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What Made American Express’s Total Revenues Rise in 3Q17?

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Total revenues

After making adjustments related to foreign exchange, American Express (AXP) saw a YoY (year-over-year) rise of 8.0% in its revenues for 3Q17. Its major revenue components are net interest income, discount revenue, fees and commissions, card fees, and other revenues. Apart from other revenues, the company saw a YoY rise in all its revenue components.

The company had discount revenue of $4.8 billion in 3Q17 compared to $4.5 billion in 3Q16, which implies a 6.0% rise. The rise came on the back of positive momentum for the company’s billed business.

It reported revenues related to card fees of $786.0 million in 3Q17 compared to $747.0 million in 3Q16, which reflects a rise of 5.0%.

It also posted a dividend yield of 1.5%. Consumer financial companies (XLF) Discover Financial Services (DFS), Capital One Financial (COF), and Fidelity National Information Services (FIS) had dividend yields of 2.1%, 1.8%, and 1.2%, respectively.

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Fees, commissions, and other revenues

American Express has witnessed a YoY rise of 11.0% in fees and commission-related revenues in 3Q17. Those revenues were $767.0 million in 3Q17 compared to $694.0 million in 3Q16. However, its other revenues fell from $483.0 million in 3Q16 to $436.0 million in 3Q17, a 10.0% fall. Most of the fall was due to the sale of its small business in 4Q16, which generated non-recurring revenues.

Fees and commissions, discount revenue, card fees, and other revenues form part of the company’s non-interest revenues.

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