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American-Express-Investor-Day-2024-Information

The 2024 Investor Day highlights American Express's confidence in achieving over 10% revenue growth and mid-teens EPS growth based on their strong market position, innovative business model, and strategic focus on premium customer segments. Key factors supporting this growth include the company's history of innovation, disciplined risk management, and a robust membership model that drives high engagement and loyalty. The presentation emphasizes the ongoing transformation and investment in technology to provide exceptional value and experiences for their premium customer base.

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2024 Investor Day APRIL 30, 2024
Demonstrate why we are confident in our aspiration to deliver 10%+ revenue growth and mid-teens EPS growth on a sustainable basis. Focus For Today 2
We excel in the most attractive segments of a growing industry We have a differentiated business model We have transformed our business over the last 6 years We have a history and culture of innovation 1 2 3 4 Our confidence in our aspiration is underpinned by 4 key factors 3
10%+ Revenue Growth 7% Global card payments revenue growth rate1 Growing Industry 1 We excel in the most attractive segments of a growing industry Note: Our ability to achieve our growth aspirations referenced throughout this presentation in any given period is subject to contingencies and factors beyond the company's control. Refer to "Cautionary Note Regarding Forward-Looking Statements" at the end of this presentation; (1) 2018-2026F CAGR; Consumer & commercial card payments (credit & debit) for 45 countries (ex. CH, RU) from Q2 2023 McKinsey Global Payments Map and internal calculations. Our Long-Term Aspiration + US Premium Consumer + US Millennials/Gen Z + US Small Business + International Where We Excel 4
Brand Strength Service Excellence Membership Model Lifestyle & Business- Centric Assets Premium Customer Base at Scale Card Members Merchants Data Analytics Technology Our success is rooted in our business model which delivers significant competitive advantages 2 Talented & Dedicated Colleagues 5
Compelling product refreshes, demonstrating ability to price for value Generational relevance, with >60% consumer acquisitions in Millennials/Gen Z in 2023 Significantly increased marketing investments exiting the pandemic Virtual parity coverage in the US, and focused coverage gains internationally Disciplined credit and risk capabilities, widening the gap vs. other issuers Growing deposits, covering 70%+ of all our funding needs Targeted investment in technology and talent 3 Over the last 6 years, we have continued to transform our business 6
EPS ($) 3.35 4.12 3.89 4.88 5.56 5.05 5.61 5.891 7.821 7.99 3.77 10.02 9.85 11.21 3 This has led to strong momentum and accelerated growth through the pandemic Notes: Total revenue net of interest expense for 2015 and prior not restated for adoption of Revenue Recognition standard; (1) Adjusted Diluted Earnings per share, a non-GAAP measure, excludes the impacts of the Tax Cuts and Jobs Act of $2.90 and ($0.09) in 2017 and 2018, respectively. See Annex A for a reconciliation to Diluted EPS on a GAAP basis. 9% / year 19% / year 6% / year 27.6 29.9 31.5 32.9 34.2 32.8 35.4 36.9 40.3 43.6 36.1 42.4 52.9 60.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $B and % CAGR 7 AXP Revenue Since 2010
Premium Consumer Corporate Small Business Unique Form Factor Cards PAY WITH POINTS 4 Over our history, we have constantly innovated across key customer segments We created and continue to enhance these categories through our innovations… AI leadership in credit risk and underwriting Concierge servicing Member get member No preset spending limit Art x Platinum 8
~40 product refreshes globally in 2024 … while strengthening our cutting-edge capabilities Continuous investment in Membership Model Innovate and work with partners Gen AI tools to drive productivity at scale Digital and personalized customer experience Tech innovation, e.g., expanded network capabilities 4 And going forward, we will continue to innovate our value propositions and capabilities Enhance and further scale value propositions… Card Membership S p e n d F e e s Lend Risk management and operational excellence Note: The trademarks, logos and service marks used on this slide and throughout this presentation are the property of their respective owners. The use of the term “partner” does not mean or imply a formal legal partnership, and is not meant in any way to alter the terms of American Express’ relationship with any third parties. 9
We excel in the most attractive segments of a growing industry Our differentiated business model The continued successful execution of our strategy A history and culture of innovation 1 2 3 4 These four factors will enable us to achieve our long-term aspiration… 10
Long-Term Aspiration Revenue Growth 10%+ EPS Growth Mid-teens …and fuel a virtuous cycle of growth, which we believe can deliver 10%+ revenue and mid-teens EPS growth Note: Our ability to achieve our growth aspirations in any given period is subject to contingencies and factors beyond the company's control. Refer to "Cautionary Note Regarding Forward-Looking Statements" at the end of this presentation. Virtuous Cycle 11
Opening Remarks How We Will Achieve Our Long-Term Aspiration Why Continue to Invest in American Express? Q&A 1 2 3 4 Premium growth through our Membership Model Howard Grosfield President, U.S. Consumer Services Premium growth through our Membership Model Howard Grosfield Winning the SME recovery Anna Marrs Runway for growth in International Rafa Marquez Expanding network coverage & capabilities Raymond Joabar Efficiency, growth & service through technology Anré Williams 12
Our differentiated Membership Model and innovation have been the driving force behind our strong performance and leadership in the premium segment Key Takeaways The Model delivers four powerful outcomes that are differentiated within our industry and difficult to replicate This is a proven strategy that has a track record of strong performance and has widened our leadership position The premium segment remains very attractive, plays to our strengths and has a long runway for growth 1 2 3 4 13
Today’s Focus How do we execute and innovate to deliver on this model? Why is there a long runway for accelerated growth? What is our differentiated Membership Model? 14
