American Express Matches Expectations as Cardholder Spending Grows

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.