8-K
AMERICAN EXPRESS CO (AXP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 17, 2025
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
| New York | 1-7657 | 13-4922250 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
200 Vesey Street,
New York, New York 10285
(Address of principal executive offices and zip code)
(212) 640-2000
(Registrant's telephone number, including area code)
| Not Applicable |
|---|
| (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Shares (par value $0.20 per Share) | AXP | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure
The following information is furnished under Item 2.02 – Results of Operations and Financial Condition and Item 7.01 – Regulation FD Disclosure:
On April 17, 2025, American Express Company (the “Company”) issued a press release regarding its financial results for the first quarter of 2025. A copy of such press release is attached to this report as Exhibit 99.1. The Company also made available additional information relating to the financial results for the first quarter of 2025. Such additional financial information is attached to this report as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit | Description |
|---|---|
| 99.1 | Press Release, dated April 17, 2025, of American Express Company regarding its financial results for the first quarter of 2025. |
| 99.2 | Additional information relating to the financial results of American Express Company for the first quarter of 2025. |
| 104 | The cover page of this Current Report on Form 8-K, formatted as inline XBRL. |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Current Report on Form 8-K (including the exhibits attached hereto) includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address the Company’s current expectations regarding business and financial performance, including management’s outlook for 2025, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:
•the Company’s ability to achieve its 2025 earnings per common share (EPS) outlook and grow EPS in the future, which will depend in part on revenue growth, credit performance, credit reserve levels and the effective tax rate remaining consistent with current expectations and the Company’s ability to continue investing at high levels in areas that can drive sustainable growth (including its brand, value propositions, coverage, marketing, technology and talent), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs as well as the following: macroeconomic and geopolitical conditions, including the effects of announced or future tariff increases, global trade relations, changes to consumer and business confidence, international tensions, hostilities and instability, a slowdown in U.S. or global economic growth, higher rates of unemployment, changes in interest rates, inflation, supply chain issues, market volatility, energy costs and fiscal and monetary policies; the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and the Company’s reputation; impacts related to acquisitions, cobrand and other partner agreements, portfolio sales and joint ventures; and the impact of regulation and litigation, which may be heightened due to the uncertain political environment and could affect the profitability of the Company’s business activities, limit the Company’s ability to pursue business opportunities, require changes to business practices or alter the Company’s relationships with Card Members, partners and merchants;
•the Company’s ability to achieve its 2025 revenue growth outlook and grow revenues net of interest expense in the future, which could be impacted by, among other things, the factors identified above and in the subsequent paragraphs, as well as the following: spending volumes and the spending environment not being consistent with expectations, including a decline or slowdown in cross-border and travel & entertainment spending volumes, as well as spending by U.S. consumer and small and mid-sized enterprise Card Members, such as due to uncertain business and economic conditions; an inability to address competitive pressures, attract and retain customers, invest in and enhance the Company’s Membership Model of premium products, differentiated services and partnerships, successfully refresh its card products, grow spending and lending with customers across age cohorts, including Millennial and Gen-Z customers, and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the effects of regulatory initiatives, including pricing and network
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regulation; merchant coverage growing less than expected or the reduction of merchant acceptance or the perception of coverage; increased surcharging, steering, suppression or other differential acceptance practices with respect to the Company’s products; merchant discount rates changing from the Company’s expectations; and changes in foreign currency exchange rates;
•net card fees not growing consistent with the Company’s expectations, which could be impacted by, among other things, a decrease in the ability and desire of Card Members to pay card fees, such as due to a deterioration in macroeconomic conditions; higher Card Member attrition rates; the pace of Card Member acquisition activity and demand for the Company’s fee-based products; and the Company’s inability to address competitive pressures, develop attractive premium value propositions and implement its strategy of refreshing card products and realize its anticipated growth from those refreshes, enhancing and delivering benefits and services and continuing to innovate with respect to its products;
•net interest income, the effects of changes in interest rates and the growth of loans and Card Member receivables outstanding and revolving balances, being higher or lower than expectations, which could be impacted by, among other things, the behavior and financial strength of Card Members and their actual spending, borrowing and paydown patterns; the effectiveness of the Company’s strategies to enhance Card Member value propositions, capture a greater share of Card Members’ spending and borrowings, and attract new, and retain existing, customers; the Company’s ability to effectively manage underwriting risk; changes in benchmark interest rates, including where such changes affect the Company’s assets or liabilities differently than expected; continued volatility and other changes in capital and credit market conditions and the availability and cost of capital; credit actions, including line size and other adjustments to credit availability; the yield on Card Member loans not remaining consistent with current expectations; the Company’s deposit levels or the interest rates it offers on deposits changing from current expectations; loss or impacts to cobrand relationships; and governmental actions to cap credit card interest rates;
