FILE - In this July 18, 2016, file photo, American Express credit cards are seen, in North Andover, Mass. American Express reports earnings Wednesday, July 18, 2018. (AP Photo/Elise Amendola, File)

AmEx 2Q profits rise, but there are worry spots on lending

July 18, 2018 - 5:07 pm

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.