(Reuters) – American Express (AmEx) announced more optimistic annual profit and revenue forecasts on Friday as its affluent customers continued to spend ahead of the holiday season.

Analysts expect AmEx to benefit from spending by high-income customers, particularly on travel and luxury purchases, during the holiday season and with “Black Friday” and “Cyber ​​Monday” sales.

AmEx now forecasts earnings per share of between $15.20 and $15.50 (€13.01 to $13.26) for the year ending December 31, whereas it previously expected $15 to $15.50.

Revenue in 2025 is expected to increase by 9% to 10%, compared to previous forecasts of 8% to 10%.

High-income consumers have yet to cut back on spending, with most continuing to plan vacations and purchase big-ticket discretionary items, protecting AmEx from the broader payments industry slowdown.

“Growth in cardholder spending accelerated to 8% after adjusting for currency effects, and our credit metrics remained best-in-class,” Chief Executive Stephen Squeri said in a statement.

AmEx’s revenue jumped 11% to a record $18.4 billion in the third quarter. It reported quarterly profit of $4.14 per share, up from $3.49 a year ago.

Although some credit risks are emerging among lower-income borrowers, the nation’s largest lenders agree that the American consumer remains surprisingly resilient.

AmEx is less exposed to pressure because its business remains focused on cardholders with the highest creditworthiness (FICO) scores.

Consolidated provisions for credit losses were $1.3 billion in the quarter, compared to $1.4 billion a year ago.

AmEx stock was up 1.3% in pre-market trading.

(Written by Manya Saini in Bangalore; Etienne Breban, edited by Kate Entringer)

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