X pre to continue acquisitions and credit revenue quarter, and million look the This relative we to what profiles cards

acquisition quarters Slide consistent are on with trends the and Importantly, you XX in our see long-term this growth recent aspirations.

with see that driven Moving was on sum our loan XX, our XX% balances. growth revenue on up in by revolving revenue To we're growth the lines. year-over-year, up revenues XX, you across can tracking income on Slide to our broad-based interest net seeing expectations. primarily We're Slide

we to growth XX% XXXX. So our looking still within the full forward, XX% range to of expect revenue year for see of

are you investments the for The customer came revenue just expense revenues tracking them And been costs momentum see quarter with run across with the around we've variable on engagement expectation those total at a second lines and made. the has driven of these to revenues XX%, XX% our full on expenses, Slide basis. we show in total Starting discussed at by year in up investments XX.

invested On in marketing have continuing to the of expectation the high our than focused slower billion our revenues earlier. discussed Steve We marketing efficiencies marketing dollars Difficulty] line, quarter, the spend with while around driving $X.X [Technical $X.X we quality grow billion. to that full track on remain so drive year on

Moving XX, to in expenses tracking the the billion $XX brings also bottom quarter, to full with were be operating billion expectation around year. our expenses of for for Slide to us second $X.X which operating the

forward, our looking we high we key source we to see of that, less as of see a relative growth. as leverage. you OpEx expected, continue revenue in have far And This level to growth quarter, OpEx

We Turning our billion million of strong purchases generation. on in stock quarter, and billion shareholders Slide to $XXX stock $X.X capital next common the to including capital back earnings of of XX. dividends, second returned all the common in on $X.X

bank. Amex as off-cycle as a CCAR Now year this know, is you an for

that XX% to Let approach. our we you in roughly dividend XX% middle a by dividend $X.XX capital a quarter the us XX% our share our ended second XX.X%. at and We XX% increased me last We increased quarter. the CETX to we between ratio that per target briefly in and range earnings of do and line And generally you as ratio. of with saw XX% management payout remind target

the As we continue III, by range to XX% actually the that rules. capital to to these plan driven think XX% return I'd you balance our CETX regulatory our minimum our above is to of near-term finalization we the capital approach, we any our potential material generate Basel don't excess X%. and of while sheet shareholders expect remind We target about to supporting changes management well current evolution of growth

So that ago American years in back you company. about XX step prospects then the long-term excited join because growth joined for was I last for the Today, To earnings brings from and actually plan. the XX as us a I minute, call, growth to my XXXX Slide Express I and Christophe about made with in excited would Steve growth growth and first new multiyear January developed more And I back room leaders every senior across key point even we the aspirations business XXXX. out our prospects. I the in introduced to those plan of we Amex. as was for that decision

out of the July set consistently aspirations quarters have we colleagues to Now in of XXXX, achieved the American Express. efforts thanks we XX,XXX across great ago, six our

reconfirming $XX of with our to in So growth to XXXX revenue $XX.XX. guidance are of year EPS we XX% full XX% the range today,

aspirations revenue well momentum in Our acquisition customer us are and growth year positioning our and for (ph) XXXX beyond. trends this

CFO three for transition industries to the role this with good combined to call momentum, break a across this makes earnings time this XXth So without being me my consecutive a Christophe.

take Christophe a questions. before say few I'll I ask Steve With and your words that, to

Jeff, continue I'm time delivered. strong Jeff everyone. to to the many morning, coming in the look call of spending performance have and legacy on and of that you good with Thank the Steve excited I months. you, forward

that, turn up I'll call Kerri to call With back the over questions. the for to your open

Christophe. you, Thank

yourself to in for Q&A, just limit queue please Thank your to you Before the lines question. we I those will cooperation. the open for ask up one

will questions. the that, operator with the And line up now Donna? for open

[Operator Sanjay Instructions] of question ahead. KBW. Please first from go Our Sakhrani comes

morning Good and congratulations Jeff. Thanks.

be question guidance little over of I we're stabilization about gives in to position. is you still with and that so on in there's that. And very helpful get forward then look because you. Obviously, I'm Express. year. about just -- American You've My and that your stabilization run couple trend on to what Christophe, what your at growth a business you of revenues? above had last tenure bit Could I'm you growth in this and sure It's throughout first much growth. need the will Jeff, that the just billed talked expecting even half quite noise back you remaining forward to that talk working in you see years a been the terms you going and confidence

