American Express's Net Income Falls in 3Q
October 23 2020 - 7:30AM
Dow Jones News
By Allison Prang
American Express Co.'s third-quarter profit missed earnings
estimates, but its revenue net of interest expense came in higher
than Wall Street anticipated.
Earnings for the quarter decreased to $1.1 billion, or $1.30 a
share, the company reported Friday. Those were lower than the
comparable quarter a year earlier when profit was $1.8 billion, or
$2.08 a share. According to FactSet, analysts had been expecting
$1.34 a share.
The credit-card company said revenue net of interest expense was
$8.8 billion. Analysts had been expecting $8.66 billion. Revenue
net of interest expense fell 20% from a year earlier, American
Express said, attributing the drop to less card-member spending and
a decline in the average discount rate.
American Express's provision for credit losses was $665 million,
the company said. That declined from a year earlier when it was
$879 million.
"Since the lows of mid-April, we have seen a steady recovery in
our overall spending volumes," Chief Executive Stephen Squeri said
in prepared remarks, adding that credit is still strong but that
the company is still "cautious about the direction of the pandemic
and its impacts on the economy."
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 23, 2020 07:15 ET (11:15 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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