(Reuters) – American Express Co’s quarterly profits exceeded the market expectations on Tuesday due to higher travel and entertainment spending and the holiday shopping rush driving up volumes at its credit-card issuer.

People have spent more money on AmEx cards, especially Millennials and Gen Z, since the vaccination-aided return to pre-pandemic lifestyles like eating out and traveling internationally.

This has allowed the credit-card company to recover from the slump caused by the pandemic. Spending on entertainment and travel more than doubled in the fourth quarter ending Dec. 31.

Stephen Squeri, Chief Executive Officer of the company said that “our investment strategy allowed us to achieve record levels in cardmember spending… Increase new card acquisitions and grow our loan balances.”

According to the company, momentum will continue through 2022. The annual net revenue is expected to increase between 18%-20% with earnings per share of 9.25 and $9.65.

The bell triggered a surge in shares of 3.72%, which was contrary to wider market weakness.

The company’s fourth quarter total revenue, excluding interest expense, rose by 30% to $12.15 Billion.

Net income reached $1.7billion, which is $2.18/share, against $1.44billion, or $1.76/share, one year prior. Refinitiv IBES data shows that analysts were expecting an average of $1.87 per shares.

However, the company saw an increase in expenses of 29% due to higher compensation and greater use of travel-related benefits, which is in line with other financial institutions.