American Express Co.'s net income fell 21.5% in the third quarter from the year earlier, to $640 million, as revenues dropped 16% because of lower loan volumes and lower spending on its cards.

But the $120 billion-asset New York banking company's provision for credit losses fell 25.6% from the previous quarter and 13.3% from the year prior to $1.2 billion. The managed chargeoff rate for its portfolio of U.S. credit card loans fell 110 basis points from the previous quarter, to 8.9%, in line with its July forecast that the loss rate had peaked.

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