NEW YORK (AP) — American Express says its second-quarter profit rose 21 percent from a year ago, as the credit card giant saw more customers spending on its namesake cards and a much lower tax rate.
But it had to set aside more money to cover potential bad loans, and saw its delinquency rate rise noticeably. It’s a potential sign that some of American Express’ customers — typically the most creditworthy in the industry — are struggling to pay their bills.
Shares of American Express fell 3 percent in after-market trading.
The New York-based company said it had second-quarter profit of $1.62 billion, or $1.84 a share, up from $1.34 billion, or $1.47 a share, in the same period a year earlier. AmEx’s results beat, albeit barely, expectations of industry analysts.
This article provided by NewsEdge.