American Express has reported a net income of $2bn for the fourth quarter of 2018, compared to a net loss of $1.2bn in the year ago quarter.
Total revenues for the quarter ended 31 December 2018 were $10.4bn, an increase of 8% from $9.7bn in the fourth quarter of 2017.
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The company attributed the rise in revenue to higher cardholder spending, loan volumes and card fees.
During the quarter, American Express’ expenses increased by 9% to $7.7bn.
American Express chairman and CEO Stephen Squeri said: “We continue to see very good returns on the investments we’ve been making to gain share and add scale.
“Card member spending rose an fx-adjusted 8%, lapping a strong year-ago quarter. This was the sixth consecutive quarter with revenue growth of at least 8%, and it was driven again by higher card member spending, loans and card fees.”
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By GlobalDataSqueri noted that the company added 12 million new cards and expanded its merchant network in 2018.
American Express Q4 results showed that Global Consumer Services Group recorded a net income of $702m for the quarter, an increase of 13% year-on-year.
Net income at the Global Commercial Services unit surged 15% year-on-year to $624m from $542m last year.
Furthermore, the Global Merchant and Network Services division of the company posted a net income of $501m, up 9% compared to $459m a year earlier.
