(Boursier.com) — American Express lost ground before the stock market on Wall Street, while the group published results above market expectations, with travel expenses supporting the accounts. The group reported a slight improvement in profits in the third quarter as spending on goods, services and travel held steady despite the risk of recession. AmEx said it expects full-year earnings to be higher than its previous guidance of $9.25 to $9.65 per share. Travel demand exceeded management expectations throughout the year. Travel and entertainment spending volumes in international markets exceeded pre-pandemic levels for the first time this quarter. AmEx’s quarterly revenue rose 24% to $13.6 billion, helped by a 21% increase in cardholder spending as cross-border travel resumed. The company added 3.3 million new proprietary cards.
AmEx also made provisions of $778 million during the quarter to prepare for possible defaults. AmEx’s expenses increased 19% with investments in customer engagement and compensation. Quarterly net profit rose 3% to $1.88 billion or $2.47 per share. Analysts estimated EPS at $2.41.
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