American Express

American Express has good pricing power due to its affluent customer base and unique value proposition. Cardmembers pay high annual fees (Gold, Platinum cards) for premium perks, and merchants often pay higher fees in return for AmEx’s wealthy customers.

This has enabled strong margin expansion: for example, net interest income grew 18% in 2024 even as loan balances grew only 8%, indicating a rising spread. Card fee and subscription revenues also jumped (net card fees +16% YOY). These trends suggest AmEx could continue to raise yields.

We rate pricing power at 75/100: it is strong but not unlimited, since merchants can negotiate and regulatory scrutiny can cap fees. The recent healthy margin growth (record payout ratios, share buybacks) shows AmEx has been able to translate its prices into profits.