Nov. 13, 2014, 9:49 AM
- Capital One (COF +0.8%) in an outlier to the upside in the credit card names in early action after Deutsche Bank initiates coverage on the stock with a Buy and $92 price target. American Express (AXP -0.2%) is started at Hold.
- Deutsche cuts Discover FInancial (DFS -0.4%) to Hold from Buy, citing valuation and high expectations for loan growth which the company could find tough to meet. CapOne, says Deutsche, offers a better risk/reward.
Nov. 10, 2014, 3:39 PM
- The lucrative prepaid card business may already getting less so thanks to the entrance of gorillas like JPMorgan (NYSE:JPM) and American Express (NYSE:AXP) into the industry, but alongside that threat is the CFPB.
- Unable to cap fees, the fast-expanding D.C. agency is set this week to propose new rules mandating clearer disclosure of fees, and to make it easier for consumers to compare across cards.
- “We’re generally in compliance with what we expect the regulation to be,” says Meta Financial (NASDAQ:CASH) President Brad Hanson, and he believes the better disclosure "helps legitimize the industry."
- Around 8% of U.S. households use prepaid cards, but that rises to 22% when just looking at those without bank accounts. Less than a $20B business six years ago, the amount put on prepaid cards should near $100B this year.
Nov. 5, 2014, 12:02 PM
- "We want to become the company that will put us out of business," says American Express (AXP +0.6%) chief Ken Chenault, speaking about the importance of competition and innovation at the Money 2020 conference in Las Vegas.
- "You have to have this spirit of reinvention, and that is what we have in the DNA of the company, ... if you don't innovate, you die. You have to constantly innovate, you have to constantly challenge the status quo."
- On whether Apple might one day do an end run around card processors: "Does Apple want to be involved in credit and all that goes with that ... I don't think so."
- On the pending launch of Current C - a mobile app connecting to a rival network (Merchant Customer Exchange) created by a group of major retailers: "We still don't know what Current C will consist of," he says, reminding that what merchants really want is to grow sales and will Current C provide shoppers with the right incentives to do so.
Oct. 31, 2014, 8:35 AM
- American Express (NYSE:AXP) looks set to escape the full force of the new measures, reports Bloomberg, as it would only have to comply with the fee caps when it works with other companies to issue cards.
- The proposal being circulated would cap interchange fees on cross-border debit-card payments at 0.2% and credit-cards at 0.3%. For domestic debit-card payments, the plan gives nations the options of calculating the 0.2% cap against the value of individual transactions, or against the "annual average transaction value."
- According to the proposal, AmEx and other three-party systems would be affected only when they have licensing agreements with other providers - a model accounting for about 9% of the firm's business, according to EU data.
Oct. 20, 2014, 3:31 PM
Oct. 20, 2014, 9:30 AM
- The upgrades continue to roll in after a tough few weeks for stocks, and Sandler O'Neill boosts American Express (NYSE:AXP) to a Buy with $91 price target, citing the quality franchise, last quarter's 9% increase in card member spending, and operating leverage in 2015 to new investment growth.
- AXP +0.3% premarket
Oct. 15, 2014, 4:18 PM
- Q3 net income of $1.477B or $1.40 per share vs. $1.366B and $1.25 one year ago. Average ROE of 28.8% up 450 basis points.
- U.S. Card Services net income of $889M up 14% Y/Y, on revenues of $4.5B, up 6% after a 9% increase in card member spending. Total expenses of $2.8B up 2%.
- International Card Services net income of $142M flat from a year ago on revenues of $1.4B up 5% (FX adjusted). Total expenses of $1.1B up 6% (FX adjusted).
