World Economy

AmEx Targets Loan Growth

AmEx Targets Loan GrowthAmEx Targets Loan Growth

American Express Co. will increase lending in the US as competitors cut acceptance costs to win credit-card partnerships with big merchants, Chief Executive Officer Ken Chenault said, Bloomberg reported. The focus on financing may help AmEx bolster revenue amid increasingly aggressive bidding on deals with retailers, airlines and other companies that bring in customers and fee-generating spending. Still, the move isn’t likely to shift AmEx’s total revenue mix, Chenault, 64, said Thursday at the company’s annual investor day. “The company is challenged to grow revenue via spending at present,” said Jason Arnold, an analyst at RBC Capital Markets. But it may prove difficult to add loans without sacrificing profitability, he said.