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American Express Co. said Friday that it saw an all-time high in spending through its card products during the latest quarter as consumers continued to pay up for travel and entertainment experiences.
Amex’s
AXP,
network volumes grew 8% in the second quarter, to $427 billion, while revenue net of interest expense jumped to $15.05 billion from $13.40 billion, a 12% bump. Revenue fell short of the FactSet consensus, however, which was $15.41 billion.
The company generated a net income of $2.17 billion, or $2.89 a share, compared with $1.96 billion, or $2.57 a share, in the year-earlier quarter. Analysts tracked by FactSet were looking for $2.81 a share.
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Amex called out sustained demand in its premium offerings as 70% of its new accounts acquired in the second quarter were from fee-based products. More than 60% of Amex’s new consumer accounts went to cardholders in the Millennial and Gen Z generations, the company said.
The company disclosed $1.20 billion in total provisions for credit losses, up from $410 million a year before. The increase reflected greater net write-offs and a $327 million net-reserve build, whereas Amex saw a $58 million net reserve build in the same period a year prior.
“Our credit performance remains best-in-class, reflecting the strength of our premium customer base and continued thoughtful risk-management decisions,” Chief Executive Stephen Squeri said in a release.
Amex said it continues to anticipate 15% to 17% revenue growth for the full year along with $11.00 a share to $11.40 a share in earnings.
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