- Conference call at 5 ET
- Previously: American Express beats by $0.04, misses on revenue
- AXP -2.9% AH
Oct. 15, 2014, 4:17 PM
Oct. 14, 2014, 5:35 PM
Sep. 30, 2014, 7:42 AM
- "For Dan (Schulman), this represents an opportunity to serve as CEO of a publicly-traded company, and, in many ways, it is a return to his roots leading digital and mobile technology companies at critical phases in their development," says AmEx (NYSE:AXP) CEO Ken Chenault, reminding that Schulman was CEO of Priceline earlier in his career, then launched Virgin Mobile, and led the pre-paid group at Sprint.
- Replacing him as AmEx's Group President of Enterprise Growth is a key member of his team, Neal Sample, who joined AmEx in 2012 from eBay.
- Source: Press Release
- Previously: eBay spinning off PayPal
Sep. 18, 2014, 7:24 AM
- AmEx (NYSE:AXP) is the only credit card accepted at Costco (NASDAQ:COST) stores, and will continue to be so at U.S. locations, but the tie-up with Canadian stores will end, effective January 1.
- Costco has 88 stores in Canada vs. 468 in the U.S. and Puerto Rico. The company says it will have information on new payment options soon.
Sep. 15, 2014, 9:18 AM
- Sounding like he attended the AmEx presentation at the Barclays Financial Services Conference last week, Barron's Avi Salzman says the company's focus on being more inclusive should be a big boost to profits and the stock price.
- The latest effort is the EveryDay card with its ad campaign featuring "regular-girl" Tina Fey using her AmEx (NYSE:AXP) card to buy stuff like acne cream and dryer sheets. There's also Bluebird, the prepaid debit card launched with Wal-Mart, and Serve, another prepaid card which can be reloaded at places like Family Dollar and 7-Eleven. RIght now, Bluebird and Serve represent a tiny fraction of AmEx revenues, but the opportunity - according to AmEx and the analyst community - is huge, with about half the customers under the age of 35 and 90% new or former AmEx cardholders.
- Shares +0.9% premarket
Sep. 8, 2014, 10:12 AM
- For every dollar our customers borrow from us, they're borrowing two dollars from our competitors, says an unsatisfied AmEx (AXP -0.2%) Consumer Products & Services President Josh Silverman, taking questions at the Barclays Financial Services conference.
- Webcast (no presentation slides)
- The job, he says, is to make clearer to customers American Express' revolving products. One way, he says, is the AmEx EveryDay Card which speaks to someone in the "mass-affluent" category - i.e., someone who isn't going to use their rewards to jet off to France. The EveryDay Card (Tina Fey commercials) offers - for instance - double reward points at supermarkets, and boosts those points by 20% just for using the card 20 times per month.
Sep. 2, 2014, 4:19 AM
- Apple (NASDAQ:AAPL) is planning a new partnership with major payment networks, including Visa (NYSE:V), MasterCard (NYSE:MA) and American Express (NYSE:AXP) to transform the next iPhone into a mobile wallet, Bloomberg reports.
- The announcement follows earlier reports that the iPhone 6 will feature NFC and support a mobile payments platform.
- Along with a fingerprint recognition reader that debuted on the most recent iPhone, the NFC enabled device will be able to ensure secure payments.
Aug. 19, 2014, 9:18 AM
Jul. 29, 2014, 4:17 PM
- Net income of $1.529B or $1.43 per share vs. $1.405B and $1.27 one year ago. Net income includes a gain of $626M from closing of business travel JV. ROE of 28.8% 520 bps higher than a year ago.
- Loss provisions of $489M down 6% Y/Y. Expenses of $5.9B up 2%.
- U.S. Card Services net income of $770M up 4% Y/Y, with revenue of $4.5B up 6% - Card Member spending up 9%.
- International Card Services net income of $77M down 63%, with revenue of $1.4B up 7%. Net income slipped at least in part due to a restructuring charge
- Global Commercial Services net income of $561M up from $226M a year ago thanks to that JV gain.
- Global Network & Merchant Services net income of $373M down 9%.
- Conference call at 5 ET
- Previously: American Express beats by $0.05, revenue in line
- AXP -0.2% AH
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