American Express has seen a consistent improvement in write-off rates and 30-day past due, Kenneth Chenault, American Express chairman and Ceo, told CNBC Tuesday.
“While I’m absolutely not going to predict where the credit results will be, we’re encouraged with what we’ve seen over the last several months and the 30-day past due has held steady is an encouraging sign,” said Chenault.
A year ago American Express traded at about $10 a share, a price far from what Chenault said he believed the stock was worth.
Tuesday shares traded around $41 in early trading hours.
“What I recognized was the economic environment and the psychological state was highly anxious, but what I said to our organization was ‘we’re going to stay the course’ and we went back to this mantra of stay liquid, stay profitable, selectively invest in growth and the progress that we were able to make through that period gave us confidence that the stock would certainly return to good value,” said Chenault.
Since American Express's fourth quarter the payment card company has raised over $23.9 billion in deposit, Chenault said.
The company also saw a 3 percent increase in reported billings.
"What that says is in a time of uncertainty the consumer trusts brands that really provide service and value,” said Chenault.