Earnings

Getty Images

Credit card issuer American Express beat analysts’ estimates for quarterly profit on Friday, as a healthy U.S. economy fueled higher spending by its customers.

Customer spending rose 7% in the United States, the company’s biggest market, and 5% globally in the second quarter.

U.S. consumer spending increased in May and April. Debit and credit card purchase volumes each rose 6% at Wells Fargo, which reported results last week, underscoring consumer confidence.

Total expenses, however, rose 9.2% as AmEx bolstered its rewards programs to attract more high-spending customers and counter competition from big bank rivals.

Shares of the company were down 1% premarket.

Net income rose to $1.76 billion, or $2.07 per share, in the quarter ended June 30, from $1.62 billion, or $1.84 per share, a year earlier, the company said.

Analysts had expected a profit of $2.04 per share, according to IBES data from Refinitiv.

Total revenue, excluding interest expense, rose 8.4% to $10.84 billion.

Products You May Like

Articles You May Like

JP Morgan announces new division to fund at least $100 billion in emerging market projects
Global sustainability standards are needed to curb climate crisis, says environmental director
Disney reportedly ditches Fox name from branding, emails and logos
This is one of the few places in the world to see gorillas in the wild
A theory on who’s doing all the buying that’s pushing stocks higher and higher

Leave a Reply

Your email address will not be published. Required fields are marked *