American Express (AXP) 19 Jul 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q2 2024 Earnings Call. [Operator Instructions] As a reminder, today's call is being recorded. I would now like to turn the conference over to our host, Head of Investor Relations, Mr. Kartik Ramachandran. you. Thank ahead. go Please

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

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

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

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

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

me that, Steve. over it With to turn let

for us. Good thanks joining and morning,

our and of in As strong $X.XX Accertify. realized reached you earnings business. we XX% of based and momentum quarter quarter our core saw our a full excluding high, raised second the guidance seeing EPS gain for results on ago, we the Revenue the grew the all-time release or an the short in year issued after time in continued XX% reported year-over-year, we're from sale earnings

that other our proceeds will enable any investments increase for the business growth and of results. Accertify delivering expectations year exceptional without balance of drive sale, in strategic the using of our core performance earnings the while to our areas year-to-date strong marketing and from the The still us our

business. all around the core invest to of results expect versus year, our last year, $XXX marketing now this billion $X it we fact, funded of up about in million In from

range expect continue guidance range X% to our up we line to we our in a for to $XX.XX, growth result, $XX.XX raising for from year. to $XX.XX year revenue the XX% the and As EPS are to with full previously, $XX.XX

we're As of driven against of core growth momentum strong backdrop by half Amex including, a base, well-controlled generate scale first factors, foremost, our increasing business a environment. the is around and quality through membership, loyal customer business, we've our of the to we're of first continues even several the our premium The the our business earnings interrelated expense slower the momentum, base, reflects seen talented model, world. generating and power enhance plus making our of the which to strategic continued investments colleagues success of year, the the the

starts profiles. continue our and attract fee high-quality as delivered. in premium in numbers Our growth quarters the seen consistently we continued double-digit customers of premium with strong large customers. And excellent high new revenue long spending, and performance card XX have of our account credit acquisitions we tenured consecutive We're with to products strong superior

scale. is Next

year-end to number scale or grown XX around the has risen business has nearly or Card spending on has have grown by XX%. Over XX%, force million XX%. XX%. of in almost million and about member years, merchant network by over Compared by significantly. revenues XXXX, few our the Cards past have nearly our locations the globally grown by increased of XX

our generates as well leverage below significant running can and well-controlled scale At produces flexibility across revenues, we our our us gives business scale term. more in business. our efficiencies The operating the base expenses into drive our dollars inject are significant increased the drives increasing of long that growing operating same growth we business. time, This the for and investment expense combination

we've through been talent model ongoing critical momentum unique new to and And investments momentum our keep product we're driving propositions, areas control capabilities the capabilities marketing, going, value like is growth. success making to factor our to our technology, innovations continuing and membership enhancing benefits. key and in Another sustain in the the strategic management of invest

we with execute our of and as of products, price them members we large focus enables to cards our base, to customers premium in greater additional refreshing we value to customer embedding example, numbers and to add. geographies. For strategy our card This premium new the existing regularly us make customers attractive drive to highly engagement our value add generations on across

of track on are the approximately We refresh to globally end year. the by products XX

forward adding to look year. updated number, consumer the dozen the the we nearly refreshed X U.S. Gold refreshed of through products Card part announced in As of we've the to announcing first our weeks, that half coming and

We to new benefits continue internal acquisitions. and both add innovation through capabilities bolt-on also and

portfolio, beverage For restaurants giving great more Resy and XXXX, our the planned digital to and in example, access has significant and offerings merchants to industry. since platform seen dining our our customers the Rooam restaurants and our in we expand of dining growth acquisition its will further reservation food provide increasing acquisitions Tock and

what colleagues will to company make growth. is future. the us is commitment and has today determination every engine providing Finally, experience deep successful it continue the the creativity, across to what are our best day the in Their talented our and made American that customer drives Express

for our basis. our is The superior dedicated combination the business, deliver by our ongoing scale the driven long-term premium business. for in colleagues, these expectations of to what seeing ability model us we're and and our drives gives aspiration power can year achieve business our of in The confidence customers the loyal momentum unique the and a at our that a business factors on earnings all sustainable

