American ExpressCo.after another strong quarter, even as expenses for their reward program and other costs ticked up.Financial services, which are…
after another strong quarter, even as expenses for their reward program and other costs ticked up.
Financial services, which are on track after a record year in terms of earnings and revenues, Thursday increased their annual forecast due to growth in the card business, the trading network and lending.
AmEx, based in New York, now expects annual revenues to increase by 9% to 1
0% and adjusted earnings to reach $ 7.30 to $ 7.40 per share.
On Thursday, AmEx reported that earnings for the third quarter increased by 22% to $ 1.62 billion or $ 1.88 per share. The result for the quarter was $ 1.33 billion in the previous year, or $ 1.51 per share.
Revenues increased by 9% to $ 10.1 billion.
Analysts investigated by FactSet had a profit of $ 1.77 per share and
Interest income, which reflects the merchants’ fees for accepting their cards, was the company’s largest revenue source of $ 618.8 billion, an increase of 8 % compared with the previous year.
AmEx used to charge some of the highest so-called swipe charges, but it has lowered these costs as part of their attempt to get more merchants to accept their cards.
Expenditure for card members increased by 8% in the last period, 10% adjusted for currency translation, and AmEx added approximately 3 million cards.
Total expenses increased by 8% compared with the previous period. Card members reward, the company’s largest single expense, which includes points redeemed for hotel and airline tickets, amounted to $ 2.4 billion in the third quarter, an increase of 11% over the previous year’s period.
AmEx, which has risen in lending, reported $ 77.6 billion in short-term loans in the last quarter, from $ 75.4 billion in the second quarter and $ 67.9 billion for the previous year.
At the same time, the company has built up its deficit reserves. Consolidated provisions for losses amounted to $ 817 million, an increase of 6% compared with the year before, despite the fact that the company noted that crime was stable.
Shares, an increase of 3.6% this year rose by 0.9% to $ 103.79 in post-trade.
Write to Maria Armental at [email protected]