American Express profit dips 36 percent


(Reuters) - American Express Co on Wednesday reported a 36 percent decline in quarterly profit, hurt in part by higher spending on rewards to retain customers and attract new ones.


Net income attributable to common shareholders fell to $1.31 billion, or $1.47 per share in the second quarter ended June 30, from $1.98 billion, or $2.10 per share, a year earlier.


The drop in profit partly reflects the impact of AmEx losing a longtime partnership with warehouse club retailer Costco Wholesale Corp. The year-ago quarter also included a gain of $1.1 billion from the sale of the related loan portfolio.


Total revenue, net of interest expense, inched up 1 percent to $8.3 billion.


(Reporting by Pallavi Dewan and Nikhil Subba in Bengaluru; Editing by Sai Sachin Ravikumar)

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