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American Express Rallies To New High After Blowout Q2 Results

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American Express, which comprises 3.23% of the price-weighted index, provides a good illustration of the rebound in business and consumer spending after pandemic-driven declines in 2020.

The credit card and travel services giant reported second-quarter earnings of $2.80 per share on revenue of $10.6 billion.

That was a year-over-year gain of a whopping 866% on the bottom line, and 29% on the top line.

Analysts were expecting earnings to jump 466% - already a huge amount - to $1.64 and revenue increasing by 23% to $9.47 billion.

One element that helped: The bottom-line number reflected the release of $866 million ($658 million after taxes) in credit reserves. According to the company, the release was “primarily driven by the company’s strong credit performance and continued improvements in the macroeconomic outlook.”

In 2020, AmEx had a provision expense of compared with a provision expense of $1.6 billion to cover potential credit card losses due to Covid........

© Entrepreneur

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