MW American Express earnings show healthy growth in spending
By Emily Bary
Amex's spending growth was 7% in the second quarter, an acceleration versus the 6% rate seen in the first quarter
American Express Co. saw an acceleration in spending growth during the latest quarter, showing that the company's customers continue to pull out their wallets despite economic jitters.
The financial-services company reported second-quarter results Friday morning, showing 7% growth in cardmember spending, versus the 6% growth seen in the first quarter.
Revenue, meanwhile, grew 9% to $17.9 billion, topping the FactSet consensus of $17.7 billion. Amex $(AXP.AU)$ recorded earnings per share of $4.08, down 2% from a year before, though the company said that EPS would have been up 17% when backing out a 66-cent per-share gain from a sale of part of the business, which was factored into the prior year's EPS figure. Analysts tracked by FactSet were expecting $3.89 in EPS for the latest quarter.
The company noted in its press release that it saw strong demand for its premium products and growth in the money it brings in from card fees.
Amex disclosed $1.4 billion in consolidated provisions for credit losses, up from $1.3 billion a year before. The company's net write-off rate of 2% in the quarter was down from 2.1% in the year-earlier quarter.
Consolidated expenses rose 14% to $12.9 billion. While some of that increase reflected financial dynamics around the sale of Accertify in the year-prior quarter, Amex also flagged increased use of travel-related benefits.
The company recently announced that it would be revamping its Platinum card.
Amex maintained its full-year forecast, which calls for 8% to 10% revenue growth as well as $15 to $15.50 in EPS.
-Emily Bary
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July 18, 2025 07:16 ET (11:16 GMT)
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