American Express’s Record Revenues Point to Strong Consumer Spending Among Wealthy Customers

A sign showing the American Express logo is seen outside of a bank in Des Plaines, Ill., on Nov. 11, 2008. Justin Sullivan/Getty Images

News Analysis

Wealthier consumers continued robust spending in 2024, helping American Express achieve record revenues.

On Jan. 24, the New York-based financial service company specializing in credit card payments reported record fiscal year 2024 revenues, reinforcing the popularity of the company brand.

American Express cardholders are typically consumers with higher spending power, according to the company.

“2024 was another strong year for American Express. We delivered record revenues of $65.9 billion, up 10 percent on an FX-adjusted basis, record net income of $10.1 billion, and earnings per share of $14.01, up 25 percent year-over-year,” said Stephen J. Squeri, chairman and CEO, in a statement following the release of the company’s financial report.

Revenue growth was driven by higher card fees, the acquisition of new members, and higher spending during the holiday season.

“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,” Squeri said.

“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. We maintained our best-in-class credit performance and disciplined expense management throughout the year.”

Georgios Koimisis, an economics and finance associate professor at Manhattan University, sees American Express’s results as confirmation that consumer spending remains strong, especially among wealthier customers.

“People continue to prioritize purchases like travel and dining, reflecting confidence in their financial stability,” he told The Epoch Times via email.

“The company’s focus on rewards for streaming and dining, mainly aimed at younger customers, highlights a shift in spending toward lifestyle and convenience.”

Koimisis commended the company’s shift in marketing focus towards Millennials and Gen Z. “They are becoming more important drivers of spending trends, shaping demand for experiences and everyday perks,” he said.

Squeri expects robust consumer spending to continue in 2025, marking the 175th year of its growth history. He reiterated the brand’s commitment to innovation and investing in premium value propositions, coverage, marketing, technology, and talent.

“I am confident that we can sustain our strong momentum over the long term, driven by the many attractive opportunities we see across our premium customer base, particularly with Millennial and Gen Z consumers and in key international markets, along with our operating expense leverage which enables us to continue investing at high levels to drive growth,” he said.

American Express’s strong financial performance is consistent with a report from consumer products giant Procter & Gamble early in the week, which showed increased volume in most brand-name product categories. It’s also consistent with retail sales data showing that consumer spending, accounting for nearly two-thirds of the nation’s Gross Domestic Product, continues to drive economic growth.

The United States’ large consumer sector is something that other countries are missing. It gives the world’s largest economy a great deal of power to define the rules of the economic game, like imposing tariffs on countries that try to dump their products into its market.

Americans’ Growing Debt

However, a report released last November by the Federal Reserve Bank of New York raised concerns over Americans’ growing household debt. Many credit card holders make minimum balance payments and keep piling up debt, which adds to other forms of household debt like mortgages and automobile loans.

Specifically, the report shows that total household debt increased by $147 billion (0.8 percent) in the third quarter of 2024 to $17.94 trillion, roughly two-thirds of the nation’s GDP. Meanwhile, credit card balances, which now total $1.17 trillion outstanding, grew by $24 billion during the third quarter and are 8.1 percent above the level a year ago.

Thus far, the rise of household debt doesn’t present any imminent risk for credit card companies as incomes continue to grow. However, delinquency rates remain elevated, which could cause serious problems for credit card companies if interest rates spike and a recession follows.