American Express Q4 net income $899 million
Article continues below
Consolidated expenses totaled $6.4 billion.
Fourth-quarter consolidated total revenues net of interest expense totaled $8.4 billion, down 8 percent from $9.1 billion a year ago. Excluding the impact of foreign exchange rates and last year’s Concur gain, adjusted revenues increased 4 percent. The increase primarily reflected continued growth in net interest income and higher Card Member spending.
Consolidated provisions for losses totaled $572 million, down 2 percent from $582 million a year ago. The decrease primarily reflected the impact of the reclassification of certain co-brand loan portfolios to “held for sale,†as credit costs associated with those portfolios are now reported in other operating expenses, beginning in December 2015.
Consolidated expenses totaled $6.4 billion, up 1 percent from $6.3 billion a year ago. Excluding the impact of foreign exchange rates, consolidated expenses rose 4 percent. The current quarter reflected the EG charge. Last year’s quarter included the restructuring charge and co-brand partnership renewal costs. Both periods included incremental spending mentioned above.
The effective tax rate for the quarter was 38 percent, up from 35 percent a year ago The increase primarily reflected non-deductible expenses included in the EG charge mentioned earlier.
The company's return on average equity (ROE) was 24.0 percent, down from 29.1 percent a year ago. Excluding the EG charge, adjusted ROE was 25.6 percent1
For the full year, the company reported net income of $5.2 billion, down 12 percent from $5.9 billion a year ago. Diluted earnings per share was $5.05, or $5.38 on an adjusted basis excluding the EG charge, compared to $5.56 a year ago.1
Revenues net of interest expense for the full year decreased 4 percent (flat FX adjusted4) to $32.8 billion from $34.2 billion a year ago.
Consolidated expenses decreased 1 percent to $22.9 billion from $23.2 billion a year ago. Adjusted for foreign currency translations, consolidated expenses increased 3 percent. ■