American Express Q4 profit triples to $716 mn

Global credit-card major American Express Company has reported three-fold jump in its fourth quarter profit at $716 million, riding on a surge in consumer spending.

The credit card company had made a profit of $240 million for the same period in 2008, American Express (AmEx) said in a statement.

"We ended 2009 on positive note with cardmember spending up 8 per cent and credit indicators showing further signs of improvement," AmEx Chairman & CEO Kenneth I Chenault said.

Consolidated revenues (net of interest expense) was $6.5 billion on par with year-ago quarter, the statement added.

"Q4 results reflected the diversity of our business model that includes issuing cards, building business for merchants, operating a global payments network and delivering high-value services to our customers. Earnings were well above depressed levels of 2008, capping a year when we delivered on each of our three main priorities. We stayed consistently profitable, built a more liquid funding base and invested selectively in the business," Chenault added.

Reflecting a decline in continued improvement in credit quality during the latter part of 2009, the consolidated provisions for losses stood at $748 million, down 47 per cent compared to $1.4 billion in the year-ago period.

Discontinued operations in Q4 generated a gain of six million dollar, reflecting mark-to-market adjustments within American Express International Deposit Co investment portfolio.