Creditnet News Story
AmEx posts growth while unemployment, regulations slow improvement
Tuesday, April 27, 2010
By William Davis
Net income for American Express Corporation was up 103 percent during the first quarter of 2010.
In a recent report, American Express Company posted a large gain in the first quarter, reporting that its net income jumped 103 percent.
During that time, the financial corporation posted a net income of $885 million, up from the $437 million reported in the first quarter of 2009. Domestic card services reported net income of $428 million, an improvement over the $7 million loss American Express saw in the first quarter of 2009.
"Throughout the industry - and at American Express - we saw further signs that consumers are managing their post-recessionary finances more cautiously," said Kenneth Chenault, chief executive officer and chairman of American Express.
Although the company's performance during the first quarter improved, Chenault did say that unemployment figures and the potential for financial regulation from the federal government could stymie further growth. However, he said conditions exist in the global economy that should afford additional improvements.
The latest figures from the government showed the unemployment rate was 9.7 percent in March, the third straight month it was at that level. Meanwhile, senators on Capitol Hill continue to haggle over regulatory reforms, which could include the creation of the Consumer Financial Protection Bureau.
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