(Reporting by Siddarth S in Bengaluru; Editing by Arun Koyyur)
April 20 (Reuters) - American Express Co's first-quarter profit missed Wall Street estimates on Thursday as
the credit card giant set aside more money to cover potential
losses stemming from cardholders falling behind on their debt
repayments.
The growing economic uncertainty in the United States has
slowly begun to catch-up with AmEx, which has so far been in a
relatively better position compared to peers due to its wealthy
customer base.
A persistently high inflation and a rapid rise in borrowing
costs have begun to pinch customers, resulting in AmEx raising
its provisions to $1.1 billion in the quarter compared with a
benefit of $33 million a year ago.
Its profit fell 13% to $1.8 billion, or $2.40 per share, for
the three months ended March 31, missing analysts' average
estimate of $2.66 per share, according to Refinitiv data.
Total revenue, excluding interest expense, rose 22% to
$14.38 billion.
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