The Russian Central Bank has reportedly revoked the banking license of its subsidiary in Russia. American Express.
According to Reuters Reported The central bank did so on Tuesday (August 13) at the company’s request. According to the report, which cited Russia’s business registration agency SPARK, American Express had voluntarily applied to liquidate its Russian operations in July.
Russian President Vladimir Putin approved the request in May, according to Reuters. American Express, along with other card networks and payment processors, suspended its operations in Russia in 2022, citing Russia’s “unjustified aggression against the people of Ukraine.”
According to reports, the Central Bank of the Russian Federation said American Express was the 300th largest bank in the Russian banking system by assets. Since the start of the Ukraine war, foreign banks have required Putin’s permission to withdraw from the market or sell their shares in Russian businesses.
Apart from Russia, American Express has seen double-digit growth in spending from international consumer customers, according to earnings released last month.
Overall, the company said consumers continue to spend on experiences, especially dining out, driven by younger generations who are using their cards more frequently: Spending by millennials and Gen Z consumers increased 13% year over year, management said on the earnings call with analysts.
CFO Christophe Le Caillec He said spending growth was seen across multiple areas, with spending on goods and services up 6 percent and travel and entertainment up 7 percent.
“Growth has slowed in some areas, [travel and entertainment] “Spending categories increased compared to the previous quarter, particularly in air travel and lodging,” it said, adding that spending at restaurants remained “robust.”
As for increased frequency of card usage, the company’s transaction volume in the June quarter increased 9% compared to the same period last year.
“We see that younger cardholders continue to show strong engagement, transacting on average 25% more than older customers,” Le Cayec said, adding that when it comes to categories like food and beverage, they transact twice as much.
According to the earnings report, millennial and Gen Z consumers accounted for a third of the $165 billion in U.S. consumer service billings, a measure that includes cardholder spending and cash advances.
