AmEx Shows Higher Cardmember Spending, Larger Loss Provisions

AmEx said that its return on equity was 26.3%, which is actually down from 27.8% a year ago. It also said that cardmember spending rose by 8% in the U.S. from a year ago and 6% globally, but that would have been 8% globally if it were not for currency adjustments. Provisions for losses in the U.S. card segment totaled $339 million, up from $143 million a year ago and expenses were up 2%. On the international card segment those provisions for losses managed to fall by 18% down to $83 million for the quarter.

Global Commercial Services reported third-quarter net income down 7% to $183 million. Global Network & Merchant Services reported that net income rose by 8% to $360 million. AmEx said that “Corporate and Other” results came to a net loss of $156 million compared with net loss of $248 million in the year ago period.

Shares closed up 1.2% at $59.37 against a 52-week range of $44.69 to $61.42, but shares are down 0.6% at $59.00 in the after-hours session.

JON C. OGG