Compared to the same period last year, income jumped by 13 percent to almost 15.4 billion US dollars (14.6 billion euros), as the competitor to Visa and Mastercard announced on Friday. Quarterly profit increased by 30 percent to almost $2.5 billion. Revenues and profits exceeded the average expectations of experts.
The company earned around a fifth more from card fees alone than in the same period last year. American Express recently tightened its fees considerably. However, the volume of transactions only grew by seven percent to a good $420 billion and fell short of expectations. In addition, American Express set aside $1.2 billion for possible loan defaults, 58 percent more than a year earlier.
Unlike its largest competitors Visa and Mastercard, American Express not only processes card payments, but also issues the actual loans. Therefore, the company must protect itself against payment defaults.
2023-10-20 18:50:56
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