American Express reported that its U.S. Card Services division posted second quarter net income of $580 million, down 2% year-over-year. U.S. gross dollar volume rose 13% and the AmEx cardbase expanded by 11% during the second quarter, compared to the year-ago quarter. Total net revenues for the first quarter increased 12% to $3.56 billion. Total U.S. card loans rose 39% to $38.3 billion. Delinquency on card loans (30+ days) declined to 2.7% versus 2.9% in the prior quarter and 2.5% for 2Q/06. Charge-offs on total card loans remained steady at 3.7% for the past two quarters, compared to 2.9% one-year ago. Card volume in the U.S. hit $94.6 billion, up 13% from the year-ago quarter. The total number of domestic cards-in-force grew to 42.1 million cards, compared to 39.1 million for 2Q/06. For complete details on American Express’ second quarter results, visit CardData ([www.carddata.com]).
American Express U.S. Card Portfolio Snapshot
2Q/07 1Q/07 4Q/06 3Q/06 2Q/06 Ann Chng
Volume $115.7 105.4 109.7 101.7 102.5 +12.9%
Cards 50.5mm 49.3 48.1 46.8 45.4 +11.2%
Source: CardData (www.carddata.com)