Amex Posts Big Profit Miss (Update)

The company's U.S. Card Segment reported an increase in provisions for losses to $1.5 billion, up from $640 million a year ago. The spike was due to a $600 million before-tax addition to U.S. lending credit reserves, increased write-off and delinquency rates and also the higher level of loans and business volumes compared to the year-ago period.

American Express is the second of the big four credit card companies to report results, following Discover Financial Services(DFS Quote - Cramer on DFS - Stock Picks), which narrowly beat estimates at the start of the month.

Visa (V Quote - Cramer on V - Stock Picks) and MasterCard (MA Quote - Cramer on MA - Stock Picks) report July 30 and 31, respectively.

American Express shares were falling 11% to $36.40 in recent after-hours action.

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