American Express increased its revenue forecast for 2022, dispelling fears of a recession, as robust client spending helped the company surpass Wall Street’s projections in the most recent quarter.

The credit card business now anticipates a revenue gain of between 23% and 25% this year, up from its previous forecast of 18% to 20%.

Comparing the second quarter of this year to the same period last year, the company’s total networked expenditures increased by 25%, or by 30% on a constant currency basis. This was due to the ongoing expansion of travel expenditures, which surpassed pre-pandemic levels early this year.

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In the three months ending on June 30th, total revenue increased 31% year-over-year to reach $13.4 billion. However, net income decreased by 14% to $1.96bn from $2.3bn a year ago due to higher credit costs and marketing expenses. This equated to $2.57 per diluted share, a decrease from $2.28 in the prior year.

According to FactSet, experts had predicted earnings of $2.42 per share on revenue of $12,6bn. These statistics greatly above these estimates.

Stephen Squeri, the chief executive officer, stated that the “record levels of revenue and card member spending” demonstrated the company’s momentum.