American Express Reports 39% Jump in Second-Quarter Profits
American Express Reports 39% Jump in Second-Quarter Profits
American Express announced on Friday that its second-quarter profits soared by 39%, reaching $3.02 billion compared to $2.17 billion in the same period last year. The credit card company’s per-share earnings came in at $4.15, beating analyst forecasts of $3.24 per share.
The increase in profits was attributed to a rise in cardmember spending and more customers carrying a balance on their cards. AmEx customers spent $440.6 billion on their cards last quarter, up 3% from the previous year. Additionally, the company reported $130.8 billion in cardmember loans, a 14% increase from the year before.
AmEx also saw record interest income of $5.79 billion in the quarter, up 21% from the previous year. Despite setting aside a larger amount to cover potentially bad loans, the company’s chairman and CEO, Steve Squeri, expressed satisfaction with the business’s momentum and strong performance.
In light of its impressive second-quarter results, American Express raised its full-year profit forecast to a range of $13.30 to $13.80 per share, up from the previous forecast of $12.65 to $13.15 per share. The company remains optimistic about its future outlook, with continued growth in billings, new card acquisitions, and card fee revenues.
Overall, American Express continues to thrive as its affluent cardmembers drive spending and loan balances, contributing to the company’s robust financial performance.