American Express (AmEx) has reported a net income of $1.6bn, or $1.84 per share, for the second quarter of 2018, an increase of 21% compared to $1.3bn, or $1.47 a share, in the corresponding quarter of 2017.
Total revenues for the quarter ended June 2018 were $10bn, a rise of 9% from $9.2bn in the same period last year. AmEx attributed the rise to higher spending by consumer, small business and corporate cardholders, as well as higher loan volumes and fee income.
Expenses increased 7% year-on-year to $7.1bn, driven by a rise in marketing and business development costs.
AmEx chairman and CEO Stephen Squeri said: “Revenue growth was driven by broad-based increases in card member spending and fees. It also reflected the benefit of higher loan volumes, which that spending helped to generate.
“With total Card Member spending up 10 percent and 2.9 million new cards acquired, we are both strengthening relationships with current customers and attracting new ones through innovative products and services.”
The company’s Global Consumer Services Group posted a net income of $770m for the second quarter of 2018, a jump of 25% from $615m a year ago.
Net income at the Global Commercial Services unit soared 18% to $564m from $477m in the previous year. The Global Merchant and Network Services division reported net income of $543m, up 14% from $476m last year.