American Express reported that its U.S. Card Services division posted a fourth quarter net income of $7 million, compared to $473 million for 4Q/06 due to higher loan loss provisions and increased expense related to “Membership Rewards.” U.S. gross dollar volume rose 11% and the AmEx cardbase expanded by 6% during the fourth quarter, compared to the quarter one year-ago. Total net revenues for the fourth quarter increased 14% to $4.38 billion. Total U.S. card loans rose 29% to $43.3 billion. Delinquency on U.S. card loans (30+ days) rose to 3.5% versus 3.1% in the prior quarter and 2.7% for 4Q/06. Charge-offs on total U.S. card loans rose to 4.3%, compared to 3.7% for 3Q/07 and 3.5% for 4Q/06. Card volume in the U.S. hit $123.0 billion, up 11% from the year-ago quarter. The total number of domestic cards-in-force grew to 52.3 million cards, compared to 48.1 million for 4Q/06. For complete details on American Express’ third quarter results, visit CardData ([www.carddata.com]).
American Express U.S. Card Portfolio Snapshot
4Q/07 3Q/07 2Q/07 1Q/07 4Q/06
Volume $123.0B 115.2 115.7 105.4 109.7
Cards 52.3mm 51.7 50.5 49.3 48.1
Source: CardData (www.carddata.com)