American Express Company · NYSE:AXP
American Express — Q2 2025 Earnings Presentation
44 slides from American Express's earnings presentation, Jul 18, 2025
Slide 1: American Express Earnings Conference Call Q2'25
American Express Earnings Conference Call Q2'25 JULY 18, 2025
Slide 2: Q2 2025 Business Highlights
Q2 2025 Business Highlights • Revenue growth of 9% and EPS of $4.08, up 17% year-over-year adjusted for the prior year gain on sale from Accertify(1) • Reaffirming full-year guidance of 8-10% revenue growth and $15.00-$15.50 EPS(2) • CCAR results show Amex has the lowest projected credit card loss r
Slide 3: Summary Financial Performance
Summary Financial Performance In millions, except per share amounts; % Increase/(decrease) vs. Prior year (Reported) unless otherwise stated YoY% Q2'25 Q2'24 Inc/(Dec) Total Revenues Net of Interest Expense $17,856 $16,333 9% FX-Adjusted* $16,408 9% Net Income $2,885 $3,015 (4%) Diluted EPS** $4.08
Slide 4: Total Billed Business
Total Billed Business % Increase/(decrease) vs. Prior year (FX-adjusted) 15% Leap Year Approx. (1%) 10% 8% 7% 6% 6% 6% 5% 0% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 G&S 6% 6% 8% 7% 7% T&E 7% 6% 10% 6% 5% All growth rates reflect FX-adjusted rates. See Annex 2 for reported billing
Slide 5: U.S. Consumer Services Billed Business
U.S. Consumer Services Billed Business % Increase/(decrease) vs. Prior year 15% Leap Year Approx. (1%) 10% 9% G&S, 7% YoY 7% 7% 6% 6% T&E, 6% YoY 5% 0% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'25 Gen-Z Millennials Gen-X Baby Boomer + Total YoY 39% 10% 6% 1% 7% % of Total 5% 30% 36% 29% 100% % of Total Volum
Slide 6: Commercial Services Billed Business
Commercial Services Billed Business % Increase/(decrease) vs. Prior year (FX-adjusted) 15% 10% Leap Year Approx. (1%) 5% 4% G&S, 3% YoY 2% 2% 2% 1% T&E, 1% YoY 0% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'25 U.S. SME U.S. Large & Global Corp. Total YoY 2% 4% 2% % of Total 82% 18% 100% SME refers to small and
Slide 7: International Card Services Billed Business
International Card Services Billed Business % Increase/(decrease) vs. Prior year (FX-adjusted) 20% Leap Year Approx. (1%) 15% 15% 13% 13% 13% G&S, 14% YoY 12% T&E, 8% YoY 10% 5% 0% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'25 Int’l Consumer Int’l SME & Large Corp. Total YoY 12% 12% 12% % of Total 65% 35% 100
Slide 8: Transaction Growth
Transaction Growth % Increase/(decrease) vs. Prior year 15% Leap Year Approx. (1%) 10% 10% 9% 9% 9% 9% 5% 0% Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Transactions represent global merchant transactions (excluding ATM transactions and balance transfers) on cards issued by American Express, net of returns. 8
Slide 9: New Acquisitions
New Acquisitions Proprietary New Proprietary New Cards Acquired Accounts Acquired (in millions) (Q2’2025) 3.3 3.3 3.4 3.1 Global Consumer 63 % 3.0 New Accounts 1.0 0.9 1.1 International Acquired from 0.9 0.9 Card Services Millennial / Gen-Z 0.8 0.9 0.8 0.7 Commercial 0.7 Services 71 % 1.5 1.5 1.5 1.