I in looking in What above us is I as lapping see last the actually of think, gosh, you Sanjay the was, trend. the our quarter, some first the gives I business So of guess happened ways, that our course at noise Omicron. driven has particularly confidence pandemic don't And results. what clearly over In year. in this were

seen in the I growth have into actually we that being consistent got would at quarter, is pretty economy. level you suggest As a stabilization low geographies across second a with

what aspirations. with kind with as I out, stronger, quarters. with guidance that we're year current which volume growth hearing think is of now that allows to you provided likely the will of in volume the both we which to well some what quarter, you're point, consistent state, the see would kind continue, is with for but we committing from economy been the even And us economy have get for seeing growth to this us our the at term point think stabilized, its longer six that growth achieve low is, has growth we we as this

a our in still it's were year. one we bookings, really were than strong very, They as travel talked month is look I in And fastest of growing back for Yeah. obviously, they are higher us. pre-pandemic. T&E last higher they they've XXXX. look, very at business. were, coming at International than consumer, than is are than XX%. been And said, higher consumer out part this time They mean, the bookings about up We I strong. at travel just right? U.S. mean more is

to out a a noise had had thing last is you you hangover you other -- bit if pushed from had you little second last go you spending quarter in year this was the I'll little of quarter. quarter because look point from Omicron just that first And And year, of back a sequentially was the -- huge quarter-over-quarter. increase if look and the at sequentially

really it's billings. to record So we hard apologize mean feel good about. I for

as hit billings plans. need our we it’s growth Jeff to said, And the

Card really So is still it. reiterate I'll the Members. low about a And just Credit growth now. we there good is again in feel right We're economy other that, we're acquiring look, point really good. out

Our basis And will more economy as better, us. up. spending Gen Millennials with to is changing expect the pick terms gets in and who grow Z of we the

really feel we So confident.

Thank you. Ryan The of Please Sachs. go next question Nash from coming is ahead. Goldman

Hey. Good morning, everyone.

Good morning, Ryan.

future Jeff, drill the on forward it's with to looking you been areas best two working that and I'm down with you to were call. highlighted the luck the in and a future. into pleasure Christophe, Maybe of working in

a First, driving do year-over-year obviously, T&E Steve, there a to think sequentially, further we've the see little maybe it slowdown commercial, just slowed growth need what's of point may it Like for reacceleration? little a drill talk bit the seen that year-over-year big confidence. to seems I X% and maybe but rates And like in about on still your have growth. slowdown what bit, a we just strong. terms are

of double-digits? you maybe talk see drivers So Thanks. can in key about you just the what that remaining as

-- mean, and from a record think growth. future line listen I as have mean, what said, of a I sight had friends have seeing for and to T&E us, they're at seeing we're Delta you we our And just perspective, Yeah. bookings. to I Ed to

you restaurant terms look because we at but airline segment And but Resy. look biggest restaurants probably consumer not Yeah, in all only on other, it in Difficulty] at wind restaurant, have mean, of T&E, have [Technical you is that grew disaggregating going in that. we so I T&E bookings what's if of up we'll is up, when sort XX%.

strong have and I And so people really T&E we think just back traveling. that growth are

on consumer travel perspective, the of from we really activity from line from [Technical the see so a restaurant Difficulty] Resy what about and activity the our we feel that And in see that. business, Resy we see sight we into

look, think corporate, a as large so I business and about it's small far corporate As first.

corporate way an value piece its about back piece crawling business it's best our way to describe of now. It It's business X% it. our the and right a corporate important of all we small have. large is think that relationships of It's the of I we business. is our

many bit onto second into is get know, people of then I the the of country as less quick one hop what that. little step trips, them OS the one-stop But meet across that of London to that us out to first to and to seeing as you're have get of the one think you're step road. sort to an run that is And seeing client meeting, with is internal the or quick those less a