Our differentiated Membership Model has been the driving force behind our growth and leadership position in the premium segment Our Membership Model has three core components… …that come together to deliver highly differentiated benefits Premium Payment Products Differentiated Membership Services Partnerships & Partner Funded Value 1 2 3 Travel Lounge Offers Banking Entertainment Dining Card Membership S p e n d F e e s Lend 15
The model delivers four powerful outcomes that differentiate us from our competitors and are difficult to replicate Our Membership Model Four powerful outcomes Attractive & global premium customer base Diversified & subscription-like revenue Superior credit quality and performance Superior loyalty and engagement with our global brand 1 2 3 4 Travel Lounge Offers Banking Entertainment Dining Card Membership S p e n d F e e s Lend 16
One of the most powerful outcomes of the model is our global premium and highly attractive customer base at scale Global Scale High Spending Power Note: (1) AXP US billed business/US cards in force vs. weighted average of US credit/charge spend per card for Visa/Mastercard in 2023; (2) Average income per USCS account for 2022 vs. average US income based on Bureau of Labor Statistics 2022 consumer income for US population; (3) Average Air Ticket Price refers to Average $ cost per Air booking with Amex TLS in the US. US Industry data sourced from IARC Sales Statistics; (4) Average Nightly Hotel Rate refers to average $ cost of hotel room nights booked globally through Amex TLS on Fine Hotels + Resorts/ The Hotel Collection compared to global luxury industry hotels. Industry data sourced from Smith Travel Research Monthly Hotel Review FY 2023 ~3x US Spend per Card vs. Other Networks1 ~2x USCS Income vs. US Income2 Premium & High Margin ~2x Avg. US Air Ticket Price vs. US Industry3 ~2x Avg. Luxury Nightly Hotel Rate vs. Industry4 $1.5T Billed Business 80M Proprietary Cards in Force 202 Countries & Territories with Accepting Locations 17
We build this premium customer base with a differentiated product design and refresh strategy that drives subscription-like Membership Fees… Note: (1) US Consumer Platinum account growth from Jun’21 to Dec’23 and US Consumer Gold account growth from Sep’18 to Dec’23 based on the date of the respective product refreshes; (2) AU and JP Consumer Platinum account growth from Dec’17 to Dec’23 based on period to encompass both product refreshes in 2018 and 2023, respectively. International fee changes are in local USD currency using Jan’24 FX Rates …and across International countries US Consumer Platinum: 2023 vs. 20211 US Consumer Gold: 2023 vs. 20181 International Platinum: 2023 vs. 20172 Best-in-class Premium products build our premium customer base in the US… Accounts ~1.6x Fee Change +26% à $695 Accounts ~2.2x Fee Change +28% à $250 Fee Change ($USD) Accounts +21% à $957 +18% à $1,117 ~2.5x ~1.5x Refreshed: 2021 Refreshed: 2018 Refreshed: 2018 Refreshed: 2023 18
A diversified revenue model that is unique relative to our competitors 78% ~15% 22% ~85% AXP Peer Average³ …and delivers a diversified revenue model that is unique relative to our competitors Note: (1) 2022 comparison of Average fee per fee-paying account. Industry sourced from The Consumer Credit Card Market – October 2023 from the Consumer Financial Protection Bureau along with internal analysis; (2) 2023 AXP US billed business/US cards in force vs. weighted average of US credit/charge spend per card for Visa/Mastercard; (3) 2023 industry revenue mix based on internal analysis from external disclosures for top 5 US issuers Net Interest Income Spend & Fee Revenues Revenue Mix Higher average annual subscription-like card fees US Consumer Average Annual Card Fee vs. Industry1 Average US Spend per Card vs. Other Networks2 Significantly higher average annual spend ~5x ~3x 19
2.3% 0.9% 1.7% 11.3% 11.6% 12.4% 2019 2022 2023 2.4% 2.0% 3.0% 1.6% 1.0% 1.4% 2019 2022 2023 Net Credit Margin: 9.0% 10.7% 10.7% 88 bps 160 bps Our premium model also continues to deliver strong lend margins and best-in-class credit performance that has widened over time Note: (1) Net Credit Margin is the difference between Net Interest Yield and Net Write-offs. Net Write-off Rates are principal only. Net Credit Margin and Net Interest Yield are non-GAAP measures. See Annex B for a reconciliation; (2) Delinquency rate represents 30+ days past due; peer average reflects weighted average of delinquency rates for top 5 US issuers Peer Average AXP US Consumer Net Interest Yield Net Write Offs Net Credit Margin1 has expanded vs. 2019 DQ rates are below 2019 and the gap to competitors has widened US Consumer Card Lending Net Interest Yield & Net Write Off Rate US Consumer Lending Delinquency Rate2 20
What is most encouraging about the strength of our premium strategy and model is how it drives superior loyalty overall Note: (1) Data sourced from Credit Bureaus. AXP customer data on AXP products reflects 30+ days past due as a % of total for US Consumer Card Member Loans and Receivables Strong Brand Loyalty 98% 2023 AXP Billed Business Retention Rate 2018 2019 2020 2021 2022 2023 126bps 274bps AXP customers on non-AXP products Non-AXP customers AXP customers on AXP Products Strong Loyalty Relative to Other Cards in Wallet US Consumer Delinquency Rate1 21
How do we execute and innovate to deliver on this model? Why is there a long runway for accelerated growth? What is our differentiated Membership Model? Today’s Focus 22
Disciplined innovation, execution and a strategic focus on premium across the three core components of our Membership Model drive our leadership Our Membership Model Premium Payment Products Differentiated Membership Services Partnerships & Partner Funded Value 1 2 3 Disciplined Execution & Innovation Strategic Focus On Premium Travel Lounge Offers Banking Entertainment Dining Card Membership S p e n d F e e s Lend 23
We generate innovation from multiple sources and activities across the company that is sharpened by our strategic focus on premium Partners: Co-Create and Embed in Product Value Proposition Test & Learn Ventures 60+ Active Investments Amex Offers International Data Driven M&A Amex Digital Labs 24
