American Express\u2019 affluent cardholders got comfortable spending more freely again late last year, Chief Financial Officer Christophe Le Caillec told CNBC.<\/p>\n
Spending on AmEx cards jumped 8% year over year in the fourth quarter after slowing from a 7% growth rate early in the year to 6% during the second and third quarters, according to the firm\u2019s earnings presentation.<\/p>\n
While the year-end pickup was seen across all customer segments and geographies, it was especially fueled by millennials and Gen Z users, where transaction volumes jumped 16%, up from 12% in the third quarter.<\/p>\n
Older groups were more restrained with their cards. Gen X customers spent 7% more in the fourth quarter, while baby boomers saw billings rise just 4%.<\/p>\n
\u201cWe had very strong growth from Gen Z and millennials, and that 2 percentage point acceleration gives us a lot of optimism for 2025,\u201d Le Caillec said.<\/p>\n
Elevated transaction levels have continued into the first three weeks of this year, he added.<\/p>\n
Younger Americans are said to spend more on experiences rather than goods, and that is reflected in the results from AmEx, which along with rival card issuer JPMorgan Chase, dominate the market for high-end credit cards.<\/p>\n
Travel and entertainment billings rose 11% in the quarter, compared with 8% for good and services. The boost in travel came from airline spending, which rose 13%, with spending for business class and first class airfares up 19%, according to Le Caillec.<\/p>\n
AmEx shares fell more than 2% in midday trading Friday after the company reported earnings and revenue that were roughly in line with analysts\u2019 expectations. Shares of the New York-based company have been on a tear over the past year, hitting a 52-week high on Thursday.<\/p>\n
\u201cWe are encouraged by accelerating billings growth as we believe it will be a key factor for Amex to meet its aspirational target of at least 10% revenue growth,\u201d William Blair analysts led by Cristopher Kennedy wrote Friday in a research note. \u201cWe remain buyers on any pullback.\u201d<\/p>\n<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
American Express\u2019 affluent cardholders got comfortable spending more freely again late last year, Chief Financial Officer Christophe Le Caillec told CNBC. Spending on AmEx cards jumped 8% year over year in the fourth quarter after slowing from a…<\/p>\n","protected":false},"author":1,"featured_media":3032,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[115],"tags":[],"class_list":["post-3031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/posts\/3031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/comments?post=3031"}],"version-history":[{"count":0,"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/posts\/3031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/media\/3032"}],"wp:attachment":[{"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/media?parent=3031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/categories?post=3031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/invest360pro.com\/index.php\/wp-json\/wp\/v2\/tags?post=3031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}