American Express Company reported a 58% drop for first-quarter income from continuing operations of $443 million, down from $1.0 billion a year ago. Net income totaled $437 million for the quarter, down 56% from a year ago. On a per-share basis, net income was $0.31, down 64%
from $0.85 a year ago. U.S. Card Services reported a first-quarter loss of $25 million, compared to a net income of $523 million a year ago.
Total revenues net of interest expense for the first quarter decreased
17% to $3.1 billion, driven by reduced cardmember spending and
lower securitization income, net. Provisions for losses totaled $1.4 billion, an increase of 57% or $502 million from a year ago. The increase reflected higher write-offs
and past due loans. International Card Services reported first-quarter net income of $39 million, compared to $133 million a year ago. On a managed basis(4), the net loan write-off rate
was 8.5%, up from 6.7% in the fourth quarter and 4.3% a year ago. Owned
net write-offs were 8.5% in the quarter, up from 7.0% in the fourth
quarter and 4.5% a year ago. Total revenues net of interest expense decreased 14% to $1.0 billion, primarily driven by reduced cardmember spending. Provisions for losses totaled $335 million, an increase of 46% or $106 million from a year ago. The increase reflected higher write-offs and past due loans.
American Express U.S. Card Metrics
1Q/08: 5.3% 3.7%
2Q/08: 5.3% 3.3%
3Q/08: 5.9% 3.9%
4Q/08: 6.7% 4.7%
1Q/09: 8.5% 5.1%
Source: CardData (www.carddata.com)