Economic Rules Hub
  • World
  • Politics
  • Business
  • Investing
Home Business American Express CFO says spending picked up at year-end, thanks to millennials and Gen Z
Business

American Express CFO says spending picked up at year-end, thanks to millennials and Gen Z

by admin January 26, 2025
January 26, 2025

American Express’ 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 7% growth rate early in the year to 6% during the second and third quarters, according to the firm’s earnings presentation.

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.

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%.

“We had very strong growth from Gen Z and millennials, and that 2 percentage point acceleration gives us a lot of optimism for 2025,” Le Caillec said.

Elevated transaction levels have continued into the first three weeks of this year, he added.

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.

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.

AmEx shares fell more than 2% in midday trading Friday after the company reported earnings and revenue that were roughly in line with analysts’ 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 it will be a key factor for Amex to meet its aspirational target of at least 10% revenue growth,” William Blair analysts led by Cristopher Kennedy wrote Friday in a research note. “We remain buyers on any pullback.”

This post appeared first on NBC NEWS

0
FacebookTwitterPinterestEmail
previous post
Israel receives names of four female hostages Hamas will release Saturday
next post
Tech 5: Trump Admin Issues Crypto Executive Order, Launches Stargate AI Project

Related Posts

Tesla stock sinks as Musk and Trump ridicule each other

June 9, 2025

Trump implies government could cut contracts and subsidies to Musk’s...

June 8, 2025

Procter & Gamble to cut 7,000 jobs as part of...

June 7, 2025

This California startup is cleaning water and removing CO₂ from...

June 6, 2025

Shein and Temu see U.S. demand plunge as loophole for...

June 6, 2025

Nationwide coordinated retail crime crackdown results in hundreds of arrests,...

June 5, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Germany plans rapid expansion of outdated bunkers amid fears of Russian aggression

      June 9, 2025
    • Champion of the people or a traitor? A new force emerges in southern Gaza

      June 9, 2025
    • Israel vows to stop aid boat with Greta Thunberg and other activists on board from reaching Gaza

      June 9, 2025
    • Israeli military recovers body of elusive Hamas leader Mohammed Sinwar

      June 9, 2025
    • Israel has boarded Gaza-bound aid ship carrying Greta Thunberg, the Freedom Flotilla Coalition says

      June 9, 2025

    Categories

    • Business (1,396)
    • Investing (3,407)
    • Politics (4,566)
    • World (4,479)
    • Email Whitelisting
    • Terms and Conditions
    • Privacy Policy
    • Contacts
    • About us

    Disclaimer: EconomicRulesHub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 EconomicRulesHub.com | All Rights Reserved

    Economic Rules Hub
    • World
    • Politics
    • Business
    • Investing