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American Express in 1H17: What Investors Need to Know

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Part 7
American Express in 1H17: What Investors Need to Know PART 7 OF 10

American Express’s International Consumer and Network Services

Division’s income

American Express’s (AXP) international consumer and network services division saw a marginal rise in its income between 1H16 and 1H17, from $416 million to $427 million, reflecting a marginal 3% rise.

American Express&#8217;s International Consumer and Network Services

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The higher income was mainly due to a rise in the division’s net interest income, from $349 million to $368 million, representing a 5% rise. This rise was mainly due to higher average loan balances.

The division incurred total expenses of $2.05 billion in 1H16 and $2.09 billion in 1H17, reflecting a 2% rise. This rise was mainly due to higher marketing, rewards, and promotion expenses. These expenses amounted to $1.0 billion in 1H17 and $981 million in 1H16, rising mainly because of higher card member reward expenses.

Net margin

American Express’s net margin stood at 15.8% on June 30, 2017. Other insurance giants’ (XLF) margins were as follows:

  • MasterCard (MA): 38.6%
  • Visa (V): 45.1%
  • PayPal Holdings (PYPL): 13.1%
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