American Express Reports 61% Profit Gain in Quarter

American Express Co. reported sharp increases in fourth-quarter and annual net income for 1985, with increases in charge card volume and other areas helping to offset losses and non-recurring expenses.

The diversified financial and travel services company said its net income for the quarter ended Dec. 31 was a record $273 million, a 61% increase over the year-ago quarter.

Consolidated revenue for the fourth quarter totaled $3.3 billion, up from $2.69 billion a year earlier.

“All units of American Express--Travel Related Services, Shearson Lehman Bros., American Express Bank and IDS Financial Services--achieved record earnings, continuing their solid growth through market positioning and strong financial resources,” Chairman James D. Robinson III said.

For the entire year, American Express posted a profit of $820 million, a 33% increase over 1984.

Revenue for the year was reported at $11.8 billion, compared to $9.6 billion in 1984.

The company said it had a $52-million capital gain from the sale of Fireman’s Fund Corp. holdings, although the gain was offset by one-time expenses related to the action.

American Express Bank reported a loan-loss provision of $83 million for the year, compared to $27 million for 1984, and gains of $42 million from the sale of securities and assets in France and Turkey.