American Express Reports Record Profit

American Express Co. said its third-quarter profit reached a record $524 million, driven by higher charge card revenues and an increase in managed assets. The New York-based financial services and travel company said net income for the three months ended Sept. 30 rose 14% to $524 million, or $1.10 a share, from $458 million, or 95 cents, a year ago. The earnings narrowly beat the expectations of a group of polled analysts, who had put American Express’ earnings at $1.09 a share. Revenue rose 9.9%, to $4.5 billion from $4.1 billion in the 1996 quarter. The company’s travel-related services, which include its card business, posted record quarterly net income of $356 million, up 10.2% from $323 million a year ago. American Express Financial Advisors, the company’s financial arm, also reported a record net income of $184 million, 18.1% more than the $156 million in the same period last year. American Express shares lost $5.31 to close at $74.75 on the New York Stock Exchange.