American Express Co. (NYSE: AXP) reported late Wednesday that its first quarter profit climbed to $1.18 billion, or 97 cents per share, $885 million, or 73 cents per share, in the prior-year quarter. Consolidated total revenues net of interest expense were $7.0 billion, up 7 percent from $6.6 billion a year ago. The company said that the increase largely reflects higher cardmember spending and higher travel commissions and fees, partially offset by lower interest income due to a lower yield on the loan portfolio. Analysts, on average, expected the company to report earnings of 93 cents per share on revenue of $6.98 billion.
"Record earnings this quarter reflect credit quality and billed business trends that are among the best we've seen," said Kenneth I. Chenault, chairman and chief executive officer, American Express. "Cardmember spending was up 17 percent, with broad-based strength across all our businesses segments. After several years of decline, our lending portfolio leveled off and total revenues grew at the healthiest pace since before the recession.
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