First quarter net income for American Express rose 19% from that of last year to a record $946 million.
According to a press release, diluted earnings per share (EPS) rose to $0.75, up 23% from $0.61 a year ago. Income before last year’s accounting change rose 9%, while diluted EPS before last year’s accounting change was up 14%.
“We generated record earnings again this quarter, driven by strong growth in our card businesses,” said Kenneth I. Chenault, Chairman and CEO. “Spending on American Express cards rose among consumers, small businesses and corporate clients. Business volumes from our bank partners were excellent and we signed new partners to our network, including the U.S. wealth management group of UBS. We also continued to expand the global network where American Express cards are welcomed and strengthened long-term relationships with key merchants.
As a result of strong spending from cardholders, consolidated revenues rose 10% to $7.6 billion, up from $6.9 billion a year ago.
“Spending by our cardmembers grew at double-digit rates and, based on preliminary U.S. volume reports, we continued to outpace our major competitors. Credit quality remained excellent during the quarter,” said Chenault.
“We made substantial investments in brand-related marketing programs and have a strong pipeline of new card products and service enhancements for later this year. Our focus is on building customized rewards, service enhancements and marketing programs that will continue to build business with high-spending cardmembers for our merchant partners.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
