AMERICAN EXPRESS CO Quarterly Report for Q2 Ended Jun 30, 2023

Summary

American Express Company (AXP) reported strong financial results for the second quarter of 2023, demonstrating resilience and growth across its core business segments. Total revenues net of interest expense increased by a significant 12% year-over-year to $15.1 billion, driven by robust Card Member spending and strong acquisition momentum. Net income rose 11% to $2.17 billion, or $2.89 per diluted share, surpassing the prior year's performance. The company experienced broad-based growth in network volumes, up 8% globally, with notable strength in Travel & Entertainment (T&E) spend, which grew 14%. International Card Services saw particularly strong billed business growth of 15%. While U.S. small and mid-sized enterprise (SME) spend growth continued to slow, overall revenue growth was healthy, supported by increased net card fees reflecting successful premium value proposition investments. Despite an increase in provisions for credit losses, driven by loan growth and higher net write-offs, the company emphasized that its credit metrics remain best-in-class and below pre-pandemic levels.

Key Highlights

• 1Total revenues net of interest expense increased 12% year-over-year to $15.1 billion.
• 2Net income grew 11% year-over-year to $2.17 billion, or $2.89 per diluted share.
• 3Worldwide network volumes increased by 8% year-over-year, driven by strong Card Member spending.
• 4Travel & Entertainment (T&E) spend saw a significant increase of 14% year-over-year.
• 5Net card fees increased by 21% year-over-year, reflecting successful investments in premium value propositions and strong new account acquisition.
• 6Provisions for credit losses increased significantly due to higher loan volumes and net write-offs, though credit metrics remain strong.
• 7American Express returned $1.6 billion to shareholders in the quarter through dividends and share repurchases.

Frequently Asked Questions