Integrated payments firm American Express Company saw its bottom line surge by over 500% in the first quarter of the year as the company released billions of reserves, it announced in a statement.
- Net income for the quarter soared to $2.2 billion from $367 million the previous year, reflecting a 508.92% increase. Diluted earnings per share jumped to $2.74 from $0.41.
- The company reported $1.05 billion credit reserve releases, mainly on the optimistic macroeconomic outlook and strong credit performance. This is equivalent to $802 million after taxes.
- Revenues climbed to $10.310 billion from $9.064 billion, while provisions for credit losses dropped to -$675 million from $2.621 billion.
- Chairman and Chief Executive Officer Stephen Squeri said card member spending continues to be elevated, driving optimism on consumer travel.
- The firm views 2021 as a “transition year,” where it will focus on investing on growth momentum in its core business.
- American Express added 2.1 million new proprietary cards in the first quarter. It also rolled out the Kabbage digital platform for small businesses, which has added over 14 million merchants to its network through a joint venture in China.
- Squeri expects to return to the original earnings per share expectations for 2020 next year.
AXP:Nyse is down 2.46%