American Express (NYSE : AXP) experiences 7 percent jump in the earnings during the first quarter as the cardholders has spend12 percent more as compared to the previous year.

As compared to other credit card companies, American Express serves more affluent base. Sales at luxury stores surpassed the expectations during the economic recovery, resulting American Express' income soar 35 percent to $752 million in the US.

The credit card company took necessary steps to get its expenses in line and cut its marketing, promotion and rewards to cardholders by 14 percent. As the company had been giving higher rewards to get rid off  increased competition from other card issuers, its expenses have jumped in recent quarter.

Resource link:- American Express (AXP) Earnings Jump in Q1