AmEx profits fall as higher spending offset by loan losses

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American Express said its first-quarter profits fell by 13% from a year ago despite record quarterly revenue as the credit card company had to set aside more than $1 billion for potentially bad loans.

FILE - An American Express logo is attached to a door in Boston's Seaport District, Wednesday, July 21, 2021. American Express reports earnings on Thursday, April 20, 2023. –

The credit card giant earned a profit of $1.82 billion, or $2.40 a share. That's down from $2.1 billion, or $2.73 a share, a year earlier. The results missed analysts' forecasts of around $2.60 a share, according to FactSet. The company saw a 39% increase on travel and entertainment spend by its card members, which is often AmEx's most lucrative place for its customers to spend their money.

“Our customers have been resilient thus far in the face of slower macroeconomic growth, elevated inflation and higher interest rates, with credit performance remaining best-in-class," said Steve Squeri, the company’s chairman and CEO, in a statement."That said, we’re mindful of the mixed signals in the external environment.”

 

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