American Express posted net income of $1.879 billion in the third quarter of 2022, an amount equivalent to earnings per share of $2.47, the company said on Friday. The $2.40 expected by FactSet analysts and also surpassed the $2.27 gains recorded in the same period last year.
The company’s revenue was US$ 13.556 billion between July and September, surpassing the analysts’ consensus, of US$ 13.520 billion, and 24% above the result of the third quarter of 2021, of US$ 10.928 billion. According to American Express President and CEO Stephen Squeri, revenue for the last quarter beat the financial services provider’s previous record.
While earnings rose, expenses also rose last quarter by 19% to $1.9 billion, according to American Express. In a statement, the company credits the increase in spending to “higher customer engagement costs, which were driven by higher network volumes and greater use of travel-related benefits. Operating expenses also increased, “primarily reflecting higher technology, service and compensation costs,” he explained.
The company also set aside more capital for loan loss provisions, from $191 million to $778 million year-on-year. The move reflects the construction of a $387 million reserve to cover customer growth and changes in macroeconomic forecasts, he clarified.
Despite the good results, investors focused on signals about spending and increase in provisions, and the company’s share retreated 4.85% in the pre-market of the New York stock exchanges, at 8:30 am (GMT).
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
