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| Information Source: Nasdaq |
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Card Member Spending Reaches Quarterly High, Up 7% Over Last Year Company Reaffirms Full-Year 2025 Revenue and EPS Guidance |
| American Express Company (NYSE: AXP) today reported second-quarter net income of $2.9 billion, compared with net income of $3.0 billion a year ago. Earnings per share were $4.08, down 2 per cent from $4.15 a year ago, or up 17 per cent excluding the $0.66 gain from the sale of Accertify in the prior year. |
| “Our second-quarter results continued the strong momentum we have seen in our business over the last several quarters, with revenues growing per cent year-over-year to reach a record $17.9 billion, and adjusted EPS rising 17 per cent,” said Stephen J. Squeri, Chairman and Chief Executive Officer. |
| “We saw record Card Member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class. Based on our strong performance year to date, we are reaffirming our full-year guidance for revenue growth of 8 to 10 per cent and EPS of $15.00 to $15.50. |
| “Looking at the upcoming refresh of our U.S. Consumer and Business Platinum Cards this fall, we are confident in our ability to sustain our leadership in the premium space, drawing on our competitive strengths. With our differentiated Membership model and proven product refresh strategy, combined with the expansion of the premium category, we see a long runway for growth.” |
| Consolidated Financial Results |
| Second-quarter consolidated total revenues net of interest expense were $17.9 billion, up 9 per cent year-over-year. The increase was primarily driven by increased Card Member spending, higher net interest income supported by growth in revolving loan balances, and continued strong card fee growth. |
| Consolidated provisions for credit losses were $1.4 billion, compared with $1.3 billion a year ago. The increase reflected a higher net reserve build and higher net write-offs year-over-year, driven by growth in Total loans and Card Member receivables. The second-quarter net write-off rate was 2.0 per cent, down from 2.1 per cent a year ago 4 |
| Consolidated expenses were $12.9 billion, up 14 per cent year-over-year. The increase was driven by higher operating expenses, primarily due to the prior year gain from the sale of Accertify and higher investments in enterprise risk management capabilities and technology, and higher variable customer engagement costs driven by increased Card Member spending and usage of travel-related benefits. |
| The consolidated effective tax rate was 18.7 per cent, down from 20.4 per cent a year ago, primarily reflecting discrete tax benefits in the current quarter related to the resolution of prior year tax items. |
| For the full document, click the link below |
| American Express Company |
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American Express: Delivers Record Second-Quarter Revenue of $17.9 Billion, Up 9% Year-Over-Year, and Earnings Per Share of $4.08
