AMERICAN EXPRESS

Costco Portfolio Sale Helps Lift Results

American Express Co. said its second-quarter profit rose 37% on a big gain tied to the sale of its Costco co-brand card portfolio, lower expenses and higher card-member spending.

Revenue slipped 0.6% to $8.24 billion but increased 1% excluding currency effects. Revenue growth at American Express has been in focus lately because it has fallen short of internal growth targets. Analysts polled by Thomson Reuters expected $8.4 billion.

Profit was $2.02 billion, or $2.10 a share, up from $1.47 billion, or $1.42 a share, a year earlier. The latest results included a $677 million gain tied to the sale of the Costco portfolio. Analysts expected $1.95 a share.

--Josh Beckerman

M&T BANK

Profit, Revenue Rise but Miss Estimates

M&T Bank Corp. said profit and revenue increased in the second quarter as the lender continued to integrate its acquisition of Hudson City Bancorp Inc. and prepares to return money to shareholders after getting regulatory approval for its capital plan.

Still, results fell just short of Wall Street expectations. Earnings were $336 million, up from $286.7 million a year ago. On a per-share basis, earnings were unchanged at $1.98 as the number of shares outstanding increased 19%. Excluding merger-related costs and other items, adjusted per-share profit rose to $2.07 from $2.01. Revenue grew by 11% to $1.31 billion. Analysts polled by Thomson Reuters had projected $2.08 in adjusted earnings per share on $1.33 billion in revenue.

M&T shares fell $4.92, or 4.1%, to $113..81 Wednesday.

--Austen Hufford

NORDEA BANK

Accounts Blocked at Luxembourg Unit

Nordea Bank AB blocked 68 suspicious accounts at its Luxembourg operations after an internal probe in the wake of the Panama Papers scandal.

The Swedish lender said its investigation found that no employees had initiated the establishment of offshore structures or actively contributed to customers' potential tax evasion.

The bank said its Luxembourg branch "has taken immediate action and blocked the accounts where suspicious indications were found."

Nordea also reported a 5% increase in second-quarter profit.

--Dominic Chopping

 

(END) Dow Jones Newswires

July 21, 2016 02:47 ET (06:47 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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