We employ our product design playbook to refresh and deliver best-in-class premium products to drive demand Note: (1) Platinum value proposition represents select benefits and list is not exhaustive Our Product Design Playbook: Consumer Platinum Example • $200 Hotel Credit • $189 CLEAR Credit • Global Lounge Collection • $200 Uber Cash • Fine Hotels + Resorts Travel & Lifestyle • $240 Digital Entertainment Credit • Global Dining Access by Resy • $300 Equinox Credit $1,500+ in Value Annual Card Fee From $550 To $695 CENTURION LOUNGE NOMA ARTIST CARDS Access & Experiences Aspirational “MEMBER SINCE” Strengthen Value Propositions1 Leverage Partnerships & Funded Value Price for Value Make Membership Meaningful Deliver a Continuous Cycle of News REFRESH LAUNCH Digital Bundle Update Art Card Launch at Art Basel Digital Bundle Update Seattle Lounge Expansion Atlanta Lounge Opening FUTURE PIPELINE 2022 2023 2024 2021 25
Note: Avg Lend and Avg Spend behaviors for USCS refer to Average Revolving loans per Account and Average Billed Business per Account. Avg. lend, Avg. spend, and Avg. income for USCS other age cohorts and industry Millennials & Gen Z are indexed to USCS Millennials & Gen Z, as applicable; Avg. Income for the industry is based on Bureau of Labor Statistics 2022 consumer income as 2023 data is unavailable; Fee paying and avg. spend for industry sourced from Argus Advisory, a TransUnion Company; Industry FICO sourced from Experian Our premium products have generated strong demand with a premium, high-quality subset of younger age cohorts ~40% ~60% >75% 2016 2019 2023 Age ≤35 USCS Millennials & Gen Z USCS Other Age Cohorts Fee Paying 59% 54% Avg. Lend 1.0x 1.1x Avg. Spend 1.0x 1.2x FICO 751 775 USCS Millennials & Gen Z Industry Millennials & Gen Z Fee Paying 59% 7% Avg. Income 1.0x 0.6x Avg. Spend 1.0x 0.3x FICO 751 709 ~40% ~50% >55% Share of Premium Cards Up Significantly % Millennials & Gen Z of Platinum/Gold NAA More Premium Than the Industry Quality is Strong USCS Millennials & Gen Z vs. Industry USCS FY 2023 26
These younger age cohorts have shown a steeper initial growth trajectory and are expected to provide greater lifetime value Note: (1) Based on 2018 Acquisition Vintage for US Consumer Platinum; (2) Reflects age gap difference between the average age of new customers acquired in 2023 that are Millennials & Gen Z and other age cohorts for US Consumer Platinum; (3) Higher estimated average lifetime value based on internal projections for US Consumer Platinum assuming age cohorts are acquired at the same point in time but reflecting their differences in age; (4) Delinquency rate represents 30+ days past due for US Consumer Card Member Loans and Receivables; USCS is indexed to industry; Industry sourced from Experian >20 years Age Gap at Acquisition2 ~2x Higher Expected Lifetime Value3 ~20% ~40% Other Age Cohorts Millennials & Gen Z ~2x Faster Spend Growth USCS Industry Total 0.4x 1.0x Millennials & Gen Z 0.4x 1.0x Other Age Cohorts 0.4x 1.0x We see a steeper spend ramp-up from newly acquired Millennial & Gen Z CMs… …who we expect to deliver higher lifetime value Millennial & Gen Z Credit is Strong 2023 vs. 2019 Cumulative Spend Growth of Platinum New Accounts1 Platinum Millennials & Gen Z vs. Other Age Cohorts 2023 Delinquency Rate vs. Industry4 27
Our most premium and highest credit quality products also power our premium lending strategy and growth Note: Subtotals may not foot due to rounding; (1) Net Write Off Rates are principal only; (2) MR products include Platinum, Centurion, Gold, Green, and legacy charge products; Cobrand products include Delta, Hilton, and Marriott; Cashback & other products include Blue Cash Everyday, Blue Cash Preferred, Cash Magnet, Amex Everyday, Amex Everyday Preferred, and other legacy lending products 2023 vs. 2019 MR Products2 Cobrands2 Cashback & Other Products2 FY 2023 Net W/O Rate1 ($2B) +$24B 2.8% 1.3% Annual Card Fee Products No Annual Card Fee 22 20 54 78 77 98 2019 2023 +$7B 1.3% 2023 vs. 2019 FY 2023 Net W/O Rate1 +$6B 1.5% ($2B) 2.8% …with relatively lower credit risk US Consumer Revolving AR ($B) Our fee-based products drive premium lending growth… US Consumer Card Member Loans and Receivables ($B) 28
Note: (1) Industry data sourced from Argus Advisory, a TransUnion Company; (2) Net of attrited card members; (3) Non-Amex lend of active Amex Consumer Card Members calculated from internal estimates of Card Member size of wallet capability Core to our premium lending strategy is a deep focus on lower-risk segments and existing customers where we believe there is a big opportunity for growth ~1.2x Spend Growth vs. Industry >720 FICO ~1.3x Revolving Loan Growth vs. Industry >720 FICO ~24% of US Consumer Card Members’ card borrowing is with AXP >70% of Revolving Loan growth is from Existing Customers2 Deep focus on targeting lower-risk segments… We believe there is a large opportunity to grow lending while sticking to primarily lower-risk existing customers …combined with strong focus on existing customers we know well US Consumer Spend and Revolving Loan Growth (Q4‘23 vs. Q4‘19)1 AXP share of Lend Wallet3 ‘23 US Consumer Contribution to Revolving Loan Growth 29
Travel1 Offers Dining Note: (1) Fine Hotels + Resorts benefits vary by property and actual value will vary based on property, room rate, upgrade availability, and use of benefits; (2) Centurion Lounges include 28 opened and 2 announced new locations Our powerful set of Membership Services is central to our model and delivers highly differentiated premium benefits $220M Partner Funded Value Redeemed in 2023 2.1K+ Global Offer Brands Membership Benefits ü Early check-in and late check-out ü Room upgrades ü Complimentary breakfast and WIFI ü Experience credits $600 avg. value for 2-night stay Membership Benefits ü Exclusive table access ü Priority notify ü Special event early access ü VIP diner badge ü Delta Platinum and Reserve dining credits 7.3B MR Points Earned in 2023 Banking Entertainment Lounge2 1.8K+ 2023 Global Events Membership Benefits ü Competitive APYs ü Membership Rewards on debit ü No-to-low everyday banking fees 40+ Stadium & Venue Partners 1,400+ Global Lounge Network 30 Centurion Lounges Centurion NY City Lounge 1,500+ F IN E H O T E L S + R E S O R T S ® 30
