By Maria Armental
American Express Co. reported improvement in key profit metrics in the latest period as it focuses on rebuilding its capital, which took a hit from charges related to the U.S. tax overhaul.
Shares, which have outperformed the market over the past 12 months with a 26% gain, rose 2.4% to $97.39 in after-hours trading.
Last quarter, a roughly $2.6 billion charge pushed the company into its first quarterly loss in a quarter-century, and AmEx suspended share buybacks for the first half of the year.
Quarterly dividends remain unchanged.
On Wednesday, AmEx reported a 31% increase in first-quarter profit to $1.63 billion, or $1.86 a share.
Revenue, net of interest expense, rose 12% to $9.72 billion.
Analysts surveyed by Thomson Reuters had projected a profit of $1.71 a share.
"Our year is off to a good start with double-digit growth in billed business, revenues and earnings," Chief Executive Stephen J. Squeri said in a statement, noting that card-member spending rose 12%. He said AmEx added 3.5 million new cards across its global issuing business, reflecting in part the recent Hilton portfolio acquisition.
"Credit indicators are in line with our expectations," Mr. Squeri said.
Given results so far, AmEx said it expects revenue for the year to rise at least 8% and earnings to be at the high end of its previously stated range of $6.90 to $7.30 a share.
Write to Maria Armental at email@example.com