American Express Reports 7% Revenue Growth to $16.97 Billion in Q1 2025

American Express Company reported a strong financial performance for the first quarter of 2025, with total revenues net of interest expense reaching $16.97 billion, a 7% increase from $15.80 billion in the same period last year. The company’s net income also rose to $2.58 billion, or $3.64 per diluted share, compared to $2.44 billion, or $3.33 per diluted share, in the prior year, reflecting a 9% increase in earnings per share. The growth in revenues was primarily driven by a 6% increase in billed business, which reached $387.4 billion, and an 18% rise in net card fees, attributed to strong customer acquisition and retention.

In terms of operational metrics, American Express saw a 7% year-over-year increase in total loans and Card Member receivables, amounting to $207.38 billion. The company maintained a stable net write-off rate of 2.4% for Card Member loans, indicating effective risk management practices. The total number of proprietary cards in force increased to 147.5 million, up from 142.4 million a year earlier, with 3.4 million new cards acquired during the quarter. The company also reported a 9% increase in customer deposits, totaling $146.40 billion, reflecting strong customer engagement and trust in its services.

Strategically, American Express has focused on enhancing its premium product offerings and expanding its customer base, particularly among Millennial and Gen-Z consumers. The company has also made significant investments in marketing and customer engagement initiatives, which contributed to a 10% increase in total expenses to $12.49 billion. This increase was driven by higher Card Member rewards and business development expenses, as well as investments in marketing to attract high-spending customers. The company’s disciplined expense management allowed it to maintain a pretax income of $3.33 billion, up from $3.15 billion in the previous year.

Looking ahead, American Express remains cautious about the macroeconomic environment, acknowledging potential uncertainties that could impact consumer spending and credit performance. However, the company expressed confidence in its differentiated business model, which is supported by a premium customer base and a focus on spend- and fee-centric revenue streams. American Express plans to continue returning capital to shareholders, having returned $1.3 billion in the form of share repurchases and dividends during the quarter, while managing its Common Equity Tier 1 capital ratio within its target range of 10% to 11%. The company’s robust capital position and liquidity provide it with the flexibility to navigate potential economic challenges while pursuing growth opportunities.