American Express beat Wall Street earnings expectations for the second quarter, as the credit card company's members spent more.
The company reported net income of $1.27 per share on revenue of $8.25 billion. Analysts had expected it to report earnings excluding items of $1.22 a share on $8.28 billion in revenue, according to a consensus estimate from Thomson Reuters.
Loss provisions rose 29 percent from a year earlier, to $561 million. The company said it had a lower level of write-offs, but it also drew down less from past reserves.
U.S. Card Services reported second-quarter net income of $743 million, up 3 percent from $718 million a year ago. However, return on equity fell 3 percentage points in the quarter to 23.6 percent.
"We generated record bottom-line results this quarter, despite an uneven global economy," Chairman and CEO Kenneth Chenault said in a statement. "Cardmember spending grew by 7 percent [8 percent adjusted for foreign currency translations], with broad-based gains throughout the business both here in the U.S. and internationally," Chenault said.
Following the earnings announcement, shares of the company's stock slipped in after-hours trading, last down 1 percent at $76.00.
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