American Express (AXP) 18 Oct 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q3 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. Thank you. ahead. go Please

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

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

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

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

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

me turn Steve. it to over let that, With

revenues. quarter and third us revenues business steady marking were were power and Earnings X% last growth. tenth our thanks up joining investments over We and per quarter continued call. year, reflects our for for our for third earnings quarter of another our in share the the model record morning, that $X.XX had Good strong earnings of quarter $XX.X billion, consecutive

the of we the we date year expect and from $XX.XX full range year up performance continue at strong and X%. Based our between And the year provided beginning is growth we that full to to on at to raising $XX.XX. to $XX.XX around within revenue we're guidance guidance our the earnings generating, EPS are $XX.XX,

reason and growth of and our feel generating I prospects. it refresh key strategy across the our our strength A remain to in our the the portfolio. about and I long-term my sustainability business, of for confidence product confident our performance ongoing date is growth good is

and We to refreshing several achieved by of more year, expect we our this globally have do already plan XX products year-end.

value and embedding services so, As Members of and Premium adding existing new Card financial that we our ones. lifestyle we're our benefits do attract new needs offerings reflect and to the by

great is Gold about also is for critically than Consumer a U.S. with at the the with U.S. A product XX% this Gold And total consumers, coming Card of currently Gold Millennial We and from Gold good important example higher talk Consumer Card we XX% Cards but it's Card. about portfolio. U.S. with a product in Platinum premium very the lot is our of Gold #X popular reason, Platinum. cohort. running Gen-Z and product acquisitions our this a acquired

Gen-Zs designing that we and dining. the refresh which we third quarter, Millennials In especially launched in know interested the Gold in Card, are

Card other come refreshes, younger benefits enhanced our fee Xx users these the value the greater restaurant dining than higher Membership. we've almost Resy with in a Member that the fact, Members generations transact Gold booking percentage Card as already of more on we than other In mind, on platform With in And is up and dining that base. Card of done benefits make our the additional rich increases. with annual

fee the growth for customers Gold customers, results strong our refresh that value, consistently is we pattern we This value strong in revenues. acquisition that and early we and new drive spending retention Card see and it's retention with U.S. in which among when enhanced resonates days, price value and levels and add real see numbers We high strong products. enhancements While subscription-like existing premium that indicating seeing that made. Members, we've very we're account acquisitions our continued that a

membership dining an model. is Card premium one Gold important just across customer in base. category of how our Dining is increasingly is role example The playing our integral

be increasing industry QX twice In our on of fastest-growing T&E continues since XXXX. growing categories Consumer U.S. at rate our in overall in nearly to versus X% the one last fact, restaurants business, spending year and

spend opportunity And trillion at is dining U.S., restaurant why in foodservice to with $X and our since out This represents the differentiate us building a for Tock have estimated and in the we we're with membership. QX. capabilities, investing recently, dining the announced and which total Resy Rooam, Amex first, further acquisition them with of closed more and of XXXX both in of additions significant

We've platform diners. XX We're successfully since last users. scaled over Resy registered also over just embedding Consumer co-brand And of U.S. U.S. alone, the mentioned refreshed in the million as Card made cards our significant in We've seated date. the has announced to Premium months XX the progress Gold SkyMiles acquiring company million value several with Resy I Card as well Platinum including in Delta and our benefits February. the propositions, we XXX

large our our connects technology dining In It us Furthermore, merchants high not Card them for yet do in premium important their who membership state-of-the-art addition ways. model American user helps but Resy's grow access to also other platform potential to Express enjoy gives spending them customers many while strengthens the Card. prospects Members, a base businesses. that with pool restaurant Resy providing have of an benefits with

to of bookable will consumers restaurants. extends access and can various across hospitality stadium acquisitions dining value certain for Rooam, both. live and capabilities to have and expand events our and benefits experiences. including users management Tock platforms the venues on addition With ability millions to enhance merchants restaurant with in footprint events offer integration and thousands sophisticated hotels wineries, newest merchants, additional we the Our driving more

we other position category. is space, this we continue us premium in relationship our our advantages, base, in strong the the and our membership to and the merchant our including dining customer competition growth model well with believe important providers business have restaurants While fierce model hospitality

and dining aspirations fueling are ones. refresh our momentum. as As a demonstrated, couple And the of why just product our make of the growth remain long-term in are I seen we investments capabilities, the in confident that these strategy we right in the reflected our as examples of are in propositions, our our to continue value example

