Net revenue at American Express Co. fell 5 percent for the full year 2001 to $22.6 billion, from $23.7 billion a year earlier, the company said yesterday.
Net revenue for the fourth quarter dropped 3 percent to $5.9 billion, from just over $6 billion in the fourth quarter of 2000.
The company said its net income for 2001 fell 53 percent to $1.3 billion, or 98 cents per share, from $2.8 billion, or $2.07 per share, in 2000. For the fourth quarter, net income fell 56 percent to $297 million, or 22 cents per share, down from $677 million, or 50 cents per share.
The financial services firm said three events hurt results: a $1.01 billion charge in the first half of 2001 for losses from the refinancing of its American Express Financial Advisors investment portfolio; restructuring charges in the third and fourth quarters totaling $631 million; and $98 million in losses associated with the Sept. 11 terrorist attacks.
American Express said net revenue from its Travel Related Services business rose 4 percent in 2001 to $18.1 billion, from $17.4 billion a year earlier. For the fourth quarter, TRS posted net revenue of $4.52 billion, essentially flat compared with the $4.54 billion posted in fourth-quarter 2000. Net income for the year was $1.4 billion, down 24 percent from $1.9 billion in 2000. Net income for the fourth quarter fell 64 percent to $170 million, from $470 million a year earlier.
American Express Financial Advisors reported net revenue for 2001 of $2.8 billion, down 33 percent from $4.2 billion in 2000. The division reported net income for 2001 of $52 million, down 95 percent from just over $1 billion a year earlier. For the fourth quarter, AEFA posted net revenue of $949 million, down 11 percent from just over $1 billion a year earlier. Net income for the quarter fell 33 percent to $163 million, from $242 million.
American Express Bank posted net revenue for 2001 of $649 million, up 10 percent from $591 million a year earlier. The division posted a loss of $13 million for the year, compared with income of $29 million a year earlier. For the fourth quarter, AEB posted net revenue of $168 million, up 16 percent from $144 million a year earlier. In the quarter, net income rose 45 percent to $9 million, from $6 million in 2000.
