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American Express’ Affluent cardholders were able to spend their money more freely again at the end of last year, according to Chief Financial Officer Christophe Le Caillec told CNBC.
Spending on AmEx cards rose 8% year over year in the fourth quarter, after slowing from 7% growth at the start of the year to 6% in the second and third quarters, according to the company’s figures. income presentation.
While the year-end improvement was seen across all customer segments and regions, it was mainly driven by millennials and Gen Z users, where transaction volumes increased by 16%, up from 12% in the third quarter.
Older groups were more cautious with their cards. Generation
“We had very strong growth from Generation Z and millennials, and that 2 percentage point acceleration gives us a lot of optimism for 2025,” Le Caillec said.
Increased transaction levels have continued in the first three weeks of this year, he added.
It is said that younger Americans spend more on experiences than on goods, and that is reflected in the results of AmEx, which along with rival card issuer JPMorgan Chasedominate the high-end credit card market.
Travel and entertainment billings rose 11% this quarter, compared to 8% for goods and services. The increase in travel was driven by airline spending, which rose 13%, while spending on business class and first class flights rose 19%, Le Caillec said.
AmEx shares fell more than 2% in afternoon trading Friday afternoon reported earnings and revenue that were roughly in line with analyst expectations. Shares of the New York-based company have been on a tear over the past year, hitting a 52-week high on Thursday.
“We are encouraged by accelerating billings growth as we believe this will be a key factor for Amex to achieve its ambitious target of at least 10% revenue growth,” William Blair analysts led by Cristopher Kennedy wrote in Friday a research note. “We remain buyers in any downturn.”
