American Express Company · NYSE:AXP
American Express — Q1 2025 Earnings Presentation
42 slides from American Express's earnings presentation, Apr 17, 2025
Slide 1: American Express Earnings Conference Call Q1'25
American Express Earnings Conference Call Q1'25 APRIL 17, 2025
Slide 2: Summary Financial Performance
Summary Financial Performance $ in millions, except per share amounts; % Increase/(decrease) vs. Prior year (Reported) unless otherwise stated YoY% Q1'25 Q1'24 Inc/(Dec) Total Revenues Net of Interest Expense $16,967 $15,801 7% FX-Adjusted* $15,652 8% Net Income $2,584 $2,437 6% Diluted EPS** $3.64
Slide 3: Total Billed Business
Total Billed Business % Increase/(decrease) vs. Prior year (FX-adjusted) 15% Leap Year Leap Year Approx. Approx. +1% (1%) 10% 8% 7% 6% 6% 6% 5% 0% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 G&S 6% 6% 6% 8% 7% T&E 8% 7% 6% 10% 6% All growth rates reflect FX-adjusted rates. See Annex
Slide 4: U.S. Consumer Services Billed Business
U.S. Consumer Services Billed Business % Increase/(decrease) vs. Prior year 15% Leap Year Leap Year Approx. Approx. +1% (1%) 10% 9% 8% G&S, 7% YoY 7% 6% 6% T&E, 7% YoY 5% 0% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Millennials + Q1'25 Gen-X Baby Boomer + Total Gen-Z YoY 14% 5% 1% 7% % of Total 35% 36% 29% 100%
Slide 5: Commercial Services Billed Business
Commercial Services Billed Business % Increase/(decrease) vs. Prior year (FX-adjusted) 15% Leap Year Leap Year Approx. Approx. +1% (1%) 10% 5% 4% G&S, 2% YoY 2% 2% 2% 1% T&E, 2% YoY 0% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'25 U.S. SME U.S. Large & Global Corp. Total YoY 2% 1% 2% % of Total 81% 19% 100% S
Slide 6: International Card Services Billed Business
International Card Services Billed Business % Increase/(decrease) vs. Prior year (FX-adjusted) 20% Leap Year Leap Year Approx. Approx. +1% (1%) 15% 15% 13% 13% 13% 13% G&S, 14% YoY T&E, 9% YoY 10% 5% 0% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'25 Int’l Consumer Int’l SME & Large Corp. Total YoY 12% 13% 13%
Slide 7: Worldwide Total Loans and Card Member Receivables
Worldwide Total Loans and Card Member Receivables $ in billions (on a reported basis) - % Increase/(decrease) vs. Prior year (FX-adjusted) $208 $207 $202 $199 $193 $194 9% 7% 10% 13% 12% YoY Growth 13% Q4’23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Total Loans reflects Card Member loans and Other loans. YoY gr
Slide 8: Credit Metrics
Credit Metrics 30+ Days Past Due Net Write-off Rates % of Card Member Loans and Receivables % of Average Card Member Loans and Receivables 1.3% 1.3% 1.3% 1.3% 1.2% 2.1% 2.1% 2.1% 1.9% 1.9% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Net write-off rates based on principal losses only
Slide 9: Total Provision
Total Provision ($ in millions) $1,356 $1,269 $1,268 $1,292 Total Provision $1,150 $101 $264 $153 Reserve $148 Build/(Release) $1,223 Write-offs $1,121 $1,167 $1,092 $1,139 ($73) Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Reserves as a % of Total Loans & 2.9% 2.8% 2.9% 2.9% 2.9% CM Receivables See Variance Comme
Slide 10: Revenue Performance
Revenue Performance ($ in millions) YoY% Inc/(Dec) Q1'24 Reported FX-Adjusted* Q1'25 YoY% Inc/(Dec) YoY% Inc/(Dec) Discount Revenue $8,743 $8,380 4% 5% Net Card Fees $2,333 $1,974 18% 20% Service Fees and Other Revenue** $1,722 $1,678 3% 5% Net Interest Income $4,169 $3,769 11% 11% Revenues Net of I