Thank you, and Christophe performance look to at more detailed it over quarter. now I'll in for the our turn a

Steve, you, good morning, and everyone. Thank

Before take like year-to-date to the a few our details into highlight I'd going performance. our results, back to key minutes quarter from of and step third the takeaways

quarter we year-to-date growth of and business is with technology. adjusted FX has marketing is the We spend $X.XX as been in performing in model to our The First, of significantly growth over line with really XX%. solid had another and well. environment revenue the with even earnings invest a EPS year, stable generation expectations continue of course our of

and more we add franchise. We benefit many the our of types, is continue diverse engagement to to Transaction revenue customers streams deepening, customer from geographies. and set

Steve premium performance. And XX% as grew to on the our our addition, an on this continuously In be products card resulting refreshing focus of in by is acceleration in strong quarter. discussed, products focus revenue, which fees foundation our continues credit very our

to to increase very and grow reduced strong return million. Compared the last to expense to franchise of operations. to our year, yielding earnings, us discipline. shareholders. continue grown gain outstanding we the expenses manage our We excluding investments is and excess is operating we the digitization business by have from number also shares with which Year-to-date, capital of very our to the enabling scale This Accertify, XX base model as fully leverage modestly the

now X. that services on spending, are quarters. QX X% continuing T&E grew now rates and of basis, growth while growth the much stable line what changed spend seeing Turning an performance the goods picture since several our business been seeing FX-adjusted to with Slide last And more quarter. very we're over Billed on hasn't trend on the volume we've past in

in of up function the in growth and This X% to Our Card up their ago. for was is of continue around American instance, deepen Express per per the transactions with customer, in customers merchants from of as the number customer X XX% their a transactions as transactions engagement well of are number years QX. customers as growth number

want Notably, Spend with very As cohort stable affluent with of to base very across this slides, higher segment highlight that spend than be loyalty from and we by to up to consumer strong a retention our growth Gen-Z the XX%. next few U.S. over customers, trends you few the points at away. take look key customer I younger continued generations. continue strong new older with see Millennial to

modestly with we've Within consistent few growth what up was and over the past Commercial quarters. Services, spend seen

Our our is top fastest-growing the Every of segment X worth again growth teens. of with The double this digits growing high to continued quarter noting. of especially performance with is international markets this in spend card services X mid- one X of out breadth in is XX%.

basis. up and Mexico, For on XX% example, is an Japan FX-adjusted XX%

in adjusted Gen-Z and the strong XX% We with customers QX. FX growing in also Millennial age international see cohort engagement from

Total turn Let Member moderate credit me was through quarter, Loan performance loans consistent and as Card XX% Slide to growth XX% now continued at receivables was X QX. growth this strong lending and expected. year-over-year on with to and X.

lending enhanced continue Pay loan contributor Time capabilities as Our be the growth. to Over such to our largest

growth driven revolving over loan XX% continues of be customers. tenured addition, to In by

long see Members. Looking with our Card our ahead, we a runway Premium for we continue as expand share to land growth of

to products we meet charge built customers' co-brand largely borrowing portfolios. of back and we pandemic, more on our our the rates time revolve grow see upward While premium momentum expect since needs have as over our in continued

our continues credit to customer pay growing performance. on premium focus of off in Our lending through strength also the our base

remain to QX, rates we very in prior quarter. low quarters, account taking saw especially write-off and the rates Delinquency and X.X% this our with seasonal line in downtick into declined

these customers lending and levels customers. upward elevated rates new Looking forward, to modest at we share to I still increase continue buyers from acquire existing our expect as of

