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 8% YoY to $16.3B, driven by a 5% increase in billed business and a 15% increase in net card fees. Discount revenue also grew 4% YoY.
Net income increased 39% YoY to $3.0B, driven by revenue growth and a $531M gain from the sale of Accertify. Earnings per share increased 44% YoY to $4.15.
Provisions for credit losses increased 6% YoY to $1.3B, primarily due to higher net write-offs, partially offset by lower reserve builds. Net write-off rates for loans and receivables increased YoY.