Slide 11: Discount Revenue
Discount Revenue $ in billions (on a reported basis) - % Increase/(decrease) vs. Prior year (FX-adjusted) $8.9 $9.2 $8.8 $8.7 $8.4 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 YoY Growth* 6% 5% 4% 8% 5% * Discount Revenue YoY growth rates adjusted for FX are non-GAAP measures. See Ann
Slide 12: Net Card Fees and Proprietary New Cards Acquired
Net Card Fees and Proprietary New Cards Acquired Net Card Fees Growth Proprietary NCA % Increase/(decrease) vs. Prior year (FX-adjusted) (in millions) 30% 3.4 3.3 3.3 3.4 25% 3.0 20% 19% 20% 18% 16% 16% 15% 10% 5% 0% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Net Card Fees YoY growt
Slide 13: Net Interest Income
Net Interest Income $ in billions (on a reported basis) - % Increase/(decrease) vs. Prior year (FX-adjusted) $4.2 $4.0 $4.0 $3.8 $3.7 YoY 20% 17% 13% 11% 26% Growth* Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 WW Net Interest 12.0% 11.7% 12.0% 11.8% 12.2% Yield on CM Loans** * Net Interest Income YoY growth rates
Slide 14: Total Revenues Net of Interest Expense
Total Revenues Net of Interest Expense $ in billions (on a reported basis) - % Increase/(decrease) vs. Prior year (FX-adjusted) Leap Year Leap Year 15% Approx. Approx. +1% (1%) 11% 10% 10% 9% 8% 8% 5% 0% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 $B $15.8 $16.3 $16.6 $17.2 $17.0 Rev
Slide 15: Expense Performance
Expense Performance ($ in millions) Reported Q1'25 Q1'24 YoY% Inc/(Dec) Card Member Rewards $4,378 $3,774 16% Business Development $1,529 $1,392 10% Card Member Services $1,328 $1,171 13% Q1’25 VCE % of Revenue Variable Customer Engagement Expenses $7,235 $6,337 14% 43% Marketing $1,486 $1,476 1% Op
Slide 16: Capital
Capital Common Equity Tier 1 Capital Return ($ in billions) 10.8% $2.4 10.6% 10.7% 10.5% 10.7% $2.3 $0.5 $0.5 $1.6 $1.6 $1.3 $0.5 $0.5 $1.9 $0.6 Dividends $1.8 $1.1 $1.1 Share $0.7 Repurchases Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 CET1 Ratio Target: 10-11% Regulatory Minimum*:
Slide 17: 2025 Guidance
2025 Guidance 2025 Guidance Revenue Growth: 8% - 10% EPS: $15.00 - $15.50 (Adjusted EPS Growth*: 12% - 16%) Subject to the Macroeconomic Environment Our ability to achieve our 2025 guidance is subject to the macroeconomic environment, as well as contingencies and other factors beyond our control. Re
Slide 18: Appendix
Appendix
Slide 19: Travel & Entertainment Billed Business
Travel & Entertainment Billed Business Q1'25 Restaurants Lodging Airlines Other Total T&E YoY Growth 7% 5% 3% 8% 6% % of Total Billed Business 7% 5% 7% 8% 28% All growth rates reflect FX-adjusted rates. See Slide 2 for an explanation of FX-adjusted information. % of Total Billed Business may not foo
Slide 20: Q1'25 Network Volumes Growth by Customer Type
Q1'25 Network Volumes Growth by Customer Type % Increase/(decrease) vs. Prior Year (FX-adjusted) U.S. Consumer Services: Commercial Services: International Card Services: 7% 2% 13% 13% 12% 7% 3% 2% 1% % of Total U.S. U.S. U.S. Large & Int’l Int’l SME & Processed Network Volumes Consumer SME Global C
Slide 21: Card Member Credit Metrics
