American Express earns $4.515 million after recovering in the first half

Thanks to the sharp increase in consumer spending and the release of the reserves it provided to protect itself from possible default during the pandemic, American Express (AMEX), multinational financial services and credit cards, It made $4.515 billion in the first half of the year, up from just $624 million the year before.

AMEX Invoices were made between January and June 19 thousand and 307 million dollars, an increase of 7 percent over the same period in 2020, benefiting from the recovery of the US economy and the high demand for its credit cards.

In the face of the overall economic improvement, the company released $866 million in default reserves during the second quarter, in addition to the more than 1,000 it had released through March. Largely explain the huge difference in net profit this year Compared to the past, when it sank due to the eruption pandemic.

Between April and June, Amex made $2.28 billion, compared to $257 million in the same period in 2020, it was announced Friday.

“Our strong second-quarter results show that the steps we’ve taken to manage the company during the pandemic and our investment strategy to drive our growth are working,” Stephen J. Squire, Chairman and CEO, said in a statement.

Amex highlighted the strong demand for tarjetas “premium”, at record levels in the United States, and increased customer use.

According to the company, Spending on their credit cards has accelerated in recent months By June, it had exceeded pre-pandemic levels, with most of that growth linked to Millennials and Generation Z.

also Spending on travel and entertainment rose sharply, and Squeri He stressed that he expects continued good business performance, especially in the United States, despite the uneven pace of economic recovery the world is witnessing.

After the accounts were announced, American Express shares surged more than 4 percent in electronic trading before Wall Street opened, accumulating nearly 45 percent this year.

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