In 2Q17, American Express’s (AXP) International Consumer and Network Services division posted net income of $209 million, reflecting an 8% fall on a YoY (year-over-year) basis.
As expected by the company’s management, volume from its proprietary cards fell 12% after adjusting for foreign exchange fluctuations, reflecting an increase of 1% sequentially. This marginal increase resulted from an increase in purchases in international markets.
AXP’s Global Network Services division witnessed 5% growth after adjusting for foreign exchange fluctuations in 2Q17, which reflect a marginal decline from 1Q17. This marginal decline resulted from regulatory changes in Australia, China, and the European Union.
The International Consumer and Network Services division witnessed an increase in expenses to $1.1 billion, reflecting a marginal increase of 1% on a YoY basis. This increase resulted from card member service costs and reward expenses.
The division’s provision for losses totaled $84 million in 2Q17, which reflects an 8% increase on a YoY basis.