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18h ago

American Express Tops Q2 Earnings Expectations on Premium Spending

With loss provisions boosted to $1.4 billion to guard against credit risks, the company upheld its full-year growth targets.

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Credit card is seen in front of displayed American Express logo in this illustration taken, July 15, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • American Express earned $4.08 per share in the second quarter, excluding one-time items, surpassing analysts’ $3.89 estimate.
  • Quarterly revenue rose 9% year-over-year to $17.9 billion, driven by a record $416 billion in card member transactions.
  • Provisions for credit losses increased to $1.4 billion from $1.3 billion a year earlier to bolster reserves against potential defaults.
  • The company affirmed full-year guidance calling for 8–10% revenue growth and earnings per share of $15 to $15.50.
  • Competition in premium card offerings is intensifying with Citigroup preparing its Strata Elite card as American Express plans its largest-ever Platinum refresh.