Strong New Card Acquisitions and Loan Growth Will More Than Offset Rising Credit Costs in 2024

American Express has enjoyed several years of accelerated growth as the company's payment volume benefited from a recovery in travel and entertainment spending while growing momentum with younger demographics drove record new card acquisitions. American Express' shift toward a younger cardholder base has also supported significant loan growth, with net interest income increasing more than 69% from 2021 to 2023. That said, American Express still generates nearly 80% of its revenue through noninterest income, with its largest source of revenue being the discount rate charged to merchants when they accept payments. This means that the level of consumer spending has a direct impact on the company's revenue.