News Column

AmEx Profit Boosted by Consumer Spending

April 17, 2013
American Express card (file photo)
American Express card (file photo)

Consumers boosted spending with their American Express credit cards, raising company profits by 1.9 per cent over a year earlier, to 1.28 billion dollars in the first quarter, the company said Wednesday.

Analysts had only expected net income of 1.12 billion dollars.

AmEx head Kenneth Chenault is cutting 5,400 jobs this year to contain expenses, and the company will roll out a prepaid card to be sold by Wal-Mart stores in a pitch for less affluent consumers.

"We made good headway throughout the business and continue to see very encouraging customer response to initiatives like our reloadable prepaid products and loyalty marketing initiatives," Chennault said in a statement.

Worldwide AmEx card spending rose 6.3 per cent to 224.5 billion compared to a year earlier.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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