American Express reported strong first-quarter results, with fee revenue up 11%, net interest income up 13%, and overall net income up 15% year over year. The company's net write-off rate improved to 2% from 2.1% in the prior quarter, while the 30-day delinquency rate held steady at 1.3%, reflecting better credit quality than the average bank charge-off rate of 4.01% and Discover's 5.05%. American Express caters to a more affluent clientele, which helps it navigate economic downturns with lower defaults and delinquencies. The stock is down about 8% year to date but has risen roughly 8% over the past month following the earnings release, and it trades at 19 times forward earnings.
American Express CompanyStrong Q1 results with revenue and net income up double digits, improved credit quality.
Capital One Financial CorporationMentioned as having higher charge-off rate (5.05%) compared to American Express's 2%, highlighting weaker credit quality.