So to I think back. that come will continue

obviously, aggressive a consumer. We new that's those as coming be acquiring I think going continue that's which don't but slower. I aggressive, contrast to customers, and be think back is at fast, to retaining customers

small from far look growth. the business there As as when thing business at we goes, is biggest think I I really organic the business, perspective a small think small

has slowed. growth don't think I that's Amex an phenomenon. think organic I

meet a bit I very, think an think from that's have small also they which for deposit more we're the other And business we industry existing they little have, on customers, their small have rapidly. continuing phenomenon. grew What needs to and I a business focused perspective continuing think are sure down. to slowed customers is needs. very acquire lending And that needs in businesses small making I of some

when both again, of so they're as ready judiciously those And to to and ready what we grow focused on. as them we're be business, with and grow we'll that's aspects grow

time, I up look, perspective. sure, to Jeff's from just cycles. But an So the like after was particular consumer little small point of from slowdown that a a you're comes point, our we SME growing think we seeing bit before, prefer at are business slowdown on there business, recovery. industry-wide would would, And pick this again, but to in these our business

that. for poised So we'll be

Please Thank Betsy of is next Graseck you. Stanley. question Morgan ahead. from The go coming

morning. Hi. Good

Besty. Hi,

and hearing year hearing to It's this anticipating and best. because little working all is me just and a to bit on guide you outlook well. what looking you something Rev the What generated slower year-on-year I'm I'm similar half I you're and with on tell the make forward did want Jeff, you what been working great meeting you I the I'm as where wrong. to sure Christophe understood with And here basis Clearly, was very the that. this a of well pace that's quarter than for strong, growth that, XX% the to Rev XX%. of above second billings of obviously XQ a guide

So lines to income. you the that more understand I'm the drive XX% are for Rev full guide? some of going for the to up trying XX% net just for year i.e., if make a your bit Thanks. other than could in that other to the Maybe fee to revenue lines outlook that. little interest or speak

card at that low with maintain we reset in seen other growth with volume Betsy. in think quarter. the this important fees pandemic kind unusual But point you that high have service litigation you consistent that through are this the XX that noise some in the we line look consistent complicated you've economy, out year, Because you growth Slide in do we're in grew drove net XX% fees you we some it if and I unusual So deck. What it's thing is is slide really saying it combine -- growth prior have, question, I right an look we and a revenue at the movement just but had our the that quarter, the the would then settlement really in the line. is a objectives if of when

on the noise side. revenue little and take get back you that a the very the customers that we've on balances full number out service If is have still guided you with combine in to with it a of you what fee income then half net you year. for the year consistent the other the interest rebuilding bit And fact the easily side,

of great quarter We've third mean, Yeah, third fee very, think the I it's little plus the example bit we've card I I And a think of a it's -- fee model, mean, example a right? interest a strong. card the stool. growth. from it's straight had net three very he's XX% legged income. Yeah. growth great benefiting we're I got is

that there's and said, make yeah, noise of fee around revenue other guidance of have. we But where are and will with services today Jeff revenue revenue, the feel we the tiers we X shift. As in the because comfortable that billings that to

So that's what gives confidence. us

you. Thank Shane is Please ahead. question The next of Rick coming from go JPMorgan.

you're to for love interested Jeff. know with Christophe, question. Hey, as little to you taking getting we're would tongue in about to us, little circumstances, absolutely more to more. this going as you think these of Thanks over my I'm we're miss sort but a here. been in I that's that that It's in a often to a looking do, say pulled well, working well. the bit cheek this I years and forward you pursuing than I true Betsy bit really on going thread miss but pleasure the think

half noise gives look you at offset see of a will do there's any some little you just the the guidance. line top for I'm end the of quarter, It of When of top bit that the but puts it line. sort in if second of line like we looked we at sort at low curious, your you some to the think risk the potential deceleration the back stays half acceleration trajectory on year, trend revenue in that if sounds of you confidence, second fundamentally,

the And confident be still not We a say to within we'll than there's that that. XX%. really really feel XX% lot other more to

quarter But I a of -- billings from a $XXX billion perspective. you said, a have have little So yeah, little of as billings, you a of deceleration over bit billings. it's record

ranges. range, so very that see where give we confident and winds the again, landing XX% XX%, And we'll to feel it but within the of up we reason

The Blair. question next from of Please William is Thank Bob Napoli ahead. you. coming go

views Thank look like I luck Thank look about to your meeting as at for as you. we on for XXXX. look credit a you. help, thank you very portfolio, your forward in and welcome, -- and kind aspirations you you trend Jeff, to What normalization. would to Christophe, at you. credit of normalization, expect your the we what much good ask should

-- back the about half as into I is but that the and So going mean, think pretty of 'XX we onward. just XXXX baked,

think Bob, to than Day That is today we XXXX is point and premium you and make that had I additional most see have portfolio challenges, that Well, in is small more quarter important the why stronger we there, XXX. that's a our is the X the what and CECL. of portfolio percentage below added around we band the in, do FICO (ph) disclosure band where this that so

very good environment. in about perspective are we this feel we from where a So credit

