Share “American Express 2Q profit rises 9 percent”

American Express 2Q profit rises 9 percent

Published on NewsOK Modified: July 29, 2014 at 4:53 pm •  Published: July 29, 2014
Advertisement

This spring, American Express sold half of its stake in its business-travel division for $900 million to an investor group led by Certares International Bank. The move created a joint venture that operates the business under the American Express Global Business Travel name.

That transaction, which closed at the end of June, led to the one-time gain of $626 million during the quarter.

Non-interest revenue, including card and travel commission fees, rose 4 percent to $7.34 billion.

American Express' provision for losses declined to 6 percent to $489 million.

Expenses edged higher as the company spent more on marketing and cardholder reward programs.

All told, American Express' profit increased to $1.52 billion, or $1.43 per share, from $1.39 billion, or $1.27 per share, in the same quarter a year earlier.

The average per-share estimate of analysts surveyed by Zacks Investment Research was for profit of $1.38.

The company said revenue rose 5 percent to $8.66 billion from $8.25 billion in the same quarter a year earlier. Analysts expected $8.67 billion, according to Zacks.

American Express shares tacked on 17 cents to $91.88 in after-hours trading. The stock closed down 15 cents at $91.71 in regular trading Tuesday.