AmEx reported 1Q/16 gross revenue for its U.S. card business (USCS) rose 3.0% YOY to $3280 million, while net income increased 5.0% YOY to $694 million.
Gross revenue for the AmEx international card business (ICNS) declined slightly (-1.0%) YOY, or +8.0% currency adjusted (FX), to $1313 million and net income slipped 5.0% YOY to $188 million.
AmEx global card gross dollar volume (GDV) for 1Q/16, increased 3.3% YOY or, 6.0% FX. AmEx posted $253.8 billion, compared to $273.2 billion for 4Q/15 and $245.6 billion for 1Q/15.
AmEx noted that average card spend per cardholder declined 1.4% YOY to $3952, compared to $4305 for the prior quarter, and $4008 for the year ago quarter.
End-of-Period (EOP) global credit card outstandings (OUT) for 1Q/16 declined 14.1% YOY, but adding in the discontinued U.S. Costo and JetBlue programs, outstandings were flat (+0.3%) YOY. Reported EOP GDV for 1Q/16 was $57.4 billion, compared to $58.6 billion for 4Q/15 and $66.8 billion for 1Q/15. The discontinued programs would have added $9.6 billion for 1Q/16.
AmEx average (AVG) global credit card OUT for 1Q/16 declined 15.1% YOY, but adding in the discontinued U.S. Costo and JetBlue programs, outstandings were flat (-0.9%) YOY. Reported AVG GDV for 1Q/16 was $57.4 billion, compared to $67.1 billion for 4Q/15 and $67.6 billion for 1Q/15. The discontinued programs would have added approximately $9.4 billion for 1Q/16.
The AmEx global card 30+ day delinquency increased 10 basis points (bps) YOY, and flat Quarter-To-Quarter (QTQ) for 1Q/16. The issuer reported a 30+ day DEL ratio of 1.1% for 1Q/16, compared to 1.1% for 4Q/15 and 1.0% for 1Q/15.
The AmEx gross principal credit card charge-off (CO) ratio for 1Q/16 was flat YOY, but up 20 bps QTQ.
The issuer reported a gross principal charge-off ratio of 1.8% for 1Q/16, compared to 1.6% for 4Q/15 and 1.8% for 1Q/15.
The AmEx net principal credit card CO ratio for 1Q/16 was also flat YOY 6, but up 10 bps QTQ. The issuer reported a net principal charge-off ratio of 1.5% for 1Q/16, compared to 1.4% for 4Q/15 and 1.5% for 1Q/15.
The AmEx ratio of net interest income as a percentage of average global loans rose 30 bps YOY and 20 bps QTQ in the first quarter. Figures were 8.9% for 1Q/16, compared to 8.7% in the prior quarter and 8.6% for the year ago quarter.
The AmEx global card net interest yield (YLD) rose 10 bps YOY and 30 bps QTQ in 1Q/16. The YLD for 1Q/16 was 9.7%, compared to 9.4% for 4Q/15 and 9.6% for 1Q/15.
GLOBAL CARD GDV
1Q/15: $245.6 billion
2Q/15: $262.0 billion
3Q/15: $258.9 billion
4Q/15: $273.2 billion
1Q/15: $253.8 billion
GLOBAL AVG GDV/CARDHOLDER
GLOBAL OUT EOP
1Q/15: $66.8 billion
2Q/15: $69.0 billion
3Q/15: $68.9 billion
4Q/15: $58.6 billion + $12.6 billion*
1Q/15: $57.4 billion + $9.6 billion*
GLOBAL OUT AVG
1Q/15: $67.6 billion
2Q/15: $68.0 billion
3Q/15: $69.0 billion
4Q/15: $67.1 billion
1Q/15: $57.4 billion*
1Q/15: 89.7 million
2Q/15: 91.0 million
3Q/15: 92.6 million
4Q/15: 94.3 million
1Q/15: 95.1 million
30+ DAY DEL
GROSS PRINCIPAL CO
NET PRINCIPAL CO
NET INTEREST INC/AVG OUT
NET INTEREST YIELD
* excludes Costco and JetBlue programs Held for Sale;
SOURCE: American Express
AmEx noted the following regarding USCS and ICNS 1Q/16:
USCS reported first-quarter net income of $694 million, up 5% from $659 million a year ago.
Total revenues net of interest expense increased 3% to $3.3 billion from $3.2 billion a year ago. The rise primarily reflected higher net interest income from growth in the loan portfolio.
Provisions for losses totaled $190 million, down 2% from $193 million a year ago. The decrease resulted from the previously mentioned accounting for certain cobrand loans as “held for sale.” That impact was partially offset by higher loan balances, excluding the “held for sale” loans in both periods.
Total expenses were $2 billion, up 2% from a year ago. The current quarter reflected higher marketing, rewards and Card Member services costs, partially offset by the previously mentioned gain on the sale of the JetBlue cobrand portfolio.
ICNS reported first-quarter net income of $188 million, down 5% from $197 million a year ago. The decline reflected the impact of the stronger U.S. dollar.
Total revenues net of interest expense were $1.3 billion, down 1% compared to a year ago. FX-adjusted revenues increased 8%, primarily reflecting higher Card Member spending and an increase in net card fees.
Total expenses were $987 million, up 1% from $977 million a year ago. FX-adjusted expenses increased 6%. The current quarter’s expenses reflected higher marketing and rewards costs.
Note: U.S. Consumer Services, including the proprietary U.S. Consumer Card Services business and travel services in the United States.
International Consumer and Network Services, including the proprietary International Consumer Card Services business, Global Network Services business and travel services outside the United States.
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