23.10.202015:01 Forex Analysis & Reviews: AmEx's quarterly profit was worse than market expectations, revenue exceeded forecasts

One of the leaders of the American market of plastic cards American Express (AmEx) said that its net profit in July-September 2020 decreased by 39% and amounted to $ 1.07 billion, or $ 1.3 per share, compared to $ 1.76 billion , or $ 2.08 per share, a year earlier. Experts gave forecasts at $ 1.34 per share.

The revenue of the financial company fell by 20% to $ 8.75 billion due to a decrease in card spending compared to the third quarter of last year amid the COVID-19 pandemic. The consensus revenue forecast was $ 8.66 billion.

In the past quarter, AmEx allocated $ 665 million to provisions for possible loan losses. Whereas last year this amount was $ 879 million.

The company's current strategy is correct, even as revenue declines as a result of the coronavirus pandemic, said Stephen Squarey, chief executive of AmEx. There is also a positive trend in the volume of card spending in comparison with April this year.

AmEx shares lost 2.8% in preliminary trading on Friday. Since the beginning of the year, the company's capitalization has dropped 15.8%, while the Dow Jones Industrial Average has dropped 0.6% over the period.