1、 BofA Securities does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making the

2、ir investment decision.Refer to important disclosures on page 8 to 10.Analyst Certification on page 6.Price Objective Basis/Risk on page 6.12852935 American Express Company Billed business meets the mark in 2Q Reiterate Rating:BUY|PO:353.00 USD|Price:304.72 USD Dont miss the picture amidst competiti

3、ve fog;Buy We reiterate our Buy rating following Amexs 2Q earnings which was highlighted by an acceleration of billings,above street expectations,and the reiteration of full year revs/EPS guidance.We continue to view the customer base as enviable and performing quite well amid a more uncertain macro

4、 backdrop.We also note the intrinsic defensibility in the business model if trends were to turn and we view EPS targets as durable.And while investors are focused on competition and the impact it will have on the Platinum refresh,they are underestimating Amexs brand and expertise at serving premium

5、members.We expect AXP will deliver a strong refresh cycle powered by strong retention 94%of AXP cardholders said they would keep the card if fees were increased$100(more inside).What we liked:Billings acceleration,card fees,credit Billed business growth accelerated to 7.2%y/y in 2Q from 5.6%in the p

6、rior quarter.Billings came ahead of BofAe/cons expectations at 7.0%/6.5%.Card fees also outperformed nicely at$2,480M above our consensus-like$2,409M estimate.Amex acquired 3.1M proprietary cards in the quarter,71%are on fee-paying products.Provision expense of$1,405M also came in below expectations