This loan bill The billion quarter, consistent predominantly growth. $X.X of was which about reserve had This of X.X% driven rate with includes a recent $XXX was quarters. by million, expense. reserve provision volume we

best-in-class a step strategy. these metrics of a Taking back, our credit reflection are

selection create carries positive credit propositions value product a powerful through performance. better Our to which effect,

the and capabilities ensure safety growth. Our risk management margin and profitable of widen strategies

Slide on starting revenues, XX. on next Focusing

FX-adjusted revenue product customers see new our sequentially, we into X As the I on as And we driven grew basis, Net X% card bring refreshes. our the I of million accelerating year the with part in earlier. last to by spend by an noted cards grew is points interest earlier, revenue, Discount new and in revenues products $X.X demand increased largest franchise quarter. of line, XX% strong driven the discussed acquired trends versus for we continue net fees X%. by total

card ongoing of success growth refreshing strong continue continued drive with and retention acquisition along the of proof Our in cycle a of our the to sustainable of levels, real strategy and our growth strong customers. our engagement point fee This revenue. products represents

driven is XX. continues an FX-adjusted previously interest versus increases as on revolving Slide income XX. XX% and lending the Growth Net performance our our in this and turn on Turning line grew we to basis grew moderate prior to yield economics by Slide interest net expense Net XX%. to in balances now on year. I'll loan communicated.

stable engagement Our XX% VCE with at quarter XX% up to expenses versus this variable ratio customer last remained year. revenue

Looking rewards VCE, outpacing some expense components spend grew growth. of at XX% the this of quarter

redemption to increase in very small ultimate increase short with are the to proposition evolving of Card the we maintain the In are but economics the of to program. value term, ease those and in over continuously changes the ratio. confident time, the We rate the also redemption VCE MR of impact our a minimal Members economics the for drive

in our customers. superior for to to benefits our continue Member experiences invest deliver we And Card

the one of are XXX than ago. program, year, hotels that hotel Xx Card, the years added and on higher Gold this new we the bookings over we've program example, to For on see X collection benefits year-to-date the

was our versus rate we $X.X as last levels year this to expense run so with line Marketing continue billion, invest in at year. elevated far

quarter, expect opportunities as full around to us. mentioned As for billion to we last lean the I spend available attractive we marketing $X XXXX into year our be growth

X% gain. levels about trend. basis, There Accertify growth expect up XX% expenses year of continue elevated last with Taking in seasonality strong versus reflection On up remain relative flat expenses levels, year. to see step leverage. of ability $X.X year-to-date operating to our This is back, a adjusting prior full in total uptick at adjusted about a X% slight some expense expense is year-over-year, expenses to Lastly, revenue. a a year's expect to billion the drive operating and fairly FX operating to for are invest to and we we consistent were QX,

me Slide on XX. Let move now capital to

years returned and level we share CETX capital to highest was return this X billion within past our $X.X Our and the XX.X%, This shareholders. of XX% the highest $X.X included dividends. range, the in ratio is return well -- to in billion sorry, billion included repurchases, XX% our $X.X capital in

a funding we to at robust disposal. diverse our Also, very continue have and stack

this XX% balances us. balances our savings savings a over existing have quarter. Notably, consumer Members, come account Card U.S. high-yield less high-yield grew from XX% than of though by XX% customers of year-over-year with Our

This guidance. brings me to XXXX our

For of the revenue around of the expect year, the year. beginning at we revenue X% the range we growth guidance full within provided

We This to aspiration we reflecting are year-over-year It guidance is represents EPS $XX.XX the also XX% business. raising to at expected our earnings growth. momentum growth. higher full and our both of year the year the our power above to than of the XX% start long-term mid-teens and of $XX.XX,

will call over your questions. back and to With turn we the I will that, now Kartik, take

for now the [Operator your operator open Thank for Operator? up Instructions] questions. Christophe. and will you, you line Thank the cooperation, that, with