I'll it Christophe. now that, over turn With to

morning, talk our of It's Slide and about X. to here summary our which quarter with good on reflect good to Thank second results, you, financials strong everyone. be Steve, Starting quarter performance. another

share quarter of income per year-over-year earnings $X.XX. an on was and X% $X basis. quarter, $XX.X were billion the in revenues Second generating FX-adjusted billion grew Net

the after-tax gain of closed of $X.XX an recognized to sale quarter. the million, also our sale equating on Our second the of quarter results $XXX business, impact. We reflect certified EPS which during

even business generate environment, strong the to earnings gain, noted. grew slower of Steve this power Excluding growth in as EPS XX%, a the growth reflecting

business Slide seen an and the versus visible also reflecting Services, category, X% we Entertainment & billed last softer spending. we've stability X% the growth FX-adjusted where in On X% spend basis, year Goods environment growth line growth few in growth quarters. in stable Travel was X, past grew in spend on & with in The by saw

growth and time, strengthened Goods the year. a remained impact bit growth leap categories of Services such quarter, our the as did in certain and airline excluding some the We & see quarter versus slower when At same largest versus in restaurants, strong; T&E lodging. category, prior prior in the T&E

few the lower or stable, Stepping back, in while card which to then are quarter. businesses. this the certain trends across key our growth categories a was prior other our strong members, was away slightly spend from X% we take as overall we quarter, our spend growth There in grew continue transactions number to and higher of points versus break down growth see spending

largest consumer growth with our segment balanced Slide quarter, and Goods billings X% Services both at this grew with Starting across X. T&E. & U.S. on

demonstrate premium base Our steady to growth. continues customer

GenZ customers billed our saw also Millennial drive grew within their highest and segment. business generations. continue all this We to growth and spending XX% across

like transact older they These over transact twice see they customers. average younger demonstrate strong some our as categories in to XX% card engagement, than more And dining, much. members continue and that almost on we

quarter, to last Overall customers in Spending but bit X% quarter. versus from came a sequentially remained small Slide and at Services enterprise on Turning our Commercial X. increased this modest. growth U.S. growth medium

Services, Lastly, XX%. X. growth up see Card again highest International on Slide quarter We in our this

continue all double-digit We growth regions. in we double-digit to And international and customers. large across spending from from and international corporate seeing growth SME also are see consumers

environment, stable our in categories, continue particularly in are volumes and our we for see year. customer U.S. spend back, with revenue are support our expectations across international high-growth spend we geographies. in to the U.S., a the our and tracking not expectations And growth spending line Stepping and while segments, spend

to saw Member moderate X. and demonstrating Moving on on strong Loans continuing expected. receivables as growth of Slide to growth, XX%, Card We but year-over-year

we digits loan we the particular, by year. XXXX, continue moderate percentage to points, we to but growth, expect as As a few exit still double in through progress in to grow

next Credit through XX. X on and Slide Provision Turning to

is Our of This of strategy result base, through robust customer performance attract disciplined models. been has remains younger including business are our focused which the management strong strategy, a aspect direct an quality on we growth premium customers our franchise. Credit very high credit coupled important and our the risk practices our growing with to

Going forward, XXXX. of stable rates expect we to for generally the remain remainder our write-off

reserve our of build to quarter-over-quarter of now in of Turning accounting The expense X. drove the in $X.X lower loan delinquencies. by build, billion performance write-offs, This driven combined largely credit $XXX on by offset Slide quarter. this reserve million second with net balances, is mostly the provision growth

quarter on encouraged billion of to in component $X.X representing the Card a a see that although is QX. Slide seasonality slight ended you decrease worth the there As and by receivables, XX, reserves, the X.X% are Member see to with compared the Loans of portfolio. reserves, It's our second noting we we also of performance strength we

year-over-year, customer segments Slide on geographies. XX. up were and revenues to revenue next benefiting the Moving diversification X% Total revenue streams, across from

trends is see we revenue, Looking This discount an at on mostly on revenue year-over-year can FX-adjusted our our basis, you the discussed earlier. by X% XX. of the grew driven revenue, largest growth spending line, components as Slide

