American Express (AmEx) has registered a net income of $1.7bn in Q4 2019. This is a decrease of 16% from the previous year’s figure of $2bn.
Higher card fee income drives revenue growth
Consolidated total revenues net of interest expense for the three-month period ended 31 December 2019 stood at $11.4bn, a 9% rise from $10.5bn last year.
The firm attributed the rise to growth in fee, spend and lend revenues.
Consolidated expenses increased 9% to $8.4bn from $7.7bn. This was said to be due to higher card member spending and use of card benefits, which resulted in rise in rewards and expenses related to customer engagement.
Consolidated provisions for losses increased 7% to $1bn from $954m over the period.
AmEx chairman and CEO Stephen Squeri said: “We once again delivered steady, consistent performance in the fourth quarter, marking our 10th straight quarter of FX-adjusted revenue growth at or above 8 percent.”
“During 2019, we added 11.5 million new proprietary cards and continued to deliver solid billings growth. Almost 70 percent of our new Card Members are choosing our fee-based products, helping to drive card fee revenue growth of 17 percent,” Squeri noted.
Positive outlook for 2020
Highlighting his outlook for this year, Squeri added: “For 2020, we expect revenue growth in the range of 8 to 10 percent on an FX-adjusted basis and earnings of $8.85 – $9.25 per share.”