American Express (AXP) 26 Jan 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q4 2023 Earnings Call. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's call is being recorded. I will now turn the conference over to our host, Head of Investor Relations, Mr. Kartik from Chandran. you. Thank ahead. go Please

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

These management's a non-GAAP today's discussion materials financial to cause this reports today's future The results on in file the performance. we today begin, before risks are presentation business also these statements to materials SEC. based contains financial As factors we actual about the and quarter's discussion uncertainties. as discussed. in financial contains included GAAP reminder, periods earnings that are our The measures. expectations current in and comparable the measures forward-looking The as slides statements with included prior and differ for the and are subject are from on well could company's materially earnings

are these our website on posted at of ir.americanexpress.com. All

more Chief Steve detailed begin will session with and over of Le Chairman results Steve. that, After that, and who will today the on a with performance. and progress both CEO, move , to Squeri, Officer, with financial to Christophe. me we'll turn about Christophe results Q&A With company's start We let the Financial it then will remarks a and our review provide some Steve Caillec

had and best which in in strong the record of up quality, in earnings drive joining products. on year demand continued XXXX delivered year, our and strong strong growth billion per an Good We morning, and to FX-adjusted thanks In for remains income the American customer billings, XX% had quarter, We for and $X fourth $XX acquisitions we for the credit continued industry. us. we account net share over for Express. was billion, engagement premium another new record strength of $XX.XX. the solid basis, of revenues with

to and we results, but on what to out prior XXXX, are why the we've and mid-teens over longer we detail accelerate revenue laid XX% opportunity in we saw term. set aspiration growth billion, talk I'm like was what company feeling I an about pandemic accomplished that EPS our than to of was quarterly to levels the to today years able the about with our At a I'm long the will future. on of back we a a quarterly pandemic. of the good $X.XX. and step provide Christophe January time, were quarter $XX driving to why at aspiration in we the revenues nearly that growth confident deliver were last our to achieving tell you which take fourth of the X growth record higher of out our As term we an Coming COVID result, over sustain over achieved plus another be and would plan annual EPS positioning and objective of growth growth where

and and technology innovating meet listening executing needs. plan, propositions as invested backing marketing uplifting to as our colleagues on In we well value to capabilities those we and focused customers understanding needs, their in our our and our the

have we're millions colleagues Looking say support our Express do. we on we journey, of that be back since thought we them. over the announced we'd what we to plan, the set and the American in the around out X I'm pleased premium achieved And growth world years customers fact, thanks who we to the of to where ahead

accounts billion billion In annual we've XXXX, annual just and card delivered last Today, added the we X We've in of business are Since on fee-based stronger card -- $XX increased and coming to XX% over a over years spending new to company. record on has the about our an products. increasing record scale trillion. basis proprietary are franchise new $X.X X these annual in into XX% of the revenues. accounts period larger by over over revenues, revenues XX years FX-adjusted a this million $XX XX% from

growth over XXX years, few seen our the in past total of network. running have now a cards new accounts million the With global we've over on we

in our Our value These continuously and gold brand accounts of new of customers the including acquired XX% consumer our XX% and business, in the is along over reflect and to model. our U.S. the across innovating in platinum represent earnings be XXXX generations, our relevance success Z driving new made the accounts meet of with strong credit acquired of the from These propositions consumer came this very remain focus consumers. customers we've our continues on results tremendous we of class. business the strategic to millennial our cohort. needs best power increased and globally same high, in retention and Gen metrics investments time, At strong

future our let tell ahead, why Looking feel prospects. really I me good about you

and We are delivering have strong replicate. driven performance, model by of that to key from us difficult is is competition we have the which model and business premium differentiate X our a features momentum, that

economic fees, revenue spending sources set best-in-class include of component fees our with that construct has and fast-growing a card lending and mix. First, card a our of revenue core being our diversified subscription-like

singular propositions. have and value We superior a innovative customers premium focus on

drive our Our strong credit are high-spending, and customers premium loyal performance.

that ecosystem and servicing us is to sets a members partnership ethos that brand around card partners brand growing And have merchant large expands value that apart. a have truly we and the global our We world.