•future credit performance, the level of future delinquency, reserve and write-off rates and the amount and timing of future reserve builds and releases, which will depend in part on macroeconomic factors such as actual and projected unemployment rates, GDP and the volume of bankruptcies; the ability and willingness of Card Members to pay amounts owed to the Company; changes in loans and receivables outstanding, such as from the implementation of the Company’s strategy to capture spending and borrowings, or from changes in consumer behavior that affect loan and receivable balances (e.g., paydown and revolve rates); changes in the levels of customer acquisitions and the credit profiles of new customers acquired; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; the impact of the usage of debt settlement companies; and collections capabilities and recoveries of previously written-off loans and receivables;
•the actual amount to be spent on Card Member rewards and services and business development in 2025 and beyond, and the relationship of these variable customer engagement costs to revenues, which could be impacted by continued changes in macroeconomic conditions and Card Member behavior as it relates to their spending patterns (including the level of spend in bonus categories), the redemption of rewards and offers (including travel redemptions) and usage of travel-related benefits; the costs related to reward point redemptions; further enhancements to the Company’s rewards programs and product benefits, including to make them attractive to Card Members and prospective customers, potentially in a manner that is not cost-effective; changes in the Company’s models or assumptions used to estimate these expenses; new and renegotiated contractual obligations with business partners, which may be affected by business partners with greater scale and leverage; the Company’s ability to identify and negotiate partner-funded value for Card Members; and the pace and cost of the expansion of the Company’s global lounge collection;
•the actual amount the Company spends on marketing in 2025 and beyond and the effectiveness and efficiency of its marketing spending, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance, including the levels of demand for the Company’s products; the Company’s ability to realize marketing efficiencies and balance expense control and investments in the business; management’s decisions regarding the timing of spending on marketing and the effectiveness of management’s investment optimization process; management’s identification and assessment of attractive investment opportunities; management’s ability to develop premium value propositions and drive customer demand, including continued customer spend growth and retention; and the receptivity of Card Members and prospective customers to advertising and customer acquisition initiatives;
•the Company’s ability to control operating expenses, including relative to revenue growth, and the actual amount spent on operating expenses in 2025 and beyond, which could be impacted by, among other things, salary and benefit expenses to attract and retain talent; the Company’s ability to realize operational efficiencies, including through increased scale and automation and continued adoption of artificial intelligence technologies; management’s ability to balance expense control and investments in the business, and its decisions regarding spending in such areas as technology, business and product development, sales force, premium servicing and digital capabilities; the Company’s ability to innovate efficient channels of customer interactions and the willingness of Card Members to self-service and address issues through digital channels; restructuring activity; fraud costs; inflation; supply chain issues and increased technology costs; expenses related to control management and compliance and consulting, legal and other professional
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services fees, including as a result of litigation or internal and regulatory reviews; regulatory assessments; the level of M&A activity and related expenses; information security or cybersecurity incidents; the payment of fines, penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; the performance of Amex Ventures and other of the Company’s investments; impairments of goodwill or other assets; and the impact of changes in foreign currency exchange rates on costs;
•the Company’s tax rate not remaining consistent with expectations, which could be impacted by, among other things, further changes in tax laws and regulation (including as a result of the expiration of provisions of tax laws or regulations), the effects of the Organization for Economic Cooperation and Development’s global minimum tax guidelines, the Company’s geographic mix of income, unfavorable tax audits, assessments and tax litigation outcomes, and the occurrence or nonoccurrence of other discrete tax items;
•changes affecting the Company’s plans regarding the return of capital to shareholders, which will depend on factors such as the Company’s capital levels and regulatory capital ratios; results of the stress testing and capital planning process and new rulemakings and guidance from the Federal Reserve and other banking regulators, including changes to regulatory capital requirements, such as from Basel III rulemaking; results of operations and financial condition; credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;
•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure and competitor settlements and mergers that may materially impact the prices charged to merchants that accept American Express cards; merchant acceptance and surcharging, steering and suppression by merchants; the desirability of the Company’s premium card products; competition for new and existing cobrand relationships; competition from new and non-traditional competitors, and with respect to new products, services and technologies, such as the emergence or increase in popularity of alternative payment mechanisms; and the success of marketing, promotion and rewards programs;
