American Express (AmEx) has posted a net income of $1.3bn for the third quarter of 2015, a fall of 14% compared to $1.5bn in the year ago quarter.
The company said that its total revenue net of interest expense was $8.2bn, down 1% as against $8.3bn in the prior year. However, excluding the impact of foreign exchange rates, adjusted revenues increased 3%, mainly due to continued growth in the loan portfolio and modestly higher card member spending.
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The U.S. Card Services unit of AmEx has recorded a net income of $794m, a drop of 11% from $889m in the corresponding quarter of 2014. The unit’s total revenues net of interest expense were up by 5% to $4.7bn from $4.5bn a year earlier.
The company’s International Card Services unit registered a net income of $89m for the third quarter, down 37% compared to $142m in the prior year. The division’s total revenues net of interest expense dipped 11% to $1.2bn from $1.4bn a year ago.
Amex chairman and CEO Kenneth Chenault said: "While overall results were in line with our 2015 financial outlook, the quarter reflected the headwinds and challenges that we have been dealing with throughout this year.
"Reported revenue and billed business levels were suppressed by a stronger U.S. dollar. In addition, the renewals and changes that we made earlier this year to some co-brand relationships also entailed some significant incremental expenses this quarter."
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By GlobalData
