Summary
American Express Company (AXP) reported its second-quarter 2019 financial results, demonstrating solid performance with an 8% increase in total revenues net of interest expense (10% on a foreign currency-adjusted basis) for both the three and six-month periods ended June 30, 2019, compared to the prior year. This growth was driven by a balanced increase in Card Member spending, loan volumes, and card fees. The company continued to invest in customer engagement, new services, and expanding its merchant network, while also returning significant capital to shareholders through share repurchases and dividends. Despite a strong U.S. dollar impacting reported international results, adjusted growth was robust, with international proprietary billings showing double-digit growth. The company maintained a strong capital position, exceeding regulatory requirements and continuing its focus on disciplined expense management alongside strategic investments for long-term growth.
Financial Highlights
38 data points| Revenue | $7.08B |
| Interest Expense | $891.00M |
| Net Income | $1.76B |
| EPS (Basic) | $2.07 |
| EPS (Diluted) | $2.07 |
| Shares Outstanding (Basic) | 834.00M |
| Shares Outstanding (Diluted) | 836.00M |
Key Highlights
- 1Total revenues net of interest expense increased by 8% (10% FX-adjusted) for both the three and six months ended June 30, 2019, compared to the prior year, reflecting broad-based growth across businesses.
- 2Card Member loans grew by 10% year-over-year, indicating successful expansion of lending relationships and new customer acquisition.
- 3Provisions for losses increased by 7% for the quarter and 6% for the six months, primarily due to higher Card Member loans and receivables, though this growth was below expectations.
- 4Expenses increased by 9% for the quarter and 10% for the six months, driven by investments in marketing, Card Member rewards, and Card Member services, reflecting higher spending volumes and increased usage of premium benefits.
- 5Diluted Earnings Per Common Share (EPS) increased by 13% to $2.07 for the quarter and by 5% to $3.87 for the six months, showing improved profitability.
- 6The company continued to return capital to shareholders, with $0.9 billion and $2.6 billion returned in dividends and share repurchases for the three and six months ended June 30, 2019, respectively.
- 7Global Consumer Services Group (GCSG) and Global Commercial Services (GCS) segments showed revenue growth, with GCSG up 10% and GCS up 7% in total revenues net of interest expense for the quarter.