Slide 10: Total Loans & Card Member Receivables vs. Billed Business
Total Loans & Card Member Receivables vs. Billed Business % Increase/(decrease) vs. Prior year (FX-adjusted) Billed Business Total Loans & Card Member Receivables 12% 10% 9% 8% 7% 7% 6% 6% 6% 6% Q2’24 Q3’24 Q4’24 Q1’25 Q2'25 Customers rebuilding balances post-pandemic Total Loans reflects Card Membe
Slide 11: 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 2.1% 2.1% 2.0% 1.9% 1.9% 1.3% 1.3% 1.3% 1.3% 1.2% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Net write-off rates based on principal losses only
Slide 12: U.S. Consumer Credit Performance by Generation
U.S. Consumer Credit Performance by Generation 30+ Days Past Due (as of billing cycle) % of Card Member Loans and Receivables Millennials & Gen-Z Gen-X & Baby Boomer + 4.5% 4.4% Industry 3.1% Industry 2.8% 2.7% 1.9% AXP 1.5% 1.3% AXP Q4'19 Q2'25 Q4'19 Q2'25 Industry data presented above sourced from
Slide 13: Total Provision
Total Provision ($ in millions) $1,405 Total Provision $1,356 $1,268 $1,292 Reserve $1,150 $222 $101 $264 $153 Build/(Release) $1,223 $1,183 Write-offs $1,167 $1,092 $1,139 ($73) Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Reserves as a % of Total Loans & 2.8% 2.9% 2.9% 2.9% 2.9% CM Receivables See Variance Comme
Slide 14: Revenue Performance
Revenue Performance ($ in millions) YoY% Inc/(Dec) Q2'24 Reported FX-Adjusted* Q2'25 YoY% Inc/(Dec) YoY% Inc/(Dec) Discount Revenue $9,361 $8,855 6% 5% Net Card Fees $2,480 $2,060 20% 20% Service Fees and Other Revenue $1,828 $1,688 8% 7% Net Interest Income $4,187 $3,730 12% 12% Revenues Net of Int
Slide 15: Net Card Fees
Net Card Fees $ in billions (on a reported basis) - % Increase/(decrease) vs. Prior year & CAGR (FX-adjusted) Net Card Fees (Q2: 2019-2025) Net Card Fees YoY% (Q2’23-Q2’25) 17% / Year % CAGR 30% $2.5 25% $2.1 22% $1.8 20% 20% 19% 19% 20% 18% 17% $1.5 16% 16% $1.3 15% $1.1 $1.0 10% 5% 0% Q2'19 Q2'20
Slide 16: Premium Lending
Premium Lending Net Interest Income NII: Volume & Margin Drivers $ in billions (on a reported basis) - % Increase/(decrease) vs. Prior year (FX-adjusted) CAGR % vs. Q2’19 (FX-adjusted except Margin) Q2’25 vs. Q2’19 $4.2 $4.2 CAGR % $4.0 $4.0 $3.7 Billed Business 8% Net Interest Income 13% YoY 20% 17
Slide 17: 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 15% Approx. (1%) 10% 10% 9% 9% 8% 8% 5% 0% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 $B $16.3 $16.6 $17.2 $17.0 $17.9 Revenues Net of Interest E
Slide 18: Expense Performance
Expense Performance ($ in millions) Reported Q2'25 Q2'24 YoY% Inc/(Dec) Card Member Rewards $4,618 $4,227 9% Business Development $1,589 $1,427 11% Card Member Services $1,301 $1,154 13% Q2’25 VCE % of Revenue Variable Customer Engagement Expenses $7,508 $6,808 10% 42% Marketing $1,555 $1,480 5% YoY
Slide 19: Capital