I think delinquencies flat. you you CECL the complexity calculation look the about really feel saw good sequentially, There try companies. we to is when across in comparisons that do actually you when fact

outlook that the make XX. did timing did and do I actually incorporated a how than July of observation ours, slightly the on economic here quarter we this way we worse the quarter, with sitting we last

think feel product of And change optimistic us people that though, confident choices risk for on perhaps bit how we means made, all things. in and the be XXXX. economy, more days. in credit leave really some that influences I year XXXX. were But choices what we'll will metrics, management places a about we acquisition the good feel would we dramatic we gotten good this below in that which think about we've the I have absent recent things the the see choices, most have to core, say At

Maurer of next Partners. The is coming question Please you. FT from go ahead. Thank Craig

meeting forward nice appreciate meeting storm Yeah. Christophe and you you I Jeff, middle soon. help to the the of looking years the Good morning. all in over a now. for till

my just there. to further So -- my questions in wanted dig are around: little two a one, really question SME

And help there could you recently consumer took If if credit of vintages a difference just We've level a the and second, me real between meaningful if in the seen new some shown has been business a out understand real loans. difference recent same there adds. in on deterioration was growth number at that it you loans vintages? in data any have activity on looked business and total

Thanks. that. about ask to wanted I So

So to.... the is, second first, Jeff, for not question you It's no. answer do big, want the really

past as over we with think about only have change of see And the consistently a some remind any management that from an color don't why, Steve earnings Craig, from that made is adjustments talked says, risk you, year, I the of Well, the we part course have I'd perspective. fact the perspective.

Yeah.

As into line probably sight of organic far think I as is way is about to it mean, SME, the flat.

businesses obviously of You go have that business. out

but a relatively that bit go And of strong. so same-stores still have away, you acquisition sort is of the little

has attrition few impact, acquisition about So impact, and as a but seen organic attrition because the no a than think last we've in over about negative having different years neutral what think there. then

I small add add. pandemic think you and and through biggest organic. is saw add is, the what continue difference And a saw the you really businesses to

businesses run small remember, to card their use got you And to a entire business.

-- so and an of was buying perspective. from lot from perspective, And there services goods a inventory ahead a

stock gotten attrition and components: sort to we're going it but so and of and And acquisition way they you. the full up -- stable. terms And to flat pretty finally think have those of I have much that's what think basically organic, to about three watch in closely really

Thank next go you. is Ellis MoffettNathanson. from Lisa Please question The coming ahead. of

taking Hey. you. for Thanks questions. my Thank

six is and it quarters. long-term EPS to now structural quarters six normal happened that the double-digit since finally A to has revenue highlighted We're lot increase guys last you your in of the kind pandemic. the in plan returning after mid-teens introduced growth You growth.

adjustments, to model that ongoing where need Maybe better basis, look doing an can do business expected? highlight you when what comment you on that forward the more Thank Just sustain has back normalized you So now you coming sort evolved just a of as strategy about your at required economy? to on is thoughts that kind into and cetera.? you. look of how underlying make et some you drivers than

at Yeah. this, Well, would is within quicker sort coverage. we say back I go to our that talk thought premium business on of probably about, you We're look small priorities than always focused international got come year horizon. little a focused If we on consumer. even I we're on which I has focused three think back strategic had to and

are from perspective I a we had both and better think spending than an even playing what perspective. millennials thought, acquisition out

smaller (ph), think time. of to think over our when piece I been it you a return, slower they've boomers think becomes just I it's -- but business about

started think the up three growth small Corporate, a all I I business time of think sort perspective. in from forward that's tale wind an of in will horizon. And opportunity -- out going business beginning this a over being cities

I think it was very, really strong for us last year.

been probably done it I difference thing this the it up. economy. more with it's And muted, a -- And it's -- when a anticipated been we muted. it more was little with -- pick think much started other plan, bit more we in bit slower it's that's I done little a will was a think robust

accomplished stayed who makes to a So feel that about we We've credit is good slow what from really perspective. growth we've are true a this this quality us in environment.

