As previously reported, completion of the sale of AMEX Life in October did not materially impact net income. Without the sale, TRS revenues and expenses would have increased approximately 10 percent compared with the year-ago quarter. Revenue and earnings growth benefited primarily from higher fee revenues due to an increase in managed assets, as well as an increase in life insurance in force. These increases were partially offset by the impact of lower investment margins. AEFA reported record sales of mutual funds and life and other insurance products, and higher sales of investment certificates, while sales of annuities decreased from last year.
Results reflect lower net interest income due to narrower spreads on the investment portfolio.
This was partially offset by growth in foreign exchange and correspondent banking revenues. Operating expenses decreased slightly compared with a year ago as a result of cost containment measures. This increase was primarily due to lower operating expenses. American Express is a diversified travel and financial services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.