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American Express profit jumps as customers stick with the $895 Platinum Card
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- American Express reported a 28% increase in third-quarter profit to $3.71 billion, driven by higher cardmember spending and successful transition to the higher-fee Platinum Card.
- Nearly all cardmembers transitioned to the updated Platinum Card, which raised the annual fee from $695 to $895, have retained their cards, boosting net card fees by over $400 million year-over-year.
- The average spending per AmEx cardholder rose 5% to $6,735 in the quarter, attributed to both inflation and increased transaction frequency, particularly in travel and entertainment sectors.
- AmEx raised its full-year adjusted profit forecast to a range of $17.60 to $17.90 per share, up from the previous lower bound of $17.30, reflecting strong ongoing performance.
