American Express saw a net increase in write-downs in the fourth quarter compared with the previous year, but the company on Friday still beat Wall Street expectations with its 2024 fiscal outlook.
Net income from interest expense totaled $15.8 billion, up 11% from the $14.2 billion generated by Amex AXP,
I mentioned a year ago. Analysts were looking for $16.0 billion.
Amex's billing business rose 6% to $379.8 billion. “We have continued to drive strong customer engagement, and demand for our premium products has remained strong,” CEO Stephen Squirre said in a statement.
The company achieved net income of $1.9 billion, or $2.62 per share, compared to $1.6 billion, or $2.07 per share, in the corresponding period of the previous year. Analysts were modeling $2.64 per share.
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American Express's total allowance for credit losses increased to $1.4 billion from $1.0 billion. The company said its net write-downs were higher, although this was partly offset by a lower net reserve of $400 million compared to $492 million from the previous year.
For the full year, American Express expects revenue growth of 9% to 11%, as well as earnings per share of $12.65 to $13.15. The FactSet consensus was for revenue of $66.3 billion, implying a growth forecast of about 9%, along with $12.38 in earnings per share.
“Looking to the future, we continue to run the business with a focus on our ambition of revenue growth [10%-plus] “And EPS growth is in the mid-teens,” Squirre said in the statement.
American Express revealed a planned increase in dividends of 17%. The company's quarterly dividend will rise to 70 cents per share from 60 cents per share, starting with the first quarter earnings announcement.
