AMERICAN EXPRESS CO Quarterly Report for Q3 Ended Sep 30, 2019

Summary

American Express Company (AXP) reported solid third-quarter and nine-month results for 2019, demonstrating broad-based growth across its businesses and geographies. Total revenues net of interest expense increased by 8% for both the three and nine-month periods, driven by growth in Card Member spending, net interest income, and card fees. The company continued to invest in customer engagement, including new benefits for premium card products and expansion of its merchant network. Card Member loans grew by 8% year-over-year, reflecting successful lending relationships and new customer acquisition. While provisions for losses also increased slightly due to a rise in net write-offs and delinquencies, overall credit quality appears stable. The company returned significant capital to shareholders through dividends and share repurchases, totaling $1.8 billion in the third quarter and $4.3 billion year-to-date, underscoring its commitment to shareholder returns.

Key Highlights

• 1Total revenues net of interest expense increased by 8% in the third quarter and year-to-date periods compared to the prior year, reaching $10.99 billion and $32.19 billion, respectively.
• 2Net income for the third quarter was $1.76 billion, a 6% increase year-over-year, with diluted EPS rising to $2.08.
• 3Card Member loans grew by 8% year-over-year, totaling $83.7 billion as of September 30, 2019.
• 4Provisions for losses increased by 8% in the third quarter, reflecting slightly higher net write-offs and delinquencies.
• 5Total expenses increased by 9% in the third quarter, driven by investments in marketing, rewards, and Card Member services.
• 6The company returned $1.8 billion to shareholders in the third quarter through dividends and share repurchases.
• 7Billed business across all segments grew by 5% year-over-year for the third quarter.

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