American Express Revenue, Profit Rise
July 19 2019 - 8:51AM
Dow Jones News
By Kimberly Chin
Revenue at American Express Co. was lifted in the latest quarter
by higher card-member spending, loans and card fees, though
expenses from rewards programs also increased.
Total revenue, net of interest expense, rose 8.4% to $10.84
billion for the quarter. Analysts surveyed by FactSet expected
revenue of $10.83 billion.
Discount revenue, which reflects the fees charged to merchants
for accepting AmEx cards, was $6.58 billion, a 6.2% gain from a
year ago. Net card fees rose 17% for the quarter.
Card-members rewards, the company's largest single expense that
includes points redeemed for hotels and airfare, rose 9% to $2.65
billion.
Total expenses were up 9.2% driven by card-member spending,
consumers using card benefits more frequently and continued
investments in co-brand partnerships, the company said Friday.
AmEx reported second-quarter profit of $1.76 billion, or $2.07 a
share, up from $1.62 billion, or $1.84 a share, a year earlier.
Analysts were looking for $2.03 a share.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
July 19, 2019 08:36 ET (12:36 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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