American Express Revenues Increased by 9 Percent, CEO Chenault Announces Retirement

American Express revenues amounted to $8.4 billion in the last quarter, 9 percent higher than a year earlier, and the world’s largest card issuer also reported that its CEO Kenneth Chenault is retiring.

According to a business report released on Wednesday, AmEx’s net profit rose by 19 percent in the third quarter compared to the same period last year, reaching $1.36 billion.

>>> American Express Cuts Costs and Stabilizes Revenues

The profit growth is attributed to the continued strengthening of spending by AmEx members and an increase in approved credit, which outpaced the growth in operating costs.

Due to intense competition in the market and the termination of several co-brand agreements, which card issuers sign with large corporate partners for sales through their cards, AmEx has recently launched a savings program as well as investments in new areas.

It appears to be on the right track as the company announced in its new guidance that it expects higher earnings for the entire year than previously estimated.

>>> On Wall Street, Dow Jones Above 23,000 Points

The company also announced on Wednesday that Kenneth Chenault is stepping down as CEO of AmEx after 17 years. Starting in February next year, current Vice President Stephen Squeri will take his place.

Chenault, 66, joined the company in 1981 after graduating from Bowdoin College and Harvard Law School. He quickly advanced, becoming President and Chief Operating Officer in 1997.

He was appointed CEO in 2001 and has been one of the most prominent business leaders of African American descent for years. He is also one of the highest-paid executives in the financial services industry, with $22 million in earnings in 2016.