Direct Answer
American Express Company (AXP) reported total net revenues of $65.894 billion in fiscal year 2024 (calendar year ending December 31, 2024), up approximately 9% from the prior year. Net income was $10.127 billion and diluted EPS was $13.44. Card member spending, known as billed business, reached approximately $1.584 trillion across approximately 145.5 million cards in force. Unlike Visa and Mastercard, AmEx operates a closed-loop network: it both issues cards to consumers and manages merchant acceptance, giving it higher per-transaction economics and direct exposure to credit risk.
Revenue by segment (FY2024)
| Segment | Description | FY2024 (approx.) |
|---|---|---|
| US Consumer Services (USCS) | US consumer cards including Platinum, Gold, and Blue Cash | ~$36.7B |
| Commercial Services | US corporate and small-and-medium enterprise cards | ~$16.2B |
| International Card Services (ICS) | Consumer and commercial cards outside the United States | ~$9.1B |
| Global Merchant and Network Services (GMNS) | Merchant discount fees and global network operations | ~$7.2B |
| Consolidated net revenues | After intersegment eliminations and corporate items | $65.894B |
American Express reports results across four operating segments. US Consumer Services is the largest, generating revenue from the Platinum Card, Gold Card, Blue Cash Preferred, and other US consumer products through discount revenue (merchant fees), net interest income on revolving balances, and annual card fees. Commercial Services covers US corporate and small-business cards. International Card Services covers consumer and commercial card products outside the United States. Global Merchant and Network Services manages the relationships with merchants who accept AmEx cards globally, earning discount revenue and network service fees.
Because AmEx segments allocate revenues and costs internally, the four segment totals do not sum directly to consolidated net revenues of $65.894 billion; intersegment eliminations and items in a corporate segment account for the difference. Revenue is primarily composed of discount revenue (merchant fees charged as a percentage of transaction value), net card fees (annual card fees net of acquisition costs), and net interest income on card member loans.
Source: American Express: Form 10-K SEC Filings (CIK 0000004962)
Key financial metrics (FY2023 vs. FY2024)
| Metric | FY2023 | FY2024 |
|---|---|---|
| Total net revenues | ~$60.5B | $65.894B |
| Billed business (card member spending) | ~$1.47T | ~$1.584T |
| Net income | ~$8.4B | $10.127B |
| Diluted EPS | ~$11.21 | $13.44 |
| Return on equity (ROE) | ~28% | ~33% |
| Cards in force | ~141M | ~145.5M |
Revenue grew approximately 9% year over year, driven by higher card member spending, growth in net interest income as revolving balances increased, and continued expansion of premium card fee revenue following annual fee increases on the Platinum and Gold cards. Diluted EPS grew faster than net income because AmEx consistently repurchases shares, reducing the diluted share count over time.
Return on equity of approximately 33% in FY2024 is notably high for a company with direct credit exposure. AmEx manages this by targeting premium cardholders with relatively low credit risk, maintaining strict underwriting standards, and benefiting from the charge card heritage, in which most cardholders pay balances in full. However, the net interest income component of the business, which grew as more card members carried balances, adds credit risk that pure network operators Visa and Mastercard do not carry.
How the closed-loop network affects American Express's financials
The single most important structural fact about American Express's business model is that it operates a closed-loop network. Understanding what that means, and how it differs from the open networks Visa and Mastercard run, explains both AmEx's higher revenue per transaction and its exposure to credit risk.
In an open network such as Visa or Mastercard, four parties are involved in every card transaction: the cardholder, the card-issuing bank (which provides the card and extends credit), the merchant, and the merchant's acquiring bank (which processes the transaction on the merchant's behalf). Visa and Mastercard sit in the middle as the network that routes authorization and settlement between the issuing bank and the acquiring bank. They do not issue cards and do not bear credit risk.
