NEW YORK – American Express (AXP) on Monday said quarterly earnings rose 14 percent, matching analysts' expectations, as cardholder spending and borrowing increased while loan losses fell.
The New York-based financial services company reported net income of $879 million, or 69 cents a share, in the third quarter, compared with $770 million, or 59 cents, a year earlier.
Analysts on average expected American Express to earn 69 cents a share, according to Reuters Estimates.
Quarterly revenue rose 12 percent to $7.20 billion, slightly below the average forecast.
American Express announced it would extend its credit card marketing partnership with Delta Air Lines (DAL). The charge and credit card issuer agreed to prepay $500 million to Delta for frequent flier rewards. American Express also agreed to lend the airline $100 million as part of a new credit facility agreement under negotiation with a number of banks.
Results in the company's flagship travel and credit card division were pared by a $115 million charge related to securitized loans. On a positive note, the total provision for loan losses fell by 3 percent, reflecting improving credit quality.