American Express (NYSE:AXP) EPS Boosted on Interest Income, Lower Provision Expense

American Express (NYSE:AXP) had their full year 2011 EPS estimate raised by FBR, citing improving net interest income and lower provision expense.

FBR says, "We are increasing our FY11 EPS estimate to $3.70 from $3.65 and increasing our FY12 EPS estimate to $3.85 from $3.70 based on our expectations for improved net interest income (primarily higher loan balances) and lower provision expense, which we expect to be offset by upward trending operating expenses led by marketing and reward expense as management continues to reinvest "excess" profitability into the business. Our FY12 EPS estimate also assumes higher net interest income, again driven by higher projected loan balances, while provision expense is revised lower reflecting projected stronger credit performance."

FBR Capital maintains a "Market Perform" on American Express (AXP), which was trading at $44.46, losing $1.33, or 2.90 percent, as of 1:14 PM EST. FBR raised their price target on American Express from $45 to $50.