In American Express's closed-loop network, AmEx plays all four roles internally for most of its transactions. It issues the card, it extends credit or charges the card member directly, it manages the merchant acceptance relationship, and it operates the network. This consolidation has two direct financial consequences. First, AmEx captures a larger portion of each transaction as revenue: the merchant discount rate it charges is typically higher than the effective rate on Visa or Mastercard transactions, because there is no split between network, issuer, and acquirer. Second, AmEx bears the credit risk that in an open network falls on the issuing bank: if a card member does not pay, the loss falls on AmEx, not a third-party bank.
This architecture also gives AmEx richer data about both card members and merchants than open-network operators accumulate. Because AmEx sits on both sides of the transaction, it can observe card member spending patterns and merchant transaction volumes directly, which supports its marketing services business and its ability to underwrite credit risk selectively.
Premium cardholder strategy and the younger demographic shift
A central narrative in American Express's FY2024 results was the continued adoption of its premium card products by younger cardholders, specifically Millennials and Generation Z. Historically, AmEx's core customer was a higher-income, older professional. In FY2024, management noted that a significant share of new Platinum and Gold card acquisitions came from customers under 35, a shift that has implications for the long-term revenue outlook.
The premium card economics work through two levers. The first is the annual card fee. AmEx raised the Platinum Card's annual fee to $695 and the Gold Card's to $325 in recent years, arguing that the value of the benefits (lounge access, travel credits, dining credits, and other statement credits) justifies the fee. Revenue from net card fees grew as both the number of cards in force and the average fee per card increased. The second lever is spending: premium cardholders tend to spend significantly more per card than standard cardholders, and because AmEx earns a percentage of each transaction as discount revenue, higher average spending translates directly to higher revenue per card.
Card member acquisition cost is elevated, partly because AmEx invests heavily in welcome offers and benefits packages to attract new premium members. This cost is recognized upfront while the card fee and spending revenue amortize over the cardholder relationship. The strategy only works if premium card holders retain their cards and spend actively over a multi-year period. AmEx's card member retention data, which it reports as billed business per card, is one indicator investors watch for signs that the acquisition investment is paying off.
Net interest income also grew in FY2024 as more card members chose to revolve balances rather than pay in full each month. This adds a lending dimension to AmEx's revenue that is absent from Visa and Mastercard, creating a different relationship between interest rates and earnings. Rising interest rates in 2023 and 2024 increased both the yield AmEx earns on card member loans and the cost of its own funding, with the net spread affecting net interest income.
Frequently Asked Questions
What were American Express's total net revenues in FY2024?
American Express reported total net revenues of $65.894 billion in fiscal year 2024 (calendar year ending December 31, 2024), up approximately 9% from approximately $60.5 billion in FY2023. Net income reached $10.127 billion and diluted EPS was $13.44, reflecting strong card member spending and growth in premium card fee revenue.
How does American Express make money differently from Visa and Mastercard?
American Express operates a closed-loop network, meaning it both issues cards directly to consumers and processes transactions with merchants, rather than relying on third-party banks for those roles. This gives AmEx higher per-transaction revenue through a discount rate generally above the effective rates on Visa or Mastercard transactions. The trade-off is that AmEx bears credit risk directly, since it lends to its own cardholders, whereas Visa and Mastercard bear no credit risk from cardholders.
What is the closed-loop network and why does it matter for American Express's revenue?
A closed-loop network is a payment system where one company controls both the cardholder relationship and the merchant relationship. American Express owns both sides of its network. The practical result is that AmEx's discount rate, the percentage of each transaction it keeps from the merchant, is typically higher than the effective rates on Visa or Mastercard transactions, which are shared across the card network, the issuing bank, and the acquiring bank. This structure also gives AmEx richer cardholder and merchant data than open-network operators collect.
Is American Express a Dividend Aristocrat?
No. American Express is not a Dividend Aristocrat. The Dividend Aristocrat designation requires a company to be an S&P 500 member that has increased its annual dividend for at least 25 consecutive years. AmEx's dividend history was disrupted and does not meet the 25-year consecutive increase requirement, though the company has resumed strong dividend growth in recent years. As of FY2024, AmEx pays $0.70 per quarter ($2.80 annualized) and has increased its dividend for more than three consecutive years.