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AmEx profit jumps on strong holiday season spending

American Express reported a significant increase in quarterly profit on January 24, 2025, driven by robust spending on its credit cards, particularly from its affluent customer base. The company's net income rose to $1.93 billion, or $2.62 per share, for the fourth quarter, up from $1.57 billion, or $2.07 per share, in the same period the previous year. This performance exceeded Wall Street expectations, with adjusted earnings per share of $2.65 against the expected $2.56. The growth was supported by a 7% increase in total network volumes to $426.6 billion, reflecting strong consumer spending despite economic uncertainties. Additionally, American Express benefited from a 13% rise in billed business and a 17% increase in interest income, although provisions for credit losses also increased to $1.44 billion from $1.03 billion, indicating a cautious approach to potential future defaults.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/amex-profit-jumps-resilient-credit-card-spending-2025-01-24/ ]