AmEx to cut $1 billion in costs by end of 2017

Credit card issuer American Express Co said it would cut $1 billion in costs by the end of 2017 as it responds to intensifying competition in the payments industry. The company reported its fourth straight decline in total revenue, net of interest expense. Net income attributable to common shareholders fell to $873 million, or 89 cents per share, for the quarter ended December 31, from $1.44 billion, or $1.39 per share, a year earlier.
The latest quarter included a $335 million after-tax impairment charge and the year-earlier period a $453 million after-tax gain. Total revenue, net of interest expense, fell 7.6 percent to $8.39 billion. Adjusted revenue rose 4 percent. AmEx, which also operates payment networks, lost a few lucrative clients such as Fidelity Investments, retailer Costco Wholesale Corp and JetBlue Airways Corp last year.