Early Access

10-QPeriod: Q2 FY2021

AMERICAN EXPRESS CO Quarterly Report for Q2 Ended Jun 30, 2021

Filed July 23, 2021For Securities:AXP

Summary

American Express Company (AXP) reported strong performance for the second quarter of 2021, demonstrating a significant recovery from the impacts of the COVID-19 pandemic. Total revenues net of interest expense increased by 33% year-over-year to $10.243 billion, driven by a substantial 50% increase in worldwide network volumes. This growth was fueled by a robust rebound in both consumer and commercial spending, particularly in Goods & Services (G&S) categories which exceeded pre-pandemic levels, while Travel & Entertainment (T&E) spending showed a significant year-over-year acceleration but remained below pre-pandemic figures. The company also benefited from a significant decrease in provisions for credit losses, which swung from a substantial build in the prior year to a net benefit in the current period, reflecting improved credit performance and a better macroeconomic outlook. Expenses increased by 44%, largely due to higher marketing and Card Member rewards, reflecting investments to drive future growth. Net income surged to $2.28 billion, a stark contrast to the $257 million reported in the same period last year, leading to a diluted EPS of $2.80.

Financial Highlights

38 data points
Beta

Revenue

$6.76B

Net Income

$2.28B

0.3% Net Margin

EPS (Diluted)

$2.80

Total Assets

$187.00B

Cash & Equivalents

$30.80B

Free Cash Flow

$2.90B

Financial Statements
Beta
Revenue$6.76B
Interest Expense$322.00M
Net Income$2.28B
EPS (Basic)$2.81
EPS (Diluted)$2.80
Shares Outstanding (Basic)801.00M
Shares Outstanding (Diluted)802.00M

Key Highlights

  • 1Total revenues net of interest expense surged 33% year-over-year to $10.24 billion, driven by a 50% increase in worldwide network volumes.
  • 2Provision for credit losses swung to a net benefit of $606 million, compared to a $1.56 billion provision in the prior year, reflecting improved credit quality.
  • 3Net income increased dramatically to $2.28 billion from $257 million in the prior year's quarter, with diluted EPS reaching $2.80.
  • 4Discount revenue, the largest revenue source, grew 58% year-over-year to $6.33 billion due to increased Card Member spending.
  • 5Card Member loans increased by 8% year-over-year, though this growth lagged billed business due to higher paydown rates.
  • 6Marketing and business development expenses rose 63% year-over-year to $2.22 billion, reflecting investments to drive growth momentum.
  • 7The company maintained a strong capital position, with its Common Equity Tier 1 (CET1) risk-based capital ratio at 14.2% as of June 30, 2021.

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