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AmEx said that card acquisitions hit a record level in the third quarter for U.S. small-business and consumer Platinum and Gold cards. The company noted that goods-and-services spending by global small- and medium-size enterprises in the third quarter was 21% above the same period in 2019. Large and global corporate-card spending, historically driven by travel and entertainment, “continued to show fewer signs of recovery,”.
Investors seem a bit concerned about credit cards. After surging for much of the year, share prices of card companies have mostly fallen or underperformed the broader bank sector since the start of earnings season in mid-October. The cautious stance on the group might be traced back to JPMorgan Chase’s earnings, when the bank noted a jump in marketing spending on cards that weighed on its revenue rate. That signaled that competition for customers could be intensifying, which could diminish any upside from a rebound in lending.
