AmEx profits up 3%, but still sets cash aside for downturn

By KEN SWEET
AP Business Writer

NEW YORK (AP) — Credit card giant American Express said its third-quarter profits rose a modest 3% from a year ago, despite a significant rise in revenue and spending from its cardmembers. The profit gain the company had this quarter was mostly erased by AmEx setting aside hundreds of millions of dollars to cover potential credit losses as the economy continues to deteriorate. The New York-based company said it earned $1.88 billion, or $2.47 a share, up from $1.83 billion, or $2.27 a share, in the same period a year earlier.