American Express: Making Money Moves

American Express Achieves Sixth Straight Quarter of Record Revenue in Q3 2023

AmEx achieves 6th record revenue quarter in a row for Q3 2023

Prepare to be amazed, digital asset investors! The credit card giant, American Express, has just dropped its revenue report for Q3 of 2023, and it’s nothing short of record-breaking! Like scoring a perfect ten in Olympic gymnastics, American Express has achieved six consecutive quarters of skyrocketing revenue. Applause

According to their official press release, American Express raked in a mind-boggling $15.38 billion in total revenue net of interest expense for Q3. That’s a jaw-dropping 13% increase compared to the same quarter last year, when they were merely counting a paltry $13.5 billion. Talk about a moolah makeover! But how did they pull this off? Well, it turns out that higher average loan volumes and increased Card Member spending were the real power moves here.

But wait, there’s more! American Express didn’t just stop at revenue records. Oh, no. They also managed to skyrocket their net income for the quarter to a whopping $2.5 billion, or $3.30 per share. That’s a whole financial fireworks show compared to the $1.9 billion, or $2.47 per share, they earned in the same period last year. Now, that’s what we call a financial flex!

And it gets even better! Not only did American Express conquer the domestic market, but they also took international waters by storm. Total Card Member spending soared 7% on an FX-adjusted basis from last year, with an impressive 9% surge in US consumer Card Member spending. But here’s the cherry on top: International Card Services climbed a whopping 15%. Truly a global financial phenomenon!

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Chairman and CEO Stephen J. Squeri had this to say: “Our investments have catapulted our brand relevance across generations.” Apparently, Gen Z and millennials are American Express’s new best friends forever. They accounted for a staggering 60% of all new customer accounts in 2023, spending a delightful 18% more than their predecessors. It seems like everyone wants a piece of the American Express magic!

And in case you’re wondering about the future, fear not! Squeri is confident that American Express will meet its annual goals. With a steady-state macro environment and their phenomenal performance so far, they’re poised to achieve their long-term growth plans for 2024 and beyond. They’ve got their financial ducks in a row, people!

Now, let’s dive into the details. Customer engagement costs were the heroes behind American Express’s money show. Higher network volumes and increased usage of travel-related benefits pushed consolidated expenses up by 7%, totaling a hefty $11 billion. In the US alone, total expenses for Q3 2023 grew an impressive 8%, scaling from $4.5 billion to $4.9 billion, all because of those eager customers engaging like there’s no tomorrow.

But wait, there’s another plot twist – American Express provisions for credit losses were on the rise too! A whopping $752 million swelled the numbers this time, leaving last year’s $403 million in the dust. They’re taking risks, but hey, that’s how they secure their financial empire.

Now, let’s pack our virtual bags and embark on a trip across the globe. International Card Services saw a delightful surge of 17% (12% FX-adjusted) in total revenues net of interest expense. From a humble $2.3 billion last year, they rocketed to $2.6 billion this year, powered by soaring Card Member spending and a boom in card fee revenue. It’s like a tropical getaway for American Express’s balance sheet!

So, what about the stock? Is the market giving American Express a high five? Well, sort of. In premarket trading, the stock sits at $149.25, taking a tiny 0.25% dip from its previous close. But fear not, investors! American Express has still gained nearly 7% over the past year. Sure, the stock performance may be taking its time to warm up this year, with only a 1.27% climb year-to-date (YTD), but let’s not forget that slow and steady wins the race!

But hold on to your hats – American Express has some advanced tricks up its sleeve! Back in May, it was reported that the company is all set to unleash artificial intelligence (AI) tools to validate transactions and approve lines of credit. They’re even diving into sentiment analysis to predict customer experiences. Talk about advanced financial sorcery! Instead of conjuring up their own language model, American Express plans to partner with an existing large language model (LLM), because who needs reinvention when you can join the magic?

So, dear digital asset investors, buckle up and brace yourselves for the American Express sensation! With record-breaking revenue, a dazzling future ahead, and some AI sorcery, they’re ready to take you on a financial rollercoaster ride you won’t want to miss. Just remember, when it comes to American Express, the possibilities are endless – just like your investment rewards. Happy investing!

What do you think about American Express’s incredible revenue streak? Are you excited about their AI ventures? Share your thoughts and let’s dive into this financial frenzy together!

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