American Express Sees Lower Volume in 1Q From Covid-19 Pandemic

By Allison Prang

American Express Co. more than tripled its provision for credit losses in the first quarter, and its chief executive said volumes were heavily impacted by the Covid-19 pandemic.

The financial-services company's net income was $367 million, down about three-quarters from a year earlier. Earnings at American Express were 41 cents a share, down from $1.80 a share. Those results were below the $1.46 a share consensus from analysts, according to FactSet.

Adjusted earnings were $1.98 a share. Those topped the consensus of $1.75 a share.

Revenue at the company -- which includes everything from card fees to money from interest -- slipped by half a percent to $10.31 billion. Analysts were expecting $10.71 billion.

Net interest income rose at American Express, but the company's noninterest revenue declined.

The company more than tripled its provisions for credit losses, which was $2.62 billion, up from $809 million a year earlier.

Chief Executive and Chairman Stephen Squeri said in prepared remarks the Covid-19 pandemic "dramatically impacted our volumes" and said the company is "aggressively" lowering its costs. Mr. Squeri also said the company is committed to not laying anyone off for the rest of the year because of the pandemic.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

April 24, 2020 07:37 ET (11:37 GMT)

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