American Express Co. continues to benefit from strong growth in spending in the last quarter, with particular momentum in travel and entertainment.

Card giant reported a net profit of $1.8 billion or $2.40 per share for the first quarter, down from $2.73 or $2.1 billion in the same period last year. FactSet’s consensus was $2.66 per share.

Amex AXP,+0.33% posted $14.3 billion of total revenue in the first three months, compared to the analyst consensus of $14 billion. Amex’s quarterly revenue was $11.7 billion during the same period last year.

Amex’s earnings announcement cited the Chief Executive Stephen Squeri as highlighting “particularly robust” travel and entertainment spending.

In the third quarter, the company saw a 16% increase in card member spending in a currency neutral basis. It also added 3.4 million proprietary cards.

Amex reported record-breaking quarterly account acquisitions across its U.S. Consumer Platinum, Gold and Delta cards. Millennials and Gen Z customers accounted for more than 60% new accounts in the consumer sector.

The company reported a 22% increase in its consolidated expenses for the third quarter. This was due to “higher costs of customer engagement, driven by increased network volumes and an increased use of travel benefits.”

According to Jeff Campbell, Chief Financial Officer of Amex, cardholders have a variety of ways to redeem their rewards. However, he told MarketWatch, the company believes that travel redemption is the most expensive thing a person could do. Travel demand was impacted by the omicron in the first quarter 2022. However, there has been a “particularly robust” demand for travel more recently.

Campbell stated that Amex’s strong interest in travel was ideal, even though it meant the company had to pay more for rewards when consumers used them on the category. He said that travel was a strong area for Amex. “Our premium products are primarily travel-oriented.” “When travel demand is high, it’s good for the business as a whole.”

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Amex reported that its provision for credit losses totaled $1.1 billion. This “reflects higher net write-offs as well as a reserve build of $320 millions.”

Campbell stated that the trend of write-offs remains very strong compared to preandemic levels.

Campbell, speaking to MarketWatch, said that Amex expects its earnings to improve sequentially as the year progresses.

Campbell stated that Amex was watching the growth of goods and service spending in the U.S., which slowed down a little as the quarter progressed, but that “overall, our customers continue to demonstrate resiliency despite the clear slower-growth, high-inflation climate that we’re currently in.”

Squeri stated in the earnings announcement that American Express “is confident in our ability” to meet its long-term growth plan aspirations.