American Express Reports Strong Q3 and Nine-Month Financial Results with Revenue and Profit Growth

American Express Company reported strong financial performance for the third quarter and the first nine months of 2024, reflecting significant growth in revenues and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues net of interest expense reached $16,636 million, an increase of $1,255 million (8%) from $15,381 million in 2023. Net income for the quarter was $2,507 million, up from $2,451 million, marking a 2% increase. Earnings per share rose to $3.49 from $3.30 in the prior year.

The nine-month results also showed robust growth, with total revenues net of interest expense increasing to $48,770 million, a $4,054 million (9%) rise from $44,716 million in 2023. Net income for the nine months was $7,959 million, compared to $6,441 million in 2023, reflecting a 24% increase. The company’s pretax income for the nine months was $10,139 million, up from $8,001 million, a 27% increase.

Key drivers of revenue growth included a 6% increase in billed business, which reached $387.3 billion for the third quarter, and a 5% increase in network volumes to $441.0 billion. Notably, net card fees surged by 18% year-over-year, while discount revenue grew by 4%. The company also reported a 16% increase in net interest income for the quarter, totaling $4,006 million, driven by higher Card Member loans, which increased by 14% to $134,548 million.

American Express's operating expenses rose by 9% in the third quarter, totaling $12,076 million, primarily due to increased Card Member rewards and marketing expenses. The company’s marketing expenses increased by 19% year-over-year, reflecting higher spending on customer acquisition and growth initiatives.

In terms of strategic developments, American Express became a Category III bank holding company in Q3 2024, following a rise in total consolidated assets exceeding $250 billion. The company also completed the sale of Accertify, Inc., a fraud prevention solutions provider, in May 2024, resulting in a gain of $531 million.

As of September 30, 2024, American Express reported total assets of $270,979 million, an increase from $261,108 million at the end of 2023. Customer deposits rose to $135,438 million, up from $129,144 million, while long-term debt increased to $53,546 million from $47,866 million. The company returned $2.4 billion to shareholders during the third quarter through share repurchases and dividends, maintaining a strong capital management strategy.