American Express, the credit card company, announced this Friday that during the first six months it obtained a net profit of 3,311 million dollars, 2% more than in the same period of 2018, due to an increase in customer spending as well as of the loans.
In terms of turnover, it also increased, and between January and June it was 21,202 million dollars, 8% more year-on-year.
When transferred to shares, American Express’s shares gained 4.07 dollars per unit, 10% more than last year, when the profit was 3.70 dollars (3.257 million dollars in total).
Wall Street analysts were fixed this Friday more in the quarterly results, which were better than those expected by investors.
Thus, between April and June, American Express earned 1,761 million dollars (9% more year-on-year) and billed 10,838 million (8% more than in the second quarter of 2018).
The CEO of the firm, Steve Squeri, welcomed the company’s good results, which are explained by “a balanced mix of spending volumes, loan proceeds and card rates,” the statement said in a statement. .
Revenues from card fees increased by 17% with respect to the second quarter of 2018, the same percentage in which interest income increased.
The company also increased provisions for losses by 7% in relation to the April-June period of 2018, driven by growth in the supply of loans and cancellations of net loans.
Squeri pointed out that 2.9 million new cardholders of his signature were added in the quarter, and 70% did so at an annual rate, “a strong signal”, according to the CEO, that customers “appreciate and are willing to pay for a premium value. ”
The results did not convince investors and, in the early stages of the session, American Express’s shares fell 1.51%.