American Express (AXP) reported strong financial performance for Q4 2024, with total revenues net of interest expense reaching $65.95 billion, a 9% increase compared to $60.52 billion in 2023. This growth was driven by higher discount revenue, net card fees, and interest income. Discount revenue increased by 10%, reflecting a rise in billed business, while net card fees grew by 16%, primarily due to the expansion of premium card portfolios. Interest income surged by 19%, supported by growth in revolving loan balances and higher interest rates.

Net income for 2024 was $10.13 billion, up 21% from $8.37 billion in 2023. Earnings per diluted share also rose significantly, reaching $14.01 compared to $11.21 in the prior year, marking a 25% increase. This improvement reflects the company's ability to manage expenses and drive profitability despite a challenging macroeconomic environment.

Provisions for credit losses increased slightly to $5.19 billion in 2024, compared to $4.92 billion in 2023. This was primarily driven by higher net write-offs in Card Member loans, although the reserve build was lower than in the prior year. The net write-off rate for principal, interest, and fees rose to 2.7% from 2.2% in 2023, reflecting some deterioration in credit quality.

Total expenses grew by 6% to $47.87 billion in 2024, up from $45.08 billion in 2023. This increase was driven by higher Card Member rewards, business development, and marketing expenses. Marketing expenses alone rose by 16%, reflecting elevated investments in customer acquisition and growth initiatives. However, operating expenses decreased by 2%, benefiting from the sale of Accertify and disciplined cost management.

Segment performance highlights include strong growth in U.S. Consumer Services (USCS), which contributed $31.43 billion in total revenues net of interest expense, a 7% increase from 2023. The Commercial Services (CS) and International Card Services (ICS) segments also showed robust growth, with revenues rising by 7% and 10%, respectively. The Global Merchant and Network Services (GMNS) segment contributed $7.48 billion, reflecting a 1% increase.

Cash flows from operating activities decreased to $14.05 billion in 2024, compared to $18.56 billion in 2023. This decline was attributed to lower net operating liabilities, primarily driven by timing differences in book overdrafts. Meanwhile, cash flows from investing activities remained negative at $(24.40) billion, reflecting higher loans and Card Member receivables outstanding. Financing activities provided $4.44 billion, supported by growth in customer deposits and long-term debt issuance.

American Express maintained a strong balance sheet, with total assets increasing to $271.46 billion as of December 31, 2024, up from $261.11 billion in 2023. Customer deposits grew by 8% to $139.41 billion, while long-term debt rose by 4% to $49.72 billion. The company also returned $7.9 billion to shareholders through share repurchases and dividends, reflecting its commitment to capital return.

Key operational metrics showed continued strength, with billed business reaching $1.55 trillion, a 6% increase from $1.46 trillion in 2023. Proprietary cards-in-force grew by 6% to 46.3 million, and average proprietary basic Card Member spending rose by 2% to $20,707. These metrics underscore the company's ability to drive customer engagement and spending.

The company highlighted its focus on premium products and customer acquisition, achieving a record 13 million proprietary new card acquisitions in 2024. This strategy aligns with its emphasis on high-spending, high-credit-quality customers, which supports long-term growth and profitability.