American Express has achieved a net income of $896 million for the fourth quarter, up 17% from $763 million a year ago. Diluted earnings per share rose to $0.71, up 20% from $0.59 a year ago. The figures are the company's best ever Q4 results fueled by record holiday spending.

Consolidated revenues for the fourth quarter rose 10% to $7.8 billion, up from $7 billion a year ago. This growth reflects record card member spending, higher average card member lending balances and strong travel sales. It also reflects increased revenue from higher client asset levels at American Express Financial Advisors (AEFA).

For the full year, American Express reported record net income of $3.4 billion, up 15% from $3 billion a year ago. Earnings per share EPS after accounting change was $2.68, up 17%.

We delivered excellent results for both the fourth quarter and the full year, said Kenneth Chenault, chairman and CEO. Record levels of card member spending along with higher client asset levels generated double digit revenue growth throughout the year.

American Express delivered five million new cards during the fiscal year, which represented a significant expansion of its market presence. The increase was due in part to the growth of the company’s bank partnerships, which including a number of major deals including a new collaboration with MBNA.

American Express Bank (AEB) reported fourth quarter net income of $6 million, which included charges of $35 million pre-tax related to restructuring of certain operations. A year ago, fourth quarter net income totaled $29 million. The fourth quarter 2004 restructuring charges were partially offset by lower provision for losses, which reflected the continued stabilization of write-offs in the consumer-lending portfolio.

The quarterly results also reflected higher commissions and fees in the Financial Institutions Group and Private Banking. These benefits were partially offset by lower net interest income and higher operating expenses. For the full year 2004, AEB reported net income of $96 million versus $102 million a year ago. AEB’s 2004 full year net income included pre-tax restructuring charges of $44 million.