Spending by JPMorgan credit card users has been significantly reduced. Lauren Simonetti of FOX Business with more.
American Express profits plunged 85 percent in the three months through June, as customers cut expenses while hiding in their homes during the COVID-19 blockades.
The New York-based financial services company earned $ 257 million, or 29 cents a share, as revenue fell 29 percent to $ 7.68 billion. Wall Street analysts surveyed by Refinitiv expected a loss of 11 cents a share in revenue of $ 8.15 billion.
| Heart | Security | Latest | Change | Change% |
|---|---|---|---|---|
| AXP | AMERICAN EXPRESS COMPANY | 95.33 | -1.34 | -1.39% |
“While our second-quarter results reflect the challenges of the current environment, we remain confident that our strategy for navigating this period of uncertainty is correct,” American Express CEO Stephen Squeri said in a statement. “Spending volumes, which decreased to their lowest point this quarter in April, gradually improved in May and June, with small businesses being the most resilient.”
AmEx set aside $ 1.6 billion for losses, an increase of $ 861 million a year ago, due to the uncertain macroeconomic outlook presented by COVID-19.
Consolidated expenses fell 29 percent from a year earlier to $ 5.5 billion amid lower spending and a drop in the use of travel-related benefits.
Global consumer group earnings fell 40 percent to $ 527 million, while global business services lost $ 60 million after making a profit of $ 561 million a year ago.
Meanwhile, earnings in the global business and network services division fell to $ 66 million from $ 564 million last year.
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American Express shares fell 22 percent this year through Thursday, behind the 0.15 percent rise in the S&P 500.
