American Express Co. boosted its provisions for credit losses in the latest quarter, though executives anticipate credit trends will remain healthy. Though the company disclosed a net reserve build of $327 million in the June quarter that, along with higher net write-offs relative to a year before, helped bring Amex’s
AXP,
-3.68%
consolidated provisions for credit losses up to $1.2 billion for the period, Chief Financial Officer Jeff Campbell expressed confidence in the company’s credit positioning.
See more: American Express earnings show record spending as CFO calls out that the U.S. consumer ‘just looks really strong’ Amex hasn’t seen signs of credit stress across its base, he said, owing to the company’s premium position. “This high credit quality of our customer base continues to show through in our best-in-class credit performance,” Campbell noted on Amex’s earnings call, flagging that delinquency and write-off rates are still below where they were before the pandemic, a trend he expects to hold. “We continue to expect these delinquency and write-off rates to increase over time, but they are likely to remain below pre-pandemic levels in 2023,” he shared on the call. Campbell further noted that delinquency rates in the second quarter were flat on a sequential basis. When Amex did its credit calculations, it “actually incorporated a sl …
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