01—Abstract
Summary
Summary of the 10-Q filed April 18, 2025. Cited figures are marked; the original filing is the authoritative source.
American Express Company (AXP) reported solid financial results for the first quarter of 2025, demonstrating continued strength in its premium customer base and robust business performance.
Total revenues net of interest expense grew by 7% (8% on a foreign currency-adjusted basis) to $16.97 billiona, driven by strong billed business growth and increased net card fees. Net income rose 6% to $2.58 billion, translating to diluted earnings per share of $3.64, a 9% increase year-over-year.
The company maintained a strong credit profile with stable net write-off and delinquency rates, underscoring the quality of its customer base and effective risk management. AXP also demonstrated its commitment to shareholder returns, returning $1.3 billionb through dividends and share repurchases while maintaining its Common Equity Tier 1 (CET1) capital ratio within its target range.
02—Key points
Key Highlights
- Total revenues net of interest expense increased by 7% to $16.97 billion, with an 8% increase on a foreign currency-adjusted basis.
- Net income grew by 6% to $2.58 billion, and diluted earnings per share rose by 9% to $3.64.
- Billed business increased by 6% year-over-year, reflecting continued spending by its premium customer base.
- Net card fees saw a significant 18% increase, indicating strong new card acquisitions and customer retention.
- Provisions for credit losses decreased by 9% due to a modest reserve release, while net write-off and delinquency rates remained stable and best-in-class.
- The company returned $1.3 billion to shareholders through share repurchases and dividends.
- Common Equity Tier 1 (CET1) capital ratio remained strong at 10.7%, within the company's target range of 10-11%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 18, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $9.63B$9.34B | +3.1% |
| Net Income | $2.58B$2.44B | +6.0% |
| EPS (Basic) | $3.64$3.34 | +9.0% |
| EPS (Diluted) | $3.64$3.33 | +9.3% |
| Shares Outstanding (Basic) | 701.00M721.00M | −2.8% |
| Shares Outstanding (Diluted) | 702.00M722.00M | −2.8% |
05—Questions
Frequently Asked Questions
How did American Express's revenue and profitability perform in the first quarter of 2025?
American Express reported a 7% increase in total revenues net of interest expense to $16.97 billion, and a 6% increase in net income to $2.58 billion. Diluted earnings per share grew by 9% to $3.64 compared to the prior year's quarter.
What is the current state of American Express's credit quality?
Credit quality remains strong, with net write-off rates and 30+ days past due rates for consumer and small business segments remaining stable year-over-year and described as 'best-in-class.' This stability is attributed to the premium nature of its customer base and disciplined risk management.
How is American Express returning capital to shareholders?
In the first quarter of 2025, American Express returned $1.3 billion to shareholders through $0.7 billion in share repurchases and $0.6 billion in common stock dividends. The company plans to continue returning excess capital while maintaining its capital ratios.
What is the outlook regarding macroeconomic conditions and their impact on American Express?
While the company reported strong first-quarter results, it acknowledges the uncertainty of the macroeconomic environment. American Express believes its differentiated business model, premium customer base, and revenue mix position it well to navigate various economic conditions. Management continues to focus on long-term value creation through customer support, expense management, and strategic investments.
06—Continue