Amex profits climb to beat tough market

 
Caitlin Morrison
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The credit card provider expects flat profit in 2015
AMERICAN Express last night reported a six per cent rise in profit during the three months to 31 March, up to $1.53bn (£1.02bn) from $1.43bn.

The rise in income came despite sales falling by three per cent from $8.17bn to $7.95bn.

Kenneth Chenault, the firm’s chief executive and chairman said the 2015 first quarter of 2015 results showed “solid core performance and continued progress in expanding the American Express franchise”.

He said the results reflected a period during which American Express was impacted by the strong dollar, an “uneven” global economy, and the renewal of several contracts that provide “lower initial economics than the prior agreements”.

Looking ahead, Chenault said: “We expect full year 2015 earnings will be flat to modestly down year-over-year with the headwinds we’re facing and as we ramp up investments to help offset the impact from ending our relationship with Costco in the US next year.”

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