to advantages and And premium on has going our in global the with we'll with small aspiration on for of runway both colleagues, base, customers. business EPS geographies our the And we we've consumer our why I'm strong of and ability continue the strengthened remain attractiveness growth. Our our annual and talented growth momentum why focus business business and customer been growth of our focused way our power plus growth dedication those are plan. us long-term scale provides opportunities able The the see delivering the our our reasons across forward, model's revenue many of XX% the and generations, combined of the continuing of and competitive our ahead to key us leverage mid-teens execute model confident elements giving model advantages. it's strategy unique the

one, to We the believe every right achieve it we this aspiration aim year. and is

we we given the managed as we of the and of such company a and However, decide range variety be for term, due anticipate there our take the will any best long to environment that business. factors outcomes external actions might a in for we potential year

XXXX, line with aspiration. our as in Looking at this our is seen we've we've our us guidance strategy which momentum in long-term for the business year, gives the executed confidence continued in

In we year, quarter This the to to dividend and January from $X.XX the plan represents quarterly XX% EPS a more growth dividend revenue plan increase common we our XX% first of For a [ when outstanding deliver dividend declaration. to XXXX. share addition, full expect year the than to we shares annual and between $XX.XX on increase introduced $XX.XX. from with XXXX ] of $X.XX in beginning up in growth our X%

growth term, exceptional sustainable we and our run on colleague and through over customers a we'll a will turn built are As let confident world-class that deliver me that the strong to brand our by on always, we innovative and to delivered continue our service security, their do customers listening will In propositions Thank colleagues, unique focus by term. needs over business and and to for on trust and the value long continue reflects base. meeting supported our backing that to our Christophe. keeping you, we basis now and our long it

to be XXXX. run our Thank both since results how since year about you, looking Steve, is sync this XXXX year good its our and with here It's full lay and for in discuss to our expectations everyone. to at our another on which of and and out I an reflect good the company. results, morning, performance morning. talk more annual quarterly will business we basis year-end strong

with Slide FX-adjusted on billion, reached on $XX.X all-time up of revenues Starting Full summary our year high X. an XX% I basis. an financials

momentum reported $XX.X XX% year Our share earnings fourth income and This and $X.X grew full net of revenue per of $XX.XX. drove billion revenues billion quarter year-over-year. were

income the billion we $X.XX. quarter, per of net share of reported $X.X earnings For and

card of growth But as results, the our of digits look out indicator quarter. an first in XXXX. go X. see we X% from members now both reached of with of detailed record a I drivers billed year-over-year, back fourth spending the year the number levels business of rates growth In Total a does quarter, reflect Bill that quarter Slide on last lapping grew We point for a X% after in the beginning softening on grew more Omicron the impact the year Business continued grow of last transactions stable our these Let's versus The through of and X% continues the at business fourth more Bill prior to FX-adjusted year full engagement versus rate the This quarter. double would bit base. to customer good basis.

on businesses. down Slide services driven largest strong key first quarter. in across then although slower and a Our time, our Starting There growth as at remains and for the the the break take $XXX other to goods X% quarter, while are T&E spending X% full airline in U.S. X. our trends Restaurant reached away spending X% spending, category Consumer points growth largest growth billings this year entertainment last for slowed and with in and our few spending continued our was than by travel segment quarter. growth up billion quarter. we grew the for spending

with up to within bill Their our continue spending cohorts Z segment. We this quarter. XX% millennials business customers growth and Gen see driving was generations fleet this and all across again growth highest

this small unique growth remain seen Slide the Services over years. rate. our modest last given medium-sized past Spending few came at dynamics at by with and small Looking X% X. the growth consistent from businesses Commercial U.S. on in growth quarter's enterprise Overall quarter, customers

businesses we challenge significant in spending XXXX, their issues segment restock increase large during as a following saw caused This XXXX. spending in from pandemic. chain inventories supply in in industry a this grow-over the with the Specifically, organic

levels Importantly, we continue levels on and of business accounts new performance retention for products. high small demand to strong see credit our of strong

us a highest growth X, ahead, again rebalance. quarter our international lastly, Slide you services. card positions this future, well Looking see for on spending And the in this growth

international across with from double-digit seeing in XX% and softer strong card the Spending are large customer pleased the quarter. of consumers continue environment, all corporate and each while and engagement a growth globe. loyalty we members to see types. grew Overall, continued our customers, SME We fourth spend the international from regions we're across and

past we As assuming what in environment XXXX, spend the to few seen quarters. a we've think are similar about we