Note: (1) FY 2023 vs. 2022 Fine Hotel & Resorts and The Hotel Collection booked globally through Amex TLS compared to global luxury industry hotels. Industry data sourced from Smith Travel Research, Luxury Segment 2023 FY Report; (2) USCS Dining spend growth vs. 2019; Overall US growth based on US Retail Sales: Food Services and Drinking Places Category. Source: US Census Bureau Our Membership Services also play an important role in strengthening our two-sided model and drive greater spend on our network Delivers superior Membership value propositions and strengthens our two-sided model Retains & drives greater spend on our network AXP Card Members AXP Merchants Travel Fine Hotels + Resorts +2.0x Fine Hotels + Resorts / The Hotel Collection Booking Growth YoY vs. Industry1 Dining Global Dining Access & Dining Credits Incremental & Higher Margin Business +1.8x USCS Dining Spend Growth vs. 2019 relative to overall US Growth2 Offers Statement Credits +3.0x Partner-funded value redeemed vs. 2018 31
Investments and innovation in Travel are paying off as we outperform the industry in premium performance and growth Note: (1) First, Business class, and Premium Economy air ticket sales through Amex Travel & Lifestyle Services (TLS) as a % of total Amex TLS air ticket sales globally. Industry premium cabin data per AXP estimates. Data as of FY23; (2) FY 2023 vs. 2022 Fine Hotels + Resorts / The Hotel Collection booked globally through Amex TLS compared to global luxury industry hotels. Industry data sourced from Smith Travel Research, Luxury Segment 2023 FY Report >2x 2023 Fine Hotels + Resorts / The Hotel Collection Sales Volume ~50% ~25% Industry Average AXP Travel ~30% ~15% Industry Average AXP Travel AXP Travel Drives Significantly Higher “Front of the Plane” Sales and “Luxury Hotel” Bookings… …And continues to scale & deliver a differentiated premium benefit % Total Air Sales that are “Premium”1 Fine Hotels + Resorts / The Hotel Collection vs. Luxury Industry Bookings Growth2 2023 vs. 2019 32
At Acquisition - July 2019 December 2023 At Acquisition - July 2019 December 2023 Card Membership unlocks Global Dining Access Program We have successfully grown Resy since acquiring the business and strengthened the role dining plays in delivering differentiated card benefits Note: (1) Engaged Diner: A registered user who books a reservation or sets a notify through a digital channel within the past 6 months from July 2019 and December 2023; (2) Restaurant Network: Total of all restaurant partners who are either subscribed to ResyOS, part of Resy's Global Restaurant Network, or part of Pocket Concierge (Japan) Resy Engaged Diners1 Restaurant Network2 Preferred access to tables and curated dining experiences Integrated with card benefits and new customer acquisition 3.0x 5.4x back annually on eligible Resy purchases when you use your enrolled Card. 33
We have a significant portfolio of Cobrand partners globally Travel & Dining 3K+ Global Travel & Dining Partners Experiential 80+ Global Experiential Partners Offers 2.1K+ Global Offers Brands Partnerships are also a core part of our Membership Model and the way we integrate them across the business differentiates us from our competitors Embedded 30+ US Embedded Benefit Partners We integrate partnerships across the business 34
• Global • High spending • High margin • High discretionary income • Loyal & engaged with our brand We leverage our highly attractive global customer base and our strength in partnerships to create a unique partner-funded flywheel Premium Customer Base Attract global premium customers Attract great brands to fund value to target high-margin customers Deliver superior products co-funded at better margins Partner-Funded Value Flywheel 35
26 Countries The Membership Model is backed by our global servicing footprint that delivers premium service at a local level around the world High-Touch Servicing Around the World 17 Languages #1 In Customer Satisfaction among Credit Card Companies 2023 J.D. Power Awards Service Excellence Recognition Cross-Functional Servicing Card Servicing Travel Servicing Lifestyle & Concierge Servicing Credit & Fraud Servicing 36
Acquisition 2023 Vs ’19 % Fee-based New Accounts 77% +17pts % Platinum/Gold Millennials & Gen Z 75% +14pts Credit 2023 Vs ’19 AXP FICO of New Accounts Acquired 759 +18pts AXP NAA FICO Spread vs. Industry1 +53pts +13pts Engagement 2023 Vs ’19 Revenue per Account $935 +1.4x Spend per Account (k) $20.3 +1.4x Card Member Loans & Receivables per Account (k) $3.0 +1.1x Net Card Fees (B) $4.1 +2.1x Our premium model and leadership position have become even stronger over time across key metrics Note: (1) Industry FICO sourced from Experian; AXP NAA FICO spread vs. industry based on 1H’23 vs. 1H’19 US Consumer 2023 vs. 2019 US Consumer 2023 vs. 2019 37
Why is there a long runway for accelerated growth? What is our differentiated Membership Model? How do we execute and innovate to deliver on this model? Today’s Focus 38
3.0 2.8 3.5 4.2 4.5 4.9 5.3 5.7 2019 2020 2021 2022 2023E 2024E 2025E 2026E We operate in a very attractive industry that is expected to continue to deliver strong growth Note: (1) Source: Q2 2023 McKinsey Global Payments Map and internal calculations ~8% Industry Billings ($T) and % CAGR1 US Consumer Credit Card Billings are projected to grow ~8% annually 39
10% 16% 30% 3% 6% 16% Industry No Fee Industry Fee USCS Platinum/Gold Premium and younger segments have been the fastest growing in our industry, which plays to our strengths Note: (1) Industry sourced from Argus Advisory, a TransUnion Company 2018-2023 US Consumer Industry Account Growth, CAGR % Millennials & Gen Z CAGR 40 1 1
Our runway and opportunities for growth in US Consumer are highly attractive Note: (1) 2023 AXP Share of Total US Consumer Industry Accounts sourced from Experian; (2) Projected Billings growth for US Consumer Industry sourced from Q2 2023 McKinsey Global Payments Map and internal calculations; (3) Reflects the difference between the average age of new customers acquired in 2023 that are Millennials & Gen Z vs. other age cohorts for US Consumer Platinum; (4) 2022 industry fee-based US Consumer accounts sourced from The Consumer Credit Card Market – October 2023 from the Consumer Financial Protection Bureau along with internal analysis; (5) Higher lifetime value based on internal projections for US Consumer Platinum assuming age cohorts are acquired at the same point in time but reflecting their differences in age ~5% AXP Share of Total Industry Accounts1 ~8% Projected Billings Growth 2023-2026 CAGR2 >20years Age Gap at Acquisition Millennials & Gen Z vs. Other Age Cohorts3 ~25% AXP Share of Industry Fee-based Accounts4 16% Millennials & Gen Z Fee-based Account Growth 2018-2023 CAGR ~2x Higher Estimated Avg. Lifetime Value Millennials & Gen Z vs. Other Age Cohorts5 Relatively Low Share of Accounts Strong Industry Growth Attractive Younger Segments 41
