Finance Watch -- WSJ
July 21 2016 - 03:02AM
Dow Jones News
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)
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