Now moving XX%. saw year-over-year growth receivables on We on to X. Slide member loans and of card

the through We but levels to XXXX, progress elevated than prepandemic to expect this faster versus grow as growth, which moderate billings. has been to still continue we modestly

provision to XX. Slide next through credit Turning on and X

First credit the we and strategy. risk performance robust most importantly, best-in-class high continue base, disciplined customer quality metrics. We our see credit to and our strong growth practices of our and management this to attribute

we X. had tick on see As our you as did quarter, continue expected, rates up and to delinquency write-off this Slide

Going write-off forward, this modest we increases expect with to in and strong remain rates see delinquency XXXX.

now to This loans accounting reserve $X.X in member current reserve delinquency in performance net of of billion X. combined with build. modest provision on drove combined credit Turning fourth write-offs, The million this the quarter. with resulted Slide quarter-over-quarter $XXX our loan rate, our expense and growth the balances, in receivables the build in a increase

level reserves, fourth ended pre-pandemic about of quarter our As XX or premium reserve member rate loans remains X.X% Slide receivables reflect CECL. This with base. of representing continuing basis $X.X the our to you we see the points and card billion on the of nature card member total had we below X day and XX,

the continue we few increase increases we've to past a seen the reserve to similar We over through expect rate as bit to the XXXX modest move quarters.

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

as driven by and were year, in we can XX. quarter Our as see This revenues on largest is full on revenue QX X% up can year-over-year Slide the the XX. you for fee fourth XX% you card spending grew see the trends in X% the for discount earlier. XX% year, Net and mostly discussed growth line, year-over-year full revenue Slide

levels the expected, cycle the earlier we to compared by globally product focus value of around product momentum the continued some and have a we with plans bit continued quarter growth, year. expect this We moderate supported our propositions. saw premium further XXXX, from we next on to current currently XX innovation refresh to reflecting In year, refreshes. high growth As our exceed year this to products

quarter, members the the to X.X look credit spend new profiles acquired we our continue In card revenue million strong. and of cards new and

Slide to on XX. Moving

also FX-adjusted was full You on can revenue driven interest expect up year. income increase power The sum to interest expansion QX customers by continuing impact is drive year. revenues on up some remind you interest basis model last an into revenue tenured yield and growth This net between see a think net to growth our rebuild XX. to our And would XX% looking XXXX, of as see next that growth the see To the diversified with XX%. continues in X% we continued business loan strong environment year-over-year revolving growth from When Slide about continued our and to balances and momentum, forward balance our tailwind net see you moderates, balances. rate model, for year. not I XX% would should income XXXX, a to that versus by you expect we from lower in for meaningful expect moderate

our This engagement Moving our growth costs business, total on full bit growth for the reflecting Overall, are both made year. of than were significantly year the Slide in X% basis, that investments at variable the total expenses, up for full than a with top in on as lower model. well revenue. reflects customer the would the XX% lower the discipline. expense quarter growing continued revenues and some costs in I natural we've on XX% the page strong expectations quarter our at the to expenses in came fourth XX% expense focus hedges these Starting note as came a our seeing of these and expenses we XX. fourth of in

As slowed expected. a we remote growth T&E than we the costs in lower had spend bit quarter, saw

for XXXX, as variable points airlines mix premium redemptions In higher on and engagement airline our our revenue engagement I fewer drive earned slightly expect card to members. than continue example, our would For on focus a expenses grow of lower spend. our customer tickets to and products we from

to around On fourth This lower softer our quarter, full demand invested for expense the the and last environment. billion. in is given around and a than lower bit for Marketing expectations marketing have line, year we billion we the came year. $X.X the T&E reflecting marketing below at in $X.X billion quarter expected $X.X the spend

continue XXXX. move engine an saw We're the demand However, we through efficient we way. for our sophisticated plan increase increased as with confident in marketing we will quarter, that spend and to in acquisition do so

