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American Express (NYSE: NYSE:AXP), a prominent player in the Consumer Finance industry with a market capitalization of $205 billion, announced Monday it plans to refresh its Platinum Cards in what the company calls its largest investment ever in a card refresh. The financial services company, which has demonstrated solid growth with a 9% year-over-year revenue increase, will update both consumer and business versions of the premium card products, with more details to be revealed in fall 2025. According to InvestingPro analysis, American Express maintains a GOOD financial health score, suggesting strong positioning for this strategic move.
Keefe, Bruyette & Woods maintained its Outperform rating and $360.00 price target on American Express stock following the announcement. The research firm noted the refresh comes after reports last week that competitor Chase plans to update its Sapphire Reserve card this summer.
The card refresh could potentially include an annual fee increase for the Platinum card, which KBW analysts believe would help drive card fee income growth over the next several years. The firm also suggested the changes could drive higher levels of engagement and card account growth.
American Express provided limited details about specific changes to the cards in its announcement. The Platinum cards represent the company’s premium product tier in the United States, typically offering travel benefits and other perks to cardholders who pay a substantial annual fee.
KBW described the announcement as "incrementally positive" for American Express, noting that while competitive pressures exist from Chase’s planned Sapphire Reserve changes, historical evidence suggests limited impact on American Express from competitor card launches.
In other recent news, American Express announced significant updates to its U.S. Consumer and Business Platinum Cards, marking the company’s largest investment in a card refresh to date. The updates will enhance travel, dining, and lifestyle benefits, with details to be revealed later this year. Additionally, American Express disclosed its card portfolio performance, highlighting U.S. Consumer Card Member loans of $92.0 billion as of May 31, 2025, with a delinquency rate of 1.3% and a net write-off rate of 2.1%. U.S. Small Business Card Member loans were reported at $32.0 billion, with a delinquency rate of 1.5% and a net write-off rate of 2.4%.
In financial maneuvers, American Express issued €1 billion in Fixed-to-Floating Rate Notes due in 2032 and $5 billion in new notes, including various Fixed-to-Floating Rate Notes and Floating Rate Notes with different maturities. These issuances are part of the company’s strategic capital management efforts. Furthermore, American Express reclassified approximately $1.6 billion in Card Member loans related to its Amazon (NASDAQ:AMZN) small business cobrand portfolio to loans held for sale, effective June 1, 2025. This reclassification will exclude these loans from future investment loan reports. These developments provide investors with insights into American Express’s financial activities and strategic direction.
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