Our differentiated Membership Model and innovation have been the driving force behind our strong performance and leadership in the premium segment Key Takeaways The Model delivers four powerful outcomes that are differentiated within our industry and difficult to replicate This is a proven strategy that has a track record of strong performance and has widened our leadership position The premium segment remains very attractive, plays to our strengths and has a long runway for growth 1 2 3 4 42
Opening Remarks How We Will Achieve Our Long-Term Aspiration Why Continue to Invest in American Express? Q&A 43 1 2 3 4 Premium growth through our Membership Model Howard Grosfield Winning the SME recovery Anna Marrs Runway for growth in International Rafa Marquez Expanding network coverage & capabilities Raymond Joabar Efficiency, growth & service through technology Anré Williams Winning the SME recovery Anna Marrs Group President, Global Commercial Services and Credit & Fraud Risk
Post-Pandemic Period: American Express has strengthened its leadership position during the volatile post-pandemic period, while also diversifying revenue streams Small Business Advantages: We believe our leadership position is resilient and built on multiple competitive advantages Go-Forward Growth: Our strategy is to fuel acquisition momentum and deepen customer engagement through innovation to continue to drive strong revenue growth 1 2 3 Key Takeaways 44
International is accretive to AXP revenue growth Post-Pandemic Period Small Business Advantages Go-Forward Growth Today’s Focus 45
US Small Business Card Spend AXP Spend Share While US small business card spend has been volatile since the pandemic, we have gained share Note: Source: Nilson Report, Issue #1243 from June 2023, Argus Advisory, a Transunion Company data through Dec’23, and internal calculations 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (8%) 23% 19% 3% 9% CAGR 9% CAGR 47.1% 2023 45.8% 2019 46
3% (14%) 19% 13% (2%) (3%) 6% 5% 7% 8% 7% 6% (3%) (3%) (2%) (2%) (2%) (2%) 2019 2020 2021 2022 2023 Q1'24 3% (14%) 19% 13% (2%) (4%) (3%) 6% 5% 7% 8% 7% 6% 6% (3%) (3%) (2%) (2%) (2%) (2%) (2%) 2019 2020 2021 2022 2023 Q4'23 Q1'24 Note: Totals may not foot due to rounding, (1) New account spend ≤13 months of tenure AXP US SME Spend Drivers of Organic Spend Trends Spend moderation in 2023 was driven by organic spend Drivers of “boom” Drivers of moderation Pandemic stimulus Inventory restocking Inflation Cost of borrowing “belt tightening” Industry dynamics (e.g., construction) Business environment 9 (43) 53 45 (8) (4) (3) Contribution to growth (CTG) (%) Organic CTG $B Organic Attrited New1 6% (12%) 24% 19% 3% 1% 1% 47
The small business card industry remains an attractive opportunity Small Business Formation Card Utility Payment Digitization Note: (1) Source: Federal Reserve Economic Data, seasonally adjusted; (2) Source: Association for Financial Professionals “Check Use Drops to All-Time Low for B2B Payments” (October 2022), B2B payments in U.S. and Canada tracked since 2004 2019 2020 2021 2022 2023 New Business Applications in U.S.1 +56% 33% 2022 check usage of B2B payments, down from 67% in 20102 Purchase and fraud protection Cash flow flexibility Rewards for business spend 3.5M 5.5M 48
Strong Acquisition Strong Retention Transaction Engagement We continue to have a healthy and engaged customer base 20% New Accounts Acquired CAGR 2019-2023 98% 2023 Billed Business Retention Rate 9% Organic Transaction Count Growth 2023 vs. 2022 49
Note: (1) 2023 performance of 2022 vintage vs. 2019 performance of 2018 & prior vintages Our newer vintages are more premium and provide a continued platform for growth 2019 2023 No Annual Fee $695 Annual Fee Largest acquisition product, excluding Cobrands Lend capabilities Revolve on credit cards; Pay Over Time embedded on charge cards Revolve on credit cards; no embedded lending on charge cards Premium fee growth + responsible lending Growth in revenue per $ of new spend acquired1 21% 50
3% 9% Billings Revenue 6% 7% Billings Revenue We have driven stronger, more diversified revenue growth Note: Global Commercial Services (GCS) segment results for 2019, Commercial Services (CS) segment results for 2023; effective Q3'22, reportable operating segments were realigned to reflect certain organizational changes 2019 – Global Commercial Services YoY Growth 2023 – Commercial Services YoY Growth 51
International is accretive to AXP revenue growth Post-Pandemic Period Small Business Advantages Go-Forward Growth Today’s Focus 52
We are the leader in US small business cards $427B 3.9M ~3x Note: (1) Customers using a small business product; (2) Source: Nilson Report, Issue #1243 from June 2023, for competitor card data compared with 2022 US SBS spend. US SME 2023 Billings Larger than the next competitor2 US Small Business customers1 53
Multiple advantages underpin our leadership position Marketing Engine Credit Quality & Spend Capacity Management Service Business- Focused Products 54
2019 2023 Competitor Cards in Wallet AXP Net Promoter Score, 20232 Business-Focused Value Points Multipliers1 Travel Benefits Our leading value propositions are designed to deliver relevant, superior value Note: (1) Points multipliers range from 1-5X depending on the card and spend category; (2) Source: US SME AXP Card Members Net Promoter Score (NPS) 2023 Results SBS Net Card Fees 16% CAGR 18+ pts 55
We are using AI to enhance the effectiveness of our sales and marketing engine 2019 2023 Prospect Small Business Billed Business Acquired1 Right Channel Right Product Right Offer Customer Segment Smaller Businesses Larger Businesses Marketing Sales & Account Development Lend Charge Broadscale Offers Elevated Offers ~2x Note: (1) Reflects the first 12 months of spending for a new customer acquired. For customers acquired less than 12 months prior, internal estimates have been used for their expected spending over the 12 month period 56
