AmEx’s Costs, Provisions Cloud Profit Despite Higher Credit Card Use

AmEx’s Costs, Provisions Cloud Profit Despite Higher Credit Card Use
American Express logo and trading symbol are displayed on a screen at the New York Stock Exchange (NYSE) in New York on Dec. 6, 2017. Brendan McDermid/Reuters
Reuters
Updated:

American Express Co.’s profit missed Wall Street estimates on Thursday despite higher spending by its customers as the credit card giant kept aside a large sum to cover potential defaults and spent more on promotions.

Shares fell as much as 7 percent to a near three-month low of $154.01 as expenses surged 22 percent to $11.1 billion in the first quarter, higher than expectations of $10.4 billion.