think last continue I we've of period the when we've partnerships to of with especially our still with over I'll from coverage goals, as to years. add long thing [Technical in DA, Obviously, think the our we the gains our number out that made a coverage I cemented about team key perspective. you which is, longer-term good and over Marriott really have a march Delta partnerships a international, think And here, really still and here. And where great term go Difficulty] time really we some done this job has

it. feel we So about good

when to were tremendous revenue got three But in a it And going XX%. And to plan, growth. We tremendous year. flexibility go and it start out? No. project believe, out we we to the this we enabled we started XX% off XX%, last it we was think to where interesting when XX% year, exactly XX% it part thought the about not the at the took got with this then year go. to has mean really I I as you is, XX%, then model play we in wanted revenue play did growth did did I to we it to XXXX up

to of was term year to we where longer XX% based we beginning guidance XX%. thought XX% be think we where that this if provided going we of and thought guidance off were we going were sort the about that you at original So to XX% was of to the be we're ahead

growing numbers. So bigger over we're

that's it. why and I So, really about feel good

way for us I is in continue. differentiated think when on job in to play from across interest industry of so focus And really our industry I know dimensions have to -- And play our And all And we'll it, to makes and and good competitors. be to the fees the completely priorities. And stay think three remember, different focused this this team income, guys the you important very it model this card good is you billings most a net that. we and in. of of of thing our has a you done

Thank next of Arren you. is coming from question Please Cyganovich The ahead. Citi. go

Thanks.

expense this quarter. pulled a marketing back bit Your

high have and acquisitions. thinking of in are about kind update build expenses marketing the year of to still rates You customer half quarter-to-date business? How into the your going second of you terms growth

of in. XX going update quarter-to-date not on a do days We're kind We're business. to build

our year the from last How sort But marketing, spend to $X.X on terms we're else. probably programs and up know this real from moving no is billion to like continue the that's we all in running that -- we'd marketing. everything about quarter-to-quarter, we're quarter. plan do particular only the timing said or important think I something That's that. $XXX million it on depends to this But winds change. of of there's and So in thing that

a there, week million make sometimes spending of when a $X.X you think like the the world sort so in week. difference about week when can billion, it's a in $X.X billion here, you think $XXX all quarter, And a about

out is believe it's from and wind customer that That's and affiliate And committed the sort little remind quarter-to-quarter. spend us line print spend spending that, a great of we'll go the about marketing and we what it not and all fees incentives after for to And can is. So acquisition, up vary billion that is, perspective. predominantly are that a kind the bottom marketing bit right? we like from And of $X.X it's advertising. and to things why that's TV just marketing are there opportunities everybody that

question Gabriele next The Dominick of & ahead. Please from coming Thank Co. you. Oppenheimer go is

for question. Hey, the great. Thanks so much

a I versus Thanks, time past wondering, more of just the thought where revenue? XX% card revenue total your So that towards to process boost the think over the was you changed discount revenue from about it's growth target, potentially revenue to guys. fees when a on contribution versus net aspirational has providing goal

so that we're XX% row -- of thought as for what growing so mean, big is SaaS double-digits. it the I No, and in was differentiators during I a we look, the be going revenue pleased another is I put three in of our really I a when look it the you quarters to And think pandemic, out kind we card it's was the mean that. think about fee. with we you as, together what subscription that no, in us one mean point ballpark right? of aspirations, thing number. I'd the at and this, big But

and higher be. but it's to it's thought a it much is revenue in high would, a than pretty where -- -- -- which it's growth has And contributor were we big so going we obviously with discount line

revenue and ties our [indiscernible]. key product of company. And double-digits Dominick, growth really strength an a to has in through be is is bigger adding with is all resist high of I pandemic It of the last for can't a year. that rates that and the had think grow to just something It really going the continue ever part us customers critical grew and overall model. engages part I the to customers

that's when to our me not company. just bottom but one into money invested double-digit the we double-digit over the coming had we our of during other pandemic. not more Jeff, embrace this the It think during or money to the said customers, to really term sort And reminded was if rather customers. during more pandemic. that would sort he been pandemic we put customers year talked that, than line not the you just seen about have really tenth out the easier our we of It plus those thing, Yeah. pandemic, how existing growth in as because how to have about growth of because speaks customers It drop would to run important the long

pandemic. challenged the investing a because, to travel by us really perspective. things we as because much cement thinking were there, just were proposition our normal those retention And from those more we remember, a fees propositions value it drop all course we rates improved important, other over those in perspective of the value had really the going, more helped in that And which best. from but attrition long-term put And you relationships, kept

decision model fee is join think I So franchise. members to card because this speaks a make the the our that membership to it

important to really our in product. product. continue they keeps values because that that's the products strategy. that's more strategic what And into and thing They do to we'll consistent see the really why to value a that's our is perspective, see the this this insert of from in And product, refreshing important job means going. value continue really, the it's and And ongoing our to