Card Member Credit Metrics Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Card Member Loans Net Write-off Rate* 2.3% 2.3% 2.1% 2.1% 2.4% Card Member Receivables Net Write-off Rates* 1.7% 1.5% 1.4% 1.2% 1.3% Corporate Net Write-off Rates** 0.5% 0.6% 0.6% 0.5% 0.5% Card Member Loans 30+ Days Past Due*** 1.4% 1.3% 1.4%
Slide 22: Credit Reserve Macroeconomic Scenarios: Select Variables
Credit Reserve Macroeconomic Scenarios: Select Variables U.S. Unemployment Rate % U.S. GDP Growth* % 10% 6% 9% 5% 4% 8% 3% 7% 2% 6% 1% 5% 0% 4% (1)% 3% (2)% 2% (3)% 1% (4)% 0% (5)% Q1'27 Q4’26 Q3’26 Q2’26 Q1’26 Q4’25 Q3’25 Q2’25 Q1’25 Q4’24 Q3’24 Q2’24 Q1’24 Q3’25 Q4’24 Q1’24 Q3’26 Q4’25 Q1’25 Q2’24
Slide 23: Funding and Deposits
Funding and Deposits Funding Mix Deposit Programs 92% FDIC ($ in billions) ($ in billions) insured at Q1'25 $191 $199 $138 $145 Short-term 1% 1% Funding Third Party 7% 7% 6% 7% CDs Card ABS* Third Party 11% 11% Unsecured Sweep 19% 19% 1% 2% Checking Funding** Savings and 81% 81% Direct CDs 73% 73% D
Slide 24: FX Impact on Billed Business
FX Impact on Billed Business Approximate Q1’25 Billed Business YoY Change in USD* vs. Currency as a % of Total Strengthened / (Weakened) Euro € 5% 3% UK £ 6% 0% Japan ¥ 4% 1% Australia $ 4% 4% Canada $ 2% 6% Mexico $ 2% 20% Top 6 Intl. Currencies 22% 4% ** All Other Intl. Currencies 3% Billed Busine
Slide 25: Additional Commentary – Variance Analysis
Additional Commentary – Variance Analysis The following summary provides selected variance information for the three months ended March 31, 2025 compared to the same period in the prior year. It should be read in conjunction with the statistical tables for Q1'25, available at ir.americanexpress.com.
Slide 26: Additional Commentary – Variance Analysis
Additional Commentary – Variance Analysis • Card Member Rewards Expense: Increased 16 percent versus Q1'24, primarily driven by higher billed business, a benefit in the prior year from enhancements to the models that estimate future redemptions of Membership Reward points by U.S. Card Members, as we
Slide 27: Annex 1 (1 of 2)
Annex 1 (1 of 2) Billed Business and Processed Volumes – Reported & FX-Adjusted* % Increase/(decrease) vs. Prior year Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Billed Business Reported 6% 5% 6% 8% 6% FX-Adjusted* 7% 6% 6% 8% 6% G&S Reported 6% 5% 6% 7% 6% FX-Adjusted* 6% 6% 6% 8% 7% T&E Reported 8% 6% 6% 9% 5%
Slide 28: Annex 1 (2 of 2)
Annex 1 (2 of 2) Billed Business – Reported & FX-Adjusted* % Increase/(decrease) vs. Prior year Q1'25 Q1'25 Reported FX-Adj.* Reported FX-Adj.* International Consumer 9% 12% U.S. Large and Global Corp. 1% 1% Commercial Services International SME & Large Corp. 9% 13% Total Billed Business 2% 2% Inter
Slide 29: Annex 2
Annex 2 Worldwide Total Loans and Card Member Receivables – Reported & FX-Adjusted* ($ in billions) Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP Worldwide Total Loans and Card Member $171 $172 $179 $183 $193 $194 $199 $202 $208 $207 Receivables FX-Adjusted Worldwide Total Loans a
Slide 30: Annex 3
Annex 3 Revenue – Reported & FX-Adjusted* ($ in millions) YoY% Q1'25 Q1'24 Inc/(Dec) Discount Revenue $8,743 $8,380 4% FX-Adjusted* $8,315 5% Net Card Fees $2,333 $1,974 18% FX-Adjusted* $1,951 20% Service Fees and Other Revenue $1,722 $1,678 3% FX-Adjusted* $1,640 5% Net Interest Income $4,169 $3,7
