CFO of American Express Says Millennials and Gen Z Drove Spending at Year’s End.

(VOR News) – In the latter part of the previous year, the chief financial officer of American Express, Christophe Le Caillec, stated that the wealthy cardholders of the corporation were more at ease spending more freely than they had been in the previous year.

Additionally, content was delivered to CNBC in this regard. A decline from 7% at year’s beginning to 6% in the second and third quarters was indicated in the company’s financial statement regarding sales made with American Express cards.

This persisted throughout the entire year. Compared to the previous year, this growth was considerably more modest. Compared to the same period last year.

Fourth-quarter American Express card spending rose 8%.

The volume of transactions from millennial and Gen Z consumers increased by 16%, which is a significant increase over the 12% increase that was observed in the market during the third quarter.

It may be deduced from this that these clients are mostly responsible for being the success of the platform. Each and every client group and geographical location experienced an increase in income; these specific customer groups were mostly responsible for the gain by the end of the year.

The younger groups had a higher level of self-control in relation to their cards compared to the more senior groups. Within the fourth quarter, consumers belonging to Generation X experienced a seven percent increase in spending, however consumers belonging to the baby boomer generation only experienced a four percent increase in billings over the same time period.

In his media presentation, Le Caillec expressed his optimism for the year 2025, American Express citing the two percentage point increase as well as the noteworthy rise in the number of millennials and members of Generation Z. “We are quite optimistic about the future.” “We hope for the future.”

In addition, he mentioned that the volume of transactions was notably higher during the first three weeks of the year, which is an important issue that requires more investigation.

Data accuracy is supported by American Express information.

Which, together with its competitor JPMorgan Chase, has a strong presence in the market for premium credit cards. As a result of the fact that they reflect this point of view, the findings of American Express lend credence to the hypothesis that younger Americans will spend a greater proportion of their money on experiences rather than on commodities.

There was a 15% increase in billings for goods and services from the beginning of the quarter until the conclusion of the quarter, while the growth in billings for travel and entertainment was 11%.

According to Le Caillec, the increase in travel was caused by a thirteen percent increase in airline expenses, which was accompanied by a nineteen percent increase in the prices of tickets for first-class and business-class travel. As a direct result of this, travel increased all over the world.

Friday at noon was the start of the trading session, and American Express fell more than 2%. This action was done after the income and results were announced, which mostly satisfied the expectations of the expert community.

On Thursday, the stock of the New York-based firm hit a 52-week high, showing that its worth had grown substantially over the past year. Thursday was the day when it reached its peak.

In a research note that was published on Friday, Christopher Kennedy, an analyst at William Blair, stated that the acceleration of billings growth is a American Express positive indicator and will be vital for Amex’s efforts to attain a revenue growth objective of at least 10%.

“We think it will be as important as the speed at which billing increase.” “We are sure Amex can reach this provided it keeps up its momentum of billing increase.”

“We expect Amex to reach its aspirational minimum 10% revenue growth.” “We anticipate that Amex will achieve its overall revenue growth target of no less than 10%.” “We will keep buying through any downturn.”

SOURCE: CNBC

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