American Express said today quarterly profits fell 18 per cent because of bond losses and slack spending by corporate customers.
The US economic slowdown has knocked down corporate America's profits, and curbed its previously robust spending habits. A stock market slump in the first quarter also ate into profits financial services firms like American Express make from managing money and selling mutual funds.
American Express's revenues rose 2 per cent to $5.38 billion in the first quarter from a year ago.
Its total billed business rose to $74.0 billion from $68.3 billion in last year's first quarter, as its customers charged an average of $1,933 each in the period to their cards. In the 2000 first quarter, its customers charged $1,980 each on cards.