American Express Defies Slowdown Fears with 6% Profit Boost

American Express reported a 6% increase in first-quarter profit, driven by affluent customers' continued spending despite fears of a slowdown. The company's strategic focus on premium offerings paid off, with key performance metrics showing strength. Meanwhile, tariff concerns had a limited impact on consumer behavior.

American Express announced Thursday a 6% rise in first-quarter profit, with premium customers disregarding potential slowdown concerns to maintain high spending habits. The credit card company's profit reached $2.58 billion or $3.64 per share for the quarter ended March 31, up from $2.44 billion or $3.33 per share a year prior.

Despite U.S. President Donald Trump's tariff discussions causing some consumer apprehension, the adverse effects were minimal, as comprehensive tariff details were only recently disclosed. American Express' long-term focus on affluent clients and their engagement through rewards and exclusive perks seems to have shielded the company.

CEO Stephen Squeri highlighted strong performance across key business areas, including cardholder spending, product demand, and customer retention. Although credit provisions slightly decreased to $1.2 billion from $1.3 billion last year, American Express maintained its full-year revenue and profit forecasts, anticipating an 8% to 10% revenue rise and profits between $15 and $15.50 per share in 2025.

(With inputs from agencies.)