Tags: Amex | American-Express | profit | card

AmEx Profit Matches Estimates as Card Spending Growth Slows

Wednesday, 17 Oct 2012 04:41 PM

American Express Co., the biggest credit-card issuer by purchases, posted a third-quarter profit that matched analysts’ estimates as card-spending growth slowed.

Net income climbed 1.2 percent to $1.25 billion, or $1.09 a share, from $1.24 billion, or $1.03, a year earlier, the New York-based lender said Wednesday in a statement. That matched the average per-share estimate of 26 analysts surveyed by Bloomberg.

“Cardmember spending rose 8 percent in the U.S. from a year ago and 6 percent globally,” Kenneth I. Chenault, 61, said in the statement. “It represents slower growth than we were generating earlier in the year.’”

AmEx, facing increased competition for its base of affluent spenders, has sought to enhance the value of its global payments network. Last week, the firm introduced its Bluebird prepaid debit card that Wal-Mart Stores Inc. is selling at more than 4,000 locations across the U.S and online. The partnership may help the lender capitalize on new U.S. rules for standard debit cards that are squeezing rivals including JPMorgan Chase & Co.

American Express rose 1.3 percent to $59.37 at 4 p.m. in New York. The shares have gained 26 percent this year, compared with a 25 percent gain for the 81-company Standard & Poor’s 500 Financials Index.

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American Express Co., the biggest credit-card issuer by purchases, posted a third-quarter profit that matched analysts estimates as card-spending growth slowed.
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Wednesday, 17 Oct 2012 04:41 PM
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