American Express 2Q Profits Are Up 12%
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People are still using the American Express card, but more cardholders than usual are missing payments. Amex is the world’s third largest credit card company, and they saw record spending on their credit cards in the second quarter.
The increase in delinquencies also led it to bolster its reserves for loan losses, as have many other financial services companies as they prepare for worsening U.S. credit conditions.
“Credit quality remained well-controlled during the quarter,” said Dan Henry, the New York-based company’s acting chief financial officer, in a conference call with analysts, adding that he has not seen a “change in the quality” in the AmEx customer base. Chairman and Chief Executive Kenneth I. Chenault in a statement accompanying the earnings report characterized credit quality as “excellent.”
The credit environment is rougher than last year, according to company officials.
The company’s net income was $1.06 billion for the three month period.
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