American Express has reported a 7% increase in first quarter of 2012 net income to $1.3bn from $1.2bn during the same quarter a year ago.
The US based card issuer’s diluted earnings per share was $1.07 in the first quarter of 2012, up 10% from $0.97 in the same quarter previous year.
Revenues of $7.6bn was reported for the quarter, up 8% compared with $7bn in the corresponding quarter a year ago, reflecting strong cardmember spending and higher net interest income backed by moderate growth in the loan portfolio.
For the latest quarter period, its consolidated provisions for losses summed up $412m, up from $97m during the corresponding quarter last fiscal.
American Express chairman and chief executive officer Kenneth I Chenault said that higher cardmember spending, excellent credit metrics and disciplined expense management helped us to start 2012 with record first-quarter earnings and revenues.
"Spending on the American Express network rose 12 percent, remaining strong throughout the quarter, both in the U.S. and internationally. Credit quality continues to be among the best we have ever experienced, and our lending portfolio continued to grow at moderate levels," Chenault said.
"The underlying strength of the business allowed us to add to the competitive advantages of our card products and introduce new digital services that create value for merchants and customers who choose to pay with American Express."
US Card Services first-quarter net income increased 35% to $752m, from $555m during the same quarter of 2011.
International Card Services segment registered 4% growth in first-quarter net income to $197m from $189m in the year ago period.
The company said that its global commercial services segment registered net income of $177m, down 4% from $184m in the year ago period.