American Express Reports Over $1 Billion in Provisions for Credit Losses
July 24 2020 - 7:30AM
Dow Jones News
By Allison Prang
American Express Co. reported a large drop in profit from a year
earlier as the credit-card company logged provisions of $1.6
billion to cover potential losses.
That provision rose from $861 million a year earlier and the
increase "primarily reflected the deterioration of the global
macroeconomic outlook," American Express said. The company said the
Covid-19 pandemic significantly affected results in the
quarter.
"Spending volumes, which declined to their lowest point this
quarter in April, gradually improved in May and June, with small
businesses being the most resilient," Chief Executive and Chairman
Stephen Squeri said in prepared remarks.
The company said net income for the quarter was $257 million,
down from $1.76 billion in the comparable quarter last year.
Earnings tumbled to 29 cents a share, down from $2.07 a share.
Total revenue, net of interest expense, fell 29%, the company
said, to around $7.68 billion. According to FactSet, analysts
expected $8.1 billion.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
July 24, 2020 07:15 ET (11:15 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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