BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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American Express Reports Robust Growth in First Quarter of 2024
American Express (NYSE: AXP) showcased a strong financial performance in the first quarter of 2024, reporting a substantial 11% increase in revenues, which soared to $15.8 billion from $14.3 billion in the same period last year. The growth was primarily fueled by a significant uptick in net interest income and escalated Card Member spending.
Net income saw an impressive rise, reaching $2.4 billion, or $3.33 per share, compared to last year's $1.8 billion, or $2.40 per share. This 39% increase in earnings per share (EPS) reflects the company's continued business momentum and operational efficiency.
Credit and Customer Metrics
The company's provisions for credit losses were reported at $1.3 billion, up from $1.1 billion in the prior year. This increase is mainly attributed to higher net write-offs, although this was somewhat mitigated by a decreased net reserve build, down to $148 million from $320 million in the previous year.
American Express continues to attract high-quality, high-spending customers. This quarter, card acquisitions accelerated to 3.4 million, with fee-based products constituting approximately 70% of these new acquisitions. Notably, over 60% of the new consumer accounts globally were opened by Millennial and Gen Z consumers, underscoring the brand's appeal to younger demographics.
Expense Management and Operational Costs
The company's consolidated expenses rose modestly by 3%, reaching $11.4 billion, compared to $11.1 billion a year earlier. This rise was mainly due to increased customer engagement costs, which paralleled higher Card Member spending and more frequent usage of travel-related benefits. However, these were partially offset by a $196 million benefit from improvements in the models used for estimating future Membership Rewards redemptions.
Tax and Future Outlook
The consolidated effective tax rate was reported at 22.5%, a significant increase from 16.2% the previous year, primarily due to discrete tax benefits realized in the prior year.
Looking ahead, American Express remains optimistic about its financial trajectory for 2024. The company has reaffirmed its guidance, expecting a full-year revenue growth of between 9% to 11% and an EPS ranging from $12.65 to $13.15.
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