NEW YORK CITY, New York: With nearly 50 percent of Americans having received the Covid vaccine, customers at restaurants, shops and entertainment locations have returned, and American Express reports a surge in revenues for the second quarter.
Officials at American Express said they witnessed increased spending as the quarter progressed, in particular spending among younger customers.
"We saw card member spending accelerate from the prior quarter and exceed pre-pandemic levels in June, with the largest portion of this spending growth coming from Millennial, Gen Z, and small business customers," Chairman and CEO Stephen Squeri said in a statement.
Revenue at American Express increased to $10.24 billion from $7.68 billion in second quarter 2020, and higher than the $9.47 billion that Wall Street projected, according to Zacks Investment Research.
Meanwhile, American Express shares climbed 3.4 percent before Friday's trading.
Additionally, American Express delivered 2.4 million new cards in the second quarter.
Earnings at American Express were $2.28 billion, or $2.80 per share, for the three months ended June 30. One year earlier, during the Covid lockdown, the company earned $257 million, or $0.29 per share.
American Express revenues fell during the pandemic, as Americans were unable to travel, dine out or shop.
"We are increasingly optimistic that the momentum we've generated will continue, given the strength we see in our core business, particularly in the U.S., even as the pace of the recovery remains uneven in different regions around the world," Squeri said. "Based on current trends, we are confident in our ability to be within the high end of the range of EPS expectations we had for 2020 in 2022."