American Express Defies Economic Slowdown with Strong Profits

American Express reported strong first-quarter profits, defying concerns about an economic slowdown. The company maintained its 2025 profit and revenue forecast amidst uncertainty from U.S. trade policies. AmEx's affluent customer base continued to spend on travel and entertainment, contributing to an 8% revenue growth.

American Express outperformed Wall Street's expectations for its first-quarter profit as affluent customers continued to spend on travel and entertainment, despite economic slowdown fears. The financial giant reiterated its optimistic 2025 profit and revenue outlook, even amid trade policy uncertainties under the new U.S. administration.

With an anticipated revenue growth of 8% to 10% in 2025 and profits forecasted between $15 and $15.50 per share, AmEx emphasized the forecast's dependence on macroeconomic factors. The company's CFO, Christophe Le Caillec, highlighted the explicit inclusion of economic uncertainties due to limited visibility into future economic trends.

AmEx's strategy of targeting high-spending customers seems to be paying off, as confirmed by a 6% profit rise to reach $2.58 billion for the quarter. Revenue increased by 8% to $16.97 billion, slightly surpassing expectations, while credit loss provisions slightly decreased. The company's stocks, however, fell following new U.S. tariff announcements leading to an 8% drop since April 2.

(With inputs from agencies.)