American Express' 1Q profit up as spending rises

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Associated Press

Posted on April 17, 2013 at 4:02 PM

American Express says its net income edged up 2 percent in the first quarter, as the credit card issuer benefited from higher revenue due in part to increased spending by cardholders.

The New York-based company on Wednesday posted net income of $1.28 billion, or $1.15 per share, for the three months ended March 31.

That compares with net income of $1.25 billion, or $1.07 per share, in the same period last year.

Revenue for the quarter rose 4 percent to $7.88 billion from $7.59 billion.

Analysts, on average, were expecting adjusted earnings of $1.12 per share on revenue of $8.01 billion, according to FactSet.

Management said spending by cardholders increased 6 percent during the quarter.

The company plans to boost its dividend next quarter and buy back shares this year.

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