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American Express Q1 2026 Net Income Up 15%

American Express reported first-quarter 2026 net income of $2.97 billion, up 15% from $2.58 billion a year earlier, as diluted earnings per share rose to $4.28 from $3.64.

Total revenues net of interest expense climbed 11% to $18.91 billion. On an FX-adjusted basis, revenue was $17.21 billion, up 10%.

Key revenue lines moved higher: Discount revenue: $9.51 billion, up 9% Net card fees: $2.75 billion, up 18% Service fees and other revenue: $1.95 billion, up 13% Net interest income: $4.69 billion, up 13%

Total interest income increased 9% to $6.67 billion, while total interest expense was essentially flat at $1.97 billion.

Billed business reached $428.0 billion, up 10% year over year, or $393.6 billion on an FX-adjusted basis, up 9%. Network volumes were $486.3 billion, up 11%.

By segment, U.S. Consumer Services billed business rose 10%, Commercial Services rose 4%, and International Card Services jumped 20%, or 13% FX-adjusted.

Card balances and other loans increased 8% to $224.16 billion, or $208.83 billion FX-adjusted. Average Card balances and other loans were $222.81 billion, up 9%.

Customer deposits rose 8% to $157.95 billion. Long-term debt increased 15% to $58.75 billion.

Provision for credit losses rose 13% to $1.25 billion. Within that: Net write-offs: $1.21 billion, up 4% Reserve build/release: a $26 million release versus a $118 million release a year earlier

Total expenses were $13.88 billion, up 11%. Pretax income rose 13% to $3.78 billion.

Credit metrics remained tight: Net write-off rate, principal, interest and fees: 2.3% versus 2.4% Net write-off rate, principal only, consumer and small business: 2.0% versus 2.1% 30+ days past due, consumer and small business: 1.3%, unchanged 90+ days past billing, corporate: 0.4%, unchanged

Profitability and capital metrics also improved: Return on average equity: 35.2% versus 33.6% Common Equity Tier 1 ratio: 10.5% versus 10.7% * Effective tax rate: 21.4% versus 22.4%

American Express declared cash dividends of $0.95 per share, up from $0.82, and average diluted shares outstanding fell to 686 million from 702 million. Following these announcements, the company's shares moved -0.28%, and are now trading at a price of $299.39. For the full picture, make sure to review AMERICAN EXPRESS CO's 10-Q report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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