•the Company’s ability to expand its leadership in the premium consumer space, including with Millennial and Gen-Z consumers, which will be impacted in part by competition, brand perceptions (including perceptions related to merchant coverage) and reputation, and the Company’s ability to develop and market new benefits and value propositions that appeal to Card Members and new customers, grow spending with new and younger age cohort Card Members, offer attractive services and rewards programs and build greater customer loyalty, which will depend in part on identifying and funding investment opportunities, addressing changing customer behaviors, new product innovation and development, Card Member acquisition efforts and enrollment processes, including through digital channels, continuing to realize the benefits from strategic partnerships, successfully implementing the Company’s dining strategy and evolving the Company’s infrastructure to support new products, services and benefits;
•the Company’s ability to build on its leadership in commercial payments, which will depend in part on competition; the willingness and ability of companies to use credit and charge cards for procurement and other business expenditures as well as use the Company’s other products and services for financing needs; perceived or actual difficulties and costs related to setting up B2B payment platforms, the Company’s ability to offer attractive value propositions and new products to current and potential customers; the Company’s ability to enhance and expand its payment, lending and cash flow management solutions, increase customer engagement, and build out a multi-product digital ecosystem to integrate its broad product set, which is dependent on the Company’s continued investment in capabilities, features, functionalities, platforms and technologies and the successful integration of the Company’s Center acquisition; and the success of the Company’s initiatives to support businesses, such as Small Business Saturday and other Shop Small campaigns;
•the Company’s ability to expand merchant coverage globally and its success, as well as the success of third-party merchant acquirers, aggregators and processors, in signing merchants to accept American Express, which will depend on, among other factors, the value propositions offered to merchants and merchant acquirers for card acceptance, the awareness and willingness of Card Members to use American Express cards at merchants, scaling marketing and expanding programs to increase card usage, identifying and growing acceptance in low- and new-to-plastic industries and businesses as they form, working with commercial buyers and suppliers to establish B2B acceptance, executing on the Company’s plans to increase coverage in priority international cities, destinations, countries and industry verticals, and continued network investments, including in capabilities that allow for greater digital integration and modernization of its authorization platform;
•the Company’s ability to grow internationally, which could be impacted by regulation and business practices, such as those capping interchange or other fees, mandating network access or data localization, favoring local competitors or prohibiting or limiting foreign ownership of certain businesses; perceptions of the Company’s brand in international jurisdictions; the Company’s inability to successfully replicate aspects of its business model internationally and tailor products and services to make them attractive to local customers; competitors with more scale, local experience and established relationships with relevant customers, regulators and industry participants; the success of the Company and
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its network partners in acquiring Card Members and/or merchants; and geopolitical and economic instability, hostilities and tensions (such as involving China and the U.S.), and impacts to cross-border trade and travel;
•a failure in or breach of the Company’s operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks or outages, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt the Company’s operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;
•changes in capital and credit market conditions, including those resulting from recent volatility, which may significantly affect the Company’s ability to meet its liquidity needs and expectations regarding capital ratios; the Company’s access to capital and funding costs; the valuation of the Company’s assets; and the Company’s credit ratings or those of its subsidiaries;
•legal and regulatory developments, which could affect the profitability of the Company’s business activities; limit the Company’s ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or governance, or alter the Company’s relationships with Card Members, partners, merchants and other third parties, including affecting its network operations and practices governing merchant acceptance, as well as its ability to continue certain cobrand relationships in the EU; impact card fees and rewards programs; exert further pressure on merchant discount rates and the Company’s GNS business, as well as result in an increase in surcharging, steering or other differential acceptance practices; alter the competitive landscape; subject the Company to heightened regulatory scrutiny and result in increased costs related to regulatory oversight and compliance, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or monetary penalties; materially affect capital or liquidity requirements, results of operations or ability to pay dividends; or result in harm to the American Express brand; and
•factors beyond the Company’s control such as business, economic and geopolitical conditions, consumer and business confidence and spending generally, unemployment rates, market volatility, political developments, further escalations or widening of international tensions, regional hostilities and military conflicts, adverse developments affecting third parties, including other financial institutions, merchants or vendors, as well as severe weather conditions and natural disasters (e.g., hurricanes and wildfires), power loss, disruptions in telecommunications, pandemics, terrorism and other catastrophic events, any of which could significantly affect demand for and spending on American Express cards, credit metrics and reserves, loan and receivable balances, deposit levels and other aspects of the Company’s business and results of operations or disrupt its global network systems and ability to process transactions.