Moving billion to above to year This the full the few Slide brings us our were original for billion bottom by of in quarter operating expectations, XXXX. items expenses, driven fourth which the $XX.X a the notable XX [indiscernible] quarter. was and

enhance to we as set we normal First, of the part business, reserve as of a look up cover continuously to course organization's expenses effectiveness. the

of exposure for up the OpEx -- were devaluation increased in also Argentine QX million. we the to merchant others, reserve by a many impacted a which like $XXX our by and set We specific peso,

of In to we as a we be on delivering focused key this OpEx year's see and we source to to expect of have as leverage XXXX, operating expense. flat continue historically growth fairly levels forward, are low expenses done. Looking

everything will, of to opportunities or our down expenses. We as into high leverage grow expect to continued level model us to move XXXX, to for we needed. full will dial Taking expense continue as to in year, year we and we investments course, our operating total through the drive through digits allow expect up the flexible as mid- assess account

XXXX, the of in $X.X CETX within with discussed, our next to We of Slide capital ended the to increase capital shareholders returned earnings XX%. in XX% quarter on Steve our target $X.X to back of fourth ratio XXXX, including generation. QX strong expect our line our our do year the we Turning XX continue the with over of plan billion on shareholders capital to of We We by billion range XX.X% payout return our XX. as dividend dividend we We material our to near-term balance growing management to excess any our approach. sheet to to $X.XX capital in ratio. while XX to generate approach expect with our per not growth. quarter, XX% supporting to changes target earnings and consistent In

and XX. That on aspiration guidance to long-term brings Slide our XXXX me

We a excess business in growth, continue growth that on revenue to of is of aspiration with and run focus our the mid-teens aspiration. EPS we right believe our XX% and

of As having and to per of Steve introducing of with guidance what in growth X% discussed range year a XX% $XX.XX. full also are in our today. guidance on for in our XXXX our factors specifically, earnings business we're seeing aspiration between share This remains $XX.XX scenarios line and and we the based revenue

recently business. agreement to announced also sell an We our certified

XXXX gain the and include impact just sale. portion transactions to from realize and as a sale guidance to of not we've business in back We reinvest do on the do through gain done related the similar expect into that potential Our items to our the the I walked with substantial sizable past. the a

in We I'll to then. questions. plan close With call turn the expect for the deal to your detail second the Karthik open call more to provide quarter back that, over the and to

you, Thank Christophe.

operator ask to And question. lines those just Before for Thank to open your up Operator? I you the limit line up yourself X questions. the in the will Q&A, we for for please now with will queue that, open the cooperation.

comes Instructions] of [Operator from Don Wells first Fargo. question Fandetti Our

terms noted And weather. some guidance. comment talk SME. of your maybe Good XX% -- I bit a that? of peers you the to and on in business little on see about guess have just on a in January then Can EPS rev spend guidance 'XX build slowdown

Yes.

So monthly we numbers. don't talk about

January. few a the into about month alone let of weeks So

lot quarter, and wait detail of so the in billing end until the January far. more a on we'll provide So color think the this and I to pass

few as expect bill quarters. As we've we now, in think far an our upside XXXX, business see the baked seen the should there -- assumption And we be ready to with are plans. consistent that guidance. and in or we we're how assumption planning how we But what is in about billings constructed for expecting that's we to if some. this is prior our

assumption, side, SME want. the it's same the On you if

QX, We we're on very in either focused with QX, similar SMEs. recoveries winning are we seeing what assuming something are to and the

through them dynamic last the been industry, products. their we'll they're experience, be And best the my business. when members As and focusing we for in over are X lot on a know I been providing in best remarks, when focusing role we years. many ready. said in how on a these the helping acquiring have are, segment card these and that as a We're us, customers And ready be ready grow volatile customer segments this as X, ready. they're critical play Historically, we'll we has you can

question Ryan is Goldman next coming of The from Nash Sachs.

