American Express Q3 earnings beat expectations
By Iain Gilbert
Date: Friday 22 Oct 2021
(Sharecast News) - Financial services company American Express reported third-quarter earnings that beat expectations on Friday thanks to an acceleration in spending throughout the period.
American Express posted a third-quarter income of $1.8bn, or $2.27 on a per-share basis, up from $1.1bn or $1.30 a year earlier and ahead of expectations for a print of $1.80 per share.
Revenues net of interest expenses grew from $8.8bn to $10.9bn, also ahead of estimates of $10.5bn, thanks to cardholder spending picking up 19% compared to 2019's pre-Covid Q3.
Consolidated provisions for credit losses resulted in a $191.0m benefit in the third quarter, down from $665.0m at the same time a year earlier, with the change largely being due to $393.0m in credit reserve releases and lower net write-offs in the period.
Amex chief executive Stephen Squeri highlighted that the firm had benefited from "a continued rebound in travel and entertainment spending", in the quarter, with restaurant spending being "notably resilient" and growing above pre-pandemic levels.
As of 1335 BST, American Express shares were up 1.88% in premarket trading at $180.80 each.
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