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 was $4.08, down 2 percent from $4.15 a year ago, or up 17 percent excluding the $0.66 gain from the sale of Accertify in the prior year.
| (Millions, except per share amounts, and where indicated) | ||||||||||
| Quarters EndedJune 30, | Percentage Inc/(Dec) | Six Months EndedJune 30, | Percentage Inc/(Dec) | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||||
| Billed Business (Billions) | $416.3 | $388.2 | 7% | $803.7 | $755.2 | 6% | ||||
| FX-adjusted1 | $390.7 | 7% | $754.6 | 7% | ||||||
| Total Revenues Net of Interest Expense | $17,856 | $16,333 | 9% | $34,823 | $32,134 | 8% | ||||
| FX-adjusted1 | $16,408 | 9% | $32,060 | 9% | ||||||
| Net Income | $2,885 | $3,015 | (4)% | $5,469 | $5,452 | —% | ||||
| Diluted Earnings Per Common Share (EPS)2 | $4.08 | $4.15 | (2)% | $7.71 | $7.48 | 3% | ||||
| Adjusted EPS Excluding Transaction Gain3 | $4.08 | $3.49 | 17% | $7.71 | $6.82 | 13% | ||||
| Average Diluted Common Shares Outstanding | 699 | 717 | (3)% | 701 | 719 | (3)% | ||||
“Our second-quarter results continued the strong momentum we have seen in our business over the last several quarters, with revenues growing 9 percent year-over-year to reach a record $17.9 billion, and adjusted EPS rising 17 percent,” 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 percent 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.”
| Business HighlightsThe results of the 2025 Comprehensive Capital Analysis and Review demonstrated that American Express has the lowest projected credit card loss rate and highest projected Return on Assets under the Federal Reserve’s stress test.5American Express announced major updates coming to the Consumer and Business Platinum Cards in the U.S. this fall.The new Coinbase One Card will launch on the American Express network.The company ranked #1 U.S. Credit Card Mobile App and #1 U.S. Credit Card Website Experience for Customer Satisfaction by J.D. Power.6American Express ranked #4 on the 2025 Best Companies to Work For® in the U.S. list by Great Place to Work®. |
Consolidated Financial Results
Second-quarter consolidated total revenues net of interest expense were $17.9 billion, up 9 percent 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 percent, down from 2.1 percent a year ago.4
Consolidated expenses were $12.9 billion, up 14 percent 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 percent, down from 20.4 percent a year ago, primarily reflecting discrete tax benefits in the current quarter related to the resolution of prior year tax items.
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This earnings release should be read in conjunction with the company’s statistical tables for the second quarter 2025, which include information regarding our reportable operating segments, available on the American Express Investor Relations website at http://ir.americanexpress.com and in a Form 8-K furnished today with the Securities and Exchange Commission.
An investor conference call will be held at 8:30 a.m. (ET) today to discuss second-quarter results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned American Express Investor Relations website. A replay of the conference call will be available later today at the same website address.
| 1 | As used in this release, FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for current period apply to the corresponding prior-year period against which such results are being compared). FX-adjusted revenues is a non-GAAP measure. The company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the company’s performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates. | |
| 2 | Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards of $18 million and $23 million for the three months ended June 30, 2025 and 2024, respectively, and $36 million and $41 million for the six months ended June 30, 2025 and 2024, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2025 and 2024, and $29 million for both the six months ended June 30, 2025 and 2024. | |
| 3 | Adjusted diluted earnings per common share, a non-GAAP measure, excludes the $0.66 per share impact of the gain from the sale of Accertify, Inc. recognized in the second quarter of 2024. See Appendix I for a reconciliation to EPS on a GAAP basis. Management believes adjusted EPS is useful in evaluating the ongoing operating performance of the company. | |
| 4 | Net write-off rates are based on principal losses only (i.e., excluding interest and/or fees) and represent consumer and small business Card Member loans and receivables (net write-off rates based on principal losses only are unavailable for corporate). We present a net write-off rate based on principal losses only to be consistent with industry convention. Net write-off rates including interest and fees are presented in the Statistical Tables for the second quarter of 2025 available on the above-mentioned American Express Investor Relations website, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses. | |
| 5 | Federal Reserve estimates for credit card losses as a percent of average credit card loan balances and pre-tax net income as a percent of average assets (Return on Assets) under the severely adverse scenario for the nine-quarter projection period from the first quarter of 2025 to the first quarter of 2027. See 2025 Federal Reserve Stress Test Results (June 2025). The Comprehensive Capital Analysis and Review (CCAR) results represent estimates under a hypothetical macroeconomic scenario that is more adverse than the current and economist consensus forecasted macroeconomic environments. Thus, these estimates are not forecasts and are not necessarily indicative of future performance under a severe stress scenario. Actual results could differ materially. | |
| 6 | American Express received the highest score in the J.D. Power 2025 U.S. Credit Card Mobile App and Online Credit Card Satisfaction Study, which measure customer satisfaction with financial institutions’ mobile applications and website experience for credit card account management. Visit jdpower.com/awards for more details. |
| As used in this release:Card Member spending (billed business) represents transaction volumes, including cash advances, on payment products issued by American Express.Operating expenses represent salaries and employee benefits, professional services, data processing and equipment, and other, net.Reserve releases and reserve builds represent the portion of the provisions for credit losses for the period related to increasing or decreasing reserves for credit losses as a result of, among other things, changes in volumes, macroeconomic outlook, portfolio composition, and credit quality of portfolios. Reserve releases represent the amount by which net write-offs exceed the provisions for credit losses. Reserve builds represent the amount by which the provisions for credit losses exceed net write-offs.Variable customer engagement costs represent the aggregate of Card Member rewards, business development, and Card Member services expenses. |
ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services and experiences that enrich lives and build business success.
Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, and service, and a rich history of delivering innovation and Membership value for our customers. With over a hundred million merchant locations across our global network, we seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations.
For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.
Source: American Express Company
Location: Global