Net Slide products revenues $X continues We're offer XX% on revenue, on the can card an over globally. XX. card card quarterly experience to with fee and value our now resonate on fee were year-over-year FX-adjusted you basis, in differentiated up members our that generating see as we billion as

reflects We're our the us important exit renew with This because expect year further for that is metric customers to their and the the momentum. choice year make to with membership. each also growth it pleased an

our we're around fee-based the In we made. cards, number the we've acquired, the have products our acquired seeing importantly, investment increased we new we million continue to standards. demand have XX% cards for And Acquisition of of total as account underwriting disciplined of for the quarter, products premium demonstrating accounts. maintained and new X.X

interest Moving on to growth versus our by contributes income balances, also year-over-year. continued XX% net in driven prior up which This loan was to year. Slide the the XX. increase revolving yield is Net expansion the

before, growth As moderate this we expect to we continue further progress the through we've year. as to shared

model were across even growth power continues revenues by our geographies. major the up environment revenue in in and this drive a revenue Slide XX, diversified our different momentum lines segments sum in all To to results of across as of our our slower each strong fueled growth on quarter business

Slide quarter. total Variable revenues Moving customer for starting XX, engagement at of of second the came XX% expenses in expenses top on at the to the page. the

year. revenues expenses this customer level expect ratio engagement line the in of a forward, as with variable I Looking of the for to balance be

at invest $X.X billion elevated to continue we line, an level marketing second the quarter. On in the at

the at as versus full strong plan anticipate growth business, the spend now $X around performance last Given core to XX% high we in to billion invest year, we be our higher year to momentum. levels sustain our or marketing

in same time, To spent disciplined this million perspective, above what we this in those intend an in the put way. investments incremental a we At deploy is XXXX. $XXX to

I to for Investor is substantial make investment these there at profitability-based bar decisions investments. incremental at high is engineered engine As discussed Day, and our optimization returns on margin a the

year, the the Moving recognized the to versus pretax our operating of billion we million on $XXX expenses in last XX% business. to Slide us sale quarter, Accertify XX bottom down second of were expenses. brings to the gain $X Operating due

the operating and quarter, invest pace continue gain, in capabilities. below expenses to our X% technology revenue the management of in as control were Excluding we well even up growth, the

we the year Excluding impact the XXXX. for be expenses gain, the expect to continue to of fairly Accertify flat to operating

the levers strong are drive levels, and significant demonstrate discipline results generating business earnings how those significant of still strong enabling the us invest enabled to while And at growth. quarter's us efficiencies This to scale generate expense efficiencies. elevated to

next XX. capital Slide on to Turning

CETX Our XX% end range the XX.X% second target was within of quarter, to ratio of at XX%. our the

demonstrate our highest repurchase. of model. years. remains We over portfolio the our under stress recent of also further strength is profitable. returned resilience test CCAR a the the level the portfolio X business $X.X share billion that our $X.X billion including our of This of And in results shareholders, severely adverse show capital The to and results scenario,

to we banks all card fact, percentage rate as loss profitable as across the well. subject under most credit have stress the financial and of growth In institution are the lowest asset CCAR a

changes level. our prescribed These continue result at remaining We capital the We capital lowest our stress to in growth. the buffer do approach. to excess near-term to shareholders management capital to balance generate, expect sheet material plan our X.X%, not while we any return supporting

XXXX our to me guidance on brings Slide This XX.

of Let way business see growth balance me the a the step back few observations we the year the unfolding. and the about make and in

gain generating growth business Accertify even is the growth have and a slower sale. environment in mid-teens comfortably core a First, that we from the before EPS

in us more to Second, in in the business, we the the pace year. of to for our the strong combined market is earnings enabling generation demand are with invest compared core marketing products, around last XX% seeing

core from As the a result, expectation fund on we to gain relying our significantly business the of are at our start more able year investments Accertify. from than the one-off without

With to confident of that, ability Steve bottom and of range, million in of mentioned, to business in $XX.XX are drop all This in one-off a the for of to the mid-teens our as for year-over-year Accertify practice our $XXX EPS range $XX.XX, raising initiatives, departure line. we of expect $X.XX within marketing, delivering we from the gain to portion is guidance are the a to a significant we EPS the growth. that year our but growth support growth while of around gains usual now reinvesting

still we in year with growth deliver XX% X% range. expect Finally, to our line in the initial to revenue

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

you, Thank Christophe.

