Amex profits increase by 48% as card member spending... - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Amex profits increase by 48% as card member spending increases

Amex profits increase by 48% as card member spending increases

Add to Favorites:
Amex profits increase by 48% as card member spending increases

The American Express Credit Card (AmEx) has posted a 48% increase in its profits in the fourth quarter. As its card members spending habits have amplified, the company has also set a new record based on this increase, which has now enabled them to have trimmed their previous loss significantly.

According to the New York-based AmEx, last year their net income was $716 million, which converged at $0.60 per share. However, based on current market conditions the current income is $1.1 billion and there has been an increase in their stock share. Their unit price had increased by an additional $0.20, now making it $0.80 per unit.

On January 19, preliminary results were released and the total revenue had advanced by 13%; there was a 15% gain due to card member spending. This gain showed a $6.5 billion industry being amplified to $7.3 billion.

Throughout the recession, AmEx’s CEO, Kenneth I. Chenault, retained the profitability of the company. He stated that the rebound spending is because of the affluent customers and their credit card spending habits. Among the six major US card companies, AmEx had reported the lowest delinquency and default rates, as its focus was on the flagship charge card that caters to the affluent customers, or the high spenders, which requires the full bill payment each month.

The shares of the American Express have advanced by 6.7% this year. In the composite trading, the shares had fallen $0.21 and had dropped by 1.4% during the extended hours.

This is inclusive of a charge of $74 million at $0.06 per share, which was tied to job loss in the servicing network, according to lenders.The card income in the US has risen to 70% initiating a $701 million revenue, and another 48%, indicating $102 million in the international card income.

The billed business, in addition to worldwide card spending, totaled $197.7 billion during the fourth quarter. The previous year was only $172.6 when compared, stated AmEx in a statement issued today.Individual spending averaged at $3,629 during the three months, which ended December 31. This was a definite increase of 13% from the fourth quarter for the previous year 2009, when there were only a few cards outstanding.

A default decreases the amount that needs to be set aside for problematic loans, stated Chenault.However, the housing and unemployment levels remain a concern but the rest of the economy has shown consistent progress.

Around $239 million had been set aside by AmEx for losses, which was 68% less compared to the same period in 2009.

Add to Favorites:

Related News:

Fewer Millennials Paying Attention to Finances

Posted: August 21, 2017

In 2015 more than half of Millennials were thinking about how to turn their financial goals into a reality, but in 2016 that number dropped to 37%, according to Navy Federal's 2017 Millennials and Their Money study. They also found that ... Continue reading
Debt Could Put a Damper on Romance

Posted: August 18, 2017

Does credit health factor into romance? The answer is yes, according to the new Chase Slate 2017 Credit Outlook survey. Carrying a lot of debt could be a deal breaker for some people, with 37% saying that it could make them think less of a ... Continue reading
Voting for Discover it Student Card Design

Posted: August 17, 2017

Discover is asking college students to weigh in on the new design for their Discover it Student Card, so from now until September 21, they can vote on their favorite design on Discover's website. To get the word out, they are running a ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Match Mile For Mile: We’ll match all the Miles you’ve earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit