American Express, the fourth-largest US credit card issuer, reported better than expected first-quarter results on Thursday and said it intended to repay $3.4bn of government money it received from the US Treasury’s financial rescue fund.

AmexCo reported income from continuing operations of $443m, down 58 per cent from $1bn a year ago as growing numbers of borrowers fell behind on their credit card debt and the company set aside more for losses.