By Allison Prang
American Express Co. isn't expecting operating expenses to fall as much as the company predicted back in the spring.
CFO Jeffrey Campbell said on the company's earnings call that it expects its declines in operating expenses from the second to fourth quarters compared to a year earlier "to be somewhat less than the $1 billion we initially discussed back in April, which in hindsight was at the moment of peak uncertainty about the future."
The finance chief added that he expects fourth-quarter marketing costs to be similar to the third quarter.
Mr. Campbell also said he expects card fee growth rates to keep decelerating but expects net card fees to increase in the double digits this quarter.
Net interest income is also expected to be flat.
"Looking forward into the fourth quarter and assuming we continue to see higher pay-down rates from revolving card members I'd expect net interest income to be relatively flat sequentially," he said.
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(END) Dow Jones Newswires