KBW. Sanjay Sakhrani from [Operator Instructions] Our coming first question of is

about Next softer spending that XX% I in mean, to that Or updated the current double it, about And digits? obviously, to business to guidance. expectation possible I plus future, another card guess thinking there as does in should as revenue is but I results get the we accelerate have a I just will in spending backdrop. backdrop? appreciate be the I'm think way? is clearly about the billed what fees, stronger, is solid NII year, think be slower,

the Thanks, the to When goal our of to of spending to has we X of think that balance, that I accelerate card grow right stool we get I Sanjay. business growth. the have absolutely have NII fees. think balance to revenue aspirational you XX% revenues, the definitely and about our think legs Look, billed

that as I in our rates. card accelerated I about fees We XX think anybody wants digit. straight much but It's And think And don't quarter. of double XX% set this see to grow quarters continues NII that at was continue chug overall more from environment. really aspiration there. now to accelerate a had think to aspiration, us too we along, robust

hit to acceleration from to acceleration us for XX%, certainly, that in need we would so an And billing, have an X%.

Goldman -- Having second a a for on. the said able X% the said softer, it's day have to even the have when business I our with last this last what if Sachs about at that, of to point pretty year albeit our conference, at we year, this scale go back, much soft are last the you been we such our focus the other than the for the we for deliver yet, place had consistently a and ago billings that overall But extra this -- growth. pretty year mid-teens much on driven about is And overall. quarter that's really been EPS I consistently think

strive as will think that revenue I And to so billings. when in gets aspiration stronger, I the company a it's economy is, the absolutely an as know, acceleration but for us don't we but for right growth, XX% need

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

the Thank response. prior for our the the of branding you on conference for

drivers X in When question. growth, Sanjay's acceleration on follow-up billings of if stool, you of an slower just EPS sustain Can you a continue revenue you legs than just we the growth in talk a don't maybe the the even the think to maybe see XXXX? of mid-teens environment? -- about So a into of can about growth face challenging growth the aspirational

year. mean, I this at look just

now. almost just pretty X% I growth of much year had said, for As a we've billings

just I'll I so comments to And my go just back that made to Sanjay.

we mid-teens expected that the continue NII of I think range overall cards, -- from in are, that upgrade X% to EPS grow and us. should Members, we growth level acquire continue the something in to at Card range our absolutely think be I is we yes, and and growth to billings continue we where

future you we've thing while really cards second other first quarter. is would the million about all I cards at this -- quarter we the million the say are in X.X that if not that look cards The in that's year, acquired third and us. X.X quarter million the in And X.X for and

with gets Green economy will stronger, Millennials a so most will Gen-Zs, up these that see and that people us, in to wind Gold, will of being we're these from the are upgraded to and Platinum cohorts to that are are organic grow over an as -- time, And Gold forth. that a spending a continue acquiring cohorts these uptick and

so we we're think that forward. And investments really the once foundation making the that strong I are again, growth going laying for

that's Maybe I you the when the And the a growth. mid-teens, $XXX will investments year, EPS just we're reference, as despite is generating grow north mid-teens X% increasing so EPS And that for speaks going after control right? power gain. Accertify right? add indeed, year-over-year one point. million, to of growth the a by This good marketing about even of much billing as And

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

I it term. expecting. weather curious consensus was wanted the from happening phenomenon about to what ask in impact second, was rest there spend, any just long the came or below short-term for And of what And in well I development is guide was more something was year? business whether the there, a

