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July 31, 2014

AmEx posts higher earnings in Q2

American Express (AmEx) reported a net income of $1.53bn for the second quarter ended 30 June 2014, a rise of 9% from $1.41bn a year earlier.

By Verdict Staff

American Express (AmEx) reported a net income of $1.53bn for the second quarter ended 30 June 2014, a rise of 9% from $1.41bn a year earlier.

The New York-based company, which issues as well as own a card-processing network, said revenues rose 5% to $8.66bn from $8.25bn a year earlier, as card spending climbed 8.6% to $258.1bn.

American Express CEO Kenneth Chenault attributed the strong results to higher card spending, credit metric at about historic lows, small increase in loan balances, and cost saving measures.

The group’s total expenses rose 2% to $5.86bn, partly due to rise in marketing costs.

During the quarter, the US card services revenue rose by 6% to $4.5bn and International Card Services revenues rose by 7% to $1.4bn.

Meanwhile, AmEx’s Global Commercial Services revenues increased by 3% to $1.3bn, and the Global Network & Merchant segment registered 5% hike in second quarter revenues.

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