Average card member spending climbs to $6,759 per quarter
American Express said its second-quarter performance was fueled by higher spending from card members, fewer delinquencies, and continued demand for its premium products. The New York-based company reported Friday it earned $3.11 billion, or $4.53 a share, compared with $2.89 billion, or $4.08 a share, in the same period a year earlier. Analysts surveyed by FactSet had expected earnings of $4.40 a share.
The company’s customer base skews heavily toward wealthier demographics, and American Express said it has benefited from global economic growth that has disproportionately benefited wealthy and high-net-worth individuals. Its premium offerings, including the Platinum Card and Gold Card, continued to attract new customers during the quarter. The average American Express card member spent $6,759 on their card in the quarter, up from $6,393 in the same period a year earlier, the company reported. American Express said its customers often put nearly all of their spending on credit cards and pay off those balances at the end of each month.