American Express said first-quarter travel sales rose 20
percent to $4.9 billion and corporate card billings rose 19 percent to $36.6
billion, both compared to a year ago.
Amex's commercial card and travel unit reported
first-quarter net income of $184 million, 116 percent more than a year ago, on
revenues of $1.1 billion as revenues rose 16 percent, provisions for losses
plummeted 71 percent and expenses rose 9 percent.
The company as a whole posted first-quarter net income of
$1.2 billion, 33 percent more than $885 million a year ago, and revenue of $7
billion. Travel commissions and fees jumped 18 percent from the first quarter
of 2010 to $454 million, while Amex reported $529 million in other commissions
and fees, 6 percent more than last year.
Expenses rose 19 percent as Amex acquired a loyalty company,
added employees and invested in its businesses, but rewards program expenses
jumped 30 percent.
"A good deal of our investment spending has been funded
with the benefits of rapidly improving credit quality and payments from the
settlement of litigation with MasterCard and Visa," Amex chairman and CEO
Kenneth Chenault said in prepared remarks. "Now, with credit losses at
historical lows and settlement payments ending in the second and fourth
quarter, we are moving forward with plans to slow the growth of our operating
expenses towards the end of this year and into next."