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American Express posts 13 percent jump in 3rd-quarter profit as spending on cards increases
NEW YORK (AP) ' American Express says its third-quarter profit rose 13 percent as its customers spent more on their cards.
The credit card company on Wednesday posted net income of $1.24 billion, or $1.03 per share. Revenue rose 9 percent to $7.57 billion.
Wall Street was expecting profit of 95 cents per share, on revenue of $7.58 billion.
New York-based American Express says card user spending rose 16 percent. Meanwhile, the company enjoyed the lowest rate of late payments and defaults on balances in the industry.
Amex said its expenses rose 13 percent to $5.6 billion, reflecting higher rewards costs. The company cut its marketing and promotion costs to slow the rate of increase, an issue some analysts have raised as a concern.