WASHINGTON, Oct. 22 (BNA) – American Express (AXP.N) on Friday reported a fourth consecutive quarter of profit that topped Wall Street estimates, supporting a recovery in consumer spending encouraged by the easing of coronavirus restrictions. .
After months of stagnant spending, credit card issuers such as AmEx are beginning to see a turnaround with the resumption of social activities made possible by a rise in the number of people getting full vaccinations, Reuters reported.
Net income was $1.83 billion, or $2.27 per share, for the quarter ended September 30, up 70% from a year ago. Analysts had expected a figure of $1.80 per share, according to IBES data from Refinitiv.
AmEx said the growth was driven by increased spending on goods and services (G&S) by consumers and small businesses.
The company said travel and leisure (T&E) spending also continued to recover in the quarter, with spending at restaurants growing above pre-pandemic levels as restrictions were eased and more people ventured to leave their homes.
AmEx issued $393 million in reserves this quarter, reflecting the overall improved credit outlook.
Excluding interest expense, the New York-based company’s total revenue rose 25% to about $10.93 billion.
NS