A further description of these uncertainties and other risks can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the Company’s other reports filed with the Securities and Exchange Commission.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERICAN EXPRESS COMPANY | |
|---|---|
| (REGISTRANT) | |
| By: | /s/ James J. Killerlane III |
| Name: James J. Killerlane III | |
| Title: Corporate Secretary |
Date: April 17, 2025
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Document
EXHIBIT 99.1
| NEWS RELEASE | NEWS RELEASE | NEWS RELEASE | NEWS RELEASE |
|---|
Media Contacts:
Amanda Miller, Amanda.C.Miller@aexp.com, +1.408.219.0563
Deniz Yigin, Deniz.Yigin@aexp.com, +1.332.999.0836
Investors/Analysts Contacts:
Kartik Ramachandran, Kartik.Ramachandran@aexp.com, +1.212.640.5574
Amanda Blumstein, Amanda.Blumstein@aexp.com, +1.212.640.5574
AMERICAN EXPRESS DELIVERS STRONG FIRST-QUARTER RESULTS WITH REVENUE OF $17.0 BILLION, UP 7%, OR 8% ON AN FX-ADJUSTED BASIS
EARNINGS PER SHARE OF $3.64 INCREASED 9%
COMPANY MAINTAINS FULL-YEAR REVENUE AND EPS GUIDANCE
(Millions, except per share amounts, and where indicated)
| Quarter Ended<br><br>March 31, | Percentage Inc/(Dec) | ||
|---|---|---|---|
| 2025 | 2024 | ||
| Billed Business (Billions)<br><br>FX-adjusted1 | $387.4 | $367.0<br><br>$363.9 | 6%<br><br>6% |
| Total Revenues Net of Interest Expense<br><br>FX-adjusted1 | $16,967 | $15,801<br><br>$15,652 | 7%<br><br>8% |
| Net Income | $2,584 | $2,437 | 6% |
| Diluted Earnings Per Common Share (EPS)2 | $3.64 | $3.33 | 9% |
| Average Diluted Common Shares Outstanding | 702 | 722 | (3)% |
New York – April 17, 2025 – American Express Company (NYSE: AXP) today reported first-quarter net income of $2.6 billion, or $3.64 per share, compared with net income of $2.4 billion, or $3.33 per share, a year ago.
“We delivered strong results during the first quarter, reflecting the power of our premium customer base. FX-adjusted revenue increased 8 percent year-over-year, or 9 percent excluding the leap year impact,3 to $17.0 billion. Total Card Member spending continued to grow at a solid pace, up 6 percent, or 7 percent excluding the leap year impact,”3 said Stephen J. Squeri, Chairman and Chief Executive Officer.
“Our performance across key areas, including Card Member spending, customer retention, demand for our premium products, and credit performance, continued to be strong across our customer base, consistent with and in many cases better than what we saw in 2024.
“Based on the steady spend and credit trends we have seen to date and the current economic outlook, we are maintaining our full-year guidance for revenue growth of 8 to 10 percent and EPS of $15.00 to $15.50, in line with the ranges we provided in January, subject to the macroeconomic environment.
“Looking ahead, we will continue to manage the company for the long term, focusing on backing our customers and colleagues, exercising disciplined expense management, and strategically investing in our business.”
First-quarter consolidated total revenues net of interest expense were $17.0 billion, up 7 percent year-over-year, or 8 percent on an FX-adjusted basis. The increase was primarily driven by higher net interest income supported by growth in revolving loan balances, increased Card Member spending, and continued strong card fee growth.
Consolidated provisions for credit losses were $1.2 billion, compared with $1.3 billion a year ago. The decrease reflected a modest net reserve release during the quarter compared to a net reserve build a year ago, partially offset by higher net write-offs driven by growth in Total loans and Card Member receivables. The first-quarter net write-off rate was 2.1 percent, flat year-over-year.4
Consolidated expenses were $12.5 billion, up 10 percent year-over-year. The increase was driven by higher variable customer engagement costs driven by higher Card Member spending, a benefit in the prior year resulting from enhancements to the models for estimating future Membership Rewards redemptions, and higher usage of travel-related benefits. In addition, operating expenses increased, while marketing expenses were roughly flat year-over-year.
The consolidated effective tax rate was 22.4 percent, compared to 22.5 percent a year ago.
#
This earnings release should be read in conjunction with the company’s statistical tables for the first quarter 2025, which include information regarding our reportable operating segments, available on the American Express Investor Relations website at http://ir.americanexpress.com and in a Form 8-K furnished today with the Securities and Exchange Commission.
An investor conference call will be held at 8:30 a.m. (ET) today to discuss first-quarter results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned American Express Investor Relations website. A replay of the conference call will be available later today at the same website address.
________________________________
| 1 | As used in this release, FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for current period apply to the corresponding prior-year period against which such results are being compared). FX-adjusted revenues is a non-GAAP measure. The company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the company’s performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates. |
|---|---|
| 2 | Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards of $18 million for both the three months ended March 31, 2025 and 2024, and (ii) dividends on preferred shares of $14 million for both the three months ended March 31, 2025 and 2024. |
| 3 | Information is adjusted to exclude the impact of the additional day in the first quarter of 2024 caused by leap year. Revenues adjusted to exclude the impact of leap year is a non-GAAP measure. See Appendix I for a reconciliation to revenues on a GAAP basis. The company believes that the presentation of this information is helpful to investors by making it easier to compare the company’s performance between periods. |
| 4 | Net write-off rates are based on principal losses only (i.e., excluding interest and/or fees) and represent consumer and small business Card Member loans and receivables (net write-off rates based on principal losses only are unavailable for corporate). We present a net write-off rate based on principal losses only to be consistent with industry convention. Net write-off rates including interest and fees are presented in the Statistical Tables for the first quarter of 2025 available on the above-mentioned American Express Investor Relations website, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses. |
As used in this release:
•Card Member spending (billed business) represents transaction volumes, including cash advances, on payment products issued by American Express.
