Core Insights - The acquisition of Discover by Capital One is a strategic move that positions Capital One to challenge the dominance of Visa and Mastercard while increasing competition with American Express [2][6][9] Company Overview - Capital One has completed the acquisition of Discover, which allows it to leverage Discover's payment network and brand to enhance its competitive position in the credit card market [2][7] - Discover's payment network currently facilitates about 2% of U.S. card transactions and 1% globally, compared to American Express's 11% share in the U.S. [6][10] Market Dynamics - The credit card industry is characterized by distinct players, with banks like JP Morgan and Citigroup issuing cards that utilize Visa or Mastercard networks, while American Express and Discover operate as both issuers and networks [4][6] - Despite Discover's smaller market share, it generates more net revenue per transaction by not relying on third-party payment networks [6][7] Competitive Landscape - Capital One aims to offer better terms to merchants than Visa, Mastercard, or American Express, but faces challenges in gaining consumer trust and recognition compared to established brands [9][10] - Capital One is one of the top five issuers in terms of total payments and card balances, indicating its significant role in the market [11] Financial Position - Capital One is the sixth-largest banking entity in the U.S. with nearly $650 billion in total assets, providing it with the potential to expand its services beyond credit cards [12] - The company has opportunities to grow Discover's payment network, with even a modest increase from 2% to 4% of the U.S. market potentially doubling its size [15] Investment Outlook - Analysts suggest that there is potential upside for Capital One's stock, with a consensus target price indicating a 20% increase from its current level [16]

Core Viewpoint - American Express is a strong player in the credit card industry with significant brand recognition and a closed-loop payments platform that enhances its network effect [1][4][7] Group 1: Investment Performance - American Express shares have generated a total return of 237% over the past five years, indicating strong performance but falling short of the 400% target [4] - A hypothetical fivefold increase in shares over the next five years would yield a 38% annualized return, outperforming the broader market [4] - The company is not expected to achieve a $10,000 to $50,000 investment growth by 2030, as management anticipates earnings per share growth at a mid-teens percentage pace [5][6] Group 2: Long-term Outlook - Investors extending their time horizon may see a potential 400% return over a 15- to 20-year period, despite short-term growth limitations [6] - The stock is currently trading at a historically high price-to-earnings ratio of 21.6, which may hinder achieving better returns [7] Group 3: Company Strengths - American Express benefits from a strong brand and network effect, supported by significant investment from Berkshire Hathaway, which owns 21.8% of the outstanding shares [1][7] - The company is recognized as an outstanding business, meriting a place on investors' watch lists [7]

Business Model Shift - Many carriers are now generating revenue from credit-card deals [1]

A deal between Apple and JPMorgan could reportedly leave a lesser-known company in the cold. By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions . Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required. As the Wall Street Journal (WSJ) reported Sunday (Aug. 3), CoreCard has ...

Business Relationship - JPMorgan is in advanced talks to replace Goldman Sachs in its credit-card joint venture with Apple [1]

Should you buy the shares as they trade below $315 (as of July 25)? Warren Buffett's stamp of approval The great Warren Buffett has a stringent filter for what Berkshire Hathaway owns in its portfolio. So investors should take notice of the fact that American Express is one of the top holdings for the conglomerate. This means that the company must have some merits. One area worth mentioning is the company's durable performance in these uncertain economic times. Through the first six months of 2025, Amex's r ...

American Express is still a reliable long-term investment. Many investors follow Berkshire Hathaway's (BRK.A 0.16%) (BRK.B 0.79%) $293.8 billion portfolio because those stocks were approved by Warren Buffett himself. Even though Buffett plans to step down as Berkshire's chief executive officer this year, his successor, Greg Abel, probably won't dramatically shake up those top holdings. Since American Express is both a card issuer and a bank, it's better insulated from inflation and interest rate swings than ...

Group 1 - American Express Co (NYSE:AXP) beat earnings estimates but issued cautious guidance, disappointing investors [2] - Despite the pullback, shares are less than 10% from all-time highs and show strong momentum from an April low of $222 [2] - Post-earnings action occurred at the 50-day moving average, just above the $300 mark and recent highs from May and June [2] Group 2 - There was notable put activity prior to earnings, primarily for hedging purposes, which may limit post-earnings downside [3] - Analysts have room for upgrades, with 19 out of 29 analysts maintaining a "hold" or worse rating [3] - Short interest is at a three-year high, with total short interest up 25% since April, indicating a challenging environment for short sellers [4] Group 3 - The recommended call option has a leverage ratio of 10.7, which could double with a 9.5% increase in the underlying equity [4]

Financial Performance Highlights - KB Financial Group's 1H25 net profit reached ₩3.436 trillion, a 23.8% year-over-year increase[12, 17] - The Group's ROE for 1H25 was 13.03%, a 2.23%p increase year-over-year[8, 14] - Non-bank subsidiaries contributed 39% to the Group's net profit[16, 17] Shareholder Returns - The company plans a total shareholder return of ₩1.15 trillion, including a ₩850 billion share buyback and cancellation[8] - A proactive return of ₩300 billion was implemented in 2Q25[8, 11] - The CET-1 ratio as of June 2025 reached 13.74%[8, 11] Financial Analysis - Group net interest income slightly decreased by 0.4% year-over-year to ₩6.3687 trillion[24] - Group net non-interest income increased by 10.9% year-over-year to ₩2.7233 trillion[29] - Group G&A expenses increased by 4.1% year-over-year to ₩3.3553 trillion[35] Asset Quality - The Group's NPL ratio was 0.72%, with an NPL coverage ratio of 138.5%[48] - Provision for credit losses totaled ₩1.3107 trillion in 1H25, a 33.6% increase year-over-year[41] Subsidiary Performance - KB Kookmin Bank reported a net profit of ₩2.1876 trillion and an ROE of 11.63%[84] - KB Securities recorded a net profit of ₩338.9 billion and an ROE of 10.10%[87] - KB Insurance's net profit was ₩558.1 billion with an ROE of 20.51%[90]

Company Overview - Imprint, a 5-year-old credit card startup, has successfully secured a co-branded card deal with Rakuten, indicating its growing influence in the co-branded credit card market [1] - The company recently raised $70 million in additional capital, increasing its valuation by 50% to $900 million within less than a year [2] Industry Dynamics - The co-branded credit card sector is highly competitive, with major players including JPMorgan Chase, Capital One, Citigroup, and Synchrony vying for partnerships with retailers, airlines, and hotels [3] - Imprint is actively engaging with Fortune 500 companies to establish partnerships, positioning itself as a viable alternative to larger banks like Synchrony and Barclays [4] Financial Position - Imprint has raised a total of $330 million, primarily retained on its balance sheet, to demonstrate financial stability to potential partners [4] - The startup has access to approximately $1.5 billion in credit lines from banks such as Citigroup, Truist, and Mizuho, which it utilizes to extend loans to card customers [5]