Spend Capacity ~3.3x Our exposure management capabilities provide more spend capacity, while controlling credit losses Note: (1) Data used: Sep 2023 AXP US SBS Customers with Annual spend >$1MM, Small Business Financial Exchange (SBFE) data from Duns & Bradstreet used for competitor capacity. Capacity = Maximum (Exposure, Line) (2) US SBS delinquency rates represent Small Business Card Member Loans and Card Member Receivables. Source: Experian Analytical Sandbox, with delinquency defined as 60 days past billing, or approximately 30 days past due Best-in-Class Credit Quality 2019 2023 AXP Competition US SBS Delinquency Rates, Competitors vs. AXP2 1.5x 1.8x Avg AXP spend capacity vs competitors for SBS customers spending $1M+1 US SBS Delinquency Rate vs. 2019 1.00x 0.94x 57
Our client-facing teams deliver deeper customer relationships 88% AXP US SME Customer Servicing Satisfaction1 Note: (1) Customers responding to a customer service satisfaction question with a score of 4 or 5 on a scale of 1 (Completely Dissatisfied) to 5 (Completely Satisfied) as part of the 2023 AXP US SME Net Promoter Score (NPS) Study B2B Solutions Underwriting Marketing Offers Trusted, Business- Centric Support Card Servicing Merchant Servicing Account Development 58
International is accretive to AXP revenue growth Post-Pandemic Period Small Business Advantages Go-Forward Growth Today’s Focus 59
Revenue Growth • Organic Spend Growth • Digital Ecosystem • Lend Growth • New Products • Marketing Investment • Personalization • Cross-Sell • Partnerships Acquisition Momentum Customer Engagement We are focused on acquisition momentum and customer engagement to drive revenue growth 60
Scaled Prospect Marketing Investment New US Small Business Accounts Acquired We plan to continue to invest in marketing to grow our premium customer base 2019 2023 2019 2023 2x 2x 61
~30% Lift in response rate2 2019 2023 Note: (1) Targeted offers for prospects/customers (2) Lift in New Accounts Acquired / site & search visitors shown a personalized offer for Business Platinum and Business Gold in February-December 2023 as opposed to the baseline offer Growth in New Account Acquisition via Personalized Offers1 Enhancements to personalized marketing can continue to drive efficient investment ~4x 62
~64% Spend lift from dual Card Members1 Note: (1) Reflects 12 months of spend growth post a Consumer Small Business Card Member acquiring a Small Business Card product, including both consumer and small business product spend Cross-Sell Opportunity We estimate 4.9M Amex consumer customers are small business owners, providing a deep prospect pool 4.9M 765 Small business owners who only have a Consumer product Average FICO of Amex Consumer small business owners 63
The strength of our partnerships creates customer value and acquisition opportunities Cobrand Partnerships Solution Partnerships Partner Benefits 64
We are focused on acquisition momentum and customer engagement to drive revenue growth Revenue Growth • Organic Spend Growth • Digital Ecosystem • Lend Growth • New Products • Marketing Investment • Personalization • Cross-Sell • Partnerships Acquisition Momentum Customer Engagement 65
Note: (1) Reflects 12 months of spend growth post an existing Small Business Cardmember acquiring a Business Platinum Customer treatment strategies grow organic customer card spend over time Spend lift from customers who acquire Business Platinum1 37% Early Tenure Engagement Cross-Sell & Upgrades Employee Cards Employee Card Spend Growth 2023 vs. 2019 35% Account Development Expansion 66
Note: (1) Represents lift in total spend post customer implementation of AP Automation software for spend active AP Automation customers from September 2021-August 2022, removing impact of additional concurrent customer sales treatments Our integrated model unlocks more “card-able” spend We are using Accounts Payable (AP) files to broaden and deepen our customer relationships Average Lift in AXP Charge Volume1 Implement AP Automation Software Ingest AP File Analyze via Supplier Matching Engine Conduct Supplier Outreach & Enablement ~20% 67
Deposit Accounts Business Checking Account Card Card Spending Lending Card Borrowing Line of Credit Payments Accounts Payable Note: (1) Customer needs refer to banking, financing and payment operations and solutions for a small business owner. Revenue uplift is a comparison of business customers for whom we meet three or more needs relative to those business customers for whom we meet only one need. (2) Dec 2023 vs. Dec 2022 We are bringing our multi-product experiences together in Business Blueprint, our digital ecosystem 3x Revenue uplift in meeting more needs of business customers1 +14% YoY increase in number of business customers for whom Amex meets 3+ needs2 ~18% Blueprint Customers who adopted a new product within first 90 days 68
We still have room to grow into our customers’ on-card borrowing wallets Card Lend vs. Card Spend Share1 (2023) High Quality Lend Growth Note: (1) Source: Spend share - Nilson Report, Issue #1243 from June’23 with Argus Advisory, a Transunion Company, data through Dec’23; Lend Share - Argus Advisory, a Transunion Company, data through Dec’23, and internal calculations ~70% 747 2/3 2023 Revolving Loan growth from existing customers Lending balance-weighted FICO of customers who contributed to 2023’s Revolving Loan growth 2023 Revolving Loan growth from customers with >5 years in operation 47% 53% 31% 69% Spend Share Lend Share Competitors AXP 69
Our new products create growth and engagement opportunities Business Line of Credit Business Checking Account Note: (1) Represents December 2023 Line of Credit A/R outstanding, (2) Represents December 2023 , (3) Customers who have been onboarded for at least 365 days and have taken out loans +67% 3 +92% 8 Line of Credit Loans1 2023 vs. 2022 Accounts2 2023 vs. 2022 Average loans drawn/active customer per year3 Average log-ins/active customer per month 70
Post-Pandemic Period: American Express has strengthened its leadership position during the volatile post-pandemic period, while also diversifying revenue streams Small Business Advantages: We believe our leadership position is resilient and built on multiple competitive advantages Go-Forward Growth: Our strategy is to fuel acquisition momentum and deepen customer engagement through innovation to continue to drive strong revenue growth 1 2 3 Key Takeaways 71
Opening Remarks How We Will Achieve Our Long-Term Aspiration Why Continue to Invest in American Express? Q&A 72 1 2 3 4 Premium growth through our Membership Model Howard Grosfield Winning the SME recovery Anna Marrs Runway for growth in International Rafa Marquez Expanding network coverage & capabilities Raymond Joabar Efficiency, growth & service through technology Anré Williams Runway for growth in International Rafa Marquez President, International Card Services
