American Express profit rises, but it sets aside more money for possible defaults

American Express saw its profit and revenue climb in the second quarter and credit card use is climbing, but the company's stock slipped before the market open as it set aside more money for possible defaults on payments.

American Express earned $2.17 billion, or $2.89 per share, topping Wall Street expectations for $2.80, according to analysts surveyed by Zacks Investment Research. A year earlier the company earned $1.96 billion, or $2.57 per share.

Total provisions for credit losses were $1.2 billion. In the prior-year period it was $410 million, theNew York company said, citing higher net write-offs and a net reserve build of $327 million, compared with a net reserve build of $58 million a year ago.

Shares fell nearly 4% before the market opened Friday.