Thank Wells you. The next ahead. Fandetti Please Fargo. question from is go of coming Don

I you to have differently. (ph) know saying can on that XX%. at CETX I XX% wonder than Basel that? of clarify being there to Christophe. Jeff, want to clarify run fees the won't you target was your Jeff comments. Congratulations higher at I and if Are concern some you a Yeah. looked around

bit, And CETX trying I you things Basel need few target were was but point a the and here. think about little remember the to cutting asking III. is you out I Don, to a you're make

the XX% target regulatory been long (ph) the only versus Because XX% to minimum driven CETX and regulatory by rating has Our X%. point. That's agency own constraints. actually first views our our more is view

is, to over equity on return of remember a point have second XX%. The we

taking without, to quickly replenish frankly, a share ability to repurchase capital high. pause from our we than need So very brief is more whenever

the to game, end know of there's iterations Third, a attention risk. Basel III different paid Basel, around I ops of particularly been lot

on I some ops negative and remind probably guess component. just other have some only us. is risk one I'd probably also impacts positive components that people, There have are

them come here. for So guess like whenever final see waiting for out. much I rules but have actually been tenure -- the to we'll my my We've of

details the a I our plan. here. my later ROE they material this it even change may this not our growth modest laid the share plus is any trajectory Because and company. a no is that see growth month. come as don't there's out or outcome message event And it's But of for that in the hopefully our target But think possible a in going devil with we change is overarching certainly EPS XX% target to material have in repurchase, in a on out we've impact the

you. Thank

Bank Mihir coming question our So is of America. final Bhatia ahead. Please of from go

Thank you for taking my questions and good morning.

welcome, Thank the congratulations, you. know momentum in GNS been I for of believe of saw like, Christophe. your think bill faster bit the process look to Jeff. grew than I working and launch help off, and network to quarter. the with talk revenues little Card the quarter, partners the we all First business. about I this you of bit partnerships, and actually I little to there's getting a business signing forward seems recently. some terms It processed Square volumes of old new this gears and wanted switch a

about you that segment? Has driving Are little you. a been if there could something momentum? something Thank business wondering has more bit that just internally? So What's talk more. focused that on -- you changed

Yeah. No, I don't changed. think anything has

a for basis a acceptance either perspective. about countries. our that you on. when overall have we're is we issuing consistent world card team from think to it's to network or the new perspective these come around are crossing. a the there But GNS partners. model, partner the on wind there switch something been card All think that from around is proprietary to and markets, looking are -- are get the deal. I always And to card a out markets big a rest both operate And And to -- XX really a (ph) we of GNS on operating or technical been up the acceptance hurdles we're fooled a just

to with get to increasingly And and on lot there's GNS coverage. of going a work been over more get more the years

our that's comes that improvements there partners. to our that network. And so in don't as we're just the you of merchants. of acquire We when in under we're coverage, much look just everything driven by China been in at don't cards. We you And GNS doing really so because remind issue a GNS heading

you a pipeline long look, priority But a Square, and joint take cards time. or to so little for with it's a MasterCard, to -- forth. if your that's get and in the of in within that's our to a been Visa I own launch And have our card, up different if that's a our We venture system mean, systems it's issuing bit GNS aren't relationship. you're

working And so a been basis, consistent get partners. there to out we've on

a through I little we more but and real think team little because and the bit more more how consistent headlines U.S. South out get is Africa I Square a really partnership, on guess and the we cards a basis issued. all get to so it's One bit there more a Asia continue has coverage America across -- how and forth, thinking

a you years. this you, So the for working I while see hard at really bit may tell it team more, has lot of can been a little

will joining any Great. And IR call Donna, we for you. available will again follow-up your bring today's team be that, you for call questions. an to with The American Thank end. in and continued for to back interest the Express.

at be will after on our webcast shortly Relations replay Thank available gentlemen, call. website you. and the Ladies ir.americanexpress.com Investor the

XXX-XXX-XXXX or digital can participation. conference our through for for call code XXX-XXX-XXXX your call XXXXXXXX on you July July access XX You also XX. after That the of conclude Eastern Thank will p.m. a replay X:XX access at today.

now may disconnect. You