“We plan to continue to return to shareholders the excess capital we generate while supporting our balance sheet growth and we don't expect any material near-term changes to our capital management approach, driven by the evolution of these rules.”

In context

“ital to our shareholders in the second quarter, including common stock purchases of $1.1 billion and $446 million in common stock dividends, all on the back of strong earnings generation. Now as you know, this is an off-cycle year for Amex as a CCAR bank. Let me briefly remind you of our capital management approach. We generally increased our dividend roughly in line with earnings and target a 20% to 25% payout ratio. And you saw us do that as we increased our dividend by 15% to $0.60 per share last quarter. We target a CET1 ratio between 10% and 11% and we ended the second quarter in the middle of that range at 10.6%. As we think about the potential finalization of Basel III, I'd remind you that our 10% to 11% CET1 target range is actually well above our current regulatory minimum of 7%. We plan to continue to return to shareholders the excess capital we generate while supporting our balance sheet growth and we don't expect any material near-term changes to our capital management approach, driven by the evolution of these rules. So that then brings us to Slide 19 and the growth plan. To step back for a minute, I joined American Express 10 years ago in 2013 because I was excited about the long-term growth prospects for the company. Today, as I join you from my last earnings call, and actually even more excited about those growth prospects. Steve and I first introduced our new multiyear growth aspirations back in January of 2022. And I would point out to Christophe was in the room for every key decision we made as we developed that plan with the senior business leaders across Amex. Now in July of 2023, we have consistently achieved the aspirations we set out six quarters ago, thanks to the great efforts of our 77,000 colleagues across American Express. So we are reconfirming today, our 2023 full year revenue guidan”