) reported an 85% slump in quarterly profit on Friday after it set aside nearly $628 million to prepare for a flood of potential defaults caused by coronavirus-led layoffs.
FILE PHOTO: American Express logo and trading symbol are displayed on a screen at the New York Stock Exchange in New York, U.S., December 6, 2017. REUTERS/Brendan McDermid Shares were down about 1% before the bell, even as the group managed to eke out a small profit rather than report a loss as expected by analysts.
The health crisis has hammered economies worldwide and triggered mass layoffs, which in turn made more people default on their bills, hurting credit card issuers. AmEx said its consolidated loss provisions stood at $1.6 billion, up from $861 million a year ago, with the increase driven primarily by new reserves created to account for the effects of the pandemic.