•Operating expenses represent salaries and employee benefits, professional services, data processing and equipment, and other, net.
•Reserve releases and reserve builds represent the portion of the provisions for credit losses for the period related to increasing or decreasing reserves for credit losses as a result of, among other things, changes in volumes, macroeconomic outlook, portfolio composition, and credit quality of portfolios. Reserve releases represent the amount by which net write-offs exceed the provisions for credit losses. Reserve builds represent the amount by which the provisions for credit losses exceed net write-offs.
•Variable customer engagement costs represent the aggregate of Card Member rewards, business development, and Card Member services expenses.
ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global, premium payments and lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services and experiences that enrich lives and build business success.
Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, and service, and a rich history of delivering innovation and Membership value for our customers. With a hundred million merchant locations on our global network in over 200 countries and territories, we seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations.
For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.
Source: American Express Company
Location: Global
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address American Express Company’s current expectations regarding business and financial performance, including management’s outlook for 2025, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, those that are set forth under the caption “Cautionary Note Regarding Forward-Looking Statements” in the company’s current report on Form 8-K filed with the Securities and Exchange Commission (SEC) on April 17, 2025 (the Form 8-K Cautionary Note), which are incorporated by reference into this release. Those factors include, but are not limited to, the following:
•the company’s ability to achieve its 2025 earnings per common share (EPS) outlook and grow EPS in the future, which will depend in part on revenue growth, credit performance, credit reserve levels and the effective tax rate remaining consistent with current expectations and the company’s ability to continue investing at high levels in areas that can drive sustainable growth (including its brand, value propositions, coverage, marketing, technology and talent), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraph and the Form 8-K Cautionary Note, as well as the following: macroeconomic and geopolitical conditions, including the effects of announced or future tariff increases, global trade relations, changes to consumer and business confidence, international tensions, hostilities and instability, a slowdown in U.S. or global economic growth, higher rates of unemployment, changes in interest rates, inflation, supply chain issues, market volatility, energy costs and fiscal and monetary policies; the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and the company’s reputation; impacts related to acquisitions, cobrand and other partner agreements, portfolio sales and joint ventures; and the impact of regulation and litigation, which may be heightened due to the uncertain political environment and could affect the profitability of the company’s business activities, limit the company’s ability to pursue business opportunities, require changes to business practices or alter the company’s relationships with Card Members, partners and merchants; and
•the company’s ability to achieve its 2025 revenue growth outlook and grow revenues net of interest expense in the future, which could be impacted by, among other things, the factors identified above and in the Form 8-K Cautionary Note, as well as the following: spending volumes and the spending environment not being consistent with expectations, including a decline or slowdown in cross-border and travel & entertainment spending volumes, as well as spending by U.S. consumer and small and mid-sized enterprise Card Members, such as due to uncertain business and economic conditions; an inability to address competitive pressures, attract and retain customers, invest in and enhance the company’s Membership Model of premium products, differentiated services and partnerships, successfully refresh its card products, grow spending and lending with customers across age cohorts, including Millennial and Gen-Z customers, and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the effects of regulatory initiatives, including pricing and network regulation; merchant coverage growing less than expected or the reduction of merchant acceptance or the perception of coverage; increased surcharging, steering, suppression or other differential acceptance practices with respect to the company’s products; merchant discount rates changing from the company’s expectations; and changes in foreign currency exchange rates.
A further description of these uncertainties and other risks can be found in American Express Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the company’s other reports filed with the SEC, including in the Form 8-K Cautionary Note.
