American Express Reports Significant Q3 Profit Increase Amid Successful Platinum Card Transition

American Express experienced a notable increase in profits for the third quarter, attributing this success to a significant shift of its cardmembers to the newly-priced Platinum Card. The New York-based company announced a profit of $3.71 billion, marking a 28% rise compared to the same period last year, which translates to earnings of $5.42 per share. When excluding a one-time gain from the sale of its stake in Global Business Travel Group, AmEx reported earnings of $4.68 per share, surpassing analysts’ expectations.

The increase in revenue and profit stemmed from customers not only using their cards more frequently but also willing to pay the elevated annual fee, which has risen from $695 to $895. Despite initial concerns regarding this $200 hike, the company confirmed that nearly all customers who transitioned to the higher-fee card have chosen to retain it. Moreover, net card fees increased by over $400 million year-on-year, and average spending per customer rose to $6,735 last quarter, reflecting an increase tied partly to inflation. AmEx has also raised its adjusted profit forecast for the year to between $17.60 and $17.90 per share.