American Express's second-quarter revenue and net profit double as cardholders have strong consumer demand
American financial services giant (American Express) recently released a financial report showing that thanks to the growth in consumption by high-end cardholders, the company's operating income and net profit increased year-on-year in the second quarter of this year. Financial report data shows that American Express's total revenue in the second quarter reached US$19.64 billion, a year-on-year increase of 10%; net profit rose to US$3.11 billion, equivalent to US$4.53 per share, higher than US$289 million and US$4.08 per share in the same period last year. Supported by the positive data, the company raised its full-year revenue growth forecast to 10%. In terms of specific business, American Express cardholder spending increased by 9% year-on-year in the second quarter, the highest growth rate in three years. Among them, catering consumption increased by 10% year-on-year, and travel bookings increased significantly by 22%. In addition, rising credit card balances drove net interest income to grow in tandem with card fee income. In recent years, the company has continued to expand its high-income and high-quality credit customer base. Its high-end platinum card series, which focuses on airport lounge and luxury hotel privileges, has become the fastest-growing segment of its U.S. retail business. American Express Chief Financial Officer Christophe Le Caillec pointed out that the company's strategy of focusing on high-end products has continued to optimize credit performance, and this performance improvement is in line with established management expectations. In order to further expand the high-end consumer ecosystem, American Express has proposed to acquire the European dining reservation platform TheFork in the second quarter, and plans to continue to increase investment in the membership card ecosystem that comes with annual fees and benefits. Although key financial indicators maintained growth, the company's stock price retreated in early trading on Friday as second-quarter revenue was slightly lower than the market's previous forecast of $19.7 billion and the company did not significantly increase its full-year performance guidance. Market analysts believe that investors have a short-term sentiment rebound over the failure to further accelerate revenue growth, but the company's overall fundamentals remain solid.