On April 19, American Express
- Operating leverage was achieved by increasing net sales 10%; much of the leverage was because of a 4% decline in marketing and rewards expenses.
- Worldwide cards in force grew 10%, boosted by 45% growth in network partner cards (some third-party partners include Bank of America
(NYSE:BAC) , Lloyds(NYSE:LYG) , and Citigroup(NYSE:C) ). - Loan loss provisions increased 30%, but this was because of a change in bankruptcy legislation -- Capital One's
(NYSE:COF) results mirrored this trend.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Total Revenue |
$6,668 |
$6,053 |
10.2% |
|
Net Interest Income |
$898 |
$725 |
23.9% |
|
Net Profit |
$1,057 |
$873 |
21.1% |
|
EPS |
$0.87 |
$0.69 |
26.1% |
Get back to basics with the income statement.
Ratio Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Return on Average Equity |
36.60% |
27.30% |
9.30 |
Balance Sheet Highlights (numbers in billions)
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Rec. |
$38 |
$34 |
11.1% |
|
Investments |
$22 |
$21 |
3.8% |
|
Loans |
$49 |
$40 |
21.6% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|
Short-Term Debt |
$15 |
$15.2 |
(1.3%) |
|
Long-Term Debt |
$44 |
$31 |
42.4% |
The balance sheet reflects the company's health.
Related Foolishness:
Lloyds TSB is a Motley Fool Inside Value pick. Bank of America is a Motley Fool Income Investor recommendation. Try any one of our investing services free for 30 days.
Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.