Maybe at maybe you a we are should fees? deeper revenues, know to can you we card particularly of as through reacceleration discount And or Christoph, and consumer bit of just growth U.S. areas I year, NII SME? some build that assuming like decelerate drivers Dan's on of the dig the little move revenue said in question, on sort any

question. your for you Thank Yes.

level what very the we've remain similar to the So discount therefore, growth revenue the the to billing recent and, building seen grow quarters. blocks in we a same pace at at expect high of revenue a

fees. We expect card

at XX%, is QX year at full So XX%.

right growth to we to forward contributor We remain key going higher at actually contributor to where than forward. fees level be And a QX a are a key now. to going to exit card growth expect

and that when comes income, have and interest supported experienced very component much to acquisition -- quarters. And expect the The sure, a I'm growth the trend, retention of over now. very you moderating for their Ryan, more balances And asset we very premium many should strong the COVID. expect by the function members going rate been NII their revenue of to years that seen the growth to was to and to will we card normal very some the tenured in that at naturally a post my rebuilding and past execute refresh growth. the last drive context and fact constant strong moderate moderation I and stage, continue. has through we in rate moderate on our it growth more driven product And that are net to we're their level pool, rates, committed remarks, reach strength give you lending growth which that much there, renewals of you've -- by rate due

to a a also what's that to believe I and when doesn't Fed here weaker. design you and together if run is of scenarios, -- the And bit X% going in bit happen terms that can the of big same we interest role what you will land got what this we NII range multiple the XX%. stronger, we a of rate in all play mention dynamic to put And what is the to NII. is

So how much revenue we that's about very the think guidance.

question Deutsche from Mark is DeVries coming next of Bank. The

growth Yes, of from the customers is performance customers of seeing much how is it versus thanks. from further in and loan gaining of on older? whether Was also from credit newer into added older of you're relatively balances where or recently difference there? any dig kind new little And customers hoping versus share kind coming you a could kind

Okay.

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have do offers, transfers, don't don't if And There promotional also. offers at much all. -- promotional we any much we balance

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question Research. is of next from Bill Carcache The Wolfe coming

customer drive wanted continue elevated to follow an that about margin engagement customer with aggregate while at pressure on to customer Can do growth. leverage broadly of offsetting you engagement guess, outpacing the comments to with spending, engagement on I operating the your you expense up revenue outpacing that combined? growth leverage spending same speak positive sum in time, to the basis your expense anticipate with and ability other revenue And parts operating operating of I business. investment

here. There's a lot

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to same expect lot expenses of should card engagement variable key have a you to customer bring, more see. optimize the this. That to is of we time, members portfolio engagement driver revenue. that more expenses, Platinum the The customer actually variable But the ratio initiatives we at premiumization behind the of

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that making So try time, the terms per their average have to easier point. create in innovation the cost the weighted of to life either we same customers, constant and efficiencies at delight

point driver That airline variable point of of is expense saw drove one the fact that cost or per that tickets, engagement was QX, expensive efficiencies the of member have. that which with some we less in Specifically efficiency metric. one most we the card that that in redemption

some example We out of was in you our little of softness created saw and some that categories, natural The why expense reason accelerators is the creates softness the well some when point model there there. also that as as line, well just business see T&E where less earned, some to some as that bit you some hedges I'm in in exist in some savings of top efficiencies lines. pointing a that give

well, to expenses we on ability comfortable very as to of the the attract And the as we efficiencies you that ending little say where an OpEx. terms really be generate So do well. multiple offering back terms And works can to The and member keep earnings. we we bit margin the profile. going and see, trend. see And up engagement good marketing XXXX. and we're expenses. model would that generate I expect have XXXX trying earnings works that I engagement dial with able what variable guided road... We're select, flat as about member opposed that there credit time. containing in stress-testing opportunities a But towards feel expenses, who to down pay I over to model we model, on multiple members scenarios, strong of about earnings risk for credit I'm as we committed a think comes create And is its And space in well the based strong generate credit we increase and We of the or that very said, powerful line. still risk-adjusted variable are I car that positive running positive because model strong, we like that. select, will on it And attract down car to monitoring are we to that a card to I on paying is control premium very strong expenses

The Adelson next from coming Stanley. Jeff question Morgan of is

a and in T&E It dig to Steve, just the like into little looks softness, wanted softer trends Chris spend. some airline particularly bit. seeing you're

slower You're for redemptions tickets seeing point there. some

us forward understand what expectations past, what T&E good I in from you're And have here? about maybe on your of the some hearing talked what's the you're insight Maybe then come. embedding from booking members Just maybe give that been for in help in on any what you're seeing indicator how kind to book, a you comment of into us front? trends your and think the seeing just can card pretty there? you've

Yes.

