American Express (AmEx) reported a significant increase in profits for the first quarter of 2023, with earnings jumping by 34% to $2.44 billion, or $3.33 per share. This exceeded Wall Street's expectations, which were forecasting approximately $2.95 per share in profits for the quarter. The company's revenue also saw an 11% increase to $15.8 billion, driven by higher cardmember spending and more balances collecting interest.
According to Steve Squeri, chairman and CEO of AmEx, the company's success can be attributed to its ability to attract high-spending, high credit-quality customers. However, the company is also experiencing an increase in customers falling behind on payments, with charge-offs and 30-day delinquencies creeping higher post-pandemic. Despite this, AmEx's charge-off rates remain significantly lower than those of its competitors, including Capital One, Discover, and Chase.
Reference: See hereAccording to Steve Squeri, chairman and CEO of AmEx, the company's success can be attributed to its ability to attract high-spending, high credit-quality customers. However, the company is also experiencing an increase in customers falling behind on payments, with charge-offs and 30-day delinquencies creeping higher post-pandemic. Despite this, AmEx's charge-off rates remain significantly lower than those of its competitors, including Capital One, Discover, and Chase.
Credit card giant American Express posted a 34% jump in its first quarter profits on Friday, helped by more customers spending on its namesake cards as well as more customers keeping a balance on the cards
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