CNBC Overtime’s Post

Today, American Express reported strong first quarter 2024 results, reflecting the positive trends we have seen in our business over the last several years. Revenue increased 11% from a year earlier to $15.8 billion and EPS increased 39% to $3.33. Our continued investments in our value propositions, marketing, brand and technology capabilities have helped drive high levels of engagement with our premium customers, with Card Member spending growing 7% on an FX-adjusted basis. We continued to attract high-spending, high credit-quality customers to the franchise and accelerated new card acquisitions sequentially to 3.4 million, driven by strong demand for our fee-based products and particular momentum with Millennial and Gen Z consumers. I am proud of our #TeamAmex colleagues for continuing to innovate for our customers and once again delivering excellent performance. Read more about our first-quarter results here:  https://lnkd.in/eW4CnH8w

Today, American Express reported record revenues and profits in 2023, building on the momentum we’ve achieved since we announced our growth plan in January 2022. Over the last two years, we have grown revenues by more than 40%, from $42 billion to $61 billion, and Card Member spending by 37% on an FX-adjusted basis to $1.5 trillion, an all-time high.   These strong results demonstrate the strength of our premium customer base and the tremendous earnings power of our business model. The growth that we’ve been generating has enabled us to continue making investments to drive revenues and significantly expand the scale of our business, while effectively managing our expenses.   My thanks to #TeamAmex for driving our strong momentum and delivering the world’s best experiences for our customers. Read more about our earnings results and 2024 outlook here:    https://lnkd.in/ergG4Kd2

Today, American Express reported its fourth-quarter and full-year 2023 financial results, delivering record revenues and profits, driven by the successful execution of our growth plan and the strong earnings power of our business model. Chairman and Chief Executive Officer Steve Squeri said: “We delivered record revenues and profits in 2023, building on the momentum we’ve achieved since we announced our growth plan in January 2022. Looking back over the two years since we announced our growth plan, I’m pleased to say that we have achieved what we set out to do, and we are ahead of where we thought we’d be on our journey. Since January 2022, we’ve grown revenues by more than 40 percent, from $42 billion to $61 billion, and Card Member spending has increased by 37 percent on an FX-adjusted basis to $1.5 trillion, an all-time high.” Read more about our results here: https://lnkd.in/e-sy5cCh

American Express has kicked off the year with a strong performance in the first quarter of 2024, showcasing resilience and strategic growth amidst a dynamic economic landscape. The company reported an 11% increase in revenues year over year, reaching $15.8 billion, and a significant 39% rise in earnings per share (EPS) to $3.33. The driving force behind this impressive growth has been attributed to a robust increase in card member spending, which saw a 7% rise on an FX-adjusted basis. This spending surge reflects the company's successful efforts in engaging its premium customer base and underscores the effectiveness of its value propositions and marketing strategies. American Express's commitment to innovation and customer satisfaction continues to pay dividends, as evidenced by the accelerated pace of new card acquisitions, which reached 3.4 million in the quarter. Remarkably, around 70% of these new accounts were fee-based products, indicating a strong demand for the company's premium offerings. The financial giant's focus on attracting high-spending, high credit-quality customers has been a cornerstone of its strategy. Millennial and Gen Z consumers have been particularly responsive, accounting for over 60% of new consumer account acquisitions globally. This demographic shift suggests a promising future for American Express, as it continues to adapt its services to meet the evolving needs and preferences of younger generations. Despite the positive revenue and EPS growth, the company did experience a slight uptick in provisions for credit losses, which rose to $1.3 billion compared to $1.1 billion in the previous year. This increase was primarily due to higher net write-offs, partially offset by a lower net reserve build. As we continue to monitor its performance in the upcoming quarters, it will be interesting to see how American Express further leverages its assets to sustain growth and shareholder value. #AmericanExpress #Stock #Earnings

