NEW YORK – The Kreditkartenabieter American Express (AmEx) is due to the higher propensity to consume its customers with a winning record start to the year and has exceeded expectations. On average, the customers in the U.S. financial group from January to March 3772 U.S. dollars, more than 300 dollars more than a year earlier.The payment record is verbeserte.
The net earnings of rival MasterCard and Visa in the first quarter by 7 percent to 1.26 billion U.S. dollars, or $ 1.07 per share. Analysts had expected only $ 1 per share. The proceeds, net of interest expenses increased by 8 percent to 7.6 billion dollars and thus met the consensus estimate.
The improved payment behavior. The rate of customers with arrears dropped to 1.3 percent from 1.4 percent in the fourth quarter of 2011 and 1.8 percent a year earlier.
“Increased spending of the card holder, excellent credit risk parameters and a disciplined expenditure management have helped us in 2012 with record profits and revenues in the first quarter to start,” said Chairman and CEO Ken Chenault in the statement.
Dividend to be increased
On the good business but should also include the shareholders are involved. AmEx last month announced an increase in its quarterly dividend by 11 percent – the first increase since 2007. In addition, the Group intends to spend up to $ 5 billion to repurchase its own shares, after he has done well in the stress-test the Federal Reserve Bank. The Federal Reserve has, according to AmEx no objections to these plans.
Despite all the improvements, the credit growth is a challenge for the industry. The good payment record of customers, the downside is that they also offset their loan balances as quickly as possible. This reduces the net interest income. AmEx claims to be now less dependent on revolving loans, but benefited from the fact that the customers use their cards for more. As a result of rising revenues from the fees merchants.
What AmEx at the presentation of its quarterly results also announced: The provision for future credit losses was increased to 412 million dollars – that’s more than four times as much as a year earlier. Could financial companies in recent quarters by the release of provisions for bad loans may benefit, they must now be increased again.