American Express''s net income of $1.2 bi in Q1

American Express reported a 13% drop in net income for the first quarter, to $1.2 billion, up from $1.4 billion in the same period last year. The results of the first quarter of 2016 included some previously discontinued cobranding partnerships, such as with the Costco.
Diluted earnings per share were $1.34 in the first quarter of this year, dropping to 8% compared with the profit of $1.45 last year. Analysts expect, on average, a gain of $1.28 per share.
According to a company report released recently, the net consolidated revenues of the period from January to March this year stood at $7.9 billion – a decline of 2% compared to the $8.1 billion recorded in the same period in 2016.
The report explains that, "excluding the business related to the partnership with Costco last year and the impact of international exchange rates", net sales rose 7%.
The total expenditure jumped 10 percent to $1.6 billion, primarily because of higher costs of prizes the customers credit card.
At the 5:48 pm GMT, shares of American Express were advancing 2.25% in after hours in New York.