Human resources expenses rose as a result of increased business volumes. Other operating expenses increased, reflecting in part the cost of cardmember loyalty programs, business growth and investment spending. Results include a gain on an investment in an Internet company that TRS was required to write-up when that company was acquired by a third party. This gain was offset by increased spending on Internet initiatives and therefore had no material impact on net income or total expenses. The attached financials present TRS results on both a managed and reported basis.
Net income is the same in both formats.
This gain was offset by higher expenses related to card acquisition activities and therefore had no material impact on net income or total expenses. Net revenues and earnings growth benefited from higher fee revenues due to an increase in managed assets, reflecting positive net sales and market appreciation over the past 12 months. This growth was partly offset by losses on high-yield investments. AEFA reported strong increases in sales of mutual funds, annuities, investment certificates, and life and other insurance products. Human resources expenses rose, largely because of compensation costs associated with higher sales and asset levels.