Marketing and promotion expenses rose as a result of increased business-building activities, while human resources expenses increased due to greater business volumes. Other operating expenses rose, reflecting in part the cost of cardmember loyalty programs, business growth and investment spending. Included in other operating expenses for the current quarter was a gain related to the sale of an international leisure travel business. This gain was offset by increased investment spending and therefore did not have a 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.
These gains were 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. This increase reflected positive net sales and market appreciation over the past 12 months, despite market depreciation during the quarter. AEFA reported increases in sales of mutual funds, annuities, and life and other insurance products. Human resources expenses rose, largely because of compensation costs associated with higher sales, asset levels and number of financial advisors.