Credit Card Spending Lifts American Express

Chenault said he is "still cautious" about the economic outlook but is seeing "some early signs" of a recovery. For that reason, he said, the firm will increase spending on business-building initiatives during the second half of the year "rather than flow the full benefits of our progress to the bottom line."

"The consistent theme this year has been reinvest," said one analyst who follows the stock. "After beating expectations this quarter and beating by a penny last quarter, they're really talking about meeting expectations for the rest of the year."

American Express said it plans to recognize a "below-the-line" charge of around $150 million in the third quarter as it consolidates its off balance sheet assets in accordance with the new Fin 46 accounting rule. The charge will have no effect on cash flow, "and the company expects that it will be reversed at a later date as the structured investments mature."

In a conference call, Chief Financial Officer Gary Crittenden reiterated that he expects earnings growth of 12% to 15% over the long term on an 8% increase in sales. He said the firm is also looking for return on equity of between 18% to 20%.

Shares fell 1.3%, or 59 cents, to $45.01 Monday. The stock has climbed almost 30% this year.