American Express (Amex) has reported a net income of $1.4bn for the third quarter of 2017, an increase of 19% compared to $1bn during the same period last year.
The company said that its total revenues net of interest expense rose by 9% to $8.4bn for the quarter ended on 30 September 2017, compared to $7.8bn during the same quarter period previous year.
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Amex’s U.S. consumer services unit recorded a net income of $475m, an increase of 18% from $401m during the corresponding quarter of 2016. The unit’s total revenues net of interest expense were up by 13% to $3.3bn from $2.9bn a year earlier.
International consumer and network services unit reported a net income of $286m for the third quarter, a surge of 85% compared to $155m in the prior year. The division’s total revenues net of interest expense increased 7% to $1.5bn from $1.4bn a year ago.
The company’s global commercial services reported third quarter net income of $529m, a rise of 14% from $466m during the same period a year ago. The business segment’s total revenues net of interest expense were $2.6bn, up 6% from $2.4bn during the third quarter of 2016.
Amex said that its global merchant services posted a net income of $368m for the third quarter, up 3% from $359m a year ago. Total revenues net of interest expense were $1.2bn, up 4% from $1.1bn a year ago.
Corporate and other reported third quarter net loss of $302m, compared with a net loss of $239m a year ago, that reflects a portion of the previously-mentioned asset impairments and restructuring charges.
Amex chairman and CEO Kenneth Chenault said: “We are completing a two-year turnaround ahead of plan with strong revenue and earnings growth across all of our business segments. We’ve added products and benefits, shown continued strength in acquiring new customers, and expanded our merchant network.
“Loan growth continued to be strong and credit metrics were again in line with our expectations. We’ve contained operating costs and reallocated a significant part of those savings to fund many of the initiatives that are now driving growth across the business.
“Throughout the turnaround, we’ve dealt effectively with competitive challenges and redesigned our marketing, customer service and risk management capabilities for the digital age.”
