For the three months through September, adjusted profit was $6.69 per share, ahead of the $5.43 average estimate tracked by Bloomberg.
Top line momentum helped: net revenue reached $16.3 billion, a 6.4% gain from a year earlier. Operating costs not tied to interest totaled $8.86 billion, coming in below an almost $9 billion projection.
Reserves set aside for potential loan losses were $2.92 billion in the quarter, a 7.4% increase from a year ago but less than the $3.64 billion analysts modeled. Net charge-offs, or loans written off as uncollectible, were $3.12 billion, down 10% year over year.
"Credit's in a very good place," Chief Executive Officer Richard Fairbank told analysts, noting delinquencies have been tracking seasonal patterns recently and reiterating that "all told, we see it in a very good place."
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At 6:10 p.m. in New York, shares were up about 3.8% in after-hours trading. Despite that pop, the shares were still lower by 17% for the year as of Tuesday's regular-session close.
Investors are focused on the backdrop: interest rates stay high; pricier fuel pushed US consumer prices to their quickest rise in five months during September; and the war in Iran is lifting gasoline prices. The bottom line: stronger-than-expected earnings, steady credit metrics, and discipline on expenses are positives for card lenders, but macro pressures on consumers remain the swing factor for your portfolio.
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