American Express spending more to attract cardholders, says CEO

New York

AMERICAN Express Co, the biggest US credit card issuer by purchases, is spending more money to attract cardholders and actively seeking retail partners as it works "with a great sense of urgency" to improve results, chief executive officer Ken Chenault told shareholders.

AmEx has "ramped up spending on cardmember acquisition", he said at the company's annual meeting in New York, while conceding that 2015 was a "disappointing" year for investors. He didn't elaborate on the firm's spending.

The lender has sought to reverse its worst stock slump since the recession after announcing last year it would end its US partnership with Costco Wholesale Corp, a relationship that accounted for 20 per cent of worldwide loans. As increased competition has pressured margins, Mr Chenault, 64, has shuffled his management team and in March announced a renewed focus on lending to bolster profitability at the firm.…