American Express has reported a net income of $1.48bn for the third quarter of 2014, an increase of 8% compared to $1.37bn for the same period last year.
Go deeper with GlobalData
The increase in third-quarter profit is attributed to higher spending by the US customers using its credit cards and a rise in its net interest income.
The company’s total revenue, net of interest expense, remained nearly unchanged at $8.33bn.
Kenneth Chenault, chairman and CEO of American Express, said: "Card Member spending was up 9%, a modest acceleration from last quarter, and loan balances grew 5%. Revenues continued to rise at a steady pace, but the growth rate is still below our long-term target.
"Our focus will be on delivering earnings growth in an environment that is characterized by rapidly changing technologies, intense competition, regulation and an economy that may continue to grow at only a modest pace."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAmEx’s U.S. Card Services segment has reported a net income of $889m for the third quarter of 2014, a 14% increase from $782m a year ago. Total revenues net of interest expense increased 6% to $4.5bn, from $4.3bn a year ago.
The company’s International Card Services unit reported third-quarter net income of $142m, unchanged from a year ago. Total revenues net of interest expense were $1.4bn, up by 3% compared to the same period last year.
