American Express (Amex) has reported a 16% increase in net income for the third quarter of the 2025 financial year (Q3 FY25) and raised its full-year revenue and profit forecasts.
The global financial services company said net income was US$2.90 billion (A$4.47 billion) in the quarter ended 30 September compared with $2.51 billion in the previous corresponding period (pcp).
Amex said diluted earnings per share (EPS) surged 19% to $4.14 while revenue net of interest expense jumped 11% to a record $18.43 billion.
The revenue increase was mainly due to higher card member spending, higher net interest income supported by revolving loan balance growth, and strong fee growth.
Describing it as a” a very strong quarter” Chairman and Chief Executive Officer Stephen Squeri said member spending growth accelerated to 9%, or 8% on a currency-adjusted basis, and its credit metrics remained best-in-class.
“The successful launch of our updated U.S. Consumer and Business Platinum Cards reinforces our leadership in the premium space,” he said in a press release.
“The initial customer demand and engagement exceeded our expectations, with new U.S. Platinum account acquisitions doubling compared to pre-refresh levels.
“Given our strong performance year to date, we are raising our full-year guidance to revenue growth of 9 to 10% and EPS of $15.20 to $15.50.”
This compares with the previous forecasts of revenue growth of 8% to 10% and EPS of $15 to $15.50.
“Looking ahead, we are confident in our growth prospects as we continue to execute our proven product refresh strategy and enhance our powerful Membership Model to deliver value for our Card Members, merchant partners, and shareholders,” Squeri said.
Consolidated provisions for credit losses fell to $1.3 billion from $1.4 billion a year ago as a result of a lower reserve build than the prior year, partially offset by higher net write-offs.
Consolidated expenses rose 10% to $13.3 billion, primarily driven by higher variable customer engagement costs due to increased card member spending and usage of travel and lifestyle-related benefits, and higher operating expenses.
American Express (NYSE: AXP) shares closed $23.50 (7.27%) higher on Friday (Saturday AEDT) at $346.62, capitalising the company $241.21 billion.
