American Express sets aside more money to cover potential loan losses
American Express set aside more money for bad loans than Wall Street expected, sending another potential warning about the health of the US consumer at a time of high inflation and rising interest rates.
The credit card company built its reserves for bad loans by $387mn in its third quarter, a reversal from the $393mn “release” a year ago, it stated in its third-quarter results on Friday.
That took Amex’s provisions for credit losses to $778mn as of September 30, up from $410mn three months earlier and ahead of analysts’ forecasts for $717mn, according to a FactSet survey.
“We have not seen changes in the spending behaviours of our customers, but we are mindful of the mixed signals in the broader economy,” chief executive Stephen Squeri said.
This story originally appeared on: Financial Times - Author:Imani Moise
