American Express trobles continue in Q3
Credit card provider American Express continues to suffer the coronacrisis. Customers of the company also spent much less than usual in the third quarter, resulting in a significantly lower profit. However, the quarterly results were not as dramatic this time as they were in the second quarter.
The proceeds went down to 8.8 billion dollars, where nearly 11 billion dollars went into the books a year ago. American Express had to set aside $ 665 million for credit money that may never be repaid due to financial problems with customers.
Below the line, revenue remained at a profit of about USD 1.1 billion. That’s 39% less than in the same period last year. In the second quarter, profits dropped by 85%.
A glimmer from the figures is that American Express seems to be able to hold customers. Despite the crisis, there are fewer credit card accounts cancelled than there were a year ago. The company has also recently made every effort to tempt customers to stay longer. American Express, for example, offers its cardholders all new benefits, such as discounts on streaming services and meal delivery.