Amex Net Profit Drops 56% in Q1

News Alert
from The Wall Street Journal

American Express posted a 56% drop in first-quarter net income as write-offs climbed, a trend the company expects will continue in the current quarter.

The card company, which was approved in November for bank-holding status to participate in the government's Troubled Asset Relief Program, posted net income of $437 million, or 31 cents a share, down from $991 million, or 85 cents a share, a year earlier.

Chief Executive Kenneth I. Chenault said the company intends to repay the government's investment of preferred shares and warrants if permitted by its supervisors and supported by stress-test results.

http://online.wsj.com#mod=djemalertNEWS

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