American Express (AmEx) has reported a net
income of $1.23bn in the third quarter of fiscal 2011, 13% higher
than the year-ago quarter.
For the nine months to the end of September,
net income amounted to $3.74bn, a 25% increase from the
corresponding period a year ago.
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Net income from US Card Services in the third
quarter rose 23% over the year-ago period to $733m, while third
quarter net income from its International Card Services division
soared by 53% to $221m.
Global Commercial Services reported a 31%
year-on-year increase in net income to $197m and AmEx’s Global
Network and Merchant Services division increased third quarter net
income by 32% over the year ago period to $322m.
Other highlights in the third quarter included a
decline in provisions for loan losses within the US Cards Services
division, which almost halved from a year ago to $143m.
In the International Card Services division,
provisions for loan losses increased by 58% year-on-year to $101m,
which AmEx said was the result of a reserve release from a year
ago.
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By GlobalDataAmEx CEO Kenneth Chenault said:
“The overall results are showing the benefit of
moves we’ve made to improve our risk profile, capture a greater
share of card member spending, grow fee-based revenues and build
additional flexibility into the way we manage expenses. Those moves
have put us in a strong competitive position.
“We have been generating strong momentum and
plan to continue investing to grow the business. But, against the
backdrop of an uncertain economic environment, we are focused on
maintaining a strong risk profile and carefully managing
expenses.”