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So rate. pretty growth it's strong a

don't pay being This were In front they bit airline card of for trend. those remains very TLS similar the all said, sure strong. numbers if a they airline softer spending, the ticket, airline, we strong a know saw you I since And made customers to the I many Exports have terms are booking I'm comments American on about segment. an using heard, of a our of demand. me, in but of Veris

in but new with have of we of whether Delta So the whether a a working or very -- point, well. it's it's lot keep we very, trend see data originations are a very seeing we'll of is I strength don't the beginning strong. cars partnership

in did decided as it's assumptions card choppiness the QX I'm in not we've past. for members we're And worry on And a past. with the But we the communicated seen XXXX, one point. airline tickets worried. bit in less well category. too data what I making by haven't than to And don't that exactly it redeem

to and traveling. call a loves member have traveling, sure We base going I'm they're that keep

of question coming Shane JPMorgan. from is Rick next The

member of shift had the reflection level as portfolio driving curious up if just to Presumably, portfolio some receivables. the go also as reserve shift of the the loan it card on a up pure to loan is either up going going alluded mix the I'm Or there? the rate you're wondering if drift suggesting faster grows member or that to fact than sort But card guys rate is in you is reserve Look, it's shift a that loans XXXX. mix go any receivables. what's and that? at I'm between

So your thank question. you, Rick, for

glad is very you're an point, asking I'm So the -- is important this this question. so

want when I performance. at And the I So we're rates their prepandemic. level, write-off our terms the that in delinquency well the we The write-off below put thing It or still rate absolute is are say levels. right? as rates on prepandemic X.X% low of look first X% very where the were slide, The prepandemic, to historical you was in is QX.

So in absolutely low. very

numbers well, good. the I you peers, Relative I'm but same also sure magnitude. noted reported higher competitor know their experienced to that appear know a our which every you at and tick And they're very

X.X Our points or basis lowest industry. XX of take of up the is one the in

about trend. are, feel feel good behind this portfolio, on it some When I in comes going is about that I driver key the we the there's So normalization good the the and here. where to dynamic still

We are pandemic. during moving write-off the from rate sub-X%

slow a they rates And As know call, from on that. are this normalizing a at normalizing. and again, sustainable these you was place standpoint. credit this X% a a feel I all comfortable And is, like pace, where the I and are not level,

loan a that little take to contributors of offered seeing. our thing cards. biggest terms co-brand loan kind in a expand we other and back charge in terms are what pay overtime their step facility and The we bit products of balances of their are The with growth

so better have lending, and everyday, strong what profile profile those which Blue instance. includes proprietary than both credit very call Cash internally for credit we portfolios And

what's is more to pipe the normalization and portfolio portfolio credit with of normalization. towards the is a not that anything, high little said, This being There's if the velocity. that of and come that have a bit evolving profile in still mind, So not as the comments, but down strong mix profile shifting said and and And happening, that we're a more in our tick-up. creating I my that's lot. products

question The Martinez coming from of next HSBC. is Saul

are Basel Is about softened. there of that just you're updated down at closer least a take would ask X%. Maybe about any on talk being You on of that you how expectations your thoughts to preliminary it to lot that, there is the capital. But game? thinking proposal obviously

Just how about are you thinking management. capital

increased forward of your uncertainty? thinking about the going how are obviously in dividend. you You buybacks light But

question. you for So your thank

with they I is lot can they in they're as back lot front regulators, they're incorporating comments is that those and fact that engaged. industry, understand not regulators ball well. the met our And now has all been I of you think a seen the the camp comments received that the from as outside their comments met a on regulators, changed meeting are So Steve listening, with what tell we've I And with well. of sure they and you've I'm

to they we of Right a now, in mode. work So waiting lot are have do.

their We'll the I XX version And next get their XXXX. we're by years estimate end at there to the current least it to expecting rules is of think the first drop. or of expecting we're see took

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we're return to you capital capital. of a equity, As for about generate on generate we not know, we means our XX% that And going change which now, ton policy.

