Citing increased consumer spending, American Express Co. is reporting fourth quarter net income of $1.1 billion, up 53.6% from $716 million during the same period in 2009. Total revenue net of interest expense rose 12.3%, to $7.3 billion from $6.5 billion, the company announced Monday.
The revenue increase primarily reflects the consolidation of securitized cardholder loans and related debt, AmEx said in a news release announcing the company’s earnings. It also reflects increases in cardholder spending and in travel commissions and fees, AmEx said.
AmEx’s U.S. Card Services unit posted net income of $701 million, up 69.7% from $413 a year earlier. Net Revenue increased 18.8%, to $3.8 billion from $3.2 billion.
AmEx’s U.S. provision for loan losses totaled $111 million, down 67.9% from $346 million.
The company’s International Card Services unit reported net income of $102 million, up 47.8% from 69 million. Net revenue totaled $1.2 million, up 2%.
The international provision for loan losses decreased 75.3%, to $80 million from $324 million.
