By Kimberly Chin
Revenue at American Express Co. was lifted in the latest quarter by higher card-member spending, loans and card fees, though expenses from rewards programs also increased.
Total revenue, net of interest expense, rose 8.4% to $10.84 billion for the quarter. Analysts surveyed by FactSet expected revenue of $10.83 billion.
Discount revenue, which reflects the fees charged to merchants for accepting AmEx cards, was $6.58 billion, a 6.2% gain from a year ago. Net card fees rose 17% for the quarter.
Card-members rewards, the company's largest single expense that includes points redeemed for hotels and airfare, rose 9% to $2.65 billion.
Total expenses were up 9.2% driven by card-member spending, consumers using card benefits more frequently and continued investments in co-brand partnerships, the company said Friday.
AmEx reported second-quarter profit of $1.76 billion, or $2.07 a share, up from $1.62 billion, or $1.84 a share, a year earlier. Analysts were looking for $2.03 a share.
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