American Express Company
Appendix I
Reconciliation of Total Revenues Net of Interest Expense
(Millions)
| Quarter Ended<br><br>March 31, | |||||
|---|---|---|---|---|---|
| 2025 | 2024 | YoY%<br>Inc/(Dec) | |||
| GAAP Revenues Net of Interest Expense | $ | 16,967 | $ | 15,801 | 7% |
| FX-adjusted Revenues Net of Interest Expense | $ | 15,652 | 8% | ||
| Leap Year Impact | $ | 148 | |||
| FX-adjusted Revenues Net of Interest Expense Adjusted for Leap Year | $ | 15,504 | 9% |
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Document
| EXHIBIT 99.2 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| American Express Company | (Preliminary) | ||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||
| (Millions, except percentages and per share amounts) | |||||||||||||||||
| Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | ||||||||||||
| Non-interest revenues | |||||||||||||||||
| Discount revenue | $ | 8,743 | $ | 9,177 | $ | 8,780 | $ | 8,855 | $ | 8,380 | 4 | ||||||
| Net card fees | 2,333 | 2,245 | 2,170 | 2,060 | 1,974 | 18 | |||||||||||
| Service fees and other revenue | 1,722 | 1,719 | 1,680 | 1,688 | 1,678 | 3 | |||||||||||
| Total non-interest revenues | 12,798 | 13,141 | 12,630 | 12,603 | 12,032 | 6 | |||||||||||
| Interest income | |||||||||||||||||
| Interest on loans | 5,552 | 5,503 | 5,442 | 5,092 | 5,058 | 10 | |||||||||||
| Interest and dividends on investment securities | 14 | 18 | 18 | 25 | 25 | (44) | |||||||||||
| Deposits with banks and other | 569 | 556 | 689 | 677 | 692 | (18) | |||||||||||
| Total interest income | 6,135 | 6,077 | 6,149 | 5,794 | 5,775 | 6 | |||||||||||
| Interest expense | |||||||||||||||||
| Deposits | 1,337 | 1,397 | 1,446 | 1,425 | 1,427 | (6) | |||||||||||
| Long-term debt and other | 629 | 642 | 697 | 639 | 579 | 9 | |||||||||||
| Total interest expense | 1,966 | 2,039 | 2,143 | 2,064 | 2,006 | (2) | |||||||||||
| Net interest income | 4,169 | 4,038 | 4,006 | 3,730 | 3,769 | 11 | |||||||||||
| Total revenues net of interest expense | 16,967 | 17,179 | 16,636 | 16,333 | 15,801 | 7 | |||||||||||
| Provisions for credit losses | |||||||||||||||||
| Card Member receivables | 146 | 182 | 170 | 226 | 196 | (26) | |||||||||||
| Card Member loans | 901 | 1,011 | 1,114 | 970 | 1,014 | (11) | |||||||||||
| Other | 103 | 99 | 72 | 72 | 59 | 75 | |||||||||||
| Total provisions for credit losses | 1,150 | 1,292 | 1,356 | 1,268 | 1,269 | (9) | |||||||||||
| Total revenues net of interest expense after provisions for credit losses | 15,817 | 15,887 | 15,280 | 15,065 | 14,532 | 9 | |||||||||||
| Expenses | |||||||||||||||||
| Card Member rewards | 4,378 | 4,430 | 4,168 | 4,227 | 3,774 | 16 | |||||||||||
| Business development | 1,529 | 1,637 | 1,430 | 1,427 | 1,392 | 10 | |||||||||||
| Card Member services | 1,328 | 1,278 | 1,179 | 1,154 | 1,171 | 13 | |||||||||||
| Marketing | 1,486 | 1,614 | 1,470 | 1,480 | 1,476 | 1 | |||||||||||
| Salaries and employee benefits | 2,120 | 2,102 | 2,049 | 1,949 | 2,098 | 1 | |||||||||||
| Professional services | 541 | 698 | 579 | 542 | 455 | 19 | |||||||||||
| Data processing and equipment | 705 | 805 | 725 | 701 | 657 | 7 | |||||||||||
| Other, net | 400 | 567 | 476 | (205) | 364 | 10 | |||||||||||
| Total expenses | 12,487 | 13,131 | 12,076 | 11,275 | 11,387 | 10 | |||||||||||
| Pretax income | 3,330 | 2,756 | 3,204 | 3,790 | 3,145 | 6 | |||||||||||
| Income tax provision | 746 | 586 | 697 | 775 | 708 | 5 | |||||||||||
| Net income | $ | 2,584 | $ | 2,170 | $ | 2,507 | $ | 3,015 | $ | 2,437 | 6 | ||||||
| Net income attributable to common shareholders (A) | $ | 2,552 | $ | 2,139 | $ | 2,474 | $ | 2,977 | $ | 2,405 | 6 | ||||||
| Effective tax rate | 22.4 | % | 21.3 | % | 21.8 | % | 20.4 | % | 22.5 | % | |||||||
| Earnings Per Common Share | |||||||||||||||||
| Basic | |||||||||||||||||
| Net income attributable to common shareholders | $ | 3.64 | $ | 3.04 | $ | 3.50 | $ | 4.16 | $ | 3.34 | 9 | ||||||
| Average common shares outstanding | 701 | 703 | 708 | 716 | 721 | (3) | |||||||||||
