AmEx profit rises on resilient card spending

[NEW YORK] American Express reported a 6 per cent rise in first-quarter profit on Thursday (Apr 16), as its premium customers shrugged off fears of a slowdown to continue spending.

Shares of the New York-based company rose 4.1 per cent to US$263.34 in premarket trading.

The credit card giant’s profit was US$2.58 billion, or US$3.64 per share, for the three months ended March 31, compared with US$2.44 billion, or US$3.33 per share, a year earlier.

While US President Donald Trump’s tariff rhetoric had rattled some consumers during the quarter, the fallout was limited as the full scope of the hefty duties was only unveiled earlier this month.

AmEx’s longstanding focus on affluent customers could have also served as a buffer. For years, the company has used rewards and exclusive perks as a strategy to attract high-spending customers.

“Our performance across key areas, including card member spending, customer retention, demand for our premium products and credit performance, continued to be strong across our customer base, consistent with and in many cases better than what we saw in 2024,” CEO Stephen Squeri said.

Provisions for credit losses were US$1.2 billion in the quarter, compared with US$1.3 billion a year earlier.

Squeri said the company had seen steady spending and credit trends to date, allowing AmEx to maintain its full-year forecasts.

The company had previously said it sees revenue growing at an 8 per cent to 10 per cent range in 2025, while profit was expected to be between US$15 and US$15.50 per share.

Its shares have dropped 8 per cent since the tariffs were announced on April 2, which Trump has touted as “Liberation Day”. REUTERS