Amex Profits Inch Higher on Growth in Consumer Spending

American Express' (AXP) profits rose slightly in the second quarter on higher consumer spending, the company said after the markets closed Wednesday.

Excluding previously discontinued operations, profits rose 3% from the same period last year, to $1.3 billion, as total cardholder spending climbed 7% and total revenue grew 5%, to $8 billion. Its earnings per share of $1.15 beat estimates of analysts polled by Thomson Reuters by 6 cents.

"Consumer, small business and corporate cardmember spending, along with the business volumes generated by our network of bank partners, remain healthy despite a very uneven economy," Kenneth Chenault, chairman and chief executive of American Express, said in a press release.

He added that the cardmember loan portfolio grew 4%, and that credit indicators, "which were excellent at the start of the year," improved even further in the second quarter.