Higher expenses and credits from card members helped
post another strong quarter, even though the cost of the rewards program and other costs have increased
The financial services company that is on the right track a record year in terms of profit and sales, the group raised its full-year forecast on Thursday thanks to growth in the card business, dealer network and lending business.
AmEx, headquartered in New York, now expects annual sales growth of 9% 1
On Thursday, AmEx reported earnings in the third quarter up 22% to $ 1.62 billion, or $ 1.88 per share. In the same quarter last year, earnings were $ 1.33 billion, or $ 1.51 per share.
Net sales after interest expenses increased 9% to $ 10.1 billion.
Analysts surveyed by FactSet projected $ 1.77 in revenue of $ 10.06 billion
Discount revenue, reflecting dealer fees for the acceptance of their cards, remained $ 6.18 billion, the company's largest source of revenue, 8% more than a year ago.
the highest so-called swipe fees, but these costs have been lowered to encourage more traders to accept their cards.
Cardholder spending increased 8% in the most recent period, up 10% on a currency-neutral basis, and AmEx added about 3 million cards.
Overall, expenses increased by 8% compared to the same period last year. The reward for cardholders, the company's largest single-issue, which includes points redeemed for hotels and airline tickets, reached $ 2.4 billion in the third quarter, up 11% from a year ago.
AmEx, which has increased lending, reported $ 77.6 billion in card member credit in the last quarter, compared with $ 75.4 billion in the second quarter and $ 67.9 billion in the same period.
At the same time, the company is building up its loss reserves. Consolidated provisions for losses were $ 817 million, 6% more than a year ago, although the company noted that default rates were stable.
Equities rose 3.6% to $ 103.79 this year.
Write to Maria Armental at [email protected]