AmEx's Q3 Profit Surpasses Estimates with Strong Spending

American Express reported third-quarter profit that exceeded expectations, driven by strong spending from its affluent customer base. Despite concerns about an economic downturn, AmEx has managed to mitigate the impact of inflation and rate hikes. The company increased provisions for credit losses due to the higher likelihood of consumer defaults, but net write-off and delinquency rates remained below pre-pandemic levels. AmEx's CFO noted that demand for their products and services is coming from Gen Zs and Millennials, and the resumption of student loan repayments has not affected spending patterns. The company's earnings per share and revenue for the full year are expected to be in line with prior forecasts.