American Express CompanyImage via Wikipedia

American Express Thursday said its profits had fallen 22 per cent in the third quarter to $632 million dollars compared to the same period last year...a better result than analysts had expected...



NEW YORK, October 22, 2009 -- American Express Company (NYSE: AXP) today reported third-quarter income from continuing operations of $642 million, down 25 percent from $861 million a year ago. Diluted earnings per share from continuing operations were $0.54, down 27 percent from $0.74 a year ago.



The third quarter results included a $180 million ($113 million after-tax) non-recurring benefit associated with the company’s accounting for a net investment in consolidated foreign subsidiaries (discussed in more detail later). Excluding that benefit, adjusted diluted earnings per share from continuing operations were $0.44.



Net income totaled $640 million for the quarter, down 21 percent from $815 million a year ago. Diluted per-share net income of $0.53 was down 24 percent from $0.70 a year ago. Excluding the non-recurring benefit mentioned above, adjusted diluted per-share net income was $0.43.(2)



  • Consolidated revenues net of interest expense declined 16 percent to $6.0 billion, down from $7.2 billion a year ago.

  • Consolidated provisions for losses totaled $1.2 billion, down 13 percent from $1.4 billion a year ago.

  • Consolidated expenses totaled $3.9 billion, down 17 percent from $4.7 billion a year ago, reflecting in part the results of the company’s reengineering initiatives.

At the end of the quarter, the company’s tier-one risk based capital ratio was 9.7 percent. Its tier-one common risk based ratio was 9.7 percent, which compared favorably to the regulatory benchmark(3) of 4 percent.



The company's return on average equity (ROE) was 11.7 percent, down from 27.8 percent a year ago. Return on average common equity (ROCE), was 10.4 percent, down from 27.6 percent a year ago.



“Our results showed further progress in navigating through the most difficult economic environment in decades,” said Kenneth I. Chenault, chairman and chief executive officer.



Supporting Materials




    Reblog this post [with Zemanta]

    Posted by John B. Frank Friday, October 23, 2009

    0 comments

    Payments Industry News Blog

    Search the PIN Debit Blog by Subject

    Kapersky Calls for Mass Adoption of Card Readers

    Kapersky Calls for Mass Adoption of Card Readers