American Express Posts 4Q Growth Amid Higher Card Member Spending

By Will Feuer

American Express Co. posted higher sales and earnings in the fourth quarter as the company said spending among card members reached a new record.

The New York City-based credit-card company logged fourth-quarter net income of $1.72 billion, up from $1.44 billion a year earlier. Earnings were $2.18 a share, up from $1.76 a share in the same three-month period a year earlier. Analysts polled by FactSet had forecast earnings of $1.86 a share.

Revenue at the company, net of interest expense, rose 30% to $12.15 billion. Analysts surveyed by FactSet had been expecting $11.54 billion.

"Our investment strategy enabled us to reach record levels of card member spending, maintain customer retention and satisfaction above pre-pandemic levels, increase new card acquisitions, grow our loan balances, and deepen our digital engagement with customers, producing revenue growth of 30% in the fourth quarter and 17% for the full year," Chairman and Chief Executive Stephen Squeri said.

The company recorded provisions for credit losses of $53 million, compared with a benefit of $111 million a year earlier. The company cited lower reserve releases compared with a year ago.

Consolidated expenses for the full year rose 22% to $33.1 billion, the company said, due in part to higher marketing investments and higher usage of travel-related benefits. Operating expenses were flat, reflecting increased compensation, offset by net gains on Amex Ventures equity investments.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

January 25, 2022 07:14 ET (12:14 GMT)

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