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our aspiration of delivering revenue growth in excess of 10% and mid-teens EPS growth on a sustainable basis in 2024 and beyond.
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2022 Q2
22 Jul 22
should the macroeconomic outlook not change meaningfully between now and the end of the year, and therefore, not have a large impact on current reserves in the balance of the year, we would expect to be at or even a bit above the high end of our EPS guidance range.
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2022 Q2
22 Jul 22
pressures on our operating expenses, particularly around compensation and partially fueled by inflation. And therefore, we now expect our operating expenses to be around $13 billion this year.
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2022 Q2
22 Jul 22
marketing investments this year. And that's why we now expect to spend a little over $5 billion for the full year, modestly above our original expectations.
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2022 Q2
22 Jul 22
The combination of all of these things led us to increase our expectations for full year revenue growth to 23% to 25%, up from our original range of 18% to 20%.
For now, though, our EPS guidance remains unchanged from between $9.25 and $9.65.
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2022 Q2
22 Jul 22
in the Fed's CCAR stress test results released last month, American Express was again one of the few firms that remained cumulatively profitable under the Fed's macroeconomic stress scenario and we had the highest profit margin as a percentage of assets of any participating bank
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2022 Q2
22 Jul 22
Our CET1 ratio was 10.3% at the end of the second quarter, within our target range of 10% to 11%.
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2022 Q2
22 Jul 22
We returned $1 billion of capital to our shareholders in the second quarter, including common stock repurchases of $611 million and $394 million in common stock dividends on the back of strong earnings generation.
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2022 Q2
22 Jul 22
we now expect our full year operating expenses to be around $13 billion
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2022 Q2
22 Jul 22
inflation, while driving some modest positive impact on volumes, it's also putting pressure on our operating expenses, particularly in our compensation costs.
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2022 Q2
22 Jul 22
operating expenses, which were $3.3 billion in the second quarter.
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2022 Q2
22 Jul 22
I would now expect to spend a little over $5 billion on marketing in 2022.
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2022 Q2
22 Jul 22
On the marketing line, we invested $1.5 billion in the second quarter.
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2022 Q2
22 Jul 22
ariable customer engagement expenses, these costs came in as expected, at 42% of total revenues for the quarter, and are tracking with our expectations for variable customer engagement costs to run at around 42% of total revenues on a full year basis.
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2022 Q2
22 Jul 22
we now expect to see revenue growth of 23% to 25% for the full year of 2022.
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2022 Q2
22 Jul 22
Moving on to net interest income. On Slide 15, you can see that it was up 31% year-over-year on an FX-adjusted basis
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2022 Q2
22 Jul 22
Net card fee revenues were up 19% year-over-year in the second quarter on an FX-adjusted basis
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2022 Q2
22 Jul 22
Our largest revenue line, discount revenue, grew 32% year-over-year in Q2 on an FX-adjusted basis
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2022 Q2
22 Jul 22
service fees and other revenue was up sharply at 79% growth year-over-year, largely driven by the uptick in travel-related revenues that accelerated this quarter, with cross-border spend in particular surpassing pre-pandemic levels.
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2022 Q2
22 Jul 22
Going forward, we continue to expect delinquency and loss rates to move up slowly over time, but to remain well below pre-pandemic levels this year. I do expect to end the year with a higher level of reserves on our balance sheet than where we ended this quarter, given our expected loan growth.
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2022 Q2
22 Jul 22