New York: Global payment service provider American Express has reported a 21 per cent drop in its third quarter net income to USD 640 million with its revenue declining on lower consumer spending and loan volumes.
The credit card firm had registered a net income of USD
815 million in the year-ago period, it said in a statement.
Amex's revenues (net of interest expense) declined 16 per
cent to USD 6.01 billion in the quarter under review from USD
7.2 billion in the same period last year.
"Third quarter revenues declined because card member
spending and loan volumes were down from year-ago levels,
while the overall billings have stabilised during the last few
months and we saw indications that spending by corporate card
members is beginning to pick up," American Express Chairman
and Chief Executive Officer Kenneth I Chenault said.
In the US card service segment the company's Q3 net
income declined to USD 109 million compared to USD 244 million
a year ago. However, in the international card services
segment the net income increased to USD 127 million in the
reviewed quarter from USD 67 million in same period last year.
Moreover, card member loans have declined to USD 23.4
billion in the quarter ended September 30, 2009 from USD 36.3
billion a year ago.
Bureau Report
First Published: Friday, October 23, 2009, 16:55