Capital Common Equity Tier 1 Capital Return ($ in billions) 10.8% $2.4 10.6% 10.7% 10.5% 10.7% 10.6% $2.3 $0.5 $2.0 $0.5 $1.6 $1.6 $0.6 Dividends $1.3 $0.5 $0.5 $1.9 $0.6 $1.8 $1.4 Share $1.1 $1.1 Repurchases $0.7 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 CET1 Ratio Tar
Slide 20: 2025 Guidance
2025 Guidance 2025 Guidance Revenue Growth: 8% - 10% EPS: $15.00 - $15.50 (Adjusted EPS Growth*: 12% - 16%) Our ability to achieve our 2025 guidance is subject to the macroeconomic environment, as well as contingencies and other factors beyond our control. Refer to "Cautionary Note Regarding Forward
Slide 21: Appendix
Appendix
Slide 22: Q2'25 Network Volumes Growth by Customer Type
Q2'25 Network Volumes Growth by Customer Type % Increase/(decrease) vs. Prior Year (FX-adjusted) U.S. Consumer Services: Commercial Services: International Card Services: 7% 2% 12% 12% 12% 7% 5% 4% 2% % of Total U.S. U.S. U.S. Large & Int’l Int’l SME & Processed Network Volumes Consumer SME Global C
Slide 23: FX Impact on Billed Business
FX Impact on Billed Business Q2’25 Billed Business YoY Change in USD* vs. Currency as a % of Total Strengthened / (Weakened) Euro € 5% (6%) UK £ 6% (6%) Japan ¥ 4% (8%) Australia $ 4% 3% Canada $ 3% 1% Mexico $ 2% 12% Top 6 Intl. Currencies 23% (3%)** All Other Intl. Currencies 3% Billed Business by
Slide 24: Travel & Entertainment Billed Business
Travel & Entertainment Billed Business Q2'25 Restaurants Lodging Airlines Other Total T&E YoY Growth 8% 4% 0% 8% 5% % of Total Billed Business 7% 5% 6% 8% 27% All growth rates reflect FX-adjusted rates. See Slide 3 for an explanation of FX-adjusted information. % of Total Billed Business may not foo
Slide 25: Card Member Credit Metrics
Card Member Credit Metrics Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Card Member Loans Net Write-off Rate* 2.3% 2.1% 2.1% 2.4% 2.2% Card Member Receivables Net Write-off Rates* 1.5% 1.4% 1.2% 1.3% 1.4% Corporate Net Write-off Rates** 0.6% 0.6% 0.5% 0.5% 0.5% Card Member Loans 30+ Days Past Due*** 1.3% 1.4% 1.4%
Slide 26: 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)% Q3'24 Q4'25 Q1'27 Q4'24 Q1'26 Q2'27 Q1'25 Q2'26 Q1'24 Q2'25 Q3'26 Q2'24 Q3'25 Q4'26 Q1'25 Q4'26 Q2'27 Q3'25 Q2'24 Q1'26
Slide 27: Funding and Deposits
Funding and Deposits Funding Mix Deposit Programs 92% FDIC ($ in billions) ($ in billions) insured at Q2'25 $199 $209 $145 $148 Short-term 1% 1% Funding Third Party 7% 8% 7% 8% CDs Card ABS* Third Party 11% 10% Unsecured Sweep 19% 20% 2% 2% Checking Funding** Savings and 81% 80% Direct CDs 73% 71% D
Slide 28: Additional Commentary – Variance Analysis
Additional Commentary – Variance Analysis The following summary provides selected variance information for the three months ended June 30, 2025 compared to the same period in the prior year. It should be read in conjunction with the statistical tables for Q2'25, available at ir.americanexpress.com.
