American Express’s (AXP) Global Merchant Services division has seen a marginal rise of 4.0% on a YoY (year-over-year) basis for its total 3Q17 revenues. Revenues were $1.2 billion in 3Q17 compared to $1.1 billion in 3Q16. The rise was mainly due to cardmember spending.
The division has seen a rise in non-interest revenues from $1.04 billion in 3Q16 to $1.08 billion in 3Q17, a rise of 4.0%.
American Express reported a profit margin of 15.4% in 3Q17. Consumer financial companies (XLF) Capital One Financial (COF), PayPal Holdings (PYPL), and Fidelity National Information Services (FIS) reported profit margins of 19.0%, 12.8%, and 7.1%, respectively.
The Global Merchant Services division posted net income of $368.0 million in 3Q17 compared to $359.0 million in 3Q16, reflecting a rise of 3.0%. The division also saw a substantial rise in total expenses in 3Q17 compared to 3Q16. In 3Q17, it reported total expenses of $628.0 million compared to $525.0 million in 3Q16, a 20.0% increase.
The division has also seen a substantial rise in salaries and employee benefits expenses, from $470.0 million in 3Q16 to $580.0 million in 3Q17, a rise of 23.0%. The total rose from $23.2 billion in 3Q16 to $26.7 billion in 3Q17, which implies an increase of 15.0%.