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American Express At the end of last year, wealthy cardholders again got the opportunity to spend money more freely, the financial director Christophe Le Caillec told CNBC.
Spending on AmEx cards jumped 8% year over year in the fourth quarter after slowing from 7% at the start of the year to 6% in the second and third quarters, according to the firm. salary presentation.
While year-end growth was seen across all customer segments and regions, millennials and Gen Z users were particularly driven, with transaction volume jumping 16% from 12% in the third quarter.
The older groups were more reserved with the cards; Gen X customers spent 7% more in the fourth quarter, while baby boomers saw their bills rise just 4%.
“We’ve had very strong growth from Gen Z and millennials, and this 2 percentage point acceleration gives us a lot of optimism for 2025,” Le Caillec said.
The increased level of transactions continued during the first three weeks of this year, he added.
Young Americans are said to be spending more on experiences than goods, and that’s reflected in the results of AmEx, which along with rival card issuer JPMorgan Chase dominate the high-end credit card market.
Travel and entertainment bills rose 11% in the quarter, compared with 8% for goods and services. According to Le Caillec, the increase in travel was driven by airline spending, which rose 13%, with business and first class airfares up 19%.
Shares of AmEx fell more than 2% in midday trading Friday after the campaign reported earnings and revenues that were roughly in line with analysts’ expectations. Shares of the New York-based company have rallied strongly over the past year, hitting a 52-week high on Thursday.
“We are encouraged by the acceleration in account growth as we believe this will be a key driver for Amex to achieve its desired revenue growth target of at least 10%,” William Blair analysts led by Christopher Kennedy wrote in a research note on Friday. “We remain buyers in any pullback.”
