American Express Q2, 2013 results: inside the good perspectives.

Compared to Q2, 2012 results, American Express is on the good curve.

Connectikpeople has observed, the second-quarter net income of $1.4 billion, up 5 percent from $1.3 billion a year ago. Diluted earnings per share was $1.27, up 10 percent from $1.15 a year ago.

Second quarter consolidated total revenues net of interest expense rose 4 percent to $8.2 billion, from
$8.0 billion a year ago. According to American Express, the increase reflected higher cardmember spending and growth in the cardmember loan portfolio, which helped to generate higher net interest income.

Consolidated provisions for losses totaled $593 million, up 29 percent from $461 million a year ago. This increase primarily reflected lower reserve releases this year, partially offset by the benefit of lower net write-offs. Credit indicators continued to be at historically strong levels.

Consolidated expenses totaled $5.7 billion, up 1 percent from $5.6 billion last year. The increase reflected higher rewards costs, driven by higher cardmember spending. Expense levels for the quarter reflected, in part, ongoing efforts to contain operating expenses throughout the company. The effective tax rate was 30 percent, up from 29 percent a year ago.

Finally, Connectikpeople has observed that, the company's return on average equity (ROE) was 23.6 percent, down from 26.6 percent a year ago.