AmEx profit beats as rewards programme boosts customer spending

  • Bizline

Apr 20, 2019-

NEW YORK: Credit card issuer American Express Co’s quarterly profit beat analysts’ estimates on Thursday, as it spent more on its rewards programme boosting customer spending. Shares of the New York-based company were up 2 percent. AmEx has been bolstering its rewards programmes and relying on partnerships to get customers to spend more. Last year, it renewed partnership with Delta Air Lines Inc that brought in over a million customers over the past two years, the company said. The rewards programme helped push quarterly card customer spending up 4 percent from a year

ago. Total expenses in the quarter went up 11 percent at $7.6 billion, while the company spent $2.46 billion on card rewards, up 4 percent from last year. AmEx also expects its marketing expenses to rise by $200 million in the year on Delta partnership, as it tries to combat stiff competition for customers from big rival banks, including JPMorgan Chase & Co and Citigroup Inc. The company missed quarterly revenue estimates for a second straight quarter even though total revenue, excluding interest expense, rose 7 percent to $10.36 billion.   (REUTERS)

Published: 20-04-2019 10:17

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