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American Express Gains Record Number Of New Customers To Its Platinum Card – Reports Strong Q2 Revenue

By John F. Heerdink, Jr.

American Express Company (AXP) reported a revenue surge of 33% to $10.2 billion in the second quarter, topping the $9.6 billion average estimate of analysts, as the credit-card giant added a record number of new customers to its tony Platinum card in the period. 

AmEx was hit hard by the Covid-19 pandemic, as global travel declined and, as a result, spending on the firm’s cards. The company responded by beefing up rewards on many of its products, including its Platinum card. The move helped the Card fees jump 13% to $1.29 billion in the quarter. The increase in revenue, along with an $866 million release of reserves, aided in net income soar to $2.28 billion, much ahead of analysts’ average estimate of $1.38 billion. AmEx said it’s rebuilding the Platinum card again, increasing the annual fee to $695 from $550 and adding perks tied to private jets and hotel stays.

“Part of our business model is you can’t rest on your laurels even though the Platinum is going very very strong. It’s early days — we just launched at the beginning of this month — but so far the demand is very, very strong for the product,” stated Chief Financial Officer Jeff Campbell.

Attracting new card customers came at a cost in the second quarter, with expenses rising 44% to $7.91 billion, higher than analysts’ $7.62 billion average estimates. AmEx has said it expects to earn $8.85 to $9.25 a share in 2022.

Dow 30 component American Express Company (AXP), and its subsidiaries provide customers and businesses globally with charge and credit payment card products and travel-related services. They look to enrich the lives of their customers and build business success. To learn more about American Express Company (AXP) and to continue to track its progress please visit the Vista Partners American Express Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: AmEx Revenue Surges as Fight for Card Customers Pays Off in Bloomberg)


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