By Matt Grossman

 

American Express Co. Friday recorded sales and earnings growth in the third quarter, and said that restaurant spending has recovered above pre-pandemic levels.

The New York City-based credit-card company logged third-quarter earnings of $2.27 a share, a rise from $1.30 a share in the same three-month period a year earlier. Analysts polled by FactSet had forecast earnings of $1.80 a share.

Net income climbed to $1.83 billion, compared with $1.07 billion in last year's third quarter.

Net of interest expense, revenue was $10.93 billion, an increase from $8.75 billion in the year-ago quarter. Analysts were expecting revenue of $10.52 billion.

Consumer spending and small-business spending on goods and services grew 19% over pre-pandemic levels from the third quarter of 2019, adjusting for foreign-exchange effects. Restaurant spending increased above pre-pandemic levels as well, a sign that the travel and entertainment category was recovering, Chairman and Chief Executive Stephen Squeri said.

The company recorded a benefit from credit-loss-provision activity of $191 million, an improvement from a provision expense of $665 million in the year-ago quarter. American Express cited credit-reserve releases and lower net write-offs.

 

Write to Matt Grossman at matt.grossman@wsj.com

 

(END) Dow Jones Newswires

October 22, 2021 07:14 ET (11:14 GMT)

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