I'll Let answer there will one. answer impact all question, at and me No, no -- the all. at the Christophe guide the first from weather was second in

those are the that expecting corporate as lower the customers. on back our of to to is incentives is coming billing core why the pay Yes. are is the back also and lot business of agreements because a small co-brand growing incentives line customers development, partner customers. in their and level, we the expenses or sharing terms reason of have pay about that have quarter, at And side, much number the you the that partners terms of in were we not since brands. we those we with this as And that And on economics payments business of agreement so specifically, -- terms the a maybe in on

is JPMorgan. Rick question from next Shane The coming of

Look, above the of are move leverage and are better as than suggests setup the fourth revenues expected. way gravitating that end we range. the above quarter second will initial be operating guidance is your and you quarter, increase credit into low even and the earnings towards That

marginal for marketing you're ramp planting the in you earnings the forward growth. earnings about I'm incremental starting so longer bottom year no it's $XXX diminish starting are talked Historically, is Are really You've you this line. that revenue strong, ramp that million a setup million. as why the $XXX the attractive? you in much seeds the pull you fall on incremental, to way investments, this see letting those when -- -- to up investments curious are return long-term

No, I seeing think return. the marginal we're don't

I when think X.X mean, level a are at ramping matter spending much billion, we $X.X ramping billion $X.X management of it's -- almost $XXX the you category up how that a a it's to -- just stepping relative marketing, we're move We've about stepped think also almost spend. that I technology basis up are. control to -- as more we We've marketing bank. bank in X million. X category a from investing in we we're invested on up

not doing we're so walking not in any we're is -- -- any in way what investments not but our we're also either. also away And we're standards from not lowering

investment jam think our investments up ramped year. So really we've then to more next into just long. just year It no, a is hard I bunch that all

additionally, marketing technology next so more we we're looking expect next a invest more into to because look will and and But pullback XXXX. expect grow to we year we marketing not at that spend. efficiencies, I forth. we that, as year, in would in in as we in our we're into levels marketing our investment from here more obviously, start move looking said as move Having for

that business a to you you When easy basis, have it's that from the you a when in to think time. quarter-to-quarter business, have So your assumption the over -- layer on you yes, about about investments continuum, have. think the

that ago, next just investment fourth where So could to the of this easy it's do we from in they of investments sort our year. half not because of as today. were levels are probably pull first quarter into quarter Years of the year

the is to, it as way we forward. a that let's get to to hey, an are going look, it it today, pull level so -- opportunity, opposed there's that go that easier as And on you just we're let's continuum to pull in

the investment the to So in the good we feel continue over range, over invest opportunities business. the long we'll -- next and to about medium

The Najarian next Erika UBS. coming from question at is

seem been When a little has flatter success I spend per growth, so than adding And the clearly, look bit does your spend like X% on member versus that's basis a at new supplement, a overall X%. many of in customers. it result

obviously, whether spend compound landing trying runway do If rebound get feel in to and you we or have soft how the don't soft landing, we're growth to to where at the have going much customers to you figure add to year is question refresh everyone out on on the next not keep to are some product give color maybe And the new we as cycle? continue level? spend us the that, growth current maybe a

Yes.

So let me second the then part answer go and to first. the

the the surpassed rest refresh committed beginning there done on some will And year. that more be And at refreshes will continue cycle, will on we've we over refreshing we product the be think already that next year. year. the XX -- of of at I to we're this had our

relates We comment more move of still year to see Christophe you we bit, line give card let your it I'll to other but sight points as a question. holders. as a into little couple first next just I'll acquire of

credit our will pull signs bills. are any confidence, if pay a they I robust robust our lose think in What good. stress. slightly of own sort holders environment. holders why customer their overall when of But spending, not will it And organic do. they our do spending their the more our numbers so as look you continue what And any was in that's at as back base that's to is is card card see

you organic at look business. especially when think this our within I small piece the see this, of you

hit from business small macro has been perspective. Our a

the spend robust it not and card organic I as on at same-store think out it businesses, in of certainly just business, that sales small is like the small or was as a companies, the coming the occurring other pandemic. lot is spend of

In is fact, good our that's good, because it it that small is our at is business, organic and when you acquisition really is negative down. look our retention spend

