American Express Benefits by Denying Bad Credit Credit Cards and Loans – 84 Cents Q2 Profit
Posted on | July 23, 2010 | 1 Comment
After the bell on Thursday American Express reported a profit of 84 cents a share which was ahead of analysts expectations of 78 cents a share. The strong earnings report showed that American Express has greatly benefited from the denial of many bad credit credit cards and loans that have caused other financial institutions to struggle and see millions in charge-offs.
After the huge losses in 2008 during the credit crisis, American Express has been able to clean up their balance sheet much quicker than their competition due to the credit worthiness of their customers. While other banks and lending institutions were allowing anyone to borrow money, American Express was diligent in only allowing the best borrowers with the best credit scores to gain access to their credit cards and loans.
On a day in which Capital One Financial was down almost 3%, American Express was up over 3.7%. It is important to note that executives of the company are still adjusting to the Credit CARD Act and the new rules and regulations could hurt the balance sheet in the near term.
Author: Mike Garner
Tags: american express > american express bad credit credit cards > american express bad credit loans > american express benefits > american express loans > bad credit loans > loans american express
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August 10th, 2010 @ 7:10 am
Interesting article!
Looks like American Express played the recession and credit crisis very well by not going with the flow like other banks did.
AmEx did a very impressive thing!