By Will Feuer
American Express Co. posted higher revenue in the third quarter as card-member spending held up, driven by a surge in travel spending despite macroeconomic concerns.
The New York City-based credit-card company logged net income of $1.88 billion, or $2.47 a share, up from $1.83 billion, or $2.27 a share, a year earlier. Analysts polled by FactSet had forecast earnings of $2.40 a share.
Revenue net of interest expense rose 24% to $13.56 billion, driven by increased member spending. Analysts surveyed by FactSet had been expecting revenue of $13.52 billion.
The company saw card members spend more on both goods and services as well as travel and entertainment, Chief Executive Stephen Squeri said. Travel and entertainment spending surged 57% from a year earlier when adjusted for currency fluctuations, Mr. Squeri said.
“The demand for travel has exceeded our expectations throughout the year,” he said. In American Express’s international markets, travel and entertainment spending volumes surpassed pre-pandemic levels for the first time in the quarter, stripping out the effects of currency fluctuations, Mr. Squeri said.
At the same time, the company provisioned more for credit losses, citing a growth in card member loans and a murkier macroeconomic forecast. American Express provisioned $778 million for credit losses in the recently ended quarter, compared with a benefit of $191 million a year ago.
Write to Will Feuer at Will.Feuer@wsj.com