NEW YORK CITY (dpa-AFX) - American Express Co. (AXP), a bank holding company, on Friday reported an increase in net profit for the fourth quarter. The company said the earnings were supported by improved revenue, driven by strong card member spending, higher net interest income supported by growth in revolving loan balances, and accelerated card fee growth.
Stephen Squeri, CEO of American Express, said: 'We also saw record levels of annual Card Member spending, record net card fee revenues, and a record 13 million new card acquisitions, and we continued to add millions of merchant locations to our network globally. We exited the year with increased momentum, with billings growth accelerating to 8 percent in the fourth quarter, driven by stronger spending from our consumer and commercial customers during the holiday season.'
For the three-month period to December 31, 2024, the lender registered a net income of $2.170 billion or $3.04 per share, higher than $1.933 billion or $2.62 per share, posted for the same period last year. Total revenue, net of interest expense was $17.179 billion, higher than $15.799 billion a year ago.
On average, analysts had expected American Express to post earnings of $3.03 per share, on revenue of $17.18 billion, for the quarter.
For the full year, the company recorded a net profit of $10.129 billion or $14.01 per share, higher than $8.374 billion or $11.21 per share last year.
Excluding items, annual earnings were at $13.35 per share, compared with $11.21 per share in 2023. Full-year total revenue, net of interest expense stood at $65.949 billion, up from the previous year's $60.515 billion. On average, analysts expected the lender to post earnings of $14 per share, on revenue of $66.2 billion, for the year.
The company intends to increase its quarterly dividend by 17 percent to $0.82 per share from $0.70 per share, beginning with the first-quarter of 2025.
Looking ahead to the full-year 2025, the lender expects income per share of $15 to $15.50, with a revenue growth of 8 to 10 percent.
On average, analysts' anticipate the bank to post full-year 2025 earnings at $15.28 per share.
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