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Increased spending and borrowing of map members helped
American Express
Co.
AXP -1.44%
another vigorous quarter, as spending on its rewards program and other costs increased.
The financial services company, which is on the verge of a record year in terms of earnings and revenues, raised its annual forecast on Thursday, thanks to growth in its card business, merchant network and credit activities.
AmEx, based in New York, is now expecting an annual turnover increase of 9% to 10% and an adjusted profit of $ 7.30 to $ 7.40 per share.
Thursday, AmEx announced that its third quarter earnings rose 22% to $ 1.62 billion, or $ 1.88 per share. In the previous quarter, a year earlier, earnings were $ 1.33 billion, or $ 1.51 per share.
Revenues, net of interest expense, increased 9% to $ 10.1 billion.
Analysts surveyed by FactSet were expecting a profit of $ 1.77 per share and a $ 10.06 billion business figure.
Discount products, which reflect fees charged to merchants for accepting cards, remained the largest source of revenue for the company, at $ 6.18 billion, up 8% from last year. 'last year.
AmEx charged for some of the highest transfer fees, but it reduced those costs as part of its efforts to get more merchants to accept their cards.
Expenses of card members have increased by 8% over the most recent period, 10% adjusted for currency conversion and AmEx has added about 3 million cards.
Overall, expenses increased by 8% over the same period last year. Rewards awarded to card members, the company's largest expense which includes points redeemed for hotels and airline tickets, reached $ 2.4 billion in the third quarter, up 11% from at the same period of the previous year.
AmEx, which has increased its lending business, announced $ 77.6 billion in loans to card members in the last quarter, up from $ 75.4 billion in the second quarter and $ 67.9 billion in the first quarter. same period of the previous year.
At the same time, the company built its reserves for losses. Consolidated loss provisions were $ 817 million, up 6% from the previous year, although the Company found that the default rates were stable.
Equities, up 3.6% this year, rose 0.9% to $ 103.79 in after-hours trading.
Write to Maria Armental at [email protected]
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