The International business has been a growth driver for American Express Emerging from the pandemic, our investment in our products and Membership Model re-established and strengthened our momentum We have significant runway for growth and are set up to be accretive to the Enterprise’s aspiration for 10%+ revenue growth 1 2 3 Key Takeaways 73
Today’s Focus International is accretive to AXP revenue growth We operate in the right countries Our products serve attractive segments: premium consumers and small businesses Our Membership Model is unique and working 74
2017 2019 2022 2023 $188B $246B $292B $344B 2017 2019 2022 2023 $8B $10B $11B $13B International is a growth driver for AXP Note: (1) AXP International Billed Business and the related growth rates are adjusted for FX. See Annex C for reported billings and growth rates; (2) AXP International Revenue Net of Interest Expense excluding GNS and adjusted for FX and the related growth rates are non-GAAP measures. See Annex D for a reconciliation. +14% +18% +10% +17% AXP International Billed Business1 AXP International Revenue2 ’17-’19 CAGR, ’22-’23 YoY (FX-adjusted) ’17-’19 CAGR, ’22-’23 YoY (FX-adjusted) 75
What drives International growth? International is accretive to AXP revenue growth We operate in the right countries Our products serve attractive segments: premium consumers and small businesses Our Membership Model is unique and working 76
Our top 15 issuing countries represent over half the estimated International card payments revenue pool 15 largest AXP International countries1 comprise 57% of the total estimated International card revenue pool 5 largest AXP International countries1 comprise 33% of the total estimated International card revenue pool AXP’s 15 largest International countries Note: (1) AXP International countries is defined by proprietary issuing presence. International revenue pool excluding US, Russia and China. External payments data for consumer & commercial card (credit & debit) sourced from Q2 2023 McKinsey Global Payments Map. 77
2017 2019 2022 2023 In our top 5 countries we are growing faster than the industry Note: (1) External payments data for consumer & commercial card (credit & debit) sourced from Q2 2023 McKinsey Global Payments Map. +12% +20% Estimated Industry Revenue CAGR1 AXP International’s largest 5 countries revenue ’17-’19 CAGR, ’22-’23 YoY (FX-adjusted) (UK, Japan, Australia, Canada, Mexico) 7% 7% 78
2017 2019 2022 2023 We are gaining share in card spend Note: (1) External payments data for consumer & commercial card (credit & debit) sourced from Q2 2023 McKinsey Global Payments Map. +17% +18% AXP International’s largest 5 countries Billed Business ’17-’19 CAGR, ’22-’23 YoY (FX-adjusted) (UK, Japan, Australia, Canada, Mexico) Estimated Industry Billed Business CAGR1 8% 8% 79
AXP Country Share, Top 5 (AXP % of Total Estimated Credit & Debit Spend), 2023 11% 7% 6% 6% 4% Mexico Australia UK Japan Canada Our strong growth coupled with our share position presents an attractive opportunity for continued momentum Note: Includes consumer & commercial credit & debit card payments (including cross-border volumes) sourced from Q2 2023 McKinsey Global Payments Map; (1) Calculated as a weighted average AXP % of spend across all of its top 5 countries. Top 5 Average Share %1 80
What drives International growth? International is accretive to AXP revenue growth We operate in the right countries Our products serve attractive segments: premium consumers and small businesses Our Membership Model is unique and working 81
AXP International Consumers typically spend more than the average credit card spend Delinquency rate of Australian & UK Consumer Card Members is lower than the industry average 4x 4x 8x AXP International Consumer 2023 billings from fee-based products High spending customers1 Attracted to premium products Strong credit quality2 82% We have been able to attract a premium consumer base with high spending capacity and high credit quality Note: (1) Based on 2023 consumer only and for International countries where AXP has a proprietary issuing model. External data for average credit card spend in International countries sourced from Euromonitor and excludes debit transactions. AXP and Euromonitor Average Spend compared in $USD converted using Euromonitor supplied 2023 FX rate. (2) AXP and Industry Delinquency rates as reported by credit bureau in respective countries and for Consumer only – Argus Advisory, a TransUnion Company as of Jan’23 – Dec’23 avg. for UK, Equifax Australia as of Jan’23 – Dec’23 avg. for Australia. 0.4% 1.2% 1.2% 1.7% 88 bps 54 bps AXP Industry 82
Our Small Business growth combined with our low card penetration presents significant room to grow Note: (1) International SBS Billed Business and the related growth rates are adjusted for FX. See Annex E for reported billings and growth rates; (2) # SMEs in country sourced from Data Axle, Inc. and as of 2023. SME defined by following annual revenue range JP: 0 – 250M (USD), AU: 0 – 50M (AUD), CA: 0 – 50M (CAD), UK: 0 – 50M (GBP), MX: 0 – 20M (MXN). International SBS International Consumer 9% 3% 2% 2% < 1% $23 $35 $59 $72 2017 2019 2022 2023 +25% +23% High spending vs. Consumer Room to grow Fast growing Average Spend per Account % of SMEs with an AXP SBS card2 International SBS Billed Business ’17-’19 CAGR, ’22-’23 YoY ($B; FX-Adjusted)1 4.7X 83
High Travel & Entertainment Spend High Cross-border Spend Note: Spend for AXP International Proprietary Issuing (excludes JVs and GNS). Our premium customer base is evidenced by strong Travel & Entertainment and Cross-border Spend 32% 25% International US 23% 4% International US 84
International Revenue Composition1 This premium base drives revenue from Spend & Fees, and presents an opportunity to grow on lend Note: Figures based on FY 2023. (1) AXP International Revenue, Net Interest Income and Spend & Fee Revenues, each excluding GNS are non-GAAP measures. See Annex D for a reconciliation. 89% 11% International Spend & Fee Revenues Net Interest Income • Opportunity to capture incremental borrowing behavior from our customers • High card fees and cross-border revenue contribute to our Spend & Fee Revenues 85
