Passers-by walk past an American Express logo near the entrance to a bank in the Harvard Square neighborhood of Cambridge, Mass., Tuesday, July 19, 2011. American Express Co. reports quarterly financial results Wednesday, July 17, 2013, after the market close. (AP Photo/Steven Senne)
American Express said Wednesday that its net income grew 5 percent in the second quarter as cardholder spending increased, boosting revenue for the card issuer.
The latest earnings beat Wall Street expectations, but its 4 percent increase in revenue fell short. Shares of the New York-based company slipped more than 1 percent in aftermarket trading.
American Express cardholders tend to be more affluent than other credit card users, which is one reason the company has done well as the nation’s economy has gradually improved since the recession.
This year, the economy is showing more robust signs of growth, with employers having added an average 202,000 jobs the past six months, up from 180,000 in the previous six. The housing market is also gaining strength. And consumer confidence last month hit the highest level since Login to read more