![]() ![]() ![]() The company said the reason for the higher reserves was higher levels of loans provided by the company. That’s nearly double what larger banks like Citigroup, Wells Fargo and Bank of America reported putting in reserve when they reported quarterly results last week. It’s also up from the $1.83 billion, or $2.27 a share, in the same period a year earlier.ĭespite double-digit increases in cardmember spending, new accounts opened, and healthy revenue, AmEx set aside $778 million to cover potential loan losses this quarter. The New York company earned $1.88 billion, or $2.47 a share, or a nickel better than Wall Street had expected, according to a survey by Zacks Investment Research. Shares slumped 6.5% in morning trading Friday. Revenue surged 24% to $13.56 billion, but profit its being curbed as the credit card giant sets aside hundreds of millions of dollars to cover potential credit losses in a volatile global economy. NEW YORK (AP) - American Express profits rose a modest 3% in the third quarter despite a significant rise in spending by cardmembers.
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