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American Express reports lower YOY net income for Q4'16

American Express Co. reported fourth-quarter 2016 net income attributable to common shareholders of $800 million, or 88 cents per share, versus $873 million, or 89 cents per share, in the year-ago quarter.

Excluding a restructuring charge related to cost reduction efforts, adjusted EPS for the quarter was 91 cents.

The S&P Capital IQ consensus normalized EPS estimate for the 2016 fourth quarter was 99 cents.

Total revenues, net of interest expense after provisions for losses, were $7.40 billion, compared with $7.82 billion in the prior-year quarter. Total expenses were $6.24 billion, down from $6.37 billion in the fourth quarter of 2015. Total provisions for losses were $625 million, compared with $572 million in the year-ago period.

American Express' U.S. consumer services segment reported fourth-quarter 2016 net income of $351 million, compared with $541 million in the year-ago quarter. Total revenues, net of interest expense, decreased to $3.03 billion, versus $3.37 billion in the year-ago period. Provisions for losses totaled $363 million, versus $334 million in the fourth quarter of 2015.

The company's international consumer and network services segment reported fourth-quarter 2016 net income of $84 million, compared with $140 million in the prior-year period. Global commercial services reported segment income of $382 million, down from $487 million in the same quarter in 2015. American Express' global merchant services reported segment income of $369 million, compared with $364 million in the year-ago period.

The corporate and other segment reported a net loss of $361 million, compared with a net loss of $633 million in the fourth quarter of 2015.

For full year 2016, American Express recorded net income attributable to common shareholders of $5.29 billion, or $5.65 per share, compared with $5.06 billion, or $5.05 per share, in 2015. Excluding restructuring charges related to cost reduction efforts, adjusted EPS for full year 2016 was $5.93.

The S&P Capital IQ normalized EPS estimate for 2016 was $5.99.

The company expects full-year 2017 EPS to be between $5.60 and $5.80. The S&P Capital IQ consensus normalized EPS estimate for 2017 is $5.61.