Slide 31: Annex 4
Annex 4 Discount Revenue – Reported & FX-Adjusted* ($ in billions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP Discount Revenue $7.9 $8.5 $8.4 $8.6 $8.4 $8.9 $8.8 $9.2 $8.7 FX-Adjusted Discount Revenue* $7.9 $8.4 $8.4 $8.5 $8.3 YoY% Inc/(Dec) in GAAP Discount Revenue 5% 4% 4% 7% 4% Yo
Slide 32: Annex 5
Annex 5 Net Card Fees – Reported & FX-Adjusted* ($ in billions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP Net Card Fees $1.7 $1.8 $1.8 $1.9 $2.0 $2.1 $2.2 $2.2 $2.3 FX-Adjusted Net Card Fees* $1.7 $1.8 $1.8 $1.9 $2.0 YoY% Inc/(Dec) in GAAP Net Card Fees 15% 15% 18% 18% 18% YoY% Inc/
Slide 33: Annex 6
Annex 6 Net Interest Income – Reported & FX-Adjusted* ($ in billions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP Net Interest Income $3.0 $3.1 $3.4 $3.6 $3.8 $3.7 $4.0 $4.0 $4.2 FX-Adjusted Net Interest Income* $3.0 $3.1 $3.4 $3.6 $3.7 YoY% Inc/(Dec) in GAAP Net Interest Income 26% 2
Slide 34: Annex 7
Annex 7 Consolidated Net Interest Yield on Average Card Member Loans ($ in millions) Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Net interest income $3,769 $3,730 $4,006 $4,038 $4,169 Exclude: Interest expense not attributable to our Card Member loan portfolio* $882 $912 $940 $865 $851 Interest income not attribu
Slide 35: Annex 8
Annex 8 Revenues Net of Interest Expense – Reported, FX-Adjusted & Leap Year Adjusted* Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP Revenues Net of Interest Expense (billions) $14.3 $15.1 $15.4 $15.8 $15.8 $16.3 $16.6 $17.2 $17.0 FX-Adjusted Revenues Net of Interest Expense (billions)*
Slide 36: Annex 9
Annex 9 Adjusted EPS Excluding the Impact of Accertify Gain on Sale 2025 Guidance FY’24 2025 Guidance YoY% Inc/(Dec) GAAP Diluted EPS $14.01 $15.00 - $15.50 7% - 11% Accertify Gain on Sale (pretax) $0.74 — Tax Impact of Accertify Gain on Sale ($0.08) — Accertify Gain on Sale (after tax) $0.66 — Adju
Slide 37: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address American Express Company’
Slide 38: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • net card fees not growing consistent with the company’s expectations, which could be impacted by, among other things, a decrease in the ability and desire of Card Members to pay card fees, such as due to a deterioration in macroeconomic conditio
Slide 39: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • the actual amount the company spends on marketing in 2025 and beyond and the effectiveness and efficiency of its marketing spending, which will be based in part on continued changes in the macroeconomic and competitive environment and business p
Slide 40: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure and competitor settlements and mergers that may materially impact the prices charged to merchants that accept American Expre
Slide 41: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • the company’s ability to grow internationally, which could be impacted by regulation and business practices, such as those capping interchange or other fees, mandating network access or data localization, favoring local competitors or prohibitin
Slide 42: American Express
AMERICAN EXPRESS
American Express Company — Q1 2025 Earnings Presentation on 6ix