Slide 29: Additional Commentary – Variance Analysis
Additional Commentary – Variance Analysis • Card Member Rewards Expense: Increased 9 percent versus Q2'24, primarily driven by higher billed business and an increase in redemption costs reflecting a shift in the mix of Card Member redemptions. • Business Development Expense: Increased 11 percent ver
Slide 30: Notes on Q2 2025 Business Highlights
Notes on Q2 2025 Business Highlights 1. Diluted earnings per share (EPS) growth adjusted for the prior year gain on sale from Accertify is a non-GAAP measure, see slide 3 for more information and Annex 1 for a reconciliation to EPS growth on a GAAP basis. 2. Our ability to achieve our full-year 2025
Slide 31: Annex 1
Annex 1 Adjusted EPS and Adjusted Operating Expenses, Excluding the Impact of Accertify Gain on Sale ($ in millions; except per share amounts) YoY% Q2’25 Q2’24 Inc/(Dec) GAAP Diluted EPS $4.08 $4.15 (2%) Accertify Gain on Sale (pretax) — 0.73 Tax Impact of Accertify Gain on Sale — (0.07) Accertify G
Slide 32: Annex 2 (1 of 2)
Annex 2 (1 of 2) Billed Business and Processed Volumes – Reported & FX-Adjusted* % Increase/(decrease) vs. Prior year Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Billed Business Reported 5% 6% 8% 6% 7% FX-Adjusted* 6% 6% 8% 6% 7% Reported Billed Business Q2’19 - Q2’25 CAGR 8% FX-Adjusted Billed Business Q2’19 - Q
Slide 33: Annex 2 (2 of 2)
Annex 2 (2 of 2) Billed Business – Reported & FX-Adjusted* % Increase/(decrease) vs. Prior year Q2'25 Q2'25 Reported FX-Adj.* Reported FX-Adj.* International Consumer 16% 12% U.S. Large and Global Corp. 4% 4% Commercial Services International SME & Large Corp. 14% 12% Total Billed Business 2% 2% Int
Slide 34: Annex 3
Annex 3 Total Loans and Card Member Receivables – Reported & FX-Adjusted* ($ in billions) Q2'19 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 GAAP Total Loans and Card Member Receivables $146 $179 $183 $193 $194 $199 $202 $208 $207 $212 FX-Adjusted Total Loans and Card Member $145 $178 $185
Slide 35: Annex 4
Annex 4 Revenue – Reported & FX-Adjusted* ($ in millions) YoY% Q2'25 Q2'24 Inc/(Dec) Discount Revenue $9,361 $8,855 6% FX-Adjusted* $8,894 5% Net Card Fees $2,480 $2,060 20% FX-Adjusted* $2,075 20% Service Fees and Other Revenue $1,828 $1,688 8% FX-Adjusted* $1,711 7% Net Interest Income $4,187 $3,7
Slide 36: Annex 5
Annex 5 Net Card Fees – Reported & FX-Adjusted* ($ in billions) Q2'19 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 GAAP Net Card Fees $1.0 $1.5 $1.5 $1.6 $1.7 $1.8 $1.8 $1.9 $2.0 $2.1 $2.2 $2.2 $2.3 $2.5 FX-Adjusted Net Card Fees* $1.0 $1.5 $1.6 $1.6 $1.7 $1.8 $1.8 $
Slide 37: Annex 6
Annex 6 Net Interest Income – Reported & FX-Adjusted* ($ in billions) Q2'19 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 GAAP Net Interest Income $2.1 $3.1 $3.4 $3.6 $3.8 $3.7 $4.0 $4.0 $4.2 $4.2 FX-Adjusted Net Interest Income* $2.1 $3.1 $3.4 $3.6 $3.7 $3.7 YoY% Inc/(Dec) in GAAP Net Inter
Slide 38: Annex 7
Annex 7 Revenues Net of Interest Expense – Reported & FX-Adjusted* ($ in billions) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 GAAP Revenues Net of Interest Expense $15.1 $15.4 $15.8 $15.8 $16.3 $16.6 $17.2 $17.0 $17.9 FX-Adjusted Revenues Net of Interest Expense* $15.0 $15.3 $15.6 $15.7 $
Slide 39: 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 40: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • net card fee revenues not growing consistent with the company’s expectations, which could be impacted by, among other things, the pace of Card Member acquisition activity and demand for the company’s fee-based products; higher Card Member attrit
Slide 41: 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 42: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • the company’s ability to sustain its momentum and leadership in the premium consumer space, including with Millennial and Gen-Z consumers, and successfully refresh its U.S. Consumer Platinum Card®, which will be impacted in part by competition,
Slide 43: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements • a failure in or breach of the company’s operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks or outages, which could compromise the confidentiality, integrity, privacy and
Slide 44: American Express
AMERICAN EXPRESS
American Express Company — Q2 2025 Earnings Presentation on 6ix