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

question Instructions] from of Ryan [Operator Goldman Our is coming first Nash Sachs.

little consumer, a U.S. maybe from basis? Maybe sales bit slowdown seeing slowdown just saw broader seeing are you can the to U.S. X% on on SMEs? Steve, X%, of what in you're and a you seeing a we about expand the what a in consumer? same-store consumer you're talk

obviously SME uptick. the you a on saw slight then And side,

maybe So could just if on you expand both? this

Yes.

extra decline. you last little so was strongly sequential really U.S. it's think, quarter, and I a growth. day, But X% bit Millennial quarter for a up U.S. So consumer the also be apples-to-apples. But to continued we in remember, saw of look, the not the consumer, by had influenced listen, GenZ

to of billings up and our It's XX% up total now XX%. they're

we organic is feel but bit Obviously, little growth see U.S. the where spending, environment. slower like so And to higher, is. a a good it we'd economic consumer

going discretionary, out if But which numbers X widen us continue pay bit our SME. to bills, before spending credit back, they a is decide thing and so our -- point pull on be why touching our pull but of on back lot I discretionary, to a and will their they'll consumer, When for is our little consumer they'll and continue strong to continue their we between to the competitors. gap they're

So think going U.S. consistent, consumer be been pretty throughout has and consistent the pretty feel look, it's that, the to we we year.

was is there a still that the while an it decline is From business decline and organic organic perspective, year-over-year, before less than that. quarter last small quarter

business, improvement. in is slight seeing strong. small is we're still retention and U.S. strong So In consumer still and acquisition the both

as on economy just is, up organic may it driving up it's be, last future because didn't up then international, it small where will even pick about so growth. ask is sitting the rebounds, the we're probably And international in commercial so and and I within XX% And is strong, the business comment about that quarter like you XX%. what whenever

So where about right we now. good we feel are

Don Fandetti The coming from next of Wells question Fargo. is

can your commercial reiterating 'XX results, revenue of given X% then about sort you're of U.S. talk think in the a end? to and know XX%. you where towards of international? in talk But to just more lower little investing guide Yes. consumer, bit I you leaning mid- you're you terms you're -- Can for marketing And do

Yes.

for and X%. FX. at And and at I look, we're were about So quarter, we X% XX%, both quarter-to-date, the reported think,

think up XX%. rebounds where up I going sort either So comfortable determine we're within where wind or that But how range. it stays And we're think to I to X% upon we the will that range. with within depending organic very of wind is

of Traditionally, small very But either engine would either exactly focused do what as international. of acquisition business and get change consumer, international is we more investment, investments, to small here percentages followed at we that have will the we hard sit given cardholders in the things business. allocate as at any more is point and U.S. our say but or that be far more time, business a those will the time, look consumer by As to investment, dynamic all be, will what engine will today, acquire U.S. I opportunities on acquiring it's it because we myriad cardholders.

of And half for for year. here the term. the to What acquire that acquire we're and spending investing will doing going us spend not for will year. key us in medium it when cardholders is about it's second that cardholders drive we're the And next longer year, that the really is this we the

takeaway the point we line credit. feel is is on Christophe from sight the right opportunities into that we more, the have compromising able think point made I we're of the and to So strong made and invest those that now business that without I

The only got. was about QX bit little still think on it card of fee growth we expecting We think to card way that, in right billings, year. rate be. the moderating we a we talked terms where was bit. Don, revenue is remaining in that what growth we is add of a which is in of about talked NII as the talked QX growth about thing balance And we that it the picking exactly before call, fees. were momentum up about I about will stable exactly it the And to talked as to We

So that would revenue thought growth it we is be. where

Sanjay from Sakhrani coming is of The KBW. next question

assume fees And a helps probably just what we announced were it Steve, I Gold card It probably just they be refresh like next year. that contextualize I then shortly. intra-quarter, pretty guess, you can will I but the say trends clarifying. spend think just Card means? sounds those were, stable? I heard

Yes.

