AXP American Express Company

By Will Feuer

American Express Co. posted a 22% jump in revenue for the first three months of the year as Americans kept spending, particularly on travel, entertainment and restaurants.

The New York City-based credit-card company logged net income of $1.82 billion, or $2.40 a share, down from $2.10 billion, or $2.73 a share, a year earlier. Analysts surveyed by FactSet were expecting earnings of $2.66 a share.

Revenue, net of interest expense, rose to $14.28 billion from $11.74 billion a year ago. Analysts surveyed by FactSet were expecting revenue of $13.98 billion.

Chief Executive Stephen Squeri said travel and entertainment spending rose 39%. "We saw a record level of reservations booked on our Resy restaurant platform," he said. Spending on goods and services rose 9%, adjusted for foreign exchange.

"Our customers have been resilient thus far in the face of slower macroeconomic growth, elevated inflation and higher interest rates, with credit performance remaining best-in-class," he said.

The company provisioned $1.06 billion for credit losses in the quarter, compared with a benefit of $33 million in the year-ago period.

Costs rose 22% to $11.1 billion in the quarter, driven by customer-engagement expenses and increased usage of travel-related benefits. Americans stockpiled credit card points during the pandemic, executives have said, and many are now working through a backlog of those points.

The company backed its full-year guidance.

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

(END) Dow Jones Newswires

April 20, 2023 07:23 ET (11:23 GMT)

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