| Diluted | |||||||||||||||||
| Net income attributable to common shareholders | $ | 3.64 | $ | 3.04 | $ | 3.49 | $ | 4.15 | $ | 3.33 | 9 | ||||||
| Average common shares outstanding | 702 | 704 | 709 | 717 | 722 | (3) | |||||||||||
| Cash dividends declared per common share | $ | 0.82 | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 0.70 | 17 |
See Appendix III for footnote references
1
| American Express Company | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Balance Sheets and Related Statistical Information | |||||||||||||||||||
| (Millions, except percentages, per share amounts and where indicated) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Assets | |||||||||||||||||||
| Cash & cash equivalents | $ | 52,508 | $ | 40,640 | $ | 47,918 | $ | 52,895 | $ | 54,213 | (3) | ||||||||
| Card Member receivables, less reserves | 58,355 | 59,240 | 58,886 | 59,485 | 59,624 | (2) | |||||||||||||
| Card Member loans, less reserves | 133,611 | 133,995 | 128,960 | 125,530 | 121,348 | 10 | |||||||||||||
| Card Member loans held for sale | 776 | 758 | — | — | — | ||||||||||||||
| Investment securities | 1,110 | 1,240 | 1,268 | 1,210 | 2,232 | (50) | |||||||||||||
| Other (B) | 35,884 | 35,588 | 33,947 | 33,099 | 31,844 | 13 | |||||||||||||
| Total assets | $ | 282,244 | $ | 271,461 | $ | 270,979 | $ | 272,219 | $ | 269,261 | 5 | ||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Customer deposits | $ | 146,396 | $ | 139,413 | $ | 135,438 | $ | 133,746 | $ | 134,418 | 9 | ||||||||
| Short-term borrowings | 1,559 | 1,374 | 1,457 | 1,639 | 1,742 | (11) | |||||||||||||
| Long-term debt | 51,236 | 49,715 | 53,546 | 51,521 | 48,826 | 5 | |||||||||||||
| Other (B) | 51,851 | 50,695 | 50,831 | 55,773 | 55,511 | (7) | |||||||||||||
| Total liabilities | 251,042 | 241,197 | 241,272 | 242,679 | 240,497 | 4 | |||||||||||||
| Shareholders' Equity | 31,202 | 30,264 | 29,707 | 29,540 | 28,764 | 8 | |||||||||||||
| Total liabilities and shareholders' equity | $ | 282,244 | $ | 271,461 | $ | 270,979 | $ | 272,219 | $ | 269,261 | 5 | ||||||||
| Return on average equity (C) | 33.6 | % | 34.6 | % | 33.9 | % | 41.4 | % | 34.3 | % | |||||||||
| Return on average common equity (C) | 35.0 | % | 36.1 | % | 35.3 | % | 43.2 | % | 35.9 | % | |||||||||
| Book value per common share (dollars) | $ | 42.28 | $ | 40.88 | $ | 39.92 | $ | 39.26 | $ | 37.79 | 12 |
See Appendix III for footnote references
2
| American Express Company | (Preliminary) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Capital | ||||||||||||||
| Q4'24 | Q3'24 | Q2'24 | Q1'24 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Shares Outstanding (in millions) | ||||||||||||||
| Beginning of period | 704 | 712 | 719 | 723 | ||||||||||
| Repurchase of common shares | (3) | (8) | (7) | (5) | ||||||||||
| Net impact of employee benefit plans and others | 1 | — | — | 1 | ||||||||||
| End of period | 702 | 704 | 712 | 719 | ||||||||||
| Risk-Based Capital Ratios - Basel III ( in billions) | ||||||||||||||
| Common Equity Tier 1/Risk Weighted Assets (RWA) | % | 10.5 | % | 10.7 | % | 10.8 | % | 10.6 | % | |||||
| Tier 1 | % | 11.2 | % | 11.4 | % | 11.5 | % | 11.3 | % | |||||
| Total | % | 13.2 | % | 13.4 | % | 13.5 | % | 13.2 | % | |||||
| Common Equity Tier 1 | 25.6 | $ | 24.9 | $ | 24.6 | $ | 24.6 | $ | 23.7 | |||||
| Tier 1 Capital | 27.2 | $ | 26.4 | $ | 26.2 | $ | 26.1 | $ | 25.3 | |||||
| Tier 2 Capital | 4.8 | $ | 4.7 | $ | 4.6 | $ | 4.6 | $ | 4.1 | |||||
| Total Capital | 32.0 | $ | 31.1 | $ | 30.8 | $ | 30.7 | $ | 29.4 | |||||
| RWA | 239.6 | $ | 235.8 | $ | 229.9 | $ | 227.8 | $ | 223.4 | |||||
| Tier 1 Leverage | % | 9.8 | % | 9.8 | % | 9.9 | % | 9.8 | % | |||||
| Supplementary Leverage Ratio (SLR) (D) | % | 8.3 | % | |||||||||||
| Average Total Assets to calculate the Tier 1 Leverage Ratio (E) | 273.1 | $ | 268.8 | $ | 267.6 | $ | 263.3 | $ | 257.6 | |||||
| Total Leverage Exposure to calculate SLR (D) | 322.4 | $ | 317.0 |
All values are in US Dollars.
