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American Express' Wealthy cardholders once again felt comfortable spending freely at the end of last year, Chief Financial Officer Christophe Le Caillec told CNBC.
Spending on AMEX cards grew 8% year-over-year in the fourth quarter, after slowing to 6% from 7% growth in the fourth quarter, according to the company's. revenue presentation.
Year-end pickup was seen across all customer segments and regions, but was particularly driven by Millennials and Gen Z users, with transaction volume increasing 16% from 12% in Q3.
The older group was more restrained with cards. Gen X customers spent more than 7% in the fourth quarter, while baby boomers saw Billings rise by just 4%.
“We've had very strong growth from Gen Z and Millennials. That 2 percentage point acceleration gives us a lot of optimism in 2025,” Le Caillec said.
The increase in transaction levels has continued into the first three weeks of this year, he added.
Young Americans are said to spend more on experiences than on products. That's reflected in Amex's results along with rival card issuers jpmorgan chasedominates the high-end credit card market.
Travel and entertainment bills rose 11% in the quarter, compared to 8% and services and services. According to Le Caillec, the travel boost led to a 13% rise in airline spending, with business and first class airfare spending increasing by 19%.
AMEX stock fell more than 2% in midday trading Friday after the company has been reported Earnings and earnings were broadly in line with analyst expectations. The New York-based company's stock has been on a tear over the past year, hitting a 52-week high on Thursday.
William Blair analysts, led by Christopher Kennedy, said in a research note that they are “encouraged to accelerate Billings' growth. We remain buyers on any pullback. .”
