American Express beat Wall Street expectations in Q3 for both earnings per share and revenue.AmEx earned 0.54 cents per share,versus the estimate of 0.38;its revenue was 6.0 billion,versus an estimate of 5.92.Still,this represents a year over year drop of 22% in earnings per share,and a 17% drop in revenue.Loan losses were up,but at a slower rate.AmEx set aside 1.8 billion to cover bad loans,which is 13% lower,and its expenses fell 17%.
Overall,CEO Ken Chenault was pleased with the company's performance.He said it showed significant progress.Billings have stabilized over the last few months.It is the most difficult environment they have ever seen.AmEx's priorities are:1.staying liquid;2.staying profitable;and 3.investing selectively for growth.As a bank holding company,it offers a number of depositary accounts,as well as travel services,and publishes checks and day planners.The company's prudent management and affluent lifestyle branding make it one of the soundest financials over the long term.
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