American Express U.S. credit card outstandings are growing by 7.3% year-on-year (YOY) and likely to top $67 billion in the fourth quarter. U.S. Card Services reported first-quarter net income of $934 million, up 7% from $876 million a year ago, according to CardData
AMERICAN EXPRESS U.S. CREDIT OUTSTANDINGS
1Q/14: $55.8 billion
2Q/14: $57.7 billion
3Q/14: $58.0 billion
4Q/14: $62.6 billion
1Q/15: $59.9 billion
2Q/15: $61.9 billion
3Q/15: $62.2 billion
4Q/15: $67.1 billion
1Q/16: $64.9 billion
Source: American Express; CardData; RAM Research
American Express total revenues net of interest expense increased 6 percent to $4.5 billion from $4.3 billion a year ago. The increase reflected a 7% rise in cardholder spending and higher net interest income.
Provisions for losses totaled $296 million, down 13 percent from $342 million a year ago. The decrease primarily reflected a larger reserve release this quarter than last year.
Total expenses increased 9 percent to $2.7 billion from $2.5 billion a year ago. The rise primarily reflected higher rewards and Card Member services expenses driven by increased Card Member spending volumes and additional costs related to renewing certain cobrand relationships.
The effective tax rate was 37 percent compared to 38 percent a year ago.
International Card Services reported first-quarter net income of $134 million, down 16 percent from $159 million a year ago. The decline reflected the impact of the stronger U.S. dollar.
Total revenues net of interest expense decreased 8 percent (up 4 percent FX adjusted2) to $1.2 billion. Provisions for losses totaled $76 million, down 13 percent from $87 million a year ago.
Total expenses decreased 8 percent (up 1 percent FX adjusted2) to $1 billion. The decrease primarily reflected lower marketing, promotion and rewards costs.
Global Commercial Services reported first-quarter net income of $180 million, down from $184 million a year ago. The decline reflected the impact of the stronger U.S. dollar.
Total revenues net of interest expense decreased 31 percent (27 percent FX adjusted2) to $827 billion from $1.2 billion. Year-ago revenues included the company’s business travel operations.
Total expenses decreased 42 percent (39 percent FX adjusted2) to $508 million from $871 million a year ago. Year-ago expenses included the company’s business travel operations.
For data, background and forecasts on American Express: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
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