AmEx record profit tops forecast

Net income rises 4.9% to $1.41 billion

American Express Co, the biggest credit-card issuer by purchases, posted a record profit in the second quarter, exceeding analysts' estimates, as customer spending increased. Net income rose 4.9 per cent to $1.41 billion, or $1.27 a share, from $1.34 billion, or $1.15, a year earlier, the New York-based lender said on Wednesday in a statement.

The average estimate of 26 analysts surveyed by Bloomberg was $1.22.

Chief Executive Officer Kenneth I. Chenault is trimming the firm's workforce to contain expenses and investing in new products such as a prepaid card sold by Wal-Mart Stores Inc. (WMT) to broaden the lender's reach beyond more affluent customers.