Key facts
- American Express raised its full-year revenue growth forecast to 10%.
- The company's second-quarter profit exceeded Wall Street expectations.
- Total spending on AmEx cards, or billed business, increased 9% to $455.8 billion on a foreign exchange-adjusted basis.
- AmEx's revenue grew 10% to $19.6 billion in the quarter.
- Provisions for credit losses were $1.1 billion, down from $1.4 billion a year ago.
American Express increased its full-year revenue growth forecast and surpassed Wall Street's second-quarter profit expectations, as its affluent customer base continued to spend on travel and dining despite ongoing economic uncertainty. The company's focus on higher-income consumers, who are generally more resilient to inflationary pressures, contributed to a 9% rise in billed business to $455.8 billion and a 10% increase in revenue to $19.6 billion for the quarter.
CEO Stephen Squeri noted stronger-than-expected momentum in the first six months of the year, attributing it to investments in value propositions that have accelerated spending and revenue growth. AmEx maintained its profit growth forecast. The company reported a profit of $4.53 per share for the three months ended June 30, compared to $4.08 per share a year prior, exceeding the analyst expectation of $4.40 per share. Provisions for credit losses were reduced to $1.1 billion from $1.4 billion in the same period last year.