Friday, October 23, 2009
Morgan Housel :: Townhall.com Columnist
American Express Turns a Corner
by Morgan Housel
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Oh, who's laughing now, recession? American Express (NYSE: AXP) reported a drop in year-over-year earnings, but credit quality and consumer spending habits sprang back from the train wreck numbers of earlier this year.

Net income came in at $640 million, or $0.53 per share, down from $815 million, or $0.70 per share in the same period last year. The current results were boosted by a one-time $113 million after-tax gain. That in itself doesn't look great, but all the action is in the details:

Metric

Q3 2009

Q2 2009

Q3 2008

30-Day Delinquencies

4%

4.3%

3.8%

Net Charge-Off Rate

8.6%

9.7%

5.7%

Total Purchase Volume

$156.6 billion

$151.4 billion

$175.5 billion

Average Cardmember Spending

$2,898 Continued...

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About The Author

Morgan Housel is a Motley Fool contributor.

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