user1234

Ten Reasons to Like American Express

I agree that unlike other banks AXP have better job on screening their card holders. And these are the type of card holders that normally cleans out their statement balances every month. But these would leave AXP not benefiting from the penalty or some finance charges that other banks would normally get when card holders are defaulting in their payments. That's were banks would get huge percentage of their income from.

Like Visa or MA, they also benefit from the transaction fees that goes into the card everytime the users swipe it. But they don't have the volume that visa and mastercard have.

Also, my last concern is that i just found out that AXP's Equity (ROE) growth is just like 8% based from last year and Return of Invested Income (ROIC) growth was just like 3.8%. I dont think these numbers are ever good enough.