American Express: profit drops as cardholders spend less

(CercleFinance.com) - American Express announced third-quarter earnings that are down 39% on sluggish spending by customers, coupled with lower usage of travel-related card benefits.


On Friday morning the New York travel and financial-services company reported quarterly net income of just over one billion dollars, from 1.75 billion dollars a year ago.

Earnings per share fell to 1.30 dollar, from 2.08 dollars last year.

Total revenue net of interest expense was 8.75 billion dollars, down 20% year-on-year.

These results fell short of Wall Street expectations, which sent the shares down 3% in pre-market trading on Friday.

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