American Express Surpasses Profit Expectations
American Express posted strong second quarter numbers, easily surpassing Wall Street expectations.
Second quarter profits rose 5% over last year, growing from $1.34 billion or $1.15 per share to $1.41 billion or $1.27 per share.
Consumer spending on these cards has increased dramatically over the past year, leading to the company’s success. Other factors in this growth have been a reduction in employee costs and an expansion into new products, like prepaid cards at Walmart.
“We are well on track with the restructuring and related initiatives that we announced earlier this year,” said AmEx CEO Kenneth Chenault. “They are helping us contain expense growth and that, in turn, is giving us the flexibility to make substantial investments designed to grow the business and expand into newer segments.”
American Express is the largest credit card issuer by number of transactions, despite the fact that some businesses still do not accept AmEx at their registers.