10-KPeriod: FY2022

AMERICAN EXPRESS CO Annual Report, Year Ended Dec 31, 2022

Filed February 10, 2023For Securities:AXP

Summary

American Express Company (AXP) reported strong performance in its 2022 10-K filing, demonstrating robust growth across its business segments. Total revenues net of interest expense increased by 25% year-over-year, reaching $52.9 billion, driven by a significant 23% increase in billed business. This growth was supported by record new card acquisitions and high customer retention, underscoring the appeal of its premium value propositions. The company highlighted increased generational relevance with Millennial and Gen Z customers, and expanded merchant acceptance. Despite a slight decrease in net income to $7.5 billion from $8.1 billion in the prior year, primarily due to increased credit reserve builds compared to prior year reserve releases, AXP's financial health remains strong. Credit metrics are reported to be below pre-pandemic levels, and the company returned $4.9 billion in capital to shareholders through dividends and share repurchases. Looking ahead, American Express plans to increase its quarterly dividend by 15% starting in Q1 2023 and remains focused on delivering sustainable and profitable growth amidst a dynamic macroeconomic and geopolitical environment.

Financial Highlights

43 data points
Beta

Revenue

$34.22B

Net Income

$7.51B

22.0% Net Margin

EPS (Diluted)

$9.85

Total Assets

$228.35B

Cash & Equivalents

$33.91B

Free Cash Flow

$19.22B

Financial Statements
Beta
Revenue$34.22B
Interest Expense$2.76B
Net Income$7.51B
EPS (Basic)$9.86
EPS (Diluted)$9.85
Shares Outstanding (Basic)751.00M
Shares Outstanding (Diluted)752.00M

Key Highlights

  • 1Total revenues net of interest expense grew 25% to $52.9 billion in 2022.
  • 2Billed business increased by 23% year-over-year, reaching $1.34 trillion.
  • 3Net income decreased slightly to $7.5 billion from $8.1 billion in 2021, impacted by higher credit reserve builds.
  • 4Return on average equity remained strong at 32.3%.
  • 5Worldwide network volumes increased by 21% to $1.55 trillion.
  • 6The company returned $4.9 billion in capital to shareholders through dividends and share repurchases.
  • 7Plans to increase the regular quarterly dividend by 15% starting in Q1 2023.

Frequently Asked Questions

In 2022, American Express reported total revenues net of interest expense of $52.9 billion, an increase of 25% compared to the prior year. This growth was primarily driven by a 23% increase in billed business, indicating strong customer spending on their cards.

American Express's net income for 2022 was $7.5 billion, a slight decrease from $8.1 billion in 2021. This reduction was mainly due to higher provisions for credit losses, reflecting reserve builds in the current year compared to reserve releases in the prior year. However, the company noted that credit metrics remain strong and below pre-pandemic levels.

American Express returned $4.9 billion of capital to shareholders in 2022 through common share repurchases and dividend payments. The company plans to continue returning excess capital while managing its capital ratios. Specifically, they intend to increase the regular quarterly dividend by approximately 15% beginning with the first quarter of 2023.

American Express is focusing on four strategic imperatives: expanding leadership in the premium consumer space by delivering enhanced membership benefits, strengthening its position in commercial payments with evolving value propositions, strengthening its global integrated network by increasing merchant acceptance and providing advanced services, and leveraging its unique global position. The company also noted increased generational relevance with Millennial and Gen Z customers and expanded merchant acceptance as key growth drivers.