American Express (AmEx) has reported a profit of $1.63bn, or $1.86 per share, for the first quarter of 2018, an increase of 31% compared with $1.25bn, or $1.35 a share, a year ago.
For the quarter ended 31 March 2018, consolidated total revenues net of interest expense stood at $9.7bn, a jump of 12% compared to $8.7bn in the corresponding year ago period.
The company attributed rise in revenue to approximately 12% growth in card member spending as it acquired 3.5 million new cards across its global issuing business.
lAmEx further noted that the rise in net income was also because of the drop in tax rate from 32% a year ago to 22%, and expects to see up to 8% increase in revenues this year.
American Express chairman and CEO Stephen Squeri said: “Card Member spending grew 12%, and we acquired 3.5 million new cards across our global issuing business, reflecting in part the recent Hilton portfolio acquisition.
“Today’s results are showing good returns on the investments we’ve been making to drive growth in the premium sector, with co-brand partners, in our merchant network and with small and mid-sized businesses.
“We plan to continue these investments this year and support our initiatives with the global brand campaign we launched this month.”