product. the of is a when not into Gold advantages would the refresh, internationally, lot one of is to going the So it's Card get it's I dollars card. happens value we whether marketing it's those So details happens refreshes to product Hilton makes a you harder, or I'm whether Delta, Platinum work Gold, say provide more that another it do you're to already have the is of what is able the But what that it's big right? the what do whether whether cardholders or

be upgrade a new that cardholders cardholders, to Green have to a able the you is have it able that, obviously, and acquire may and to You what the marketing And acquire has fact that we a different card around have obviously proposition you'll with go even a happens new Gold. and you're you'll as with goes buzz out value new and it.

dollars when a you stronger lot a marketing the bit is have you a so work proposition refresh And marketing it spend, and little you. and for little harder a do bit your -- overall your value works

when there's to here. say typically intra-quarter we talk much their nothing those, billings, to comes don't about it And and

of there's billing growth. noticeable in monthly nothing So terms

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

I the putting you're ask wanted about the it spend, like and pedal down. to seems marketing

market this, see in going thought -- in to typically, this it's process American competitors a Express significant is into you've year? you of the already gain seen either when from that at anticipating this activity share. terms because or happen any slowdown or So of AmEx their opportunity and a past, least seeing Is does because

forecast. second, was development And being were lower than business costs what

or So went less partner what growth might due some I'm that have that? curious met into incentives if slower to that's

Yes.

of a points. So couple

year we've marketing billion $XXX for area increase. increase before, an significant in is in not pretty an ever think been a million year-over-year $X total I the and is

spend a make that at quarters, look more we dollars the X trajectory Craig, think a of And first decision, have in, if $X opportunity. that marketing it's when the marketing billion. been to see a I would we because show we put you where from for

the do the our of dimensions all see box keeping within who really looking consistent and cardholders. we're opportunity And the credit spending because So our see within we for we we're of for, opportunity. the marketing quarter-to-quarter

back, not we at to far this in the weren't And where planned pulling slowdown a We're billings billings. as investment as of that were, making was because they competitors where year something competitors to going do don't back I the pulling had beginning This see at of be. all.

ever you obviously, right share. make Obviously, has you the is gain you to because, competitors and traction now, more want environment it as gain these I as just competitive your with think been. more want investments to cardholders

a answer add will and about expenses. me development also business things, let your Craig, few I question

So a business factor decision we have year invest element is in to lot is here to the The more other earnings. balance into the of generating of visibility the performance. the

the quarter, the of use anything members word, us co-brand spend it terms the the in confidence terms of that and gave have terms was of partners that here, card specifically more related nothing with have in was, your deploy and to of a ability development significant. us to performance nothing as commercial incentives get efficiencies, in marketing some partners our business question there that actually gives to well, expenses, visibility or credit bit year balance and There in I in We efficiency, there's of and would some to here the more OpEx nature. that but the the we of in dollars. And about

question of is coming JPMorgan. from next The Shane Rick

just Have guidance? gain. and same going my to What see underlying business, the organically, so morning, pay context is I've incremental can't it how Accertify I your it. I'm the it's the as to this the But that in I'm strength changed of it's following: roughly funded heard from funded on of you're spend to that to expectations a understand marketing from wondering little has be year-over-year, organically marketing apologize, the is I spend. going and get your or trying given is for a hard is computer What materially matter that increased you, it to fact, $XXX is, the opposed prior million the what

Yes.

are problem way Let think you to so more question, we The always hope I -- we thinking invest year we investments they to earnings we computer would the core fix and we returns. want define we matter that than anticipated. is because which that with Accertify gain, is, about fact excluding compelling of business, the more this the opportunities the attractive is to as and had The take the like want your entered see me the generating soon. I invest business and

we So can to more it to through you're spend core and business. right, afford fund the

our raised But on we top that, of a marketing dollars. little also bit

it's significant Now amount. a not

As we've said in dollars. the past, million we on in spent a week, $XXX given of marketing average

XXX from anticipated a bit more, had funding, to XXX the or not at material. the thing a in actually funded more it's core it's But of bit is we it's So of be year. key generating earnings because that in all terms beginning here business, that the the than going less, the

