CREDIT card company American Express reported a five per cent increase in quarterly profit as it charged higher fees and earned more commissions on its cards.
American Express, which gets the bulk of its US billed business from affluent corporate customers, said cardmember spending increased eight per cent in the quarter, adjusted for foreign currency translations.
Earlier in the day shares fell more than five per cent following the European Commission’s plans to limit fees banks can charge to process card payments.
The company’s net profit rose to $1.41bn (£962.5m), or $1.27 per share, for the quarter ended 30 June, from $1.34bn, or $1.15 per share, a year earlier.
Total revenue, net of interest expense, rose four per cent to $8.24bn, boosted by a five per cent increase in net card fees. Analysts on average had expected the company to earn $1.22 per share on revenue of $8.28bn, said Thomson Reuters.
American Express, a Dow 30 constituent, said consolidated expenses rose slightly to $5.66bn from $5.62bn.
Shares closed at $76.80 on the New York Stock Exchange but fell one per cent after the bell.
City A.M. Reporter