American Express Co at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : So, I guess we can jump right into it. Maybe we'll just start with an update on Consumer. That's probably top of mind for many investors. Amex Consumer Billings growth has been pretty resilient this year in spite of the uncertain macro. It was up 7% FX-adjusted through the first half of 2025 compared to 7% for fiscal year '24. So, how is the consumer shaping up so far in the third quarter?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Okay. That's great to hear. So, let's turn to Commercial. Can you maybe just update us on the trends you're seeing in the Commercial in particular, SME, that's been in a soft spot for a while. Any idea what that segment needs to see to lap some of that softness?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Okay. That's helpful. Maybe we just touch on International. That's been a bright spot for Amex. That segment was about 25% of Billed Business last quarter. It's been growing double digits and outpacing other segments. Can you just talk about the drivers of success in that segment? And how sustainable the growth is?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Got it. Okay. Maybe digging a little deeper, what countries are you seeing the strongest growth? And what about your strategy is helping differentiate Amex? And then how do you expect the growth trajectory to shape up moving forward? Any medium-term goal post you have in mind?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Got it. That's helpful. Maybe just touch on revenue growth in the guide. You've guided to 8% to 10% revenue growth for the year. First half was

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Got it. And what about the aspirational 10% revenue growth that you put out there? Looking out long term, what do you really need to see for Amex potentially hit that aspirational goal?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Okay. That's great to hear. We'll switch gears and maybe just address competition. There are a number of announcements this year, Chase Sapphire Reserve got refreshed. Citi effectively re-entering the market with the Strata Elite. Obviously, Capital One recently closed the Discover acquisition. TBD what they do with Venture X. How would you characterize the competitive environment, particularly for premium cards? It certainly feels like it's the first time in a decade that the premium card space has been this competitive?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Got it. The product refresh cycle has been a crucial part of Amex's strategy. You refreshed Delta and Gold last year. As you mentioned, Platinum Card to be refreshed in a few weeks. Can you maybe just talk about your learnings from the Delta and Gold refreshes last year? And then how you're approaching Platinum refresh this year? And then more importantly, how do you position the Platinum Card relative to the other products out there?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Got it. Maybe this is a good point to pause for audience response question. Can you just queue that up, operator? If everyone can just use the controllers to register your response. Question is: which premium credit card do you have at the top of your wallet? one, American Express; two, Capital One Venture X; three, Chase Sapphire Reserve; four, Citi Strata Elite; or five, none of the above, other?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Platinum at almost 40% followed by Chase Sapphire Reserve, okay, and then 25% other.

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Yes.

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : I will next year. Maybe just talk about how you continue to differentiate the value prop for product like Platinum and also how you think about that ability to price given the competitive landscape?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Got it. American Express has gained traction with Millennials and Gen Z. These two cohorts have been the big driver of your card acquisitions, making up 60% of new accounts and 75% of Platinum and Gold new accounts. As we kind of think about the TAM, and the market share of those two cohorts, how penetrated are you? And what's the runway for growth?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Great. And as you evolve the benefits of the premium cards in recent years to cater to the younger generations, how do you kind of find a balance and not lose appeal to the older generations? [The Gen X](corrected by company after the call) and Baby Boomers are still about 65% of total Consumer Billings.

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Got it. That's helpful. Maybe would just turn to lending and credit. NII growth continues to be robust. It was up 12% year-over-year last quarter. You had mentioned a big driver is the increased margin on lending. Can you just talk about what you've done to improve the margin? And how much more room is there for you to kind of expand it?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Okay. Great. And then when we think about credit performance, Amex leads the industry, your delinquency rates are below pre-pandemic levels and the outperformance relative to the rest of the industry has been widening. So, one driver is clearly the focus on the Premium segment. But aside from that shift, what else have you done on the tech side and the underwriting side to kind of help sustain that?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Okay. Great. Maybe we'll just pause and queue up those last two ARS questions. So first one, do you expect 2026 FX adjusted revenue growth to be: one, 7% to 8%; two, 8% to 9%; three, 9% to 10%; or four, 10% or higher? So majority, 52% at 8% to 10% -- 8% to 9%. Okay. Next question. And then over the next year, would you expect to position in Amex to: one, increase; two, decrease; three, stay the same?

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Good. 46% increase, 42%, stay the same. So pretty bullish. So, we have about 3 minutes left. I'll just open it up to the audience if there are any questions. We have one upfront here. You're going to get a mic. Unidentified Participant I just wanted to see if you could provide any more color around -- you highlighted in the Gold and the Delta refreshes that the number of accounts went up 10% over two years. I think you said fees went up 60% and total revenue up 30% on those two categories over two years, right? But -- and the retention was 98%. But then you failed to mention what did VCE go up, like the expenses associated with that. I mean -- and I know I've talked about this before, but if you're offering people $400 worth of value, I know you're not paying for all of it, but you're paying for some of it. And yet you're only increasing the card fee by $75. Can you just talk a little bit about when you do these refreshes, does profitability also go up? And because that was the piece that you sort of left out.

Question: Terry Ma, CFA - Barclays Services Corp - Analyst : Okay. I think we're out of time with that. So, thank you.