American Express has reported a net income of $1.7bn for the third quarter of 2018. This is a surge of 22% compared to $1.4bn in the corresponding year ago quarter.

For the quarter ended 30 September 2018, total revenues were $10.1bn, an increase of 9% year-on-year surge.

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American Express Q3 results promising

According to the American Express Q3 results, the rise is due to higher consumer spending, small business and corporate cardholders. Furthermore, higher loan volumes and fee income also contributed.

The card issuer recorded an increase of 8% in expenses, growing from $6.7bn a year ago to $7.2bn this year. This growth was attributed to higher customer engagement costs, including rewards.

American Express chairman and CEO Stephen Squeri said: “We delivered strong results this quarter driven by higher card member spending, fee income and loans.

“This marks our sixth consecutive quarter of strong adjusted revenue growth and our investments in new benefits, services and digital capabilities continued to generate momentum as we enter the latter part of 2018.”

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American Express Q3 results also showed 8% surge in card member spending, and acquired 3 million new cards during the third quarter of 2018.

Its Global Consumer Services Group reported a net income of $779m for the quarter. This is up 15% compared to $680m a year ago.

Net income at the Global Commercial Services division jumped 20% to $606m from $505m last year. The Global Merchant and Network Services unit registered a net income of $580m, up 38% from $420m a year ago.