American Express reported an 8% increase in second-quarter profits as high-end card spending and new premium memberships drove growth.
American Express reported second-quarter profits of $3.11 billion, representing an 8% increase from the previous year. The company earned $4.53 per share, surpassing analyst expectations of $4.40 per share. This growth was driven by increased spending from card members, fewer delinquencies, and a surge in sign-ups for premium products like the Platinum and Gold cards. The New York-based company continues to benefit from global economic growth that favors wealthy individuals. Average customer spending rose to $6,759 per quarter, up from $6,393 a year ago. To maintain its market position against competitors like JPMorgan Chase and Capital One, American Express increased quarterly expenses by 12% to fund marketing and product refreshes. While the company raised its revenue guidance for the year, it maintained its profit outlook to allow for further investments in technology and artificial intelligence. The company successfully added 3 million new customers in the second quarter, with 75% of those new users opting for cards with an annual fee.