Sector: Financials|Industry: Credit Services|Market Cap: $206.46B|Employees: 74.6K
American Express is a globally integrated payments company, offering credit and charge cards to consumers, small businesses, and large corporations. The company operates its own network, enabling direct relationships with both card members and merchants, which provides unique data insights and competitive advantages. American Express has a significant presence in key markets such as the United States, the United Kingdom, and other parts of Europe, as well as Australia, Japan, Canada and Mexico.
Total revenues net of interest expense increased by 14% year-over-year, driven by a 9% increase in billed business and a 33% increase in net interest income. This indicates a strong performance in both transaction volume and lending activities.
Net income reached $8.4 billion, up from $7.5 billion in the previous year, reflecting successful execution of the company's growth strategy, premium customer base, and disciplined risk management.
Provisions for credit losses increased to $4.9 billion, compared to $2.2 billion in the previous year, driven by higher net write-offs and a higher reserve build, indicating potential concerns about credit quality.