American Express Company (AXP) announced Q3 earnings this week, reporting declining profits as its customers spend less during the COVID-19. The pandemic has resulted in mass layoffs resulting in bill defaulters, resulting in the bank to set aside money for potential payment defaults. American Express consolidated loss provisions of $665 million, down 24% from a year earlier for the quarter ending Sept. 30.
“While credit remains strong, with delinquencies and net write-offs at the lowest levels we have seen in a few years, we remain cautious about the direction of the pandemic and its impacts on the economy, which is reflected in our reserve levels,” stated Chief Executive Officer Stephen Squeri.
The company reported a nearly 40% drop in profit to $1.07B, or $1.30 per share, much below analysts’ average estimates of $1.35 per share. Total revenue, excluding interest expense, declined 20% to $8.8B.
Net income from the global consumer services unit dropped by 14% at $855M, due to a decline in spending and lower loan volumes.
Dow 30 component American Express Company (AXP), and its subsidiaries provide customers and businesses globally with charge and credit payment card products and travel-related services. They look to enrich the lives of their customers and build business success. To learn more about American Express Company (AXP) and to continue to track its progress please visit the Vista Partners American Express Coverage Page.
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