Amex Increases Income, Rev

<B> Amex Increases Income, Rev</B>

By Sarah Welt

<I>New York</I> - American Express Co. last month reported a 9.5 percent third-quarter net income increase to $574 million, up $50 million from last year. Revenues also jumped 6 percent to $4.8 billion, a figure that still misses the company's 8 percent target. Pretax income is $799 million, up 11.4 percent from $718 million in 1997.

The Travel Related Services division reported quarterly net income of $362 million, up 17 percent from $310 million a year ago. TRS reported a pretax income of $554 million, an 18 percent increase over last year's $469 million.

TRS revenue jumped from $3.08 billion to $3.34 billion. TRS attributes its 8 percent revenue increase from a year earlier to higher billed business domestically and overseas, higher fees and commissions, a growth in card member loans and greater spending per card member. The company noted that despite decreased spending overseas and the general trend toward curbing T&E expenses, rewards programs and expanded merchant coverage helped to post a healthy gain. The increase in travel commissions and fees was primarily due to acquisitions during the third quarter.

The other publicly traded mega agency, Navigant International of Englewood, Colo., plans to release its quarterly results in December. According to Navigant CFO Robert Griffith, the company's fiscal quarter ended Oct. 25.