American Express (AmEx) has reported a net income of $899m in the fourth quarter of 2015, down 38% compared to $1.4bn in the prior year quarter.
The company said that its total revenue net of interest expense was $8.4bn, an 8% drop from $9.1bn in the corresponding quarter of 2014. Adjusted revenues rose 4% excluding the impact of foreign exchange rates and last year’s Concur gain.
The company’s US Card Services arm posted a net income of $799m, a surge of 20% compared to $665m in the year-ago quarter. The unit’s total revenues net of interest expense rose 5% year-on-year to $4.8bn from $4.6bn.
The International Card Services unit of AmEx registered a rise in its net income in the fourth quarter to $73m from $33m a year earlier. The unit’s total revenues net of interest expense stood at $1.3bn, a decrease of 5% from $1.4bn a year ago.
AmEx chairman and CEO Kenneth Chenault said: "Our 2015 results and outlook reflect the reset in co-brand economics, pressures on merchant fees, the evolving regulatory environment and intense competition that have been re-shaping the payments industry.
"A number of cyclical factors in the broader economy have also weighed on our performance and influenced our outlook. Against that backdrop, and the fact that revenue growth has not accelerated as we anticipated, we are moving aggressively to streamline the company and drive efficiencies in order to take out $1 billion from our overall cost base by the end of 2017."