American Express 1Q Profit Falls 6 Pct

on April 24 2008 10:28 PM

American Express said its first-quarter profit fell 6 percent amid in what the company's chief executive called a weak and uncertain U.S. economy.

The credit card company's net income for the quarter was $991 million, or 85 cents per share, compared with 87 cents a year earlier.

Revenue rose 11 percent to $7.2 billion, from $6.5 billion a year ago.

The company's U.S. credit card services division saw net income drop 19 percent to $523 million. The company set apart 52 percent more funds, $881 million, as provisions for losses.

International card services net income rose 30 percent to $133million. Provisions for losses grew 24 percent to $229 million.

The Global Commercial Services division, which provides expense management services, saw net income rise 17 percent to $151 million. Provisions for losses rose 106 percent to $62 million.

The Global Network & Merchant Services division, which includes the company's credit card processing services, had a net income drop of 6 percent to $223 million. Provisions for losses grew by $56 million compared to the year earlier.

Corporate and other businesses had a loss of $56 million.