July 19 (Reuters) - American Express ( AXP ) beat

estimates for second-quarter profit as its wealthy customers

persisted in splurging on travel, dining and entertainment, the

credit card giant said on Friday.

The company's focus on a premium customer base has somewhat

insulated it from weakness in the broader economy, even as rival

lenders warn of tepid demand due to elevated borrowing costs.

"Increased scale, combined with our premium, high credit

quality customers, our well-controlled expense base and our

successful investments... fuels the earnings power of the core

business," CEO Stephen Squeri said in a statement.

AmEx's profit was $3.02 billion, or $4.15 per share, for the

three months ended June 30, 39% higher than a year earlier.

Excluding a one-time gain, the company earned $3.49 per

share, higher than analysts' estimate of $3.24 per share,

according to LSEG data.

Its provisions for credit losses were $1.3 billion, versus

$1.2 billion last year.

Last month, the company agreed to buy restaurant-booking

platform Tock from Squarespace ( SQSP ) to expand its foothold

in the dining industry.

The acquisition could support AmEx's efforts within the

small-and-medium-enterprise market, according to analysts.

AmEx views the segment as lucrative despite a recent

slowdown in SME spending growth.