Credit card giant American Express (NYSE:AXP) has reported a fourth-straight quarter of profits that topped Wall Street estimates.
After months of stalled spending, credit-card issuers such as American Express are starting to see a turnaround with a resumption of social activities made possible by a rise in the number of fully vaccinated people.
American Express reported that its net income came in at $1.83 billion U.S., or $2.27 U.S. per share, for the quarter ended September 30, up 70% from last year. Analysts had expected $1.80 U.S. per share, according to Refinitiv Data.
American Express said the growth was driven by higher spending on goods and services by consumers and small businesses.
Spending on travel and entertainment also continued to rebound in the quarter, with restaurant spending growing above pre-pandemic levels as restrictions were eased and more people ventured out of their homes.
American Express released $393 million U.S. of reserves in the quarter, reflecting an improved credit outlook. Excluding interest expenses, the New York-based company’s total revenue rose 25% to around $10.93 billion U.S.