Despite the economic uncertainty, American Express has exceeded first-quarter profit expectations, thanks to its focus on affluent customers. The company is now looking to expand its reach to small businesses as well. In an upcoming investor day, more details will be revealed about this expansion plan.
Cristopher Kennedy, a William Blair analyst, noted that American Express has been successful by honing in on premium consumers and small and medium enterprises. The company has expanded its network and enhanced its value proposition to attract high-income clients. As a result, consumer spending in the U.S. increased by 8%, while spending by SMEs rose by 1%.
CEO Stephen Squeri expressed optimism about the future, particularly in the SME sector, which he sees as a growth opportunity. Despite potential industry changes like the acquisition of Discover Financial by Capital One Financial, American Express remains focused on executing its successful strategy. Its upcoming investor day will delve into its plans for its premium consumer base, small businesses, and revenue opportunities with Gen Z and millennial customers. With a strong performance in the first quarter, American Express is poised for continued success in the future.