How did American Express's revenue perform in the first quarter of 2019?

American Express reported a 7% increase in total revenues net of interest expense, reaching $10.4 billion for the first quarter of 2019. This growth was primarily fueled by a 4% increase in total billed business and a 7% rise in proprietary billed business globally, with a notable 9% increase when adjusted for foreign currency fluctuations.

What was the impact of the litigation-related charge on net income?

Net income for the first quarter of 2019 was $1.55 billion, a 5% decrease compared to the same period last year. This decrease was partly due to a significant litigation-related charge which had an impact of $0.21 per diluted share.

How is American Express managing its loan portfolio and credit risk?

Card Member loans grew by 11% to $81.0 billion. Provisions for losses increased by 4% year-over-year, but the company noted increased stability in its lending portfolio, leading to a smaller reserve build compared to the prior year. The net write-off rate for principal only on Card Member loans was 2.3%.

What is American Express's capital return strategy?

During the first quarter of 2019, American Express demonstrated a strong commitment to returning capital to shareholders. The company repurchased approximately $1.3 billion of its common stock and paid $0.3 billion in dividends, totaling $1.6 billion returned to shareholders.

AXP 10-Q Quarterly Report Q1 FY2019 — Revenue, Net Income, EPS

Summary

American Express Company (AXP) reported its first quarter 2019 financial results, showing a 7% increase in total revenues net of interest expense to $10.4 billion. This growth was driven by a 4% rise in U.S. billed business and a 7% increase in proprietary billed business globally, with a notable 9% increase when adjusted for foreign currency fluctuations. Net income for the quarter was $1.55 billion, a 5% decrease from the prior year, impacted by an $0.21 per share litigation-related charge. The company continued to invest in customer engagement, with expenses rising 11%, including increased spending on marketing, rewards, and Card Member services. The company's balance sheet remained robust, with total assets growing to $197.2 billion. Customer deposits increased to $72.9 billion, reflecting a diversified funding strategy. Provisions for losses saw a modest increase of 4%, with the company noting increased stability in its lending portfolio compared to the prior year. American Express also actively returned capital to shareholders, repurchasing $1.3 billion in common stock and paying $0.3 billion in dividends during the quarter.

Financial Highlights

37 data points

Beta

Revenue

$6.70B

Net Income

$1.55B

0.2% Net Margin

EPS (Diluted)

$1.80

Total Assets

$197.00B

Cash & Equivalents

$33.63B

Free Cash Flow

$8.20B

Financial Statements

Beta

Revenue	$6.70B
Interest Expense	$895.00M
Net Income	$1.55B
EPS (Basic)	$1.81
EPS (Diluted)	$1.80
Shares Outstanding (Basic)	841.00M
Shares Outstanding (Diluted)	843.00M

Key Highlights

1Total revenues net of interest expense increased by 7% to $10.4 billion, driven by a 4% increase in total billed business (7% on an FX-adjusted basis).
2Net income decreased by 5% to $1.55 billion ($1.80 diluted EPS), impacted by a litigation-related charge of $0.21 per share.
3Investments in customer engagement, including marketing, rewards, and Card Member services, increased by 12% year-over-year.
4Card Member loans grew by 11% to $81.0 billion, with provisions for losses increasing by 4%.
5Customer deposits increased by 4% to $72.9 billion, supporting the company's diversified funding strategy.
6The company returned $1.6 billion in capital to shareholders through dividends ($0.3 billion) and share repurchases ($1.3 billion) in the quarter.
7Regulatory capital ratios remained strong, well above minimum requirements.

AMERICAN EXPRESS CO Quarterly Report for Q1 Ended Mar 31, 2019

Summary

Financial Highlights

Key Highlights

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