Net income at American Express plummeted by 85% in the quarter ended 30 June, while total revenues net of interest expense fell by 29% to $7.7bn (£5.98bn).
The performance primarily reflected a decline in card member spending, as well as a lower average discount rate against the year prior, according to the group.
It comes as American Express said that provisions were $1.6bn (£1.24bn) in the quarter, up from $861m (£669m) the year prior, in a bid to cover potential credit losses in the period.
This increase was largely driven by a reserve build of $628m (£488m), which reflected the “deterioration of the global macroeconomic outlook”.
In the same period, consolidated expenses fell by 29% to $5.5bn (£4.27m), down from the $7.8bn (£6bn) recorded the year prior.
This once again reflected “significantly lower” customer engagement costs due to a decline in card member spending, as well as lower usage of travel-related Card Member benefits.
Stephen J. Squeri, chairman and CEO, said: “While our second quarter results reflect the challenges of the current environment, we remain confident that our strategy for navigating this period of uncertainty is the right one.
“Spending volumes, which declined to their lowest point this quarter in April, gradually improved in May and June, with small businesses being the most resilient. As we adjust our business to today’s realities, we are also continuing to invest in areas that are key to our long-term growth.”
He added: “Finally, our already strong capital and liquidity positions improved in the quarter, and we continued to return capital to our shareholders through dividends. All in all, while we can’t predict the future, I remain confident that the way we are managing the company will enable us to emerge from the current crisis in a position of strength.
“Looking ahead, we will continue to focus on what we can control – backing our customers, colleagues and communities, while managing our expenses prudently, and making strategic investments to drive our growth over the long term.”