Revolutionizing Revenue - How American Express's Bold Move Can Inspire Your Sales Strategy. A giant in the financial services industry, American Express, faced a challenge. While its reputation was unmatched, its reliance on merchant fees posed a threat to its future growth. The stakes were high, and the pressure to evolve was immense. Here's the twist: Did you know that American Express, known for its credit cards, was initially all about express mail in the 1800s? Talk about a journey of reinvention. Fast forward to today, the company is making a pivotal move to slash merchant fees and encourage more card usage. But, as they say, change is never easy. Enter the game-changer - a new business model. American Express is betting on reduced merchant charges to boost transaction volumes and card balances. How does this relate to your business? Well, imagine lowering your barriers (like merchant fees) to attract more clients. It's like widening the gate for success. My Big Takeaway: So, what can CEOs learn from this financial giant's bold move? It's all about having a solid sales system. Whether it's a strategic shift, effective leadership, or a robust sales cycle, the key is adapting to change for growth. In the world of sales, embracing a new approach can transform your revenue and impact more lives. Join the www.CEOSalesHuddle.com for sales growth and business strategies. Stay Hungry. Stay Humble. Che Brown www.CEOSalesHuddle.com Connect with me: @IamCheBrown #CEOSalesHuddle #CEOSalesDashboard #CEOMasteryNetwork

AMEX not Accepted 🙂 An International Brand Not Accepting a Fellow Country’s Card? As a business owner, you expect a card like American Express, widely promoted as the ideal choice for business expenses, to be accepted almost everywhere. But here’s the reality: despite being marketed as a great option for businesses, many retailers still don’t accept Amex – including Starbucks, a brand that’s as American as it gets! It really raises the question – how can an international brand not accept a card from a company in its own country? For business owners in Australia, where every payment option matters, it’s a frustrating experience that doesn’t quite add up. For fellow Aussie businesses, this serves as a reminder to thoroughly assess the usability of financial products before committing. Sometimes the marketing doesn’t match up to the real-world experience. Have others encountered this issue? I’d love to hear how you’re handling it in your business. #amex #nubevest #driveawaycoffees #starbucks

We want to find out where we can simplify our retail conduct rules and guidance to help reduce the burden on firms and support growth. Have your say by 31 October 2024. #FinancialServices #FinancialRegulation #CallForInput #EconomicGrowth #ConsumerDuty

This doesn't matter. If the authority want to take action against you, even if your activities arent against the law, rules, conduct, principles or conditions, they will. Simplifying, or relying on guidance which informs high level rules, like prins, threshold conditions or cobs is useless. it should simply say , "How can we make it easier for ourselves to prosecute smaller firms." Take their guidance on trading names, its a one page text on their website, doesn't correspondence to any specific rule, or high level prins or TCs. Read it. the law needs precision and more importantly forseeability, guidance is advisory, rules are obligatory. regulators have discretion to enforce guidance, this discretion can lead to variability in enforcement meaning the consequences are less predictable, lacking adequate forseeabillity. But considering those facts, the authority feels justified dragging a firm through the mud. Hopefully, the judgement is in our favour on this point, but if its not I guarantee, it will be used as a precedent moving forwards against many other firms. "if we said it, it's a rule, regardless of whether it says guidance on it and even if that guidance doesn't correspond to any specific rule and even if their is no actual law or rule, stating what can and can't be on the Register."

Good to see the FCA now thinking about how it complies with its FSMA2023 requirement to keep its entire rulebook under review (and HMT’s new power to direct rule reviews). The BSA has long argued that its not sustainable for the regulators to always bolt on new rules without consideration of existing rules. A ‘one in one out’ approach to rule-making where you start with looking for existing rules to adapt and modify or replace has to be the way forward. See my blog I wrote late last year that rules should be for the long term not just for Christmas… https://lnkd.in/eVgQhkyA

Financial Conduct Authority is calling on industry to identify rules which could be removed or simplified if they overlap with the Consumer Duty.  This is great news. It's something we at Innovate Finance have been calling for since 2021 - when we said: "Outcome-based rules will not promote innovation if they are superimposed on top of existing prescriptive rules. In advance of the introduction of the new Consumer Duty, we recommend that there be a thorough, post-Brexit review of FCA retail consumer regulation to identify existing prescriptive rules which could be removed when the Consumer Duty is introduced." We were delighted when Tulip Siddiq and Rt Hon Rachel Reeves adopted this in their review of Financial Services 'Financing Growth' earlier this year. Now it is being taken forward by the regulator. Sometimes the best things come to those who are persistent and patient! We will be working with @Innovate Finance members to respond to this review. Let's make the most of this huge opportunity to simplify and streamline the rule book - to achieve better outcomes for consumers and support innovation and growth. The FCA have said "We particularly want to address potential areas of complexity, duplication, confusion, or over-prescription, which create regulatory costs with limited or no consumer benefit. We also want to include appropriate flexibility in our rules to be responsive to future changes and innovation." What would you put on the list? #Innovation #Growth #ConsumerDuty #OutcomebasedRegulation