2017.01.1923:02:00UTC+00AmEx Quarterly Profit Declines as Expenses Surge

U.S. credit-card issuer American Express Co. reported profit for the fourth quarter tumbled 8.2% as expenses surpassed estimates and as the firm earmark more money to settle bad credit. The company bolstered its expenditures on marketing and promotion to stave off the heating competition.

Net income fell to $825 million, denoting earnings of 88 cents a share, compared to the $899 million or earnings of 89 cents per share a year prior. Revenue dropped to $8.02 billion from $8.39 billion from the previous year.

During the period, AmEx registered 1.6 million new cards across the U.S. and added 2.4 million on a global basis.

AmEx's CFO Jeffrey Campbell warned that quarterly earnings and revenue would be uneven this year, with slower growth during the first quarter. The company has struggles since the disintegration of its bankable partnership with Costco Wholesale Corp.

The firm's adjusted its full-year earnings guidance for 2017, and now sees it at $5.60-$5.80 per share. AmEx has initially expected to hit at least $5.60 per share in the current fiscal year.