American Express Reports Strong Q1 Performance Driven by Platinum Card Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Performance Growth: American Express reported billed business of $428 billion in Q1, reflecting a 10% year-over-year increase, marking the fastest growth rate in three years, indicating strong spending power among its affluent customer base despite economic uncertainties.
- Customer Retention: The Platinum Card experienced accelerated spending growth, with strong retention rates even after a higher annual fee was introduced last year, and 73% of new card accounts were for fee-paying products, highlighting robust demand for American Express's premium offerings, particularly among Millennials and Gen Z.
- Credit Quality Improvement: The net write-off rate improved to 2% in Q1 from 2.1% a year ago, demonstrating stable credit quality within its affluent customer segment, which enhances investor confidence in the company's fundamentals.
- Inflation Impact: Despite the Consumer Price Index rising 3.8% year-over-year in April, the management emphasized that their focus on premium customers and strong portfolio quality positions the company well to continue delivering strong results amid macroeconomic uncertainties.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 312.530
Low
280.00
Averages
379.06
High
425.00
Current: 312.530
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its range of products and services includes credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services; banking and other payment and financing products and services, including deposits and non-card lending; merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, and network services. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers, and business partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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