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Jun 30, 2021
American Express Q2 2021 Earnings Report
American Express reported strong second-quarter results driven by increased Card Member spending and strategic investments.
Key Takeaways
American Express reported a strong second quarter with net income of $2.3 billion, or $2.80 per share, compared to $257 million, or $0.29 per share, a year ago. The results reflected the impact of credit reserve releases driven by strong credit performance and improvements in the macroeconomic outlook. Card Member spending accelerated and exceeded pre-pandemic levels in June.
Second-quarter revenue reached $10.2 billion, a 33% increase from the previous year.
Earnings per share (EPS) was reported at $2.80, significantly higher than the $0.29 reported in the same quarter last year.
The company acquired 2.4 million new proprietary cards during the quarter, with retention rates above pre-pandemic levels.
Card Member spending exceeded pre-pandemic levels in June, with growth driven by Millennial, Gen Z, and small business customers.
Forward Guidance
American Express is optimistic about continued momentum, particularly in the U.S., and expects to be within the high end of its 2020 EPS expectations in 2022.
Positive Outlook
- Strong core business performance in the U.S.
- Momentum expected to continue.
- Confidence in achieving high end of 2020 EPS expectations in 2022.
- Demand for premium, fee-based products remains robust.
- Continued investment in innovation and customer offerings.
Challenges Ahead
- Uneven pace of recovery in different regions around the world.
- Uncertainty regarding the continued spread of COVID-19 and new variants.
- Potential for further deterioration in global economic and business conditions.
- Risk of consumer and business spending not growing as expected.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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