American Express said earnings for the three months ending in September were pegged at $1.30 per share, down 17.1% from the same period last year and 5 cents shy of the Street consensus forecast. Group revenues, American Express said, fell 20% to $8.8 billion, topping analysts' estimates of an $8.6 billion tally.
The credit card group said its credit reserves, which include cash its sets aside to cover potential defaults, grew by $665 million, taking the end of the quarter total to around $7.2 billion.
“While our business continues to be significantly affected by the impacts of the pandemic, our third-quarter results have increased our confidence that our strategy for managing through the current environment is the right one,” said CEO Stephen Squeri. “Since the lows of mid-April, we have seen a steady recovery in our overall spending volumes. In fact, we had positive year-over-year growth in non-T&E spending, which has long accounted for the large majority of our overall volumes."
"While credit remains strong, with delinquencies and net write-offs at the lowest levels we have seen in a few years, we remain cautious about the direction of the pandemic and its impacts on the economy, which is reflected in our reserve levels," he added.
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