Bloomberg Intelligence Podcast

Episode: Amex Earnings Top Estimates as Platinum Card Demand Surges

Date: October 17, 2025

Hosts: Scarlet Fu and Paul Sweeney
Primary Guest: Ben Elliott, Bloomberg Intelligence Consumer Finance Analyst
Special Guest (segment): Roz Brewer, Interim President of Spelman College
Segment Reporter: Keith Norton, Bloomberg News Auto Reporter

Overview

This episode of the Bloomberg Intelligence podcast dives into American Express’ (Amex) latest earnings, with a focus on surging demand for its Platinum Card—particularly among Millennials and Gen Z. The conversation touches on competitive dynamics in the premium card business, the financial impact of Amex’s updated card perks, industry-wide credit quality, and broader consumer finance trends. Later in the episode, the team explores auto loan delinquencies as an early indicator of economic health, and wraps with a discussion on higher education, highlighting a major philanthropic gift to historically black colleges.

American Express Earnings & Platinum Card Momentum

[01:39–07:50]

Key Discussion Points

• Record Platinum Card Demand Among Younger Consumers

  • Amex’s revamped Platinum Card, now with an $895 fee, is experiencing exceptional traction, especially with Millennials and Gen Z.
    • Quote [02:11]:

      "Their new Platinum card product … is getting great traction amongst Millennials and Gen Z. Amex says they're getting two times as many applications and new card accounts after the refresh."
      — Ben Elliott

• Benefit Package and Cost Structure

  • Rich new perks like $400/year in dining credits, plus credits at Lululemon and Saks, drive applications and customer interest.
  • Despite the cost, variable customer expenses remain about 40% of revenue; operating expenses up 10%, in line with long-term growth targets.
    • Quote [03:20]:

      “The costs are real … but that number is pretty flat actually, despite the introduction of some of the new benefits … over time you'll see that fee increase start to amortize into earnings and that should more than offset the increase in costs.”
      — Ben Elliott

• Amex vs. Competitors (Chase Sapphire, Citi Strada)

  • Amex holds an advantage because it captures both cardholder fees and network swipe fees, making its premium model more lucrative than those of Chase or Citi.
  • 64–65% of new Platinum cardholders are Millennials and Gen Z; many are entering the premium card market for the first time.
    • Quote [04:05]:

      "Amex is always going to have a little bit of an advantage here because they capture all of the economics … the value proposition to Amex is always inherently higher."
      — Ben Elliott

• AMEX Ecosystem Strength and Customer Loyalty

  • Growing customer interest not just in the Platinum card, but in multiple Amex products (Platinum, Gold, Green card etc.), leading to deeper customer engagement and cross-selling—like high-yield savings accounts.
    • Quote [05:32]:

      "People love to be in the AMEX ecosystem ... That's kind of the ultimate goal, to pull people fully into the ecosystem, capture 100% of the economics of these super prime, super high income customers."
      — Ben Elliott

Memorable Moments

• Reddit Board Mania

  • Hosts and Ben reference active online communities obsessing over points maximization, with some people holding 10+ premium credit cards.
    Host [05:12]:

    “I'm on these Reddit threads ... some people have like 10 credit cards in their wallet.”

• Playful Banter About Card Fees

  • Co-host jokes about his old-school Amex Green Card and money clip, leading Ben to ask:
    Ben Elliott [06:11]:

    “What's the fee on that cash exactly?”

Credit Quality Across Card Issuers

[06:14–07:50]

Key Points

• Amex displays strong credit quality, with limited signs of consumer stress. Delinquencies are improving, projecting good credit performance at least six months ahead.

  • Quote [06:22]:

    “Amex is incredible, right? They have almost no signs whatsoever of stress ... even the less prime companies that are doing things like point of sale, retail credit cards even, they are continuing to see an improvement in credit.”
    — Ben Elliott

• Capital One preview: expected to also post positive results, though their business focuses more on less-prime borrowers, leading to higher net interest margins versus Amex and Chase, who make more from fees and swipes.

