American Express just offered a peek inside how wealthy Americans are doing—they’re thriving, even the Gen Z members

The American Express record recorded the quarterly revenue of $ 17.9 billion, an increase of 9 % on an annual basis, in addition to spending the total card members, which increased by 7 % during the same period in 2024 to the highest new level of 416.3 billion dollars. The company’s business model, which tends to a wealthy customer base, makes these numbers a kind of measurement of the financial confidence of Americans throughout income and the desire to spend.

The card members are not only spent more, but they also offer a renewed appetite for distinguished products and experiences. Critics have long demanded the “excellent card” phenomenon to be periodic or separate, but the American Express progresses with more bells and lane to its wealthy customers.

This leads to a significant warning: expenditures have increased by 14 % on an annual basis, as the company re -invest in technology and expanding risk management. He also pointed to “the costs of the changing changing customer participation driven by increasing the spending of members of the card and using the benefits related to travel”, and this means that the bells and zeroes that come with the distinguished cards are largely attractive, they cut them with a somewhat AmeX margin. However, the source of the card again confirmed the growth of its revenues by 8 % to 10 % and the profits of the entire year per share from 15 to 15.50 dollars.

In the collective call with analysts after issuing its profits, the company’s management has dug into this dynamic, with a particularly momentum between the millennial generation and the Gen Z who adopt the proposal of the luxury value of the brand. They want what excellent cards offer, in other words.

Despite strong profits, the stock price, which set a record earlier in the month, decreased by 2.6 % in the afternoon trading. “Some investors have moved to the mentality” being good is not good enough. “It also indicates that all the privileges that come with these distinguished cards may be attractive to members, but the increasing cost of their service to the street is concerned about the amount of betting on the base of its wealthy customers.

Trends in wealth generations

The millennial spending increased by 10 %, while the holders of GEN Z cards grew by spending them over 40 % amazing (albeit from a smaller base). This generational transformation is well -ordered for the excellent space: not only the most elderly wealth, but younger customers and those traveling adopt the proposal of the luxury value of the brand.

These new members seem to use their cards – a lot. The net cards fees increased by 20 % on an annual basis (FX modified), which enhances that more users choose distinguished experiences. Cards fee revenues have multiplied more than twice since 2019, with recent updates on gold, the Delta and Hilton cards that stimulate the arithmetic growth of two numbers and keep 98 %. This confirms the validity of the company’s strategy of “obtaining new customers for the first time on fees -based products, then leads the strong retention of our customer base, and finally, increasing by updating products and pricing accordingly.”

To this point, the company prepares a major update for consumer cards and platinum in the United States this fall – highlighting the luxury privileges and rewards to which the Millennium Millennium and Gen. Zers are the ambitious. Also, the launch of the new Coinbase One on Amex Network adds encrypted wrinkles forward, aimed at the younger professionals looking for digital assets. AmeX is confident that he has a “long growth runway” with the continued expansion of the excellent sector.

“The best credit performance”

The spending is strong, but also the financial health of AmeX customers. The company boasted about the lowest expected credit card loss rate and the highest expected return on assets in stress tests in the Federal Reserve for the year 2025 – a testimony of the flexibility and stability of card holders even in the theoretical economic contraction.

For the second quarter, the net deletion rate of AmeX decreased to 2.0 % (from 2.1 % a year ago), which means that non -collected debt. He also said that the total credit performance is still “the best in the chapter.” These are other ways to say that the vast majority of customers not only spend, but they are paid reliably.

This applies to the members of the younger card as well. Lacayak pointed out that the delinquency rates for Millennium Customers and General Z are not better than the average industry for these age groups, but they are also “40 % better than the average industry for older age groups.”

Comments on the call also extended to the fact that the American American Express card offers a lot of good things, as the airport halls deal with access and overcrowding problems. There are a lot of wealthy card holders who want to try the hall before flying. “We are trying to make the halls larger,” said CEO Steve Sukri. In response to a question from the investor relations team. He also said they had to get “innovative” because the halls are very popular, citing the “Sidecar” arrangement that they used at Las Vegas airport, “a small type more than that, I don’t know, maybe I call it a kind of speaker, where if you just want to go to a quick drink or seize something quick, you can do this.”

Standard revenues – climbing expenses – will be common for some time. Long runway, in fact.

For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.