American Express Q2 profit rises 8% to $4.53 a share, topping forecasts
Summary
American Express reported an 8% increase in its second-quarter profit compared to last year, earning $4.53 per share, which was higher than expected. The rise was driven by more customer spending, fewer late payments, and growth in premium credit card sign-ups.Key Facts
- American Express earned $3.11 billion in profit for Q2, up from $2.89 billion a year earlier.
- Earnings per share were $4.53, beating analysts’ prediction of $4.40 per share.
- Customers increased their average spending on AmEx cards to $6,759, up from $6,393.
- The company added 3 million new customers in the quarter, with 75% choosing cards that charge a yearly fee.
- AmEx’s expenses rose by 12%, mainly due to higher marketing costs and updating their credit card products.
- The company raised its revenue forecast for the year but kept its profit forecast the same because of planned higher spending.
- AmEx plans to invest more in technology, including artificial intelligence, to improve services.
- The company faces more competition from high-end credit card products by other major banks like JPMorgan Chase and Citigroup.
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