(Reuters) – American Express reported higher quarterly profit on Friday as user spending held steady despite fears of a potential economic slowdown.
For 2022, AmEx expects earnings per share to be higher than forecast, between $9.25 and $9.65.
The title AmEx took 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 related to the resumption of cross-border travel 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)