American Express Q3 2020 Earnings Report
Key Takeaways
American Express reported a third-quarter net income of $1.1 billion, or $1.30 per share, compared to $1.8 billion, or $2.08 per share, a year ago. Total revenues net of interest expense were $8.8 billion, a 20 percent decrease from $11.0 billion a year ago. The quarter primarily reflected declines in Card Member spending and the average discount rate compared to the prior year.
Overall spending volumes have steadily recovered since mid-April.
Positive year-over-year growth was seen in non-T&E spending.
Voluntary attrition rates on proprietary products remain lower than last year.
Customer acquisition activities have selectively increased while continuing to invest for the long term.
American Express
American Express
Forward Guidance
American Express recognizes that the road ahead continues to be uncertain, but they are confident that the steps they are taking will enable them to exit this crisis in a strong position and maximize value for their stakeholders over the long term.