AmEx revenue beats on robust U.S. vacation season spending

FILE PHOTO: An American Categorical bank card is seen on a pc keyboard on this image illustration taken September 6, 2017. REUTERS/Philippe Wojazer/Illustration

(Reuters) – Bank card issuer American Categorical Co (AXP.N) reported a fourth-quarter revenue on Friday that beat analysts’ estimates, as extra folks used its playing cards for purchasing and paying payments whereas a powerful U.S. retail gross sales surroundings additionally helped.

Spending by clients utilizing AmEx playing cards through the quarter rose 6% in america and 4% in abroad markets, as the corporate spent extra on its rewards program to woo clients.

The corporate spent $2.72 billion on card member rewards, up 8% from a 12 months earlier. This pushed up whole bills by 9% to $8.36 billion within the reported quarter.

U.S. retail gross sales, a measure of purchases at shops, eating places and on-line, rose each month within the fourth quarter helped partially by a powerful vacation purchasing season.

The corporate’s internet revenue fell to $1.69 billion, or $2.03 per share, within the quarter ended Dec. 31, from $2.01 billion, or $2.32 per share, a 12 months earlier. (reut.rs/2TSAZKQ)

Analysts have been anticipating a revenue of $2.01 per share, in keeping with IBES information from Refinitiv.

Whole income, excluding curiosity expense, rose 9% to $11.37 billion, edging previous estimates.

Reporting by Bharath Manjesh in Bengaluru; Enhancing by Shounak Dasgupta

Our Requirements:The Thomson Reuters Belief Rules.

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