American Express Company (NYSE: AXP) shares moved downward on Friday on reporting second-quarter numbers.
The financial giant revealed second-quarter net income of $1.8 billion, up 9% from $1.6 billion a year ago. Diluted earnings per share were $2.07, up 13% from $1.84 per share a year ago.
Second-quarter consolidated total revenues net of interest expense were $10.8 billion, up 8% from $10.0 billion a year ago. Excluding the impact of foreign exchange rates, adjusted revenues net of interest expense grew 10%. The increases reflected higher Card Member spending, loans and card fees.
Consolidated provisions for losses were $861 million, up 7% from $806 million a year ago. The increase reflected higher net lending write-offs driven by loan growth.
Consolidated expenses were $7.8 billion, up 9% from $7.1 billion a year ago. The rise reflected, in part, growth in rewards and other customer engagement costs driven by increased Card Member spending, higher usage of card benefits and continued investments in co-brand partnerships.
Operating expenses were up 7% from a year ago.
The consolidated effective tax rate was 21%, down from 22% a year ago.
Said CEO Steve Squeri, "We continued the broad-based momentum throughout our business with the eighth straight quarter of FX-adjusted revenue growth at 8% or better.Once again, our performance was driven by a well-balanced mix of spending volumes, lending income and card fees."
Total revenues net of interest expense were $5.8 billion, up 10% from $5.3 billion a year ago. The rise primarily reflected higher loans, Card Member spending and card fees.
Shares gave back $1.13 Friday to $127.27
