(Reuters) - American Express Co
The company's shares fell 2.5 percent in extended trading after it reported that provisions for credit losses rose 14 percent to $954 million and expenses increased 9 percent to $7.7 billion.
Quarterly card customer spending rose 8.6 percent in the United States, mainly due to the splurge during the holiday season. Spending rose a muted 1.4 percent in overseas markets in the three months to Dec 31.
Discount fees, or money earned from merchants, increased 7 percent to $6.46 billion.
The credit-card issuer said https://reut.rs/2RyxpFO its net income was $2.01 billion, or $2.32 per share, in the quarter, compared with a loss of $1.21 billion, or $1.42 per share, a year earlier, when it took a charge due to a change in U.S. tax laws.
Excluding items, the company earned $1.74 per share, missing analysts' average estimate of $1.80 per share, according to IBES data from Refinitiv data.
Revenue, net of interest expense, rose 7.9 percent to $10.47 billion.
(Reporting by Diptendu Lahiri in Bengaluru; Editing by Maju Samuel)
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Updated Date: Jan 18, 2019 04:05:16 IST