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American Express Wealthy cardholders were once again spending more freely late last year, the CFO said Christophe Lecajec told CNBC.
Spending on American Express cards rose 8% year over year in the fourth quarter, while growth slowed to 6% in the second and third quarters from 7% at the beginning of the year, according to the company. income Promotional meeting.
While all customer segments and geographies saw a year-end uptick, there was a particular boost from Millennial and Gen Z users, whose transaction volume jumped 16% from 12% in the third quarter.
Older age groups were more restrained with their cards; Gen
Le Caillec said: “Growth among Gen Z and Millennials is very strong, and a growth rate of 2 percentage points makes us optimistic about 2025.”
He added that trading levels had continued to rise in the first three weeks of the year.
Young Americans are said to be spending more on experiences rather than goods, which is reflected in findings from American Express as well as rival card issuers JPMorgan Chase Dominate the high-end credit card market.
Spending on travel and entertainment increased 11% in the quarter, while spending on goods and services increased 8%. According to Le Caillec, the growth in travel came from airline spending, which increased by 13%, with spending on business and first class tickets rising by 19%.
American Express shares fell more than 2% in midday trading Friday report Earnings and revenue were broadly in line with analysts’ expectations. The New York-based company’s shares have been soaring over the past year, hitting a new 52-week high on Thursday.
“We are encouraged by the acceleration in billings growth as we believe it will be a key factor in achieving AmEx’s revenue growth target of at least 10%,” William Blair analysts led by Christopher Kennedy wrote in a research note on Friday. “If there is any pullback, we will still be buyers.”
