American Express Shareholder Meeting 2025 APRIL 29, 2025 2) Attributable to common shareholders. Represents net income less earnings allocated to participating share awards and dividends on preferred shares. FY'24 EPS reflects the sale of Accertify, which resulted in a gain of $0.66 per share. 2 Our Strategic Imperatives 1 Expand our leadership in the premium consumer space 3 Strengthen our global, integrated network 2 Build on our strong position in commercial payments 4 Build on our unique global position ...

American Express (AXP) FY 2025 Annual General Meeting April 29, 2025 01:39 PM ET Speaker0 Good morning, and welcome to American Express Company's twenty twenty five Annual Meeting of Shareholders. Please note that this audio cast will be recorded and will consist of copyrighted material. You may not record or rebroadcast these materials without the express written consent of American Express. I will now turn the call over to Mr. Steven Squeri, Chairman of the Board of Directors and Chief Executive Officer. ...

Shoppers walk through the King of Prussia Mall, as global markets brace for a hit to trade and growth caused by U.S. President Donald Trump's decision to impose import tariffs on dozens of countries, in King of Prussia, Pennsylvania, U.S., April 3, 2025.America, at the start of 2025, is a tale of two consumers.Lower-income earners are reining in their transactions to focus on essentials, while the wealthy continue to spend freely on perks including dining out and luxury travel, according to first-quarter re ...

Core Viewpoint - American Express is highlighted as a strong dividend stock, offering sustainable income through dividend growth, especially during market volatility [1][2]. Group 1: Company Overview - American Express was founded in 1850 and has evolved significantly since launching its credit card line in 1958, becoming one of the largest credit card issuers in the U.S. and globally [3]. - As of the end of Q1, American Express had approximately 147.5 million credit cards in circulation, adding 3.4 million net new cards in the quarter, indicating potential future earnings growth [4]. Group 2: Customer Demographics - Millennials and Gen Z are increasingly drawn to American Express credit cards, accounting for 35% of spending last quarter, with a year-over-year growth of 14%, representing the future customer base for the company [5]. Group 3: Financial Metrics - American Express maintains strong credit metrics, with a net write-off rate of 2.1%, significantly lower than the 5% rate of competitor Discover Financial, suggesting resilience during economic downturns [6]. - Over half of American Express' revenue comes from swipe fees, with an additional 14% from annual fees, contributing to more stable earnings compared to traditional banks [7]. Group 4: Dividend Growth - The company has experienced a 152% growth in earnings per share (EPS) over the last decade, alongside a cumulative 120% increase in dividend per share, with a recent 17% hike in the quarterly dividend [9]. - The current dividend yield stands at 1.09%, with expectations for growth based on the cost basis for new investors [9]. Group 5: Share Buyback Program - American Express has reduced its shares outstanding by 30% over the last 10 years through a share buyback program, enhancing the ownership stake of existing shareholders [10]. - This reduction in shares outstanding facilitates easier growth in dividend payouts, making American Express an attractive option for long-term investors [11].

Core Viewpoint - Berkshire Hathaway holds a significant stake in American Express, valued at $37 billion, indicating potential for continued success in the financial sector [1] Group 1: Competitive Strengths - American Express possesses durable competitive advantages, characterized by a strong brand and economic moats, making it a high-quality business [3] - The company has a powerful brand presence in the financial services industry, targeting wealthier clients with premium credit cards that offer high rewards and perks [4] - American Express benefits from a network effect, where increased merchant acceptance enhances the value of its cards for consumers, creating a positive feedback loop [5][6] Group 2: Financial Performance - In 2024, American Express reported a 9% increase in revenue, reaching $65.9 billion, and a 19% rise in adjusted earnings per share (EPS) [7] - The company anticipates revenue growth of 8% to 10% and adjusted EPS growth of 12% to 16% in 2025, with long-term sales growth projected at a minimum of 10% per year [7] - Favorable trends, such as the shift towards cashless transactions and rising GDP, are expected to drive payment volume through American Express's network [8] Group 3: Customer Base and Demographics - The customer base is shifting, with millennials and Gen-Z accounting for over 60% of new consumer accounts in Q1, indicating a growing spending trend among these demographics [9] Group 4: Valuation and Capital Return - American Express shares are currently trading 26% below their all-time high, presenting a compelling valuation opportunity with a price-to-earnings (P/E) ratio around 17, one of the lowest in the past year [10] - The company has a strong capital allocation policy, returning $2 billion in dividends and repurchasing $5.9 billion in stock in 2024, enhancing returns for investors [11]

