NEW YORK (AP) – American Express posted a 6 percent increase in profits for the first quarter, but the company’s results took a hit from a stronger U.S. dollar.
Here’s a breakdown of AmEx’s results:
DOLLAR ISSUES: American Express had a decline in revenue in the quarter, and most of the decline can be attributed to a stronger dollar. A stronger dollar makes goods purchased internationally worth less when compared to dollars. AmEx is particularly exposed to currency fluctuations when U.S. customers buy products internationally when they travel, but their accounts are denominated in dollars.
In a conference call with investors, AmEx executives said they expect a stronger dollar to impact its results “for the rest of the year” if the dollar remains at current levels.
CARD SPENDING: AmEx did benefit from a notable increase in card member spending in the quarter. Credit card billings on American Express’ cards rose 3 percent from a year earlier, but would have climbed 7 percent if it hadn’t been for a stronger dollar. Average card member spending outside the U.S. also fell due to a stronger dollar, while U.S card spending was up 7 percent.