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AmEx profit up on record spend
AMERICAN Express posted higher-than-expected quarterly net income on yesterday, as borrowers used their cards for more purchases.
The New York-based credit card company said third-quarter net income was $1.2bn, or $1.03 per share — up from $1.1bn, or 90 cents per share, a year ago. That was above analysts’ average estimate of earnings of 96 cents per share. Total revenue, net of interest expenses, rose nine per cent to $7.57bn from $6.97bn a year earlier.
But costs were up on its card member program and personnel costs, with total expenses up about 13 per cent.