American Express Logs 3Q Growth Amid Higher Restaurant Spending

By Matt Grossman

American Express Co. Friday recorded sales and earnings growth in the third quarter, and said that restaurant spending has recovered above pre-pandemic levels.

The New York City-based credit-card company logged third-quarter earnings of $2.27 a share, a rise from $1.30 a share in the same three-month period a year earlier. Analysts polled by FactSet had forecast earnings of $1.80 a share.

Net income climbed to $1.83 billion, compared with $1.07 billion in last year's third quarter.

Net of interest expense, revenue was $10.93 billion, an increase from $8.75 billion in the year-ago quarter. Analysts were expecting revenue of $10.52 billion.

Consumer spending and small-business spending on goods and services grew 19% over pre-pandemic levels from the third quarter of 2019, adjusting for foreign-exchange effects. Restaurant spending increased above pre-pandemic levels as well, a sign that the travel and entertainment category was recovering, Chairman and Chief Executive Stephen Squeri said.

The company recorded a benefit from credit-loss-provision activity of $191 million, an improvement from a provision expense of $665 million in the year-ago quarter. American Express cited credit-reserve releases and lower net write-offs.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

October 22, 2021 07:14 ET (11:14 GMT)

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