American Express 1Q Net Income up 15 Percent to $618 Million

Share this content:
American Express Co. said yesterday its first quarter net income rose 15 percent to $618 million, or 46 cents per share, from $538 million, or 40 cents per share a year ago. Net revenue for the quarter rose 1 percent to $5.76 billion, from $5.72 billion in the same quarter a year ago.

According to Kenneth Chenault, chairman/CEO, American Express increased its spending on marketing, card acquisition, product development and asset gathering activities in the first quarter. He did not say how much the company spent on each of those activities.

"If the business environment continues to improve, we expect to accelerate investments in business building activities and to deliver solid operating results," Chenault said.

American Express said net income from its Travel Related Services business fell 11 percent in the first quarter to $467 million, from $522 million a year ago. The company said it spent $326 million on marketing and promotion for its Travel Related Services business in the first quarter, up 1.5 percent from $321 million in the first quarter of 2001. It noted its marketing and promotion spending rose due to "the launch of the new brand advertising campaign and an initial step up in selected card acquisition programs."

Net income from the company's American Express Financial Advisors business rose to $182 million, from $51 million in 2001.

American Express Bank reported net income of $13 million up from $9 million a year ago.


Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above