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 11% year-over-year, driven by a 6% increase in billed business and a 26% increase in net interest income. Discount revenue, the largest revenue line, increased by 5%.
Net income increased by 34% year-over-year, reaching $2.4 billion, or $3.33 per share, compared to $1.8 billion, or $2.40 per share, a year ago. The effective tax rate increased from 16.2% to 22.5%, primarily due to discrete tax benefits in the prior period.
Provisions for credit losses increased by 20% year-over-year, primarily driven by higher net write-offs, partially offset by a lower net reserve build in the current year. Net write-off and delinquency rates remain best-in-class.