© Reuters. AMERICAN EXPRESS: HIGHER SPENDING in THE SECOND QUARTER, The ACTION moves back
(Reuters) – American Express reported Wednesday a strong growth in its expenditures in the second quarter due to the financing of its loyalty programs, dwarfing a profit increase over the period.
The action, which has ended in increase of 1.81%, the signing of the second performance of the Dow, which gave up to 3.5 per cent in trade after the stock Exchange, after the publication of its results.
The giant american credit card has put in place a policy of active promotional to dissuade a customer generally easy to pass at JPMorgan Chase (NYSE:JPM) or Citigroup (NYSE:C), the two institutions not holding back their efforts to develop their own business credit cards.
The group new yorkers said that spending on its loyalty programs, had increased by 11% in the second quarter compared to the same period of 2017.
In total, expenses were up 7% to 7.11 billion ($6,11 billion euros).
The total revenue, net of interest expenditure, grew by 9% to $ 10 billion.
The net profit in the second quarter amounted to $ 1.62 billion, or $ 1,84 dollar per share, compared with 1.34 billion ($1.47 in us dollar per share) a year earlier.
Analysts were anticipating average earnings of 1.82 dollar per share, according to the consensus Thomson Reuters I/B/E/S.
(Nikhil Subba in Bangalore; Catherine Mallebay-Vacqueur for the French service)