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When America express It was presented Second quarter 2025 results On Friday, only the record-winning earnings did not declare another round. This proposed a rare, high-precision image in the center of its work, the constantly changing economic landscape. Short answer? Very good, really.
American Express, quarterly quarterly, $ 17.9 billion in revenue, more than 9% annual, as well as 7% in 2024 to $ 416.3 billion in the same period. The company’s work model heavy skews to a more rich customer baseThese numbers provide a kind of barometer for the financial trust and ready to spend the latest Americans.
These card members are not more expensive, but also an updated appetite for reward products and experiments. Critics I’ve claimed a long time “Premium card“The phenomenon will cyclic or overwhelmingHowever, American Express is plowed with more calls and whistles for rich customers.
This causes an important warning: expenses increased by more than 14%, in the company’s technology again in the management of investment and expanded risks. In addition, “CARDS ‘expenditures and expenses related to travel related benefits are involved in the costs of attracting the benefits, calls and whistles with premium cards, they said they are so tempting. However, the card issuer has once again confirmed the worldview and full annual income of a profit of $ 15-15 to $ 15.50.
On Conference call with analysts After the release of the profit, the company’s management drilled this dynamic and reached this dynamic, especially strong in Gen Z, who accepted the brand’s luxury value offer. In other words, they want what the reward cards offer.
Despite strong gains, the stock price that previously recorded a record before, declined by 2.6% in the afternoon. Truist Securities Analyst Brian Foran commented in a research note “Some investors are not good enough to be” good “they moved to something thoughtful.” This indicates that all the perks of all the perks coming with these prize cards, but the rising value of the services is concerned about how much AMEX has been betting on the rich customer base.
Tendencies of generation wealth
Millennial costs increased by 10%, while the Gen Z card holders have slightly surprisingly rose (a smaller base) slightly. This generation is a good thing for sliding, a prize space: not only older, built-in wealth, but young, upward mobile customers accept the brand’s luxury value offer.
And these new members use their cards. Net card fees increase more than 20% per annum (FX-regulated), more users prefer the premium experience. Card fee revenues increased twice since 2019, gold, delta or last update Hilton Couple Double-digit score increase and grip 98%. CFO Christophe Le Caillec, the company’s companies ‘pre-new customers’, then the strongest capture of our customer base and finally increase the product by recovering and evaluating the product. ”
To this point, the company develops a significant update in this fall, which revitalizes the US Consumer and Business Platinum cards in this fall. Also, the launch of the new Siknbase A card in AMEX network, young, highly profitable professionals, adds a cryptovaluty wrinkle aimed at highly profitable professionals. AMEX is sure that the award segment continues to expand, “a long runway for growth” is sure.
Credit Performance ‘in the best class’
The costs are firm, but the same is the financial health of the Customer of the Amex. The company boasted the lowest predictable credit card loss rate and the highest forecast of assets in the 2025 stress test of the federal reserve.
AMEX’s net writing rate for the second quarter is up to 2.0% (from 2.1% from 2.1%), which means non-paid bad debts. At the same time, the total credit performance remains “in the best class.” These are other ways to say that the vast majority of customers only spend – they also pay their documents safely.
This is also going for young card members. Lakinak calls are not better than the industrial average for these age groups for these age groups for these age groups, but also 40% better for old age groups. ”
Comments on the comments also extended to deal with the introduction and wear problems of the American express card, the airport halls are involved in the introduction and wear. There are many rich card holders who want a salon experience before flying. “We are trying to make Lounges bigger,” said CEO Steve Squeri said in response to a question of an analyst. “Sidecar” regulation, “Sidecar” regulation of “SIDECAR” they used in the Las Vegas Airport, “SIDECAR” in “SIDECAR”, you can only do it if you want to quickly drink or quickly do something. ”
Record income and climbing costs – it will be popular for a while. A really long runway.
American Express refused to comment.
Correction: This article, exercise, American Express’ CFO’s surname, which is the surname of American Express’ Surname ‘, updated to correct the error.
For this story, Fortune generative AI used to help with initial draft. An editor confirmed the accuracy of the information before publication.
