American Express Company (NYSE: AXP) found its shares lowering in price soon after Friday’s opening bell, after reporting second-quarter financial figures.
The financial giant revealed net income of $257 million, or $0.29 per share, compared with net income of $1.8 billion, or $2.07 per share, a year ago.
Q2 consolidated total revenues net of interest expense were $7.7 billion, down 29% from $10.8 billion a year ago. The quarter primarily reflected a decline in Card Member spending and a lower average discount rate compared to the prior year.
Consolidated provisions for losses were $1.6 billion, up from $861 million a year ago. The increase was primarily driven by a reserve build of $628 million. The reserve build primarily reflected the deterioration of the global macroeconomic outlook.
Consolidated expenses were $5.5 billion, down 29% from $7.8 billion a year ago. The decrease primarily reflected significantly lower customer engagement costs due to the decline in Card Member spending, as well as lower usage of travel-related Card Member benefits.
Said CEO Stephen Squeri, "While our second quarter results reflect the challenges of the current environment, we remain confident that our strategy for navigating this period of uncertainty is the right one.
"Our customers continue to be engaged with our products and services; we have a productive and dedicated workforce; our capital and liquidity levels remain strong; and we continue to focus on those areas most critical to our long-term growth."
Shares lost 71 cents to $95.96.