A credit card issuer might not seem like a recession-resistant business, but you might be surprised.American Express (AXP 2.85%) might not seem like a recession-resistant business, but you might be surprised. While it certainly has some vulnerability to a bad economy, Amex also has an affluent clientele and excellent asset quality that should allow the business to weather the storm better than its peers.*Stock prices used were the morning prices of April 22, 2025. The video was published on April 23, 2025. ...

Warren Buffett is an investing icon. His track record compounding capital for Berkshire Hathaway has made him a legend. The smartest retail investors closely follow his moves to find ideas for their own portfolios.In the conglomerate's $258 billion portfolio, the second-largest holding shouldn't be ignored. It's a position the Oracle of Omaha has held for decades, so it deserves a closer look from investors.Is this financial services enterprise the best Buffett stock to buy with $1,000 right now?A Buffett-a ...

Core Viewpoint - American Express (AmEx) maintains its revenue and profit guidance for 2025, supported by a resilient affluent customer base that continues to spend despite macroeconomic challenges [1][3]. Financial Performance - Q1 2025 EPS reached $3.64, exceeding estimates by 5.5% and reflecting a 9% year-over-year increase [3]. - Network volumes for Q1 2025 totaled $439.6 billion, marking a 5% increase year-over-year [3]. - U.S. Consumer Services reported a pre-tax income of $1.7 billion, up 7% year-over-year, while Commercial Services saw a decline in pre-tax income to $836 million, down 5% year-over-year [3]. - Revenue guidance for 2025 is reaffirmed at an 8-10% growth from $65.9 billion in 2024, with EPS guidance set at $15-$15.50, up from $13.35 in 2024 [3]. Market Estimates - The Zacks Consensus Estimate predicts a 13.9% year-over-year increase in AmEx's 2025 earnings, with 2026 earnings expected to grow by 14.5% [5]. - Revenue estimates for 2025 and 2026 indicate year-over-year growth of 8.5% and 8.4%, respectively [5]. - AmEx has a history of surpassing earnings expectations, with an average surprise of 5.2% over the past four quarters [5]. Stock Performance - Over the past month, AXP shares have declined by 9.1%, aligning with the broader industry downturn, yet outperforming both the industry average and the S&P 500 Index [6]. - Competitors Visa and Mastercard experienced smaller declines due to lower exposure to credit risk compared to AmEx [6]. Valuation Insights - AmEx is trading at a forward P/E ratio of 15.84X, above the industry average of 13.98X, indicating strong investor confidence [8]. - Visa and Mastercard trade at higher multiples of 27.39X and 31.51X, respectively, reflecting their different business models and risk profiles [8]. Business Model and Strategy - AmEx's dual role as a credit card issuer and network operator allows it to capture a larger share of transaction economics, contributing to a more profitable business model [9]. - The company is experiencing strong credit performance and operational efficiency, with rising cardmember spending and expanding lending operations [9]. - A 9% year-over-year decline in Q1 provision for credit losses to $1.2 billion suggests improving credit quality and reduced expectations for customer defaults [10]. Spending Trends and Future Investments - Travel and entertainment spending remains robust, particularly in lodging, dining, and entertainment, areas where AmEx is focusing its efforts [14]. - The acquisition of Center enhances AmEx's presence in high-end dining and lifestyle experiences, reinforcing its premium value proposition [14]. - AmEx is targeting Gen Z and Millennials through marketing efforts to build brand loyalty for future growth [15]. Financial Position - At the end of Q1 2025, AmEx had $52.5 billion in cash and cash equivalents, up from $40.6 billion at the end of 2024, with short-term debt at $1.6 billion [16]. - The company returned value to shareholders by repurchasing 2 million shares for $700 million and paying $600 million in dividends during the quarter [16].

Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Orix (IX) and American Express (AXP) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targ ...

