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American Express(AXP) - 2025 Q1 - Quarterly Results
AXPAmerican Express(AXP)2025-04-17 11:03

Financial Performance - Total non-interest revenues for Q1'25 were 12,798million,a612,798 million, a 6% increase year-over-year compared to 12,032 million in Q1'24[1] - Net income for Q1'25 reached 2,584million,reflectinga62,584 million, reflecting a 6% increase from 2,437 million in Q1'24[1] - Total consolidated revenues for Q1'25 reached 16,967million,a716,967 million, a 7% increase from Q1'24's 15,801 million[13] - Non-interest revenues in Q1'25 were 12,798million,up612,798 million, up 6% from 12,032 million in Q1'24[13] - The net interest income for U.S. Consumer Services in Q1'25 was 3,006million,reflectinga103,006 million, reflecting a 10% increase from 2,733 million in Q1'24[15] - Net interest income increased by 30% to 770millioncomparedtoQ1′24[16]−Totalrevenuesnetofinterestexpensereached770 million compared to Q1'24[16] - Total revenues net of interest expense reached 4,035 million, up 7% from the previous year[16] - International Card Services reported non-interest revenues of 2,646million,a92,646 million, a 9% increase year-over-year[17] - Total revenues net of interest expense for International Card Services were 2,936 million, an 8% increase from Q1'24[17] Assets and Loans - Card Member loans, less reserves, increased by 10% year-over-year to 133,611millioninQ1′25from133,611 million in Q1'25 from 121,348 million in Q1'24[3] - Total assets grew by 5% year-over-year to 282,244millioninQ1′25,upfrom282,244 million in Q1'25, up from 269,261 million in Q1'24[3] - Card Member loans totaled 139,203millioninQ1′25,markinga10139,203 million in Q1'25, marking a 10% increase from 126,619 million in Q1'24[9] - Total loans increased by 13% to 31,240millioncomparedtoQ1′24[16]−AverageCardMemberloansreached31,240 million compared to Q1'24[16] - Average Card Member loans reached 138,457 million in Q1'25, up from 124,720millioninQ1′24,representinganincreaseof11124,720 million in Q1'24, representing an increase of 11%[21] Expenses and Provisions - Total expenses for Q1'25 were 12,487 million, a 10% increase compared to 11,387millioninQ1′24[1]−Totalprovisionsforcreditlossesdecreasedby911,387 million in Q1'24[1] - Total provisions for credit losses decreased by 9% year-over-year to 1,150 million in Q1'25 from 1,269millioninQ1′24[1]−Totalprovisionsforcreditlossesdecreasedby71,269 million in Q1'24[1] - Total provisions for credit losses decreased by 7% to 329 million year-over-year[16] - Total provisions for credit losses in International Card Services were 192million,a5192 million, a 5% increase compared to the previous year[17] - Total provisions for credit losses were 2 million in Q1'25, compared to 6millioninQ1′24,indicatingasignificantimprovement[18]ShareholderReturns−Cashdividendsdeclaredpercommonshareincreasedby176 million in Q1'24, indicating a significant improvement[18] Shareholder Returns - Cash dividends declared per common share increased by 17% to 0.82 in Q1'25 from 0.70inQ1′24[1]−ReturnonaverageequityforQ1′25was33.60.70 in Q1'24[1] - Return on average equity for Q1'25 was 33.6%, slightly down from 34.3% in Q1'24[3] - The company reported a pretax segment income of 990 million in Q1'25, down 3% from 1,017millioninQ1′24[18]−NetincomeforQ1′25wasimpactedby1,017 million in Q1'24[18] - Net income for Q1'25 was impacted by 18 million allocated to participating share awards and 14millioninpreferredsharedividends[15]CardMemberMetrics−NetworkvolumesforQ1′25reached14 million in preferred share dividends[15] Card Member Metrics - Network volumes for Q1'25 reached 439.6 billion, a 5% year-over-year increase from 419.2billioninQ1′24[5]−BilledbusinessinQ1′25was419.2 billion in Q1'24[5] - Billed business in Q1'25 was 387.4 billion, reflecting a 6% increase compared to 367.0billioninQ1′24[5]−Theaveragefeepercardroseto367.0 billion in Q1'24[5] - The average fee per card rose to 111 in Q1'25, a 13% increase from 98inQ1′24[5]−ProprietarynewcardsacquiredinQ1′25were3.4million,consistentwithQ1′24[5]−Thenumberofproprietarycards−in−forceincreasedby598 in Q1'24[5] - Proprietary new cards acquired in Q1'25 were 3.4 million, consistent with Q1'24[5] - The number of proprietary cards-in-force increased by 5% year-over-year, reaching 46.8 million in Q1'25[15] - Average proprietary basic Card Member spending was 5,014 in Q1'25, a 1% increase from 4,962inQ1′24[15]CreditQuality−Thenetwrite−offrateforCardMemberloanswas2.44,962 in Q1'24[15] Credit Quality - The net write-off rate for Card Member loans was 2.4% in Q1'25, up from 2.3% in Q1'24[9] - The net write-off rate for principal and fees was 0.8% in Q1'25, down from 1.5% in Q1'24[15] - Credit loss reserves for other loans ended at 244 million in Q1'25, a 79% increase from 136millioninQ1′24[11]−ThereserveasapercentageofCardMemberloanswas4.0136 million in Q1'24[11] - The reserve as a percentage of Card Member loans was 4.0% in Q1'25, slightly down from 4.2% in Q1'24[9] Interest Income and Yield - Interest income rose to 1,202 million in Q1'25, reflecting a 20% year-over-year growth[16] - Net interest yield on average Card Member loans was 12.2% in Q1'25, consistent with 12.2% in Q1'24[21] - Interest expense primarily represents costs associated with maintaining the corporate liquidity pool and funding Card Member receivables[15] - Interest income is primarily derived from Other loans, interest-bearing deposits, and fixed income investment portfolios[15]