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

as talk to of versus you write-offs an more you And well there? like about kind revisit Christophe, then seems confidence over a about expectation your little we maybe in the reserve quarter, up previously? customers' wanted thinking about year what has you from rest some Just from think the driving view I also seeing core ticking outlook the a uptick here and what's outlook of health, rate more for were continue talking should be talking stable from you're credit bit. year. to the of rest were now stable your over more Can a your maybe the of know quality the just to about last here, shifted I

you're So right.

little now. way we terms of And think a We terms credit a QX in QX, good in have of direction be we balance going confident for visibility beginning what's so of write-offs bit We had write-off in we changed can and about to the year. are more the here. of the at QX the providing

going And the stable providing at around QX to at direction the level X.X%. you that like point, it's is we're about in saw to be now your

balance is it the I volume year. to quarter, say to A that right? seasonality think reserve Those address that growth Now see. signal and that to a the card a early And we driver specifically the is improvement, of will going that to levels, The for improvement stress of on reserve and the of about to we are in up be big incremental in need on. your the balance how in of this delinquency tick delinquency the of to the is showing probably members question going expect reserve the drive delinquency expect together there just bit the bit rate year, with so right?

range. good It might But rate And but reserve losses, your of year. little end But balance terms a going to in to from we're in for of are to I point of X.X%. to be guide the bit, to for X.X%, maybe It's good are standpoint, land the balance at expect point, stability It's now for where year. credit the a the expect a we a just that CECL what see. what for hard where it's reference the from predict QX. of is increase of exactly we'll we the year. we to the X.X%, expect going would balance expect

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

Yes.

mid-teens think bottom the still gain I you don't line. wondering for it out, if level? I is pretty that off just EPS And kind XXXX you EPS give fall to to the like pointed gain As expect let a XXXX this guidance, target realize of growth unusual you higher to but you Steve, Accertify

question, onetime Well, I'm glad actually asked you a gain. is it because that

next guidance in mid-teens range. EPS to do certainly year, so for be expect give as we that And we do

will for be that expect and However, people we adjust that -- would we'd onetime gain.

to a not from we using that I job have think it and within think way little the makes it build by remove your business, and out gain then there. the of sort calling just onetime that that bit I easier

for gain. it, thing a Because a That's point out gain. we marketing call the not to at that the us because onetime year, next higher that why also us But is our the we where would reset core using look forward. allow it's even marketing that level actually gives use it elevated have when the you a they as growth more I is go onetime business onetime drive to opportunity at our it spending to will gain, and which much

keep the So we our we at is the marketing By versus saying, to by grow look that's marketing, there using $X.X from in going be able a this core our earnings, that using advantage we'll didn't our going and adjusting not core." big there up "Hey, forward by what anticipation that's billion. to gain look, have onetime and that back

is coming from question The next Kennedy Chris Blair. of William

key was of of the one what Day, next investments couple you about At over of goal banking just years. the investment is there? the areas and those Investor digital the talk Can

journey Yes. be more and engaged overall a banking small is bit businesses think using a invest for digital both Look, capabilities, our have And more sure consumers. of engaged but accounts. going I with in just the only to continue is be to continue that. multiple invest We that And making goal our with are now to our we're us. not to customers to in

that, way be of the there's and more to us for still go. but long So we're beginning come journey at there'll to this on a

Terry The of Ma next question is Barclays. coming from

about And the retention refreshes of product more feel and year? going some get your last than net still or in just terms are receptiveness? color good whether just not exit card announced on overall you pretty to wanted acquisitions, higher Just how fees year having

refreshes? terms acquisition of or In the product

pretty product about good you exit refreshes just whether having on net fee? growth and -- the card net card of year fee or still how overall are feel going, not terms In

Yes.

momentum, very fee as said, So adding about good growth. we in bit we the terms feel of more card a

next the It's as card to on as we commitment year. card refreshes. the their in balance products, renewed the We of are year a important single back I back product portfolio to the the up like XX are we're come. this that track. said on of only bit and to We on that and super That's XX% tenured remarks said, not is my talked in but at of members most are membership, FX a refreshes, right? the of is But that. the about prepared important of every mix well Steve adjusted, tracking renew actually against expecting product element And tick we refreshes, the definitely I in make Gold mean, element here. here,

big million have we're one those look bit Gold product retention look But are has on early tell through is little mean, I at X.X to year that the goes too to you as rates are come. you And each able strong. on. how what to things And cards really next X.X Yes, refreshes. done. the more about million one be a individually halfway color we'll it's is at. those cards, acquired, But the and still