What drives International growth? International is accretive to AXP revenue growth We operate in the right countries Our products serve attractive segments: premium consumers and small businesses Our Membership Model is unique and working 86
Our Membership Model has three core components… Our Membership Model is unique and working effectively Premium Payment Products Differentiated Membership Services Partnerships & Partner Funded Value 1 …that come together to deliver highly differentiated benefits 2 3 Travel Lounge Offers Banking Entertainment Dining Card Membership S p e n d F e e s Lend 87
Premium Product Portfolio (Consumer & SBS) Product Evolution We have a compelling portfolio of premium products that we refresh regularly Cobrand Partnerships • Price for value philosophy • Expanding benefits on key customer passion points i.e., lifestyle and dining • Expanding lend functionalities >30 Product refreshes in 2023 88
We have steadily added value to Consumer Platinum while pricing accordingly and growing accounts Note: (1) USD converted at Jan’24 FX rate. % Fee change is from 2017 to 2023. AUS ’17 fee 1,200 AUD and ’23 fee 1,450 AUD. JP ’17 fee ¥140,000 and ’23 fee ¥ 165,000. (2) Change is based on Dec’23 vs. Dec’17. Platinum value proposition evolution Annual Card fees1 2017 – 2023 Accounts2 2017 – 2023 2017 • Membership Rewards, lounge access, concierge, insurance 2023 • Dining and Entertainment benefits • New metal card • Expanded travel benefits including a broadened network of Centurion lounges $957 $1,117 +21% +18% ~2.5x ~1.5x 89
In addition, we have a range of key partners that support our value propositions and ambitions Key partnership expansion beyond the US Global rewards & benefits propositions • Access to 1,400+ lounges supporting global access for travelers • Membership Rewards that can be redeemed at 50+ global partners • Multi-market benefits and Partner Funded Value • Embedded benefits • Rich offers • Cobrand expansion 90
The Membership Model enables cross-border innovation that scales globally Innovation examples Innovation examples Customer-driven referrals, Member Get Member Exclusive lounge access, Centurion lounges Unlocking Partner Funded Value to deliver more Card Member benefits through shared economics Grow with our customers through personalized offers International Innovation Exchange 91
Acquisition journey Lending Digital engagement % Digitally Acquired1 Average Card Member Loans3 ’17-’19 CAGR, ’22-’23 YoY ($B; FX- Adjusted) % Monthly Digitally Active2 Note: (1) Digitally acquired accounts are accounts acquired through digital (e.g. mobile, tablet, web) vs. sales or phone; (2) International Digitally Active Card Members defined as a Card Member who logs in to the Web or Mobile App at least once as of December in each year; (3) International Consumer & SBS Average Card Member loans on an FX adjusted basis and the related growth rates are non-GAAP measures. See Annex F for a reconciliation; (4) International Consumer & SBS Billed Business growth rates are adjusted for FX. See Annex F for reported billings growth rates. Capability investments enable us to attract and engage consumers & small businesses in their channel of choice $7 $10 $12 $15 67% 84% 55% 68% 2017 2019 2022 2023 2019 2023 2019 2023 International Consumer & SBS Billed Business CAGR4 17% 18% 20% 22% 92
% New Accounts Acquired 73% of Millennials & Gen Z acquired in 2023 were acquired on fee-based products Our Membership Model is helping us attract new generations to Premium Consumer products… Millennials & Gen Z 73% 2017 2019 2023 51% 68% 45% +6pp +17pp 42% 43% 50% Age ≤ 35 93
Average spend is increasing Retention is high … and this membership effect also drives increased engagement and retention Note: AXP International Consumer & SBS. ~96% +42% Billed Business Retention on average annually 2019 – 2023 Growth in average spend per account 2023 vs. 2019 94
International locations growth1 Key verticals acceptance2 Note: (1) Includes ~17M and ~27M registered merchants in China for 2021 and 2023, respectively; (2) Top E-Commerce & Tourist Attractions are tracked internally, Transport from LIF Coverage Survey – external third-party research that samples merchant acceptance of credit cards and Amex. Coverage gains drive additional growth momentum as our Card Members can use their cards in more places 48M 72M 91% 96% 87% 90% 77% 82% 2021 2023 2021 2023 2021 2023 2021 2023 +50% Top e-Commerce Websites Top Tourist Attractions Transport 95
The International business has been a growth driver for American Express Emerging from the pandemic, our investment in our products and Membership Model re-established and strengthened our momentum We have significant runway for growth and are set up to be accretive to the Enterprise’s aspiration for 10%+ revenue growth 1 2 3 Key Takeaways 96
Opening Remarks How We Will Achieve Our Long-Term Aspiration Why Continue to Invest in American Express? Q&A 97 1 2 3 4 Expanding network coverage & capabilities Raymond Joabar Group President, Global Merchant & Network Services Premium growth through our Membership Model Howard Grosfield Winning the SME recovery Anna Marrs Runway for growth in International Rafa Marquez Expanding network coverage & capabilities Raymond Joabar Efficiency, growth & service through technology Anré Williams
We have more than tripled the number of locations globally that accept American Express since 2017 where Card Members live, work, and travel to most. These coverage gains are driving scale and relevance and have been a significant contributor to AXP’s revenue growth. And tremendous opportunities remain to sustain this growth: • Continue growing US acceptance as new businesses form or start accepting card payments • Accelerate International coverage through expansion of Partnerships • Leverage our World Class Payment Ecosystem to deliver more value to Merchants, Card Members & Partners 1 2 3 Key Takeaways 98
Today’s Focus U.S. Merchant Acceptance International Merchant Acceptance Network Capabilities Global Merchant Journey 99
Our investment in coverage since 2017 has resulted in more than tripling the number of locations that accept American Express Note: (1) Includes ~17M and ~27M registered merchants in China for 2021 and 2023, respectively. 66M 25M 89M 2017 2023 2021 Global Locations in Force (LIF)1 Maintained Virtual Parity Coverage in the U.S. 4X LIF growth in International locations New merchant signings significantly contributed to volume growth Coverage gains strengthened Card Member satisfaction 100