American Express: profit rises on higher consumer spending
(CercleFinance.com) - American Express posted a better-than-expected 9 per cent rise in quarterly profit on Friday, helped by higher card member spending, loans and card fees.
Net profit rose to 1.8 billion dollars, or 2.07 dollars per share, for the quarter ended 30 June, from 1.6 billion dollars, or 1.84 dollar per share a year ago, above analysts' expectations of 2.04 dollars per share.
Second-quarter revenue was 10.8 billion dollars, up 8 per cent year-on-year. Excluding the impact of foreign exchange rates, revenues rose 10 per cent.
FX-adjusted card member spending grew 7 per cent, against the backdrop of an economy that is growing at a modest pace, AmEx said. Loans grew 11 per cent, it added.
On a less positive note, expenses rose by 9 per cent to 7.8 billion dollars due to higher rewards and customer engagement costs, higher usage of card benefits and investments in cobrand partnerships.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Net profit rose to 1.8 billion dollars, or 2.07 dollars per share, for the quarter ended 30 June, from 1.6 billion dollars, or 1.84 dollar per share a year ago, above analysts' expectations of 2.04 dollars per share.
Second-quarter revenue was 10.8 billion dollars, up 8 per cent year-on-year. Excluding the impact of foreign exchange rates, revenues rose 10 per cent.
FX-adjusted card member spending grew 7 per cent, against the backdrop of an economy that is growing at a modest pace, AmEx said. Loans grew 11 per cent, it added.
On a less positive note, expenses rose by 9 per cent to 7.8 billion dollars due to higher rewards and customer engagement costs, higher usage of card benefits and investments in cobrand partnerships.
Copyright (c) 2019 CercleFinance.com. All rights reserved.