As its affluent clientele continued to indulge in lavish eating, travel, and entertainment, credit card giant American Express increased its projection for full-year profits on Friday.
The business revealed a second-quarter profit that was higher than anticipated, highlighting the advantages of concentrating on a high-end clientele.
Even as competitor lenders warn of lacklustre demand due to rising borrowing costs, AmEx’s wealthy customers have partly shielded the company from weakness in the overall economy.
“Our core business’s earnings power is fuelled by increased scale, our premium, high-quality customer base, our well-managed expense base, and our successful investments,” stated CEO Stephen Squeri in a statement.
After initially projecting a range of $12.65 to $13.15, the business now expects its 2024 earnings per share between $13.30 and $13.80.
Profit for the second quarter ended June 30, which came in at $3.02 billion or $4.15 per share, was 39% more than the same period the previous year.
Source (CNBC)
