American Express profit lifted by credit cards

Revenue rose 10 percent from a year earlier to 7.77 billion dollars in the October-December period. The results included a one-time charge of 102 million dollars for reorganisation including the sale of certain operations of American Express Bank, and a one-time gain of 117 million dollars on the sale of the leasing product line in its small business financing unit. "We delivered excellent results for both the fourth quarter and the full year," said Kenneth Chenault, chairman and chief executive, who indicated the company's credit card operations gained ground against rivals Visa and Mastercard.

"Cardmember spending and transaction levels were exceptionally strong in the fourth quarter ... Based on preliminary US industry data for holiday credit card spending, we outpaced our network competitors and gained share at one of the fastest rates during the past five years. Average spending by our cardmembers grew substantially and we continue to have a wide lead over Visa and MasterCard in this key measure." The company's full-year profit rose 15 percent to 3.445 billion dollars, while revenues grew 13 percent to 29.115 billion.

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