American Express Co.'s fourth-quarter net income fell 79% from the third quarter and a year earlier, to $172 million, as the company took charges for job cuts and the extension of a reward program.

The chargeoff rate in the New York company's U.S. credit card business increased 80 basis points from the third quarter and 330 from a year earlier, to 6.7%. Amex's provision for credit losses increased 3% from the third quarter and fell 3% from a year earlier, to $1.4 billion.

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