American Express Expects Net Interest Income to be Sequentially Flat in 4Q
October 23 2020 - 3:58PM
Dow Jones News
By Allison Prang
American Express Co. isn't expecting operating expenses to fall
as much as the company predicted back in the spring.
CFO Jeffrey Campbell said on the company's earnings call that it
expects its declines in operating expenses from the second to
fourth quarters compared to a year earlier "to be somewhat less
than the $1 billion we initially discussed back in April, which in
hindsight was at the moment of peak uncertainty about the
future."
The finance chief added that he expects fourth-quarter marketing
costs to be similar to the third quarter.
Mr. Campbell also said he expects card fee growth rates to keep
decelerating but expects net card fees to increase in the double
digits this quarter.
Net interest income is also expected to be flat.
"Looking forward into the fourth quarter and assuming we
continue to see higher pay-down rates from revolving card members
I'd expect net interest income to be relatively flat sequentially,"
he said.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 23, 2020 15:43 ET (19:43 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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