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American Express Credit Card Defaults Fall

Published: Wednesday, 5 Aug 2009 | 5:27 PM ET

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By: Reuters

American Express said on Wednesday credit card defaults fell for a second straight month in July, helped by lower-than-expected bankruptcies.

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The largest U.S. credit card company by sales estimated its charge-off rate—loans the company does not expect to be repaid—fell to 9.2 percent in July from 9.9 percent in June, Chief Financial Officer Daniel Henry said during an investor meeting.

Henry also forecast that American Express charge-off rate would end 2009 below 10 percent.

American Express [AXP Loading... () ] was the fastest growing credit card company during the credit boom of 2003-07, but the company paid a heavy price when the bubble burst last year and mounting credit losses sent its earnings spiraling lower.