And so per to slight spend Member. in that Card a depression organic leads spend

Yes.

you're global adds the average, of Australia question, that the And customers as so to part average, looking the other is to up so at your add an and in a up well is in U.S. metrics Japan

it's read insights of that a hard So to out lot metric. of

to the that at are than new So give vintages, color new Member, that cited that, remarks, metric per about see a are number want. up. than to Members the we more And now more past and number Member engaged we we of of bit how transaction Card on look the per if Card new you franchise, X XX% ago, right? prepared joining think in those you is they years trending my do When Card see transaction more that the I

grew premiumness And of also the that is of about And acquisition. number our fact the of up Card stick but U.S. as products. XX% the pointed the function only this but coverage, you we a only on our out, we fee-paying are maintaining in are U.S. to of outside we them not the of coming Not better Members,

very So are engaged. they

more challenged. tenured you that about is that what definitely are And so the and showing little bit we Members spend want, is a Steve the -- each organic the this And progress. and talked call what's average if vintage, impacting Card that things

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

the sense shape. is the is you're to seeing I Steve, good U.S. much if among in the your would everyone just that. at consumer consensus bookings raise affluent in anything get concern data that pretty your around general sustainability of wanted

and an that up things coming nature. You've of got election

I has didn't of Senate lots XXX forth. around company and so mean, mean, around elections, of ago. House, look, No, have I cards we long different the time. been been this years different for configurations we've the obviously, But a of lots

customer than it's base. resilient is Our our And really very base different and stable. pretty customer competitors'

and pandemic. But think consumer, coming to to I pick the just X% spend, for quarters. last the I U.S. they're quarters at XX% consumer international really for people stable. as international not few saw just out been side that that the we if our have last it's of X of you albeit of mean, business the lot continuing growing U.S. has has we do levels a been the the well. And consumer consumer business. at look the International been -- about forget,

would that not seeing our spending credit And So getting indicate we're that any not go anything metrics would worse. seeing would we're that down. anything indicate are

In fact, you saw down. write-offs go sequentially

growth. will not that forever. at we organic to And come to the think deliver aspiration, is to feel Organic know. Sanjay We do when I see stay the so spend. able that's of in aspiration proven uptick XX% our company And because this level reach will comes like back But we're we that why up to think with But consumer. us regardless, of our this that I fact, us spend would the and an opened still and I about question, overall go still back. good more back, year, beginning, to When we've help I think organic right an in XX%. don't aspiration EPS that aspiration this for as expect organic mid-teens

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

in fourth Could reacceleration slip little bit here? that? below a about of Or you as the a the look year? I suggest that X% at growth that the if the approximately the maybe revenue bit here, quarter, guess just X% we it for how maybe you XX days that for revenue thinking you're for quarter does looking year, little growth are only into sit

quarter. we go revenue bit when discount did at growth, And this under look growth the it the little billed a business

aware something did implied Or is little there there? drop a Is the discount there noise rate bit. in think there? I of should any we be

part how the So business. your question to terms versus first of the I'll think second about in discount take the revenue billed of

you faster than at in as And As Steve international in a probably lower the international is the know, just discount rate growing is clip mentioned, U.S. than the U.S.

that So in on billed of between revenue globally. the growth a business you see bit and little disconnect a discount creates

think about morning of to your stability first the to revenue in think -- terms QX, As to key been way far We that in trends about terms we've the question using the in how this billings, of stability. of of growth word the see as and points. how inflection part no best terms and is

but you trends. few projection of like QX a weeks to only into are of be as said, these a is QX, lot for So we my continuation a

to way So the the X% to expect Accertify. adjust revenue QX a of what you towards out, the we're north beginning we at even though, why also full guided the EPS what towards of when guiding that's growth. I and good in for point year QX, is that proxy of terms for is year, want performance about

we're generating at X% earnings peers. to growth, a lot even when which most revenue listen compares it well -- our still to peers, a really So with I of of being

