American Express said Friday that it took in a record $15.1 billion in revenue over the second quarter as consumers spent more on its credit cards.
The company reported earnings per share of $2.89 in the quarter, beating Wall Street expectations of $2.81 a share.
"Card member spending hit another all-time high over the quarter, rising 8% on an adjusted basis," American Express CEO Stephen Squeri said in a statement. "Travel and entertainment spending remained strong across customer categories and geographies, growing 14% on an adjusted basis. We also saw reservations on our restaurant platform reach a quarterly high and bookings through our consumer travel business reach their highest levels since before the pandemic."
The company is also reaffirming its full-year 2023 guidance for earnings of $11 to $11.40 a share with revenue growth of 15% to 17%.
"Our base is changing in terms of more Millennials and Gen Z who will grow with us," Squeri said Friday during the company's earnings call. "And as the economy gets better, we expect the spending to pick up. So we feel really confident."
Rising borrowing costs led AmEx to raise its provisions for credit losses to $1.2 billion from $410 million a year ago as it braced for potential defaults in debt repayments.
GEN Z, MILLENNIALS HAVE BLEAK OUTLOOK ON FINANCIAL FUTURES, STUDY FINDS
According to the company, the increase reflected higher net write-offs and a net reserve build of $327 million, compared with a net reserve build of $58 million in 2022.
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Reuters contributed to this report.
