American Express Profits Higher Than Expected
American Express reported higher-than-expected profits for the first quarter of 2014. Customer spending led to a surge in revenue.
American Express is the biggest U. S. credit-card issuer in terms of purchases purchases.
The net income for American Express increased by 12% to $1.43 billion, compared to $1.28 billion for the first quarter of 2013. This equates to $1.33 a share, which is higher than the $1.30 a share a poll of 27 analysts predicted. Revenues rose 4% to $8.2 billion, which is actually lower than the estimated $8.7 billion.
“We are off to a good start to 2014, thanks to disciplined expense control, credit metrics near their historic low, higher revenues and a strong balance sheet,” said Chief Executive Officer Kenneth I. Chenault in a statement. “While consumers remain cautious about taking on additional debt, we continued to see a modest increase in card member loan balances.”
American Express plans to cut costs at the bank and reach out to more customers for the remainder of the year. They aim to form new partnerships and launch new products to continue to grow in the future.