American Express Defies Slowdown Fears with Profit Surge

American Express posted a 6% profit increase in the first quarter, supported by continued spending from premium customers despite economic slowdown concerns. Its shares rose by 4.1% in premarket trading. CEO Stephen Squeri remains optimistic about spending trends, maintaining previous revenue and profit forecasts.

American Express has announced a 6% rise in its first-quarter profit, as its premium clientele resisted a broader economic slowdown to continue their spending habits. The New York-based financial services giant saw its shares climb 4.1% to $263.34 in premarket trading.

The company's profits for the three-month period ending March 31 reached $2.58 billion, equivalent to $3.64 per share. This is an increase from the $2.44 billion, or $3.33 per share, reported in the same quarter last year. Despite fears sparked by U.S. President Donald Trump's tariff policies, the company's focus on affluent consumers provided a cushion against major disruptions.

CEO Stephen Squeri stated that the company has experienced strong performances in card member spending and customer retention. The company has maintained its annual forecasts, projecting revenue growth between 8% to 10% in 2025 and profits ranging from $15 to $15.50 per share, in spite of a recent dip in shares following the announcement of tariffs.

(With inputs from agencies.)