(New York) Credit card issuer American Express (AmEx) saw its sales rise again after five straight quarters of declines thanks to the resumption of purchases by consumers, especially among younger ones.
“We saw cardholder spending accelerate from the previous quarter and surpass pre-pandemic levels in June, with most spending growth coming from millennials, millennials, consumers, Generation Z and small businesses,” said Stephen Squire, the company’s CEO in a statement.
The company’s revenue jumped 33% to $10.24 billion.
It was hit hard at the start of the pandemic by a sharp drop in spending on travel, restaurants or shopping.
Many credit card holders also take advantage of this period to pay off all or part of their debt, reducing the interest that AmEx can earn.
Since then, vaccination campaigns have gradually reopened the economy, with many consumers seizing the opportunity to enjoy the outdoors and go on weekends and holidays.
The company’s net income rose ninefold in the second quarter, to $2.28 billion, thanks in part to reducing the $866 million in reserves that were set aside at the start of the pandemic to deal with potential unpaid customer bills.
AmEx made the decision “primarily due to the company’s strong credit quality and continued improvements in the macroeconomic outlook.”
“Looking ahead, we are more and more optimistic about the continued momentum we have generated given the strength we see in our core businesses, particularly in the United States, even if the pace of recovery remains uneven in different regions of the world,” Squire stressed.
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