At the end of the first quarter 2014 (Q1/2014) American Express (AmEx) net income increased 7.5% year-on-year (Y/Y) and 7.4% quarter to quarter (Q/Q), driven mainly by continued strong growth in the Global Network & Merchant Services (GNS).
In Q1/2014 AmEx reported $1.7 billion in net income, compared to $1.5 billion in the prior quarter and the year ago quarter. AmEx says overall the company is benefiting from higher revenues, disciplined expense control, and credit metrics near their historical lows.
U.S. Card Services (USCS), which comprises 52% of AmEx profits, rose 9.0% Y/Y and 1.4% Q/Q. USCS posted $876 million in net income for Q1/2014.
Global Network & Merchant Services (GNS), which makes up 27% of AmEx net income, increased 18.8% Y/Y and 11.0% Q/Q. GNS reported $443 million in net income for Q1/2014.
Global Commercial Services (GCS), which comprises 11% of AmEx net income, edged up slightly but down from the year ago quarter. GCS was up 1.1% Q/Q but down 3.7%Y/Y in Q1/2014. GCS posted $184 million in income during Q1/2014.
International Card Services (ICS), which makes up 10% of AmEx profits, rose 5.4% Q/Q, however down sharply by 10.7% Y/Y. ICS reported $159 million in net income in Q1/2014.
RAM Research projects AmEx net income will increase by 2.6% in the second quarter to $1706 million.
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