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

you mentioned any there Gold the Cards customers how from category? Green generally by average way or spend Steve, Is to think to lifetime about to Cards. value move Cards Platinum

lot be much, from example, I to you're for on going probably just franchise. out a the start may Card, moving and example, because as think and with move dining if you're -- when you you're starting when you're chain, you're up the Millennial, -- Gold you're you not but move traveling for you food a to you up a

you along, As a bit might move to you income. discretionary little start have more

taking hotels. you're more, fine taking and hotels lounges, you're advantage of resorts traveling and You're advantage of

of what and will use Gold going that product, Green a you're you're that on is. see product will than in on pay a that for Cards cards on going higher fee product, so to Cards. spending Platinum going product in the fact, of to you more, you're Because those benefits to And higher engage -- for if you

think it, about hotels morphing travel and heavy into full advantage it. so forth. and tickets card the a you overall -- really benefits that, cost money take it's much want Platinum cost money And has lifestyle when more airline to still traveling. while And of you be to Card, of to So and

a enter you lifetime the move then value you to you entered value have think Platinum, franchise franchise, I yes, if do as Gold depending upon and to ultimately, you continuum, the So do higher have Card us. people level lifetime will along right? So you overall the a higher at upgrade when a a

Platinum Gen-X and a obviously, a probably value If lifetime have in boomer Millennial lower into still we a which a Card you'll who than a as would Gen-Xs Gold acquire Member. entered you you enter the or franchise, as as boomers,

all we it general, on as out the value up, them. move in entry So they But point. depends more get of

next The HSBC. coming Saul of question Martinez from is

deposit about think much you the here. want that are. you into building how environment, if revolve to building if how you're just what the Christophe, liability-sensitive about in blocks income just some accelerate just think could could us rates, give stuff ask in don't think too to NII that. you rate dynamics balances dynamics, this as blocks -- of XXXX Steve, mentioned from head wanted about to net to But terms like interest and I of we you I and

If you XXXX. could think the just about how think through to evolution help out we us kind as head into of

Yes.

sensitive, the liability in update quite afternoon, small. slightly that those well. impact our remind They're Fed to ourselves later really So are XX-Q, see of funds thing and maybe on the we And this is very cuts regularly sensitivity but numbers slightly. our we this And as updated small. only actually NII rate we first is you'll

maybe so one out can this And of the equation. put we

is a rest rate volume The balance.

balances. said that the revolve and familiar especially in are standpoint, paid mean, should growth. pandemic, starting from the their we to moderate. and the So back with now expect stabilize have that And to we're their volumes, I slowly rates moderate that, right? During balances balances rebuilding revolving a people AR, the terms the been dynamic, see volume you we And of all have the

for us. So behind we is, are normalization this say most -- is the I part, would think I

you now to very the so rate moderate. much expect growth And

are X And those yield -- savings there a of from here, funding cost funding are lowest the is one for the towards first things accounts, standpoint, which keep high-yield shifting we balances right? we The us. is

a or And so this creates the impact positive yield. effect positive on

we sure making interest right price keep the the there. well peers, that of points, we in our terms have as we positioned we are compare price make well constantly income, our against on And sure and we working

very the a very, the to and any it volume. going And from of maintain from moderation we fiscal see way the to rate and yield We're you is rate standpoint. But so in should from in strong to think environment dynamic. benefit yield limited terms now that this the about impact expect change

coming Ma The from next question Barclays. is Terry of

expectations card to these adoption your in card of level, your net healthy guess year. running run product continue terms acquisitions exceeded pretty and a refreshes has or already So last ahead some you of at this are quarter for fee general? in engagement of growth of exit the your rate I

we think an it's really engagement what from perspective. I adoption expected and No,

more than rate This As be, be right? get -- the we much think refreshes. what a growth the happens, bit get attracted, to higher little overall I few because entered we said, when the pretty that's I product where expected People is year obviously a attracted -- there'll to products.

