There was an 8% growth in consolidated revenues to $10.84 billion, which reflects an increase in cardmember spending and loan volumes. Total cardmember spending, adjusted for foreign exchange, was up 7% year-over-year. The top-line exceeded Wall Street’s projection.
There was an 8% growth in consolidated revenues, which reflects an increase in cardmember spending and loan volumes
Provisions for losses increased 7% to $861 million as net lending write-offs increased amid strong loan growth. There was a 9% increase in consolidated expenses to $7.8 billion, reflecting an uptick in rewards and other customer engagement costs.
“We continued the broad-based momentum throughout our business with the eighth straight quarter of FX-adjusted revenue growth at 8 percent or better. Once again, our performance was driven by a well-balanced mix of spending volumes, lending income and card fee,” said CEO Steve Squeri.”
Reaffirming the earlier guidance, the management said it expects full-year adjusted earnings to be in the range of $7.85 per share to $8.35 per share and unadjusted earnings between $7.64 per share and $8.14 per share.
Earlier this week, Citigroup (C) posted a 20% increase in second-quarter earnings to $1.95 per share, aided by a 2% rise in revenues. Goldman Sachs (GS) reported lower earnings and revenues for the latest quarter as its main business segments witnessed a slump.
American Express shares gained modestly in the premarket trading Friday after closing the previous session higher. The stock has gained 34% since the beginning of 2019 and 28% in the last twelve months.