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American Express reports higher YOY net income in Q3, raises FY'17 guidance

American Express Co. reported third-quarter net income attributable to common shareholders of $1.36 billion, or $1.50 per share, up from $1.14 billion, or $1.20 per share, in the year-ago period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.48.

Total revenues, net of interest expense, were $8.44 billion, up from $7.77 billion in the year-ago period. Total expenses were $5.8 billion, compared with $5.5 billion in the prior-year quarter.

Provisions for losses were $769 million, up from $504 million in the year-ago period. American Express said the increase mostly reflected continued strong growth in the loan portfolio and expected elevated lending write-off and delinquency rates.

American Express' U.S. consumer services segment reported third-quarter net income of $475 million, compared with $401 million in the prior-year period. Total revenues, net of interest expense, rose to $3.3 billion from $2.9 billion in the year-ago period. Provisions for losses totaled $459 million, versus $275 million in the third quarter of 2016.

The company's international consumer and network services segment reported third-quarter net income of $286 million, compared with $155 million in the prior-year period. Global commercial services reported segment income of $529 million, up from $466 million in the same quarter of 2016. American Express' global merchant services reported segment income of $368 million, up from $359 million in the year-ago period.

The corporate and other segment reported a net loss of $302 million, versus a net loss of $239 million in the third quarter of 2016.

American Express now expects its full-year EPS to be between $5.80 and $5.90, up from previous guidance EPS for 2017 to be between $5.60 and $5.80.