(Bloomberg) — American Express Co. (AXP) profits increased 12% as well-heeled consumers spent more than analysts expected on their credit cards over the holidays.

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Billed business, or the transaction volume on credit cards and other products issued by the firm, rose 8% to $408.4 billion in the fourth quarter. Fourth-quarter net income of $2.17 billion, or $3.04 a share, slightly missed estimates.

“We exited the year with increased momentum, with billings growth accelerating to 8% in the fourth quarter, driven by stronger spending from our consumer and commercial customers during the holiday season,” Chief Executive Officer Steve Squeri said in a statement Friday. “We maintained our best-in-class credit performance and disciplined expense management throughout the year.”

Full-year revenue is expected to grow between 8% and 10%, the firm said.

In 2024, Amex continued to invest in its offerings for clients who spend heavily on hospitality and travel, striking a deal for the event-ticketing platform Tock in June and refreshing its Gold card in July to add a $100 annual statement credit for Resy-linked restaurants in the US. Co-brand card partner Delta Air Lines Inc. said in November that the payments the airline receives from Amex for loyalty points to award to members is on track to reach $10 billion each year in the long term.

Amex announced last week that it will pay about $230 million to resolve long-running federal probes into its sales practices around products for small-business owners. Amex said that in addition to discontinuing the products in question, it took disciplinary action against those involved, undertook internal reviews and boosted compliance programs.

“Consumer confidence is getting higher, and that’s translating into potentially more spending,” Squeri said in an interview with Bloomberg.

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