American Express Q3 net income dips 21%

American Express Q3 net income dips 21%

New York: Global payment service provider American Express has reported a 21% drop in its third quarter net income to $640 million with its revenue declining on lower consumer spending and loan volumes.

The credit card firm had registered a net income of $815 million in the year-ago period, it said in a statement.

Amex’s revenues (net of interest expense) declined 16% to $6.01 billion in the quarter under review from $7.2 billion in the same period last year.

“Third quarter revenues declined because card member spending and loan volumes were down from year-ago levels, while the overall billings have stabilised during the last few months and we saw indications that spending by corporate card members is beginning to pick up," American Express chairman and chief executive officer Kenneth I Chenault said.

In the US card service segment the company’s Q3 net income declined to $109 million compared to $244 million a year ago. However, in the international card services segment the net income increased to $127 million in the reviewed quarter from $67 million in same period last year.

Moreover, card member loans have declined to $23.4 billion in the quarter ended 30 September, 2009 from $36.3 billion a year ago.