American Express Q4 Net Income Drops 36%; Plans To 'Aggressively' Streamline Operations

American Express Company AXP reported its Q4 2015 numbers Thursday afternoon, with a substantial year-over-year decrease in net income of $899 million, down from Q4 2014's $1.4 billion. EPS for the quarter were an adjusted figure of $1.23; Analysts expected $1.13.

According to Chairman and CEO Kenneth I. Chenault, "pressures on merchant fees, the evolving regulatory environment and intense competition that have been re-shaping the payments industry" are responsible for American Express' 2015 performance. He noted that the EPS targets he outlined did not include restructuring costs or other contingencies.

The company reported FY2015 net income of $5.2 billion, down from $5.9 billion year-over-year.

Chenault adjusted the company's 2016 EPS target to $5.40 to $5.70. EPS estimates by analysts on the Street sat at $5.53.

Chenault expressed confidence in a planned sale of the Costco Wholesale Corporation COST co-brand portfolio expected in mid-2016, saying the 2016 EPS target took "substantial benefit" from the planned sale.

Regardless, Chenault indicated he plans to cut at least $1 billion from the company's cost base by "moving aggressively to streamline the company and drive efficiencies."

American Express recently traded at $60.42, down 3.5 percent in Thursday's after-hours session.