Financial services giant American Express Co. said Tuesday it plans to spin off its financial advisory business to its shareholders, a move expected to boost profitability of the parent company by shedding businesses that consume more capital.

The company plans to distribute all of American Express Financial Corp., whose 12,000 advisers sell financial planning and other services to 2.5 million customers, to shareholders in a tax-free transaction during the third quarter.

The announcement by the New York-based company comes a day after Citigroup Inc., the nation’s largest financial institution, said it was selling its Travelers life insurance and annuity business to MetLife Inc. for $11.5 billion.

Shares of American Express Co. fell 7.4 percent to $57.32 in afternoon trading.

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