Higher cardmember spending and a rise in net interest income, driven primarily by the growth in card loans, helped boost second quarter revenues for the U.S. Card Services unit at American Express Co., the card brand announced July 18.

The unit’s total revenues net of interest expense for the quarter ended June 30 increased 7.4%, to $4.04 billion from $3.76 billion a year earlier. Net income for the unit was $718 million, up 8% from $665 million. Provisions for losses totaled $312 million, up 36.8% from $228 million, primarily reflecting higher reserve releases a year ago, partially offset by lower net write-offs in this year’s second quarter, Amex said in its earnings release.

International Card Services reported second-quarter net income of $178 million, up 10.6% from $161 million a year earlier. Net revenues decreased 3.7%, to $1.3 billion from $1.35 billion, reflecting lower net interest income, Amex said. Provisions for losses totaled $94 million, up 20.5% from $78 million, primarily reflecting a higher level of reserve releases a year earlier.

Global Commercial Services generated net income of $219 million, up 23.7% from $177 million. Higher cardmember spending boosted total net revenues by 2.5%, to $1.22 billion from $1.19 billion. Provisions for losses totaled $36 million, up 2.9% from $35 million, Amex said.

Global Network & Merchant Services reported net income of $372 million, up 14.8% from $324 million. Total net revenues increased 6.5%, to $1.32 billion from $1.24 billion, reflecting higher merchant-related revenues driven by an increase in global cardmember spending and an increase in revenues from Global Network Services’ bank partners. Provisions for losses totaled $17 million, increased 30.8% from $13 million a year ago.

Total cards in force domestically totaled 51.2 million, up 2.8% from 49.8 million a year earlier. Cards issued outside the U.S. were up 10.6%, to 48.9 million from 44.2 million. U.S. card billed business totaled $148.7 billion, up 8.7% from $136.8 billion. Outside the U.S., card billed service was up 3%, to $72.9 billion from $70.8 billion.

Average cardholder spending during the quarter in the U.S. was $4,148, up 7% from $3,877, while outside the U.S. the average was fell 1.3%, to $3,443 from $3,490.

The average discount rate for the quarter was 2.54%, the same as a year earlier.

“Consumer, small-business and corporate-cardmember spending, along with the business volumes generated by our network of bank partners, remained healthy despite a very uneven economy,” Kenneth I. Chenault, Amex chairman and chief executive, said in the company’s earnings release. “Overall cardmember spending rose 7%, or 9% adjusted for foreign currency translations. That’s slower than the increases we’ve seen in the recent quarters, but it comes on top of a very strong performance a year ago and continues to grow faster than most of our large issuer competitors.”

During the quarter, Amex renamed its corporate digital payments service Payve to drive home the message that it offers more than just cards for buyers initiating transactions.  The new service for the first time centralized diverse types of business-to-business payments alongside its Web-based Buyer Initiated Payments offering on a single digital platform.

The company also developed a new roadmap for U.S. EMV card migration. And its Enterprise Growth Group launched Zynga Service Rewards in a partnership with Zynga.

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