Citing strong cardholder spending increases across the board, American Express Co. on Oct. 19 said its U.S. Card Services unit produced income of $733 million during the quarter ended Sept. 30, up 23.2% from $595 million a year earlier.
Revenue in the unit rose 8.8%, to $3.7 billion from $3.4 billion. Total billed business rose 12.2%, to $106.8 billion from $95.2 billion, while the number of total cards in force rose 2%, to 40.7 million from 39.9 million.
The International Card Services unit generated income of $221 million, up 53.5% from $144 million, with revenues up 13.6%, to $1.25 billion from $1.1 billion.
Billed business in the international unit rose 16.6%, to $31.6 billion from $27.1 billion.
Amex’s Global Commercial Services unit produced income of $197 million, up 31.3% from $150 million, while revenues rose 4.5%, to $1.15 billion from $1.1 billion.
Total billed business for the unit was $38.7 billion, up 16.6% from $33.2 billion.
The Global Network and Merchant Services unit generated income of $332 million, up 31.7% from $252 million. Total revenues reached $1.2 billion, up 9.1% from $1.1 billion. Total global card billed business was $207.7 billion, up 15.8% from $179.3 billion.
Cardholder spending during the period was strong, “outpacing most of the major bankcard issuers,” Kenneth Chenault, Amex chairman and CEO, said in an earnings press release.
Amex has also “generated resources” within the past year “that bring customers and merchants more closely together as the worlds of online and offline commerce converge,” Chenault added.
