American Express suffer from credit card default
April 25, 2008
American Express’ profits in the first quarter of the year have dropped by 6 per cent due to the number of cardholders not making payments.
The three month period until March 31st saw profits fall from $1.06bn at the same time last year to $661m.
Amex have put aside $1.27bn for credit losses during the quarterly period which is a 48per cent increase.
The firms’ profits in the US fell, however overseas profits rose and they expect this to continue.
Credit card service profits fell 19per cent to $523m but global profits rose 30 per cent to $133m.
“While we continue to be cautious about the US economy, we encouraged by our performance internationally, ” said Kenneth Chenault, Chief Executive.
www.americanexpress.com
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