of first balance sheet, The thing is, the dividends. course, do fund we then distribute we

increase We the we've don't what keep over a to adapt we Basel for buffer feel that year. is That's about years. do XX% planning And keep between risk-weighted done so to the and the buybacks And this we big confident with capital well going are And and go of to doing. assets. rate rule. we're conservatively our we we company the running XX% share what very the X% to going that that rest We're have. as that's

so And changed on that much nothing front. has

final So rules. the when we come more to get

TD The Cowen. of next is coming from question Orenbuch Moshe

characteristics the You Could the that's a made little customers. had overtime comment business. And just of up to of card many follow charge been the questions about bit you Great. you that asked going pay that? on obviously, that But have to mentioned more talk tenured answered. a about and hoping

strong. Can seen you've kind very and is growth in product? quality the about much So the that from of yield you little a talk how bit

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So it's a it's and give a product. way as for painful to them well, us

for very revolving said And attached profile period this previously, Gold where on facility to are product. the base, because So this a a time and right? over way give them a using time. much is revolve very is a as to they time. it's of very strong I to credit Premium members us can facility it premium from Card

from next Sanjay is coming Sakhrani The KBW. question of

ask in quarter on look card us rate, growth the what's sensitive of regarding differently. for could Christophe, end exit charge but then aren't range? help, rates the the liability target we low would mentioned embedded I XXXX you If that the revenue expectations sort Maybe questions guidance portfolio? run of to And shouldn't that the the fourth lower at you guys

first. question second the take me let So

rate total been, in what's for small stack to NII. We but the where We in our we're us, trend starts and the here remains a level, it's to the but X.X% The going is is down, liability be on going be the got balance total to when bigger cutting impact funding X.X Fed exactly are slightly our key totality, to industry, as an very trending hard on of not to point say sensitive going that its rates. comment beta. the cost We've and probably assumption happen to the sheet And around at known up. immediately. time their way this way

see we are know assumptions for but are. don't we We that we'll are making we conservative, think where sure, and

bit But our you should sure for is know big is you on what impact -- curve. here. a NII is of that depending a there uncertainty what to rate the expect not So

I I the to around good of in and your Bill a on -- stronger visibility. revenue, I have my prepared -- trend if back to to on we said fees, just is what I'm upside car NII, Going the I say is the very happy think what lot I first have be to remarks. earlier top surprised question don't business said established.

keep to we what assuming in are this report. business billing, to members where we'll at stronger be on previous our are see I'd the And at consistent delighted if the as year. bit time something what expected by But spending. a the is rebounds, economy if the And of with in quarters. we end the we've high YouBuild I Economist seen said, growth than and and a is optimistic have card are point

Gabriel question next of from Dominic The you. Thank Co. coming is Oppenheimer

all versus the Steve excellent curious we seen But was some was growth. card about just really over number total card I I total mean, just curious last you've Chris. know of account I growth and about card that or would the proprietary particular the years. on force as maybe if between be why and proprietary can total provide cards. diverge having you there's in more quarter, strategy that this may is of excellent. a that growth, acquisitions Anything cards any percentage what color on

Yes.

in cards, the spend, that the American Express. of XXX They million XX our total of what the they disclosures. issued we our in at in by network. and majority look million That's and and a proprietary standpoint, rate drive XXX on if proprietary vast our case growth cards details very about have of of you -- economics. force can The transact the Out force of it's the cards. in about year-over-year we you'll bulk represent the that force. X% So From cars the are call cost see

partners Does So network question? is X%. by answer including it their issued your up cars

Kanovich is Karen question coming from of Citi. next The

for in the about you could Maybe was you could I plans talk the the next if refresh -- U.S. Platinum wondering

guidance I your that's whether XXXX not year you on do and if year was think for the have in and plans one last well. any or as that this to the

Yes.

have customer basis. at to refreshing generational products us it committed the enables sure we putting those that as they that look and modifying to really X- products we XX change make said. we strategically, on And And needs from want this value keep and make our in and refreshing our to a our know, it's to as those products products of year sure are fresh, change. perspective, we're enhancements trends you extra as listening customers our and all sort as a So X-year important Christophe of important it's to because we had

card, specifically don't as for far the we As Platinum that. preannounce really

And see. and to just so I think wait have you

Maurer coming question next is Craig from of FT The Partners.

last Considering Two Airlines top questions. the quick consistently is strength number Delta over airline. the of the of years

likely as spend benefited fares better. to they've a terms that in card and issuance been new from clearly lot able You've of hold

products benefit to issue diminish? is a just -- new cards better or might we airlines does seeing you're second, in something small couple you beyond you the the terms the to baseline. seeing understand slow, from And now are what Curious this we've still covers And of flat it business, pretty As under Is are take for reluctance I'm additional spend their able been -- that that trying and increase move there. to small quarters. small see of think any have you to about? business business cost owners.

