One of the most storied brands in the financial services industry, American Express has fallen on hard times of late. In 2015, the company announced that it would be ending its 16-year exclusive relationship with mega-retailer Costco, a big hit considering 1 in 10 Amex cards were issued by the wholesaler. The firm has also had to reduce its prices to small merchants and beef up the rewards it offers its customers to hold its own in a highly competitive credit card landscape. Nonetheless, American Express was able to beat revenue estimates in the first quarter of 2016, in part on the strength of its loyal corporate business.
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Results were driven by faster-than-expected progress on cost cutting initiatives.
As banks keep sweetening rewards
The lower payments helped offset falling prices of grocery and fresh food in the quarter.
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After he convinced me to quit my position at American Express
With one of the largest retailers in the U.S. announcing its exclusive deal with American Express would end in March 2016, stock prices for the credit card company dropped steeply Thursday.