Segment 2: Auto Loans as an Economic Indicator

[10:09–14:27]

Key Insights

• Rising Delinquency in Auto Loans

  • Consumers are in the most precarious position since the last recession; auto loan delinquencies (60+ days late) have risen by 50% in 15 years, making car loans the riskiest credit product.
    • Quote [10:38]:

      "Consumers are actually in their most precarious position since the last recession ... 60 days past due and more have gone up by more than 50%."
      — Keith Norton

• Soaring Auto Loan Balances and Car Prices

  • Average auto loan balances up 57% since 2010; new car prices now exceed $50K, driven by automaker focus on high-margin SUVs/pickups.
    • Quote [11:35]:

      "The average price of a new car is topping $50,000 for the first time ... you can spend over $100,000 for a Ford F series pickup truck."
      — Keith Norton

• Shrinking New Car Market

  • High prices increasingly limit new car access to wealthier households, risking long-term market shrinkage.
    • Quote [13:09]:

      "It shrinks the new car market to just kind of the wealthiest households. It really excludes mainstream consumers."
      — Keith Norton

• Used Car Market Trends

  • Used cars also expensive (avg. near $30,000); average car age on U.S. roads over 12 years, indicating longer hold times and affordability challenges.
    • Quote [14:01]:

      "It's over 12 years … such a change from the days of our youth ... cars are built to really go the distance."
      — Keith Norton

Segment 3: Higher Education and Philanthropy—Arthur Blank’s $50M Gift

[16:46–23:14]

Key Insights

• Arthur Blank’s $50M Gift to Four HBCUs

  • Focused on small grants that help students overcome last hurdles to graduation—sometimes a few hundred or thousand dollars is all it takes.
    • Quote [17:17]:

      "When all four colleges said what our needs are, it was exactly the same thing. It was grants to students to help them finish college get over the line."
      — Janet Lauren

• Student Financial Burdens (Spelman College)

  • Typical Spelman College student is Pell-eligible, from families making $150K or less.
  • Tuition, room, and board at ~$56,000; graduating debt often $32K–$40K.
    • Quote [19:25]:

      "A typical student at Spelman ... is Pell eligible ... tuition, room, and board ... is roughly $56,000 and a young woman from Spelman could graduate with as much as 32,000 to $40,000 worth of student loans alone."
      — Roz Brewer

• Bigger Picture: Higher Ed Policy & Innovation

  • HBCUs face lower graduation rates, largely due to the high proportion of lower-income, Pell-eligible students.
  • Roz Brewer discusses importing corporate best practices to higher ed: bringing new business models, seeking partnerships, balancing budgets, and monetizing services.
    • Quote [22:12]:

      "One of the things I've committed to this board of trustees at Spelman College is that I will try to bring as much business to this institution as I possibly can ... We're proud at Spelman that we actually balance our budget … for the last 20 to 25 years."
      — Roz Brewer

Timestamps Reference

• [01:39] Start of Amex earnings segment
• [02:11–06:02] Ben Elliott on Platinum Card, perks, and customer segments
• [06:14–07:50] Credit quality, Capital One preview
• [10:09–14:27] Keith Norton on auto loans and car market trends
• [16:46–23:14] Higher education, Arthur Blank’s donation, and Spelman College

Notable Quotes

• Ben Elliott [02:11]: “Amex says they're getting two times as many applications and new card accounts after the refresh.”
• Ben Elliott [03:20]: “Variable customer expenses … run about 40% of the revenue … that number is pretty flat actually, despite … new benefits.”
• Ben Elliott [04:05]: “Amex is always going to have a little bit of an advantage here because they capture all of the economics of a premium credit card because they're also the network, right?”
• Keith Norton [10:38]: “Consumers are actually in their most precarious position since the last recession … delinquencies … have gone up by more than 50%.”
• Keith Norton [13:09]: "It shrinks the new car market to just kind of the wealthiest households. It really excludes mainstream consumers."
• Janet Lauren [17:17]: "One of the most intractable problems in higher education is students completing college. These types of grants literally help them get to the next semester and to finish."
• Roz Brewer [22:12]: "I've committed … to bring as much business to this institution as I possibly can … strong fiduciary responsibility."

Conclusion

This episode delivers a multifaceted look at consumer finance in 2025: American Express continues to defy expectations with robust demand for its Platinum Card—even amid higher fees—powered by younger, affluent segments and an intense credit card points culture. Credit quality remains strong across major issuers, while the auto loan market shows stress signals linked to soaring car prices and loan balances. The closing segment profiles philanthropic efforts in higher education, focusing on the persistent affordability challenge and innovative approaches to supporting students at historically black colleges. The episode is data-rich, practical, and peppered with engaging real-world anecdotes.