Quarterly Profits Down As Defaults Rise

Published: 7/23/2010

American Express has just announced quarterly profits significantly lower than originally expected, leading to a fall in the share price.

The company saw profits down by a massive 38 percent and, accompanied by a warning for the future that earnings per share would be on the decline, shares traded 11 percent lower. Even though American Express is more closely aligned to wealthier clients they have still seen defaults climb as the United States mortgage problems have hit people at all levels.

An American Express spokesman explained that the organisation, though performing very well relative to other players in the market, is behind where it expects itself to be and this is a situation that could continue for some time.