American Express profit sinks 76%
American Express set aside $2.6B for losses
American Express Co.’s first-quarter profit plunged 76 percent from a year ago after the credit-card giant set side $2.6 billion to provide a cushion for losses caused by COVID-19.
The New York-based financial-services provider earned $367 million, or 41 cents a share, as revenue slipped 1 percent to $10.31 billion. Adjusted earnings were $1.98 a share, topping estimates of $1.48 from Wall Street.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AXP | AMERICAN EXPRESS CO. | 301.30 | +8.30 | +2.83% |
“The first two months of 2020 continued the strong momentum we have delivered over the past two years, but we’re now in a different world,” American Express CEO Stephen Squeri said in a statement. “The deterioration in the economy due to COVID-19 impacts that began in the first quarter and accelerated in April has dramatically impacted our volumes.”
Shares were down 34 percent year-to-date through Thursday, lagging the S&P 500’s 13 percent decline.