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Actionable news in AXP: AMERICAN EXPRESS COMPANY,

AmEx profit dips as it splurges on customer rewards

The logo of Dow Jones Industrial Average stock market index listed company American Express (AXP) is seen in Los Angeles, California, United States, April 25, 2016.

Lucy Nicholson

(Reuters) - American Express Co's profit declined 33 percent in the second quarter, hurt partly by higher expenses, as the card company spent heavily on rewards to woo customers amid intense competition from big U.S. banks.

Shares of the company, up 16 percent so far this year, dipped 1.2 percent to $84.87 in after-market trading.

New York-based AmEx has increased spending on rewards to prevent its generally affluent clientele from switching to JPMorgan Chase & Co and Citigroup Inc, which have rolled out lucrative rewards in an effort to boost their own credit card businesses.

For JPMorgan and Citi, post-financial...


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