By Allison Prang

 

American Express Co. logged a negative provision for credit losses in its latest quarter, helping to pump up earnings, but the credit-card company's top line declined.

Profit for the first quarter rose to $2.24 billion, up from $367 million a year earlier, and the company's earnings were $2.74 a share, topping Wall Street's consensus according to FactSet of $1.61 a share. A year ago, earnings were 41 cents a share.

American Express had a negative provision for credit losses of $675 million. The company's provision a year earlier was $2.62 billion. Many financial firms have also logged negative provisions as the economic outlook has improved amid the Covid-19 pandemic.

Revenue at the company, net of interest expense, fell 12% to $9.06 billion, while Wall Street was expecting $9.21 billion.

 

Write to Allison Prang at allison.prang@wsj.com

 

(END) Dow Jones Newswires

April 23, 2021 07:14 ET (11:14 GMT)

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