American Express missed market estimates for fourth-quarter earnings, pressured by higher provisions on expectations of a worsening economy. The balance released this Friday (27) ended a turbulent quarter for the main card companies in the United States.
With an imminent recession and high inflation in recent months, the likelihood of people not being able to pay off their credit card debts has increased significantly.
American Express’s credit loss provisions were $1.03 billion in the fourth quarter from $53 million a year ago.
The company’s results came after rivals Visa and Mastercard posted better-than-expected quarterly performances but warned that revenue growth will slow this year as travel demand stabilizes.
American Express net income fell 9% to $1.57 billion, or $2.07 per share. Analysts, on average, had expected a profit of $2.22 per share, according to data from Refinitiv.
Total revenue rose 17% to $14.18 billion in the period.
Source: CNN Brasil
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