American Express Research Paper Example | Topics and Well Written Essays - 750 words - 1

American pronounce - Research Paper ExampleIn business segment, American convey offers options to small business, merchants, and corporations, providing them powerful applications to run small business, card programs and solutions to corporations, and a host of other various merchant products such as merchant accounts and commercializeing etc. Broadly speaking, customer segment of American discourse can be divided into 5 categories, which include U.S. Card Services, International Card Services, Global net income and Merchant Services, Global Commercial, and Corporate & Other services. The customer base of American Express is worldwide it serves the market wherever it is providing its services through its workforce strength of 58,300 employees (American Express, 2011). American Express is a multi-product firm competing in the financial industry segment with annual revenue of $24.5 billion. Its Cards-in-force are 87.9 cardinal in number, and total assets $124 billion. The annual leveraging volume of American Express Cards is $620 billion (American Express, 2011). Stock market performance in the big board of the American Express for the first-quarter has been declared to the tune of $1.2 billion in net revenue, which is an plus of 33% from 885 million a year back, as reported on 20 April 2011. Diluted income per share was $0.97, recording an amplification of 33 percent from $0.73% one year back. The company has reported an increase of 7 percent in the consolidated total income net of interest expense, going up to $7.0 billion from previous years $6.6 billion. The company has been able to realize higher income because of increased spending by card members and increased propel commissions and fees, which has offset to some design reduced interest income because of reduced pay off on give portfolio (PHX, 2011). Quarters Ended Percentage March 31, Inc/Dec. 2011 2010 ______________________________________________________________________________ Total Revenue s pass of Interest Expense $ 7,031 $ 6,560 7 % Net Income $ 1,177 $ 885 33 % Earnings Per Common Share Diluted Net Income Attributed Shareholders $ 0.97 $ 0.73 33 % Average Diluted Shares smashing 1,198 1,191 1 % Return on Average Equity 27.9 % 18.0 % ______________________________________________________________________________ American Express has gained huge success in bringing fix improvement in the credit quality by reducing its consolidated nutrition for losses from $943 million in 2010 to $97 million in 2011. Consolidated expenses also recorded an increase of 19%, going up from previous years $4.4 billion to $5.2 billion, which has been attributed towards huge investment in business building and costs incurred on higher rewards. The company recorded an increase in recall on average equity (ROE) by 27.9 percent from the previous years 18.0 percent (New Release, American Express, 2011). Incidentally, the Board of Directors of American Express Company declared on 23 May 20 11 a regular quarterly dividend of $0.18 per common share, payable on August 10, 2011 to shareholders of record on July 1, 2011 (American Express, 2011). Major competitors of American Express are Capital One Financial Corporation, Visa Inc., Discover Financial Services, and MasterCard Incorporated, as given at a lower place from the stock performance of all of the companies. The American Express Company is leading in TTM sale to the extent of $28,290m while Capital One Fina