American Express Profit in Line as Cardholder Spending Jumps

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00013788-american-express-profit-in-line-as-cardho/

By James B. Kelleher, Reuters

American Express Co. said on Monday that its earnings rose 13 percent in the most recent quarter, lifted by consumer and corporate cardholder spending as well as double-digit growth in the transaction fees its charges merchants.

The fourth-largest U.S. credit-card issuer reported a fourth quarter net profit of $745 million, or 59 cents a share, down 17 percent from $896 million, or 71 cents a share, in the year-ago quarter.

But the drop in net income was a function of the spin-off of American Express’ investment advisory unit late last year and masked what was actually a solid performance.

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