American Express Faces ROE Challenges Amid Rising Expenses

American Express Company AXP delivered a high return on equity (ROE) of 35.9% in Q3 2025, driven by its premium customer base and robust fee income. However, expenses continue to climb due to increased spending on rewards, services, marketing, and business development. To sustain its strong returns, AXP is focusing on innovation, streamlining operations, and keeping customers engaged. The company returned $2.9 billion to shareholders in the form of share repurchases and dividends. AXP's competitors, Visa Inc. V and Mastercard Incorporated MA, are also facing cost pressure and increased expenses.