(Reuters) – American Express Co
The company has been bolstering its rewards programs as it tries to weather competitive pressures from big bank rivals, including JPMorgan Chase & Co
New York-based AmEx, which has long catered to affluent customers, said it spent $2.43 billion on card member rewards, up 11 percent from a year earlier.
This pushed total expenses up 7 percent to $7.11 billion in the quarter.
Total revenue, net of interest expense, climbed 9 percent to $10 billion.
“Revenue growth was driven by broad-based increases in Card Member spending and fees,” Chief Executive Officer Stephen Squeri said in a statement.
This is the company’s first full quarter of results under Squeri, who replaced long-time boss Kenneth Chenault on Feb. 1.
Net income rose to $1.62 billion, or $1.84 per share, in the second quarter from $1.34 billion, or $1.47 per share, a year earlier.
Analysts on average were expecting earnings of $1.82 per share, according to Thomson Reuters I/B/E/S.
(Reporting by Nikhil Subba in Bengaluru; Editing by Anil D’Silva)