American Express said net income tripled from the year-earlier quarter to $716 million. Net income attributable to shareholders came in at 60 cents a share, beating Wall Street estimates of 57 cents a share.
Income from continuing operations totaled $710 million, or 59 cents a share. The year-earlier quarter saw income from continuing operations of $306 million, or 26 cents a share.
Income from last year's fourth quarter included two significant items -- a $421 million ($273 million after-tax) of re-engineering costs, primarily related to severance and other costs associated with staff reductions, and a $106 million ($66 million after-tax) increase in the company's Membership Rewards reserve, in connection with the company's extension of its partnership agreement with Delta Air Lines, American Express said.Revenue, net of interest expense, totaled $6.49 billion, down slightly from the year-earlier quarter's revenue figure. American Express said it recorded a $748 million provision for credit losses, down 47% from the year-earlier period. The decline reflected continued improvement in credit quality during the latter part of 2009, American Express said. The company said loans on a managed basis in its U.S. card services business, which includes securitized and on-balance sheet loans, had a net loan write-off rate of 7.5%, down from 8.9% in the third quarter, but up from 6.7% a year ago. Net write-offs on an owned basis were 8.0% in the quarter, consistent with earlier expectations. That number was down from 9.8% in the third quarter, but up from 7.0% in the year-earlier period.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV