The acceleration in consumption, supported by the reopening of global economies, has resulted in a strong increase in American Express’s turnover. The American giant’s turnover rose 33% to $ 10.2 billion from $ 7.7 billion in the second quarter of 2020, and above the $ 9.6 billion expected by the consensus. The wake of five consecutive quarters in which American Express revenue had fallen.
“We have seen spending acceleration by credit card holders compared to the previous quarter, reaching higher levels, in June, compared to those before the pandemic: the largest chunk of this growth in expenses has come by Millennials, Generation Z and small businesses, ”commented Stephen Squeri, president and CEO of the group.
AXP’s marketing expenses increased by 63%, ahead of the launch of the US consumer Platinum Card.
Net earnings stood at $ 2.3 billion in the second quarter, up sharply from 257 million yoy in the same period last year, also on the back of the release of $ 866 million of those reserves that had been set aside to meet. to potential non-performing loans that could have occurred with the crisis triggered by the Covid-19 pandemic. Earnings per share came in at $ 2.80, up from just 29 cents per share in the second quarter of 2020. Analyst estimates, who had forecast $ 1.64 in assets per share, shattered.
The stock rallies by 3.6% in premarket.