American Express announced profits fell by 40% from $1.75b to $1.07b in Q3, though online spending was up 32%. Non-travel and entertainment spending, which accounted for 70% of total expenditure prior to the pandemic, rose by 1% in Q3. Travel and entertainment (T&E) spending saw a sharp 69% decline.
- 29% of consumer non-T&E purchases occurred online, up from 24% in 2019. 68% of business non-T&E purchases occurred online, up from 63% in 2019.
- Total revenue net of interest expense fell by 20% from $10.9b in Q3 2019 to $8.8b.
- American Express share prices are down 18% year-to-date, while its competitors Visa and Mastercard have seen their stock prices increase by 5.4% and 11.1%, respectively.
- The company warned that business travel expenditure would not return to normal until at least early 2022.