American Express Co. said first-quarter earnings rose due to
expense controls and higher revenues.
The New York-based company, which both issues plastic and owns a
card-processing network, said revenue, net of interest expense,
rose to $8.2 billion from $7.89 billion a year earlier.
The company reported a profit of $1.43 billion, or $1.33 a
share, compared with $1.28 billion, or $1.15 a share, a year
earlier.
Analysts surveyed by Thomson Reuters expected a profit of $1.30
a share on $8.36 billion in revenue.
Shares were down 1.6% to $86 in recent after-hours trading
"While consumers remain cautious about taking on additional
debt, we continued to see a modest increase in Card Member loan
balances, said Chairman and Chief Executive Kenneth Chenault.
AmEx has been increasingly focused on attracting new customers
and merchants. The company recently launched a no-fee card that
rewards customers for how often they use it, not just how much they
spend. It also is trying to expand acceptance among small
merchants.
Last month, American Express said it was raising its quarterly
dividend by three cents a share to 26 cents, beginning in the
second quarter. It also said it would buy back up to $4.4 billion
of common shares this year and up to an additional $1 billion in
the first quarter of 2015.
Write to Robin Sidel at robin.sidel@wsj.com
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