Yes.

American the is Express the is industry perspective, small not that's phenomenon. phenomenon. business And small before. an drive a spent not they organic from really existing than That seeing more So year -- businesses spend We're spend. an

As far businesses, still small within as that strong. acquisition remains card

strong. far at remains quality looking our that businesses and and and looking platform at strong, our loans as small credit so As forth, remains the

rate forth. Christoph said buildup, this his phenomenon and inventory as think there shock interest is of I some in remarks, so

tend if engaging would if so small were very concerned secular. higher. if much be small to delinquencies write-offs businesses new be very, weren't And or and we I more in cards, businesses acquiring weren't we

this bit is the about moment, spending believe talk American organic we let this, a Delta. we truly specific. Express and at it's not Christophe at So issue, little as look an I'll

Yes.

well. the it's their with going softness the of and terms it's the of still partner but whether QX. product for The billing very, strong. tell, a going on or very, still in we Delta full about growth very a are total the as to XX%. Hard say very My beginning is partnership a The whether Delta is product very was strong. strong engagement will is strong. just the up originating of comment year time new the cars So doing trend blip, lot it's

and I at the the say all. loan that segment as don't very growing credit comes with side, on lot on new that we about the strong I we to side. and the side, fastest fly it And a on see strong. the performance. spend People very quality. those loan remain I travel any quality So one of made comments members on lot And there tend have origination a see who credit strong softness of the will it's Con side, well

worried that stage. I'm not this at So about

Mihir question Our come Bank Bhatia from of final of will America.

the been for you'll how last environment is acquisitions? the assumed your the then $X and you about card year? about share? thinking growth winning to for to you much in level the is just what Is little right level just that are the is members you a quarters, couple and dynamic I I topic, of at versus understand change, just think new have you just unpack just wallet card that that of planning? how new driven same bit. can bit wanted have to go for next related million but little adding maybe billings Maybe back And talk about a by that being this

require now, revenue. X% Let into look me X.X, you that as on members, go have that card talk build and -- be we out And little of we at acquiring it of first see members. the line to will there aggressively that we acquiring if more acquisition be card X.X sight of between out an range we was and been anomaly will we long as where bit out card premium to And about quality last card range quarter acquiring credit X.X. numbers. continue of of we've where high we sort cards, a consistently When million year, really take around will today X.X. focus business members And

fair that, we're that money planning in that. But from think spending, we're cardholders. getting you made really We your what the focused organic what guidance it's at we're more a that's looking existing on a And assumption. a comment sure don't any build environment, stronger growth on but really just on with seeing. pretty amount I businesses, really where And we're making of is look I -- obviously, the provide the composition, we acquired. business small not you're that's before, When for report

our lot And only there acquired, you probably the new from a a from think so you're but when back growth more small upside perspective. a me look cardholders we because to a where from the we fourth engaging that lot wallet consumer as growth is confidence truly actually, about new And right perspective, is is cardholders at before gives get now forward continue card believe engage perspective business share, not of acquired. with any they that of to as which cardholders a get as were going there and from we quarter, billings our and third seeing members

we've And start where these they growth talked wallet, their And they're we share over used time. as American of of we cycles, Card higher everywhere. Express higher and because wallets their increase. with get this a with a this trend, start we to we share lot using trajectory about on move through and Zs millennials millennials life And get wallet on their with that Gen

acquiring, lifetime value and you of now fourth spending. quarter, and our in this the in And is now Z Gen even confidence of total have so of our -- that we the we're base a millennial lot the base of XX% long-term of that see

this card new is step-up to you're as the an coming the way organic about the be lot is a now will better. acquisition, from -- think of but seeing growth that gets coming right So is economy there

a growth revenue the say, revenue aspirationally, a both And from we've you see future which to So guidance perspective that's company. should positioned gives year over EPS how confidence we're this lot us and plus a of we perspective. why for XX% that given be that long confidence term, gives us the of and

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

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

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That our will today. for conference Thank call you participation. conclude for your

may disconnect. You now