American Express: Steady Growth and Strong Performance in 2024

As an investor, keeping a close eye on the financial performance of companies is crucial for making informed decisions. American Express (AXP) recently released its full-year 2024 earnings, and the results are in line with expectations. Let's dive into the key financial highlights and explore what these numbers mean for the company's future.

American Express reported a 9.3% increase in revenue to US$60.8 billion, driven by higher net card fee revenues and record levels of annual Card Member spending. The company's net income also grew by 21% to US$10.00 billion, leading to a profit margin of 16%, up from 15% in the previous year. Earnings per share (EPS) increased to US$14.04, up from US$11.23 in 2023.



Looking ahead, American Express projects revenue growth of 10% per annum (p.a.) for the next three years, compared to a 12% growth forecast for the US Consumer Finance industry. The company expects earnings per share (EPS) to be in the range of $15.00 to $15.50 in 2025. Additionally, American Express plans to increase its quarterly dividend to 82 cents per share, up from 70 cents per share previously.

To achieve this growth, American Express has implemented several strategic initiatives, such as expanding its merchant network, introducing innovative products and services, leveraging technology, and focusing on high-value customers. These efforts, combined with the company's strong brand and extensive network, position American Express well to maintain its competitive position in the US Consumer Finance industry.

In conclusion, American Express' full-year 2024 earnings report demonstrates the company's steady growth and strong performance. With a solid balance sheet and a well-defined strategy for future growth, American Express is well-positioned to continue delivering value to its shareholders. As an investor, keeping an eye on American Express' progress and the broader Consumer Finance industry trends will be essential for making informed decisions about the company's future.