American Express posts higher profit in Q3 thanks to travel spending, Company news

Oct 21 (Reuters) – American Express reported higher quarterly profit on Friday, benefiting from continued user spending despite fears of a potential economic slowdown.

For 2022, AmEx expects earnings per share to be higher than sneakers, between $9.25 and $9.65.

The title AmEx was 3.5% to 137.50 dollars in pre-market trading on Wall Street.

The group published a net profit of 1.88 billion dollars (1.93 billion euros) for the three months to the end of September, against 1.83 billion a year ago. Earnings per share reached $2.47 from $2.27 a year earlier. Analysts polled by Reuters had expected $2.41, according to an IBES Refinitiv consensus.

Total revenue, net of interest expense, increased 24% to $13.56 billion on higher user spending as cross-border travel resumed since the onset of the COVID-19 pandemic. 19.

“Travel demand has exceeded our expectations throughout the year,” said chief executive Stephen Squeri.

“Travel and entertainment spending volumes in international markets exceeded pre-pandemic levels for the first time this quarter,” he added.

AmEx issued 3.3 million new credit cards during the quarter.

Consolidated loss provisions were $778 million in the quarter versus $191 million a year ago, providing for potential defaults.

The group said its spending had increased by 19% in view of its plan to hire around 1,500 people. (Mehnaz Yasmin and Niket Nishant in Bangalore, French version Lina Golovnya, editing by Kate Entringer)

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