The crisis leaves its mark on the financial results of the credit card companies such as American Express. Less was paid with the payment cards of that group, because in many countries catering, museums and theaters remained closed, events did not continue and consumers did not venture holidays and town trips. American Express also notes that the recovery appears to be underway.
Apart from travel and entertainment, American Express saw payments in both the third and fourth quarters of the Year pick up to higher levels than before the crisis. In doing so, the company emphasizes that the number of defaulters was at the lowest level in years.
The company is careful with its expectations for recovery because there are still many uncertainties hanging over the market. The credit card company faces the future with confidence due to changes in its own organization. In 2022, the company expects to return to pre-crisis levels in terms of profits.
American Express closed the fourth quarter of 2020 with a turnover of $ 9.4 billion, of which $ 1.4 billion was put into the books as a profit. Revenue fell by 18% on an annual basis, while profits fell by 15%. Over the whole of 2020, a turnover of 36.1 billion dollars was recorded, 17% less than in 2019. Last year’s profits fell by 3.1 billion dollars more than half compared to the 6.8 billion dollars left under the line at the end of 2019.