American Express posts record revenue of $15.1bn in Q2 2023
American Express Company (NYSE:AXP) today reported second-quarter net income of $2.2 billion, or $2.89 per share, compared with net income of $2.0 billion, or $2.57 per share, a year ago.
“We delivered our fifth straight quarter of record revenues and achieved record earnings per share this quarter, each growing 12 percent over the prior year, demonstrating the continued strength of our differentiated business model,” said Stephen J. Squeri, Chairman and Chief Executive Officer.
“Card Member spending hit another all-time high, growing 8 percent on an FX-adjusted basis, driven by double-digit growth in U.S. Consumer and International Card Member spending. Travel and Entertainment spending remained strong across customer categories and geographies, growing 14 percent on an FX-adjusted basis. We also saw reservations on our Resy restaurant platform reach a quarterly high and bookings through our consumer travel business reach their highest levels since before the pandemic”.
Second-quarter consolidated total revenues net of interest expense were $15.1 billion, up 12 percent from $13.4 billion a year ago. The increase was primarily driven by higher average loan volumes and increased Card Member spending.
Consolidated provisions for credit losses were $1.2 billion, compared with $410 million a year ago. The increase reflected higher net write-offs and a net reserve build of $327 million, compared with a net reserve build of $58 million a year ago. Credit metrics remained strong in the current quarter.
Consolidated expenses were $11.1 billion, up 7 percent from $10.4 billion a year ago. The increase primarily reflected higher customer engagement costs, which were driven by higher network volumes and increased usage of travel-related benefits. Operating expenses also increased, primarily driven by increased compensation costs.
U.S. Consumer Services reported second-quarter pretax income of $1.3 billion, compared with $1.3 billion a year ago.
Commercial Services reported second-quarter pretax income of $713 million, compared with $778 million a year ago.
International Card Services reported second-quarter pretax income of $253 million, compared with $183 million a year ago.
Global Merchant and Network Services reported second-quarter pretax income of $963 million, compared with $802 million a year ago.
Corporate and Other reported a second-quarter pretax loss of $445 million, compared with a pretax loss of $493 million a year ago.