American Express profit jumps on higher Platinum Card fees

Summarised from 2 outlets · Updated 23 Oct, 14:33 · Archive

American Express reported third-quarter profit of $3.71 billion, up 28%, after successfully shifting customers to its $895 Platinum Card.

American Express reported third-quarter profit of $3.71 billion, up 28% from a year ago, or $5.42 a share. Excluding a one-time gain from the sale of its stake in Global Business Travel Group, the company earned quarterly profit of $4.68 per share, beating Wall Street estimates.

AmEx raised the Platinum Card's annual fee from $695 to $895 last year while adding new perks. The key question for investors was whether wealthy customers would accept the $200 price increase. Nearly all cardmembers moved to the higher-fee card have kept it, according to the company. Net card fees, which include annual fees, rose by more than $400 million compared to the previous year.

Customers also continued spending aggressively. The average AmEx customer spent $6,735 on their cards in the quarter, or $2,245 monthly, up 5% from a year earlier. AmEx Chief Financial Officer Christophe Le Caillec attributed some of this higher spending to inflation.

How it is being reported

• American Express profit jumps as customers stick with the $895 Platinum CardAmerican Express reports a sharp rise in third-quarter profits, driven by a successful transition to its higher-fee Platinum Card.News4Jax · 23 Oct, 13:48
• American Express profit jumps as customers stick with the $895 Platinum CardAmerican Express reports a sharp rise in third-quarter profits, driven by a successful transition to its higher-fee Platinum Card.Clickorlando · 23 Oct, 13:48

In this story: American Express · New York

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