American Express Profit Slumps 21% in Quarter
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American Express said its first-quarter profit fell by 21% from the same period in 1986, partly because of a $140-million gain last year from its sale of Warner Amex Cable Communications.
The company’s travel-related services posted a 17% increase in first-quarter net income, with higher charge card volume, up 17%, and travelers check sales, up 19%, contributing to the gain.
At Shearson Lehman, commission reveune and investment banking revenue improved, but revenue from market-making and principal transactions fell 13% and expenses rose 18%.
American Express last month approved the sale of 27% of the brokerage unit to the public and employees and another 13% to Japan’s Nippon Life Insurance Co.
American Express Bank trimmed $8 million from its first-quarter profit by placing $482 million in loans to Brazil and Ecuador on non-performing status.
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