The Russian Central Bank has reportedly revoked the banking license of American Express’s Russian subsidiary.
As Reuters reported on Tuesday (13 August), the central bank did so at the company’s request. American Express filed a voluntary application to liquidate its Russian business in July, the report said, citing SPARK, the Russian business register.
According to Reuters, Russian President Vladimir Putin signed this demand in May. American Express joined other card networks and payment processors in 2022 and ceased operations in Russia because it believed the country was committing “unjustified attacks on the Ukrainian people.”
According to the Russian Central Bank’s report, American Express ranks 300th in terms of assets in the Russian banking system. Since the beginning of the Ukraine war, foreign banks have needed Putin’s permission to leave the market or sell shares in their Russian business.
Excluding Russia, American Express is seeing double-digit spending growth among its international retail customers, according to earnings results released last month.
Overall, the company said, consumers continue to spend money on experiences – especially dining out. This trend is being driven by younger generations using their cards more frequently. Spending by millennials and Gen Z increased 13% year over year, management said during a conference call with analysts.
According to CFO Christophe Le Caillec, spending growth was recorded in several categories. Spending on goods and services rose by 6 percent and spending on travel and entertainment grew by 7 percent.
“We have seen some slower growth in certain categories (travel and entertainment) compared to the previous quarter, particularly in air travel and lodging,” he said, adding that spending in restaurants “remains strong.”
In terms of increased card usage, the company’s transaction growth was 9% higher in the June quarter compared to the previous year.
“Younger cardholders continue to show strong engagement and we see them making on average over 25% more transactions than our older customers,” said Le Caillec. And in categories such as hospitality, their transactions are even double.
Millennials and Generation Z consumers accounted for a third of the $165 billion U.S. billed consumer services business – a metric that includes cardholder spending and cash advances, the earnings report said.
