American Express Company (NYSE: AXP) today reported first-quarter proceeds from continuing operations of $443 million, down 58 percent from $1.0 billion a year ago. Diluted yield per allot from continuing operations were $0.32, down 64 percent from $0.89 a year ago.
Net takings totaled $437 million for the quarter, down 56 percent from a year ago. On a per-share basis, end profit was $0.31, down 64 percent from $0.85 a year ago.
Consolidated complete revenues take home of involve detriment declined 18 percent to $5.9 billion, down from $7.2 billion a year ago.
Consolidated provisions totaled $1.8 billion compared to $1.2 billion in the year-ago period, for the most part reflecting additions to the lending ascription reserves in study of increased write-offs and life due loans. Consolidated expenses totaled $3.6 billion, down 22 percent from $4.6 billion a year ago, reflecting in neck of the woods the results of the company's reengineering initiatives.
At the end of the quarter, the company's tier-one hazard based finance correlation was 14.8 percent. Its evident customary equity(2) to jeopardize weighted assets of 10.1 percent was rather cheerful compared to most bank holding companies.
The company's gain on standard equitableness (ROE) was 16.3 percent, down from 35.9 percent a year ago.
Return on mean routine fair play (ROCE), which excludes the affect of preferred shares and other adjustments, was 16.7 percent, down from 35.7 percent a year ago.
"We made very beneficial maturation this pity on each of our style priorities - to prorogue liquid, to cable profitable, and to selectively supply for growth," said Kenneth I. Chenault, chairman and captain supervisory officer. "At a epoch when some parts of the postal card effort were incurring profitable losses, we remained solidly paying thanks, in part, to our malleability in adapting to a very intricate remunerative circumstances and the multifariousness of our question model.
Strong contributions from magnate services and bank birthday card processing on our network continued to yield us with a competitive advantage. "We generated compensation of $443 million, notwithstanding landed additions to our lending reserves and slower cardmember spending this quarter. Spending levels reflected the stern recessionary environment, but remained absolutely harmonious throughout the quarter. "We authorized more than $63 billion in U.S. require identification card spending, and, at the end of the quarter, had $207 billion of show acclaim lines at one's disposal to consumer and insufficient businesses in the U.S. "During the quarter, we again sought to equalize near duration performance against longer-term advancement by investing in our recently expanded partnership with Delta Airlines and in pandemic business-to-business initiatives.
"We diversified our funding activities by raising $3.5 billion of restored deposits and ended the thirteen weeks with $25 billion of remaining money and marketable securities on hand. Based on accepted vend conditions and the celebrity of this program, we plan to continue funding our 2009 activities generally through deposits. "While we did sight some recent gain in early delinquency rates, overall esteem indicators reflected rising unemployment levels and the broad-scale preference in the economy.
Based on common indicators, we contemplate second quarter U.S. lending write-off rates on a managed principle to stand between 200 and 250 heart points over the first quarter levels. We wait for an additional multiply of 50 basis points or less in the third quarter, before leveling off during the fourth quarter(3).
We persist in to be very circumspect about the fiscal outlook and plan to initiate additional reengineering efforts in the support ninety days to help further reduce our operating costs. Our aim is to remain in a caste to generate profits in excess of our dividend and be able to put into effect competitive advantage of opportunities as the control begins to rebound. "Also, if permitted by our supervisors and if supported by the results of the emphasis on assessment, we in view to repay the ministry investment of preferred shares and warrants." During the anything else quarter, the transfiguration effects of a comparatively stronger U.S. dollar contributed to stoop non-U.S. revenues, provisions and expenses.
The take down saddle provision for the fifteen minutes reflected lower pretax gain and the impact of recurring permanent benefits. Discontinued operations Discontinued operations for the triumph board generated a damage of $6 million compared with a wasting of $53 million during the year-ago period. Segment Results U.S. Card Services reported a first-quarter forfeiture of $25 million, compared to a clear revenue of $523 million a year ago.
Total revenues openwork of scrutiny impairment for the first area decreased 17 percent to $3.1 billion, driven by reduced cardmember spending and modulate securitization income, net. Provisions for losses totaled $1.4 billion, an gain of 57 percent or $502 million from a year ago.
The raise reflected higher write-offs and lifetime due loans. On a managed basis(4), the plexus advance write-off scold was 8.5%, up from 6.7% in the fourth lodge and 4.3% a year ago. Owned reticulum write-offs were 8.5% in the quarter, up from 7.0% in the fourth territory and 4.5% a year ago.
Total expenses decreased 15 percent. Marketing, promotion, rewards and cardmember services expenses decreased 22 percent from the year-ago period, reflecting drop volume-related rewards costs and reduced investments in marketing and promotion. Salaries and hand benefits and other operating expenses decreased 6 percent from year-ago levels, reflecting especially the benefits from the company's unbroken reengineering initiatives and a favorable hit interconnected to honest value hedge ineffectiveness. International Card Services reported first-quarter sieve receipts of $39 million, compared to $133 million a year ago.
Total revenues snare of share destruction decreased 14 percent to $1.0 billion, pre-eminently driven by reduced cardmember spending. Provisions for losses totaled $335 million, an bourgeon of 46 percent or $106 million from a year ago.
The flourish reflected higher write-offs and recent due loans. Total expenses decreased 20 percent. Marketing, promotion, rewards and cardmember services expenses decreased 28 percent from year-ago levels, reflecting reduced marketing investments and humble volume-related rewards costs. Salaries and wage-earner benefits and other operating expenses decreased 14 percent from year-ago levels, essentially due to the advantage from the company's continual reengineering initiatives.
Global Commercial Services reported a first-quarter reticle income of $86 million, compared to $151 million a year ago. Total revenues profit of fee sacrifice decreased 17 percent to $944 million, reflecting reduced spending by corporate cardmembers and cut go commissions and fees. Total expenses decreased 11 percent.
Marketing, promotion, rewards and cardmember services expenses decreased 8 percent from the year-ago period. Salaries and staff member benefits and other operating expenses decreased 11 percent from the year-ago period, reflecting in piece the better from the company's non-stop reengineering initiatives. Both revenues and expenses reflected the force of the obtaining of a commercial play one's cards right and corporate purchasing services direction in March 2008. Global Network & Merchant Services reported first-quarter entrap income of $237 million, up 6 percent from $223 million a year ago. First-quarter sum up revenues pocket of importance cost decreased 17 percent to $836 million.
The tapering off reflected earlier merchant-related revenues driven by a slackening in epidemic wag billed business. Total expenses decreased 32 percent, reflecting deign marque advertising and reduced investment spending in door-to-door salesman services. Salaries and worker benefits and other operating expenses decreased 26 percent, due to reduced forensic costs and the advance from the company's interminable reengineering initiatives. Corporate and Other reported a first-quarter gain income of $106 million, compared with trap income of $14 million a year ago.
The principal shelter 2009 reflects the attention of $220 million ($136 million after-tax) for the heretofore announced MasterCard and Visa settlements compared to $70 million ($43 million after-tax) in the year-ago patch interdependent to Visa.
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