10-QPeriod: Q1 FY2025

AMERICAN EXPRESS CO Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 18, 2025For Securities:AXP

Summary

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 billion, 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 billion through dividends and share repurchases while maintaining its Common Equity Tier 1 (CET1) capital ratio within its target range.

Financial Highlights

39 data points
Beta

Revenue

$9.63B

Net Income

$2.58B

26.8% Net Margin

EPS (Diluted)

$3.64

Total Assets

$282.24B

Cash & Equivalents

$52.51B

Free Cash Flow

$4.33B

Financial Statements
Beta
Revenue$9.63B
Net Income$2.58B
EPS (Basic)$3.64
EPS (Diluted)$3.64
Shares Outstanding (Basic)701.00M
Shares Outstanding (Diluted)702.00M

Key Highlights

  • 1Total revenues net of interest expense increased by 7% to $16.97 billion, with an 8% increase on a foreign currency-adjusted basis.
  • 2Net income grew by 6% to $2.58 billion, and diluted earnings per share rose by 9% to $3.64.
  • 3Billed business increased by 6% year-over-year, reflecting continued spending by its premium customer base.
  • 4Net card fees saw a significant 18% increase, indicating strong new card acquisitions and customer retention.
  • 5Provisions 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.
  • 6The company returned $1.3 billion to shareholders through share repurchases and dividends.
  • 7Common Equity Tier 1 (CET1) capital ratio remained strong at 10.7%, within the company's target range of 10-11%.

Frequently Asked Questions

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.

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.

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.

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.