American Express misses forecasts, hurt by Costco loss
NEW YORK (AP) — American Express' fourth-quarter profit fell 8 percent from the same period a year earlier, hurt by the loss of the Costco credit card business and higher expenses to retain customers.
The retail giant moved its credit card processing to Visa, and Citigroup won the credit card portfolio.
"While we continue to operate in a very challenging environment, we ended the year in a stronger position than we started and have built momentum across our business," Kenneth Chenault, AmEx chairman and CEO, said in a prepared statement.
AmEx's U.S. consumer business, the company's biggest division by revenue and profit, reported quarterly earnings of $351 million, down 35 percent from a year earlier.