American Express’ Q1 revenue starts strong with an 11% increase

American Express on April 19 reported an 11% increase to $15.8 billion in its FY24’s first-quarter revenue as compared with $14.3 billion in the previous year. The EPS also saw an increase of 39% to $3.33, reflecting a continued business momentum.

American Express' net income

The net income of the first quarter is $2.4 billion, or $3.33 per share, compared with net income of $1.8 billion, or $2.40 per share in 2023.

Credit loss provisions

Credit loss provisions totalled $1.3 billion, compared with $1.1 billion a year ago. The increase can be attributed to higher net write-offs, partially offset by a reduced net reserve build of $148 million, compared with a net reserve build of $320 million in 2023.

Consolidated expenses and tax

Consolidated expenses were $11.4 billion, with an increase of 3% in comparison to $11.1 billion a year ago.

The consolidated effective tax rate rose to 22.5% from 16.2% in 2023.

The company expects a full-year revenue growth of 9% to 11% and EPS of $12.65 to $13.15.

American Express Chairman and Chief Executive Officer Stephen J. Squeri says,