AmEx net income declines 10%
From Times Wire Services
American Express Co. on Monday said fourth-quarter profit fell 10%, hurt by a charge to boost reserves for bad loans.
Net income for the nation’s fourth-largest credit card issuer declined to $831 million, or 71 cents a share, from $922 million, or 75 cents, a year earlier. Total revenue rose to $6.4 billion from $5.8 billion. Excluding interest expense, revenue was $7.4 billion, up from $6.7 billion a year earlier. Earnings matched the average analyst forecast, but revenue fell short of expectations.
Shares of New York-based American Express gained $1.96 to $47.40 before results were announced, but they sank in after-hours trading by as much as $1.56 to $45.84.
