American Express profits jump 34%, helped by jump in new customers, higher spending
NEW YORK (AP) — Credit card giant American Express posted a 34% jump in its first quarter profits on Friday, helped by more customers spending on its namesake cards as well as more customers keeping a balance on the cards.
The New York-based company said it earned $2.44 billion in the first three months of the year, or $3.33 a share, up from $1.82 billion, or $2.40 a share, a year earlier. The results exceeded Wall Street’s expectations, who were looking for roughly $2.95 a share in profits for the quarter.
The jump in profits for AmEx came largely from higher cardmember spending on their accounts as well as more balances collecting interest. The company had $15.8 billion in revenue in the quarter, up 11% from a year earlier.
AmEx customers spent $419.2 billion on their cards in the quarter, up 5% from a year earlier. AmEx takes a small percentage of each transaction spent on their cards as a fee from merchants, which was its primary business model for decades.
Related articles
Guardians ruin Francisco Lindor's Cleveland homecoming, trip Mets 3
CLEVELAND (AP) — Ben Lively had another solid start, David Fry drove in two early runs and the Cleve2024-05-22Iowa caucuses: What Trump's dominant win means for his rivals
By Anthony ZurcherFormer President Donald Trump speaks at his caucus night event at the Iowa Events2024-05-22Arrests made after Lower Hutt siblings hospitalised with severe injuries
Photo: RNZ / Marika Khabazi2024-05-22Burglary: Hong Kong police arrest three men in relation to $903 million art heist
Your web browser is no longer supported. To improve your experience update it here2024-05-22Syrian first lady Asma Assad diagnosed with leukemia, president's office says
BEIRUT (AP) — Syrian first lady Asma Assad has been diagnosed with leukemia, the office of President2024-05-22Better funding could prevent more drownings
Surf Life Saving staff on a rescue raft. Photo: supplied / Surf Life Saving New Zealand2024-05-22
atest comment