American Express 2Q profit grows 5 percent

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By ALEX VEIGA, Associated Press

American Express says its net income grew 5 percent in the second quarter as cardholder spending increased.

The New York-based company on Wednesday posted profit of $1.41 billion, or $1.27 per share, for the three months ended June 30. That compares with earnings of $1.34 billion, or $1.15 per share, in the same period last year.

Revenue rose 4 percent, to $8.25 billion from about $8 billion.

Analysts polled by FactSet were expecting, on average, earnings of $1.22 per share on revenue of $8.3 billion.

Spending by holders of American Express cards grew 7 percent during the quarter, reflecting gains in the U.S. and abroad. The credit card issuer's income from interest and fees increased.

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