AmEx profit slumps as lockdowns hit spending, defaults loom | Malay Mail

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AmEx profit slumps as lockdowns hit spending, defaults loom | Malay Mail
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JULY 24 — Credit card issuer American Express Co reported an 85 per cent slump in quarterly profit today as spending using its card collapsed during global lockdowns imposed to contain the coronavirus. Shares were down 1.7 per cent before the bell, even as the group managed to eke out a small...

American Express logo and trading symbol are displayed on a screen at the New York Stock Exchange in New York, December 6, 2017. — Reuters pic

American Express, one of the largest corporate card issuers in the United States, has been hit especially hard by cuts in large corporations’ spending on travel and entertainment after the pandemic brought that sector to a virtual standstill. “Spending volumes, which declined to their lowest point this quarter in April, gradually improved in May and June, with small businesses being the most resilient,” chief executive officer Stephen Squeri in a statement.

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