Catenaa, Friday, July 18, 2025- American Express revenue rose by 9% in the second quarter, the company said on Friday, lifted by record credit card spending.
The credit-card provider reported earnings per share of $4.08 as revenue increased 9% from the same time a year ago to $17.86 billion. Both metrics came in higher than Visible Alpha’s average analyst forecast.
Net interest income rose 12% year-over-year to $4.19 billion, just below the analyst consensus of $4.23 billion. More than $416 billion in transactions were billed on American Express cards in the quarter, up 7% from last year.
“We saw record Card Member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class,” American Express CEO Stephen Squeri said.
The company affirmed its full-year projections of 8% to 10% revenue growth and EPS of $15 to $15.50, ranges it also held steady last quarter.
Consolidated provisions for credit losses were $1.4 billion, compared with $1.3 billion a year ago. The increase reflected a higher net reserve build and higher net write-offs year-over-year, driven by growth in Total loans and Card Member receivables.
The second-quarter net write-off rate was 2%, down from 2.% a year ago.
The consolidated effective tax rate was 18.7%, down from 20.4% a year ago, primarily reflecting discrete tax benefits in the current quarter related to the resolution of prior year tax items.
Shares of American Express were down by 2.7% on Friday. They entered the day up about 3.3% since the start of the year.
