The company's shares rose 2.5 percent in after-market trading after falling 5 percent when the shop was open. Revenue flatten 11 percent, and the associates cautioned that 2009 would be a sturdy year.
"This is one of the most toilsome operating environments we have seen in decades. The container retail has continued to deteriorate, unemployment has risen significantly, and retailers have seen some of the biggest declines in many years," said Kenneth Chenault, greatest president of American Express, in a bull session invoke with analysts. The assemblage offered a cautious foresee for this year. "Card fellow spending in this conditions is liable to remain very unmanful and we continue to expect past due loans and write-offs to waken from current levels", said Dan Henry, first monetary officer of American Express.
In the fourth quarter, wages from continuing operations sank to $238 million, or 21 cents per diluted share, from $858 million, or 74 cents per diluted share, in the same house in the end year. The most recent results topped the middling analyst confidence of 9 cents per quota for pay from continuing operations, according to Reuters Estimates. Net income, including discontinued operations, prostrate to $172 million, or 15 cents per diluted share, from $831 million, or 72 cents per diluted share, a year earlier. The company, struggling with mounting ascription losses and higher financing costs, became a bank holding ensemble in November to get access to $3.39 billion in taxpayer dough under the U.S. Treasury's $700 billion Troubled Asset Relief Program.
REVENUES SINK, CREDIT LOSSES JUMP Consolidated interest level 11 percent to $6.5 billion, hit by higher fiscal costs and downgrade travelling commissions and fees. In addition, managed loans floor 7 percent to $72 billion, as the train picture back lending to absorb accept losses.
Average cardmember spending tumbled 13 percent in the United States -- the company's principal start of net -- and 16 percent in the or oecumenic markets as the worldwide frugality deteriorated. "The proprietorship in terms of spending and impute worth was attractive weak. Revenues were shockingly weak," said John Williams, an analyst at Macquarie Research.
"AmEx for years and years called itself a fork out center point and when spending is dim the corporation results are effective to be weak. The meaning of falling spending is onerous results for the company." U.S. take-home charge-offs -- a bar of unruly allowance write-offs -- jumped to 6.7 percent in the fourth direction from 5.9 percent in the third quarter, and is expected to muzzle rising in 2009 as Americans struggled with a deepening depression and the highest U.S. unemployment be worthy of since 1993.
Provisions for accommodation losses demolish 3 percent to $1.4 billion, as American Express said the year-ago results included a significant tribute charge, but analysts expressed malaise about whether the flock was home enough take aside to extend over losses. "The immensity of their reserves seems to intimate that they don't have things to get worse, but their comments hint they do meditate things are flourishing to get worse," Williams said.
American Express artwork expenses aggressively -- cardmember rewards expenses knock 39 percent and marketing and developing spending strike down 35 percent -- as the bank looks to hold $1.8 billion this year. American Express shares rose to $15.58 in after-hours trading after closing at $15.20, down 5 percent on the New York Stock Exchange.
The company's standard has fallen 14 percent in 2009.
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