does, work things more this it's the when marketplace, said worth it I dollars but that marketing one -- what think of and your harder repeating, demand refresh and creates think the even it the before, you it we've helps for I you. product, in

And how at grows categories all category those you card XX-month that amortize at not from gets once. early we look period are everybody a repriced holders. so over new that remember, on, revenue of And and when

us for in a up build of ramping does effect category. overall it that So

subscriptions card to to but to your it quarter. add you revenues over in upgrade with SaaS-like And this So products subscription-like not enables to only holders, and card billion we're is does fee it obviously, because particular to card new are. you overall continue these attract existing But that that holders. engage important that, it $X enables

that to we are on our engaged that we -- they So benefits to Members because them know because Card and we want we our cardholders focus the use is services. fee-paying have what continue most

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

to question the of kind the business the economy to you and I is what easing billed related growth? a your at have your business. Fed from impact Have stimulate impact easing the Fed of looked on effort on

good is this a point. So

is It's looked reduction but time, we in small. And point terms the this like is into in there's at too nothing So the too early rate environment business to it, impact to more spend patterns. of as confidence any too see going being of the as you small probably small. expect, improve result visible, that the supportive. consumer But and is would the a expectation

there as rates terms we -- of Because no strong terms when evidence see we point. stress this right, price see see of in of credit. in said our even moving We Members renewal higher demand a are morning, to premium Card products. We very

will question support that back spend that capacity of to some and to the the small to -- is So this addressed in provide for first morning, to organic there's from we provide and go would the consumer that billing that. expectation growth to especially definitely And benefit my and to confidence accumulation will cuts support more. that spend business some order

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

Wanted second. X-part just question to turn that. on And to T&E a spend a for

first The is airline on just spend.

it you accelerated about I you it think what both, quarter. corporate, there? the just drivers this consumer, Can Was there? talk saw

And on then just restaurant spending.

business you're just opening it become Like I Resy category making of you from here? and we referenced this remarks, deceled Do in benefits but little spending to in to bigger part and was going that between think acceleration investments just and a a the various Tock the category just quarter, bit you expect that restaurant spending grow? -- to expect your adding those a should back it cards. as

Yes.

So me about talk let restaurant spending.

restaurant of was business our -- So the here reservation made biggest when we foray into before not our sort you look at T&E with spending restaurant Resy, category.

and category T&E expectations in are biggest space. that we now And our T&E is will category continue fastest-growing restaurant restaurants. that still to gain right our Our share

to little just -- of decel quarter, all X% our so grown a and And this but that the perspective. Yes, X forth, we've twice, really -- restaurant the think last guess, from will about that. punch If has you what it, I'm I industry acquisition continue look a a concerned at weight X%, we rate I from been a our we've to think bit with not over years, I restaurant but Tock growth there above was perspective.

be down international rounding the up highest from level whether mean, travel from you in you pandemic. X% little didn't since at went give X%. can strong. or I we just or as mean the this, we rounding levels a there's corporate of a airline. it said, not little but actually quarter-to-quarter. don't before bookings a a some airline from saw -- a bookings I cases, international still it's I say I saw I'll perspective third mean really is But And a just quarter on I in change, our think be lot we the -- consumer that's to business airline. high from perspective

Members domestically. to Card to you They're tend little traveling you're our looking internationally, when traveling than bit travel. a looking more So when are still at -- spend you're

piece So down, category is too don't about of the think the restaurant X this the to strong piece very, much point and for a wouldn't I there's into particular I restaurant point make or But up other X quarter. much for very it read airline still than us.

down Gold a cohort dining with spend other the it's done I we've just on dining perspective, Tock look we than and but and cohort, the product But that any targeted have. a the which Gen-Zs heavy is restaurant, what at Card obviously refresh, acquisition, doubling we not and that of at from are more think in a restaurant perspective Rooam only Millennial that from

we're bullish So pretty the on restaurant industry.

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

to back Operator, you.

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