Financial Performance - Total revenues net of interest expense increased to $16,967 million in Q1 2025, up from $15,801 million in Q1 2024, representing a growth of 7.3%[195] - Net income for Q1 2025 was $2,584 million, compared to $2,437 million in Q1 2024, reflecting an increase of 6.0%[199] - Total non-interest revenues rose to $12,798 million in Q1 2025, a 6.4% increase from $12,032 million in Q1 2024[195] - Earnings per share (diluted) increased to $3.64 in Q1 2025 from $3.33 in Q1 2024, representing a growth of 9.3%[195] - Comprehensive income for Q1 2025 was $2,613 million, compared to $2,354 million in Q1 2024, reflecting an increase of 11.0%[199] - Cash dividends declared for common shares were $576 million for the three months ended March 31, 2025, compared to $507 million in the same period of 2024, marking an increase of 13.6%[220] - Total revenues net of interest expense after provisions for credit losses for the three months ended March 31, 2025, were $15,817 million, up from $14,532 million in 2024, an increase of 8.83%[364] - Net income for the three months ended March 31, 2025, was $2,584 million, compared to $2,437 million in 2024, reflecting a growth of 6.04%[360] Assets and Liabilities - Total assets increased to $282,244 million as of March 31, 2025, compared to $271,461 million at the end of 2024, marking a growth of 4.3%[201] - The company’s total equity increased from $30,264 million as of December 31, 2024, to $31,202 million as of March 31, 2025, representing a growth of 3.1%[220] - The total fair value of AFS debt securities was $1.110 billion as of March 31, 2025, down from $1.240 billion as of December 31, 2024[278] - Total financial assets measured at fair value amounted to $1,319 million, compared to $2,246 million as of December 31, 2024, reflecting a decrease of approximately 41.3%[327] - Total liabilities measured at fair value remained constant at $530 million from December 31, 2024, to March 31, 2025[331] Customer Deposits and Loans - The company reported a net increase in customer deposits of $6,973 million in Q1 2025, compared to $5,283 million in Q1 2024[204] - As of March 31, 2025, total customer deposits increased to $146.396 billion from $139.413 billion as of December 31, 2024, representing a growth of approximately 5.1%[294] - Card Member loans decreased slightly to $133,611 million as of March 31, 2025, from $133,995 million at the end of 2024[201] - Card Member loans as of March 31, 2025, totaled $139,203 million, slightly down from $139,674 million as of December 31, 2024, indicating a decrease of 0.3%[221] - The company’s consumer Card Member loans decreased from $107,646 million as of December 31, 2024, to $105,213 million as of March 31, 2025, a decline of 2.3%[221] Credit Losses and Provisions - The company reported reserves for credit losses of $5,592 million for Card Member loans as of March 31, 2025, compared to $5,679 million as of December 31, 2024, showing a reduction of 1.5%[221] - Provisions for credit losses for Card Member loans were $901 million for the three months ended March 31, 2025, compared to $1,014 million for the same period in 2024[267] - The total reserve for credit losses for Other loans increased to $244 million as of March 31, 2025, reflecting growth in Personal Loans and Business Line of Credit offerings[273] - The company established reserves for interest believed to be uncollectible, reflecting a proactive approach to credit risk management[230] Share Repurchase and Dividends - During the three months ended March 31, 2025, the company repurchased a total of 2,270,300 shares at an average price of $297.37 per share[374] - The company has a remaining authorization to repurchase up to 72,900,519 shares under its publicly announced repurchase programs[374] - The company’s Board of Directors authorized the repurchase of up to 120 million common shares on March 8, 2023, replacing the prior authorization[374] Legal Proceedings - The estimated range of possible loss for disclosed legal proceedings is zero to $190 million in excess of any accruals related to those matters[310] - American Express has accrued for certain outstanding legal proceedings, evaluating developments quarterly to adjust the accrual amount as necessary[309] - The company is involved in various legal proceedings, including antitrust claims, which could have a material adverse effect on its business and results of operations[310] Economic Outlook - The U.S. unemployment rate is projected to be between 3% and 8% by the fourth quarter of 2025, indicating potential economic variability[265]