Amex profits decline 79%

WSJ:

"Our fourth-quarter results reflect an operating environment that was among the harshest we have seen in decades," Chief Executive Kenneth I. Chenault said in a statement. He noted overall cardmember spending fell 10% year-over-year, or 5% excluding the impact of foreign-exchange rates.

Chenault added that the credit-card issuer remains cautious about the economic outlook through 2009, with expectations for cardmember spending "to remain soft with past-due loans and write-offs rising from current levels."
...
Delinquencies of 90 days or more rose to 3.1% of American Express's managed U.S. lending portfolio, from 1.8% in the prior year. The portfolio's write-off rate climbed to 6.7% from 5.9% in the third quarter and 3.4% in the prior year.