The next Martinez coming of Saul is HSBC. question from

a on guide. your question EPS So

range So suggests the midpoint guidance that growth. implies the EPS second an of of X.X% around midpoint the range your in the half at

end, X%. the it's little at think higher a under I

expected out stripping core anticipated? But you've ask, than Accertify, your first and Now guide may basis, all been you not the obviously, that half, have the it, if we what should of is on the in of be kept higher be marketing a anything unchanged. just that it. explains relevant different driving EPS about wanted else there basis numbers, bulk to thinking than obviously, Because there is core had deceleration better that

card think some And say if still the year in I given on see I a to the I'm XX%. ended closer is specific acceleration, the bogey you there? half this think acceleration than other on second wrong, that call but the me correct don't XX% number to outlook, have you you've past, fee said

of your -- is the the need as into you as at math like I'm model. remember, the looking done So to your gain linked to a think to you we account last that fact But you year, And additional a of bake numbers. of number might as the about we to math factor haven't are one-off URR million quarter, and as given well, going had But well into we've $XXX well, balance the we're stick to couple and items about that. those forecast. there

it think reserves, The balances first it one sorry. question, expect was we of CECL thing from is to in the for year was of Jeff, that, as balance credit reserves, said, the I some I build previous

a that EPS. on pressure so put will And of bit the

The OpEx, second in technology. investing we're thing is that

as bit control Express, little factor seasonal in end year. of investing as As up typically well, pick I a operating at a remarks we've towards we're in capabilities. management well, my And said seen American as the expenses our the

including marketing and all much very back in so bit are you the a not more get cadence, and time we high. of remains rate of into point actually at So account, year, this you'll actually is that moving EPS when projecting in you like this feet that run take your balance on that see the

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

about loans. Kartik, there the from did interest that above in in first income, look at quarter the as rate is still NII the rate still the Is -- net the X but of points decelerate quarter level, growth well growth you

those net you end growth converge, As growth and balances pressure approach X then? lower the than the there margin that by will of kind interest of kind that in you do be the or year, think be could of income

keep here. Yes. your question, a are couple Thank for There to mind in Moshe. of you things

one the volume, balances, rate we balance growth expect the loans in first to it bit The moderate of said, is in although digit. remain that, to further the should will year, as I've a double the

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an we on funding of this as going we which the for us effective have share thing high-yield around covered side, a and funding channel. Day, during And is is, our the accounts, dynamic bigger the savings funding second still Investor mix to

that out to dynamic year. is the still play going in balance And so of

rate kind so growth bit the expect see NII a in And balance moderate of year. should the like you of to the

Bank be Our of from final question Bhatia Mihir of will coming America.

I change couple way current like discount wanted any level to Or will you are it about quarter revenue. at revenue the to softer go that be for on spending is So quarters? you're for to continue back fair to planning the environment in think just of and say growth next spending that trajectory? fair thinking on -- staying it? Is probably a

in just It large a happened spend? amount. could then fair like and on just if looked what global spending, relatedly, us decelerated tell you it And

there business, meaningful smaller it's deceleration. out call there? I a to fairly anything mean, know is a So but I it's

we're around about let one me take So the billing. thinking how first

of in when So the as I this lot even we see stability last bit across further detail. look said, a you X, and X a quarters at

that's developed through then from is there side. good are us. But the the level, that's a guidance, we guidance So what revenue spend going If bake revenue it's be a guidance thing upside standpoint, that to from and a when the we we on in. what guidance for standpoint, assuming

last comes it was quarter, large, it like was there to global tick When at remember and up, a X%. you

member is card material their in change, of point inflection a to in of of client here. back But not of This in nothing there's quarter, one There there, we see terms outside a X%. nothing we're really spend. not meaningful are Like drop that things specific corporate in significant usage. terms few an there noticed what big card a really terms like we

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

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