American Express Reports Record Net Income for Q1

American Express Company reported first quarter income from continuing operations of $1.1 billion, up 22 percent from $876 million a year ago. Diluted earnings per share from continuing operations were $0.88, up 26 percent from $0.70.

Net income for the quarter also totaled $1.1 billion, up 21 percent from $873 million a year ago, and $0.87 per share, up 26 percent from $0.69.

Consolidated revenues net of interest expense rose 10 percent to $6.7 billion, up from $6.1 billion a year ago.

Consolidated expenses totaled $4.2 billion, up 4 percent from $4.1 billion a year ago.

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The Company’s return on equity (ROE) was 36.6 percent.

“Higher revenues, combined with tight controls on discretionary expenses, delivered excellent bottom line results for the quarter,” said Kenneth I. Chenault, chairman and chief executive.

“Net income for the quarter was a record, exceeding the $1 billion level for the first time since the Ameriprise spin-off in late 2005.

“Our strong revenue growth reflects the benefit of multi-year investments in our payments business that are generating across-the-board spending growth from consumer, small business and corporate Cardmembers.

“Our ability to customize marketing and reward programs for areas with the highest returns helped us to start the year with strong momentum.

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“Our performance was again at the top of the industry, with Cardmember spending up 15 percent and loan volumes up 29 percent. We also added nearly 2 million cards-in-force this quarter.

“Credit quality was very strong, reflecting our management controls and continued success in the premium sector. Key indicators are returning to a more traditional range compared to the unusually good levels of a year ago.”

The full release, with figures, can be found here.