See Appendix III for footnote references
3
| American Express Company | (Preliminary) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Card Related Statistical Information | ||||||||||||||
| (Millions, except percentages and where indicated) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Network volumes (billions) (F) | $ | 439.6 | $ | 464.0 | $ | 441.0 | $ | 440.6 | $ | 419.2 | 5 | |||
| Billed business (G) | $ | 387.4 | $ | 408.4 | $ | 387.3 | $ | 388.2 | $ | 367.0 | 6 | |||
| Card Member loans | $ | 139,203 | $ | 139,674 | $ | 134,548 | $ | 130,851 | $ | 126,619 | 10 | |||
| Cards-in-force (H) | 147.5 | 146.5 | 145.5 | 144.3 | 142.4 | 4 | ||||||||
| Proprietary cards-in-force | 84.6 | 83.6 | 82.9 | 82.1 | 81.1 | 4 | ||||||||
| Basic cards-in-force (H) | 124.2 | 123.3 | 122.4 | 121.4 | 119.8 | 4 | ||||||||
| Proprietary basic cards-in-force | 65.1 | 64.3 | 63.7 | 63.1 | 62.3 | 4 | ||||||||
| Average proprietary basic Card Member spending (dollars) | $ | 5,987 | $ | 6,378 | $ | 6,110 | $ | 6,192 | $ | 5,919 | 1 | |||
| Average fee per card (dollars) (I) | $ | 111 | $ | 108 | $ | 105 | $ | 101 | $ | 98 | 13 | |||
| Proprietary new cards acquired (J) | 3.4 | 3.0 | 3.3 | 3.3 | 3.4 |
See Appendix III for footnote references
4
| American Express Company | (Preliminary) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Network Volumes Related Growth | ||||||||||
| YOY % change | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reported | FX-Adjusted (K) | |||||||||
| Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | |
| Network volumes (F) | 5% | 7% | 5% | 3% | 5% | 6% | 8% | 5% | 4% | 6% |
| Billed business (G) | 6 | 8 | 6 | 5 | 6 | 6 | 8 | 6 | 6 | 7 |
| U.S. Consumer Services | 7 | 9 | 6 | 6 | 8 | n/a | n/a | n/a | n/a | n/a |
| Commercial Services | 2 | 4 | 1 | 2 | 2 | 2 | 4 | 1 | 2 | 2 |
| International Card Services | 9 | 11 | 13 | 10 | 11 | 13 | 15 | 13 | 13 | 13 |
| Merchant industry billed business | ||||||||||
| Goods & Services (G&S) spend (72% of Q1'25 billed business) | 6 | 7 | 6 | 5 | 6 | 7 | 8 | 6 | 6 | 6 |
| T&E spend (28% of Q1'25 billed business) | 5 | 9 | 6 | 6 | 8 | 6 | 10 | 6 | 7 | 8 |
See Appendix III for footnote references
5
| American Express Company | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Credit Related Statistical Information | |||||||||||||||||||
| Card Member Loans and Card Member Receivables | |||||||||||||||||||
| (Millions, except percentages and where indicated) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Card Member loans and receivables | |||||||||||||||||||
| Net write-off rate (principal, interest and fees) (L) | 2.4 | % | 2.2 | % | 2.2 | % | 2.4 | % | 2.3 | % | |||||||||
| Net write-off rate (principal only) (L)(M) | 2.1 | % | 1.9 | % | 1.9 | % | 2.1 | % | 2.1 | % | |||||||||
| 30+ days past due as a % of total (M) | 1.3 | % | 1.3 | % | 1.3 | % | 1.2 | % | 1.3 | % | |||||||||
| Card Member loans | |||||||||||||||||||
| Total Card Member loans | $ | 139,203 | $ | 139,674 | $ | 134,548 | $ | 130,851 | $ | 126,619 | 10 | ||||||||
| Credit loss reserves | |||||||||||||||||||
| Beginning balance | $ | 5,679 | $ | 5,588 | $ | 5,321 | $ | 5,271 | $ | 5,118 | 11 | ||||||||
| Provisions - principal, interest and fees | 901 | 1,011 | 1,114 | 970 | 1,014 | (11) | |||||||||||||
| Net write-offs - principal less recoveries | (818) | (735) | (701) | (753) | (705) | 16 | |||||||||||||
| Net write-offs - interest and fees less recoveries | (178) | (159) | (152) | (160) | (150) | 19 | |||||||||||||
| Other (N) | 8 | (26) | 6 | (7) | (6) | # | |||||||||||||
| Ending balance | $ | 5,592 | $ | 5,679 | $ | 5,588 | $ | 5,321 | $ | 5,271 | 6 | ||||||||
| Reserve as a % of Card Member loans | 4.0 | % | 4.1 | % | 4.2 | % | 4.1 | % | 4.2 | % | |||||||||
| % of past due | 284 | % | 288 | % | 297 | % | 312 | % | 297 | % | |||||||||
| Average loans | $ | 137,697 | $ | 136,972 | $ | 132,956 | $ | 128,321 | $ | 124,720 | 10 | ||||||||
| Net write-off rate (principal, interest and fees) (L) | 2.9 | % | 2.6 | % | 2.6 | % | 2.8 | % | 2.7 | % | |||||||||
| Net write-off rate (principal only) (L)(M) | 2.4 | % | 2.1 | % | 2.1 | % | 2.3 | % | 2.3 | % | |||||||||
| 30+ days past