Bloomberg Intelligence Amex Earnings Top Estimates as Platinum Card Demand Surges
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Oct 17, 2025 American Express reports a surge in demand for its revamped Platinum card, doubling new account acquisitions. Experts discuss the rising risks of auto loans as delinquencies spike while car prices soar. There's a spotlight on Arthur Blank's $50 million donation aimed at helping Pell grant recipients graduate from HBCUs, shedding light on the financial struggles of many students. The conversation also touches on how automakers are navigating the challenges of high vehicle prices and what this means for the used car market.
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Platinum Card Refresh Sparks Surge
- American Express's revamped Platinum card doubled US account acquisitions and is driving strong demand among millennials and Gen Z.
- The fee increase boosts long-term earnings despite near-term higher variable customer expenses.
Fee Hike Offsets Rising Benefits Cost
- Amex's variable customer expenses rose but remain roughly 40% of revenue and aligned with long-term growth targets.
- The higher annual fee should amortize and eventually offset elevated benefit costs.
Network Ownership Is A Competitive Edge
- Amex captures more economics than rivals because it also operates the card network and earns swipe fees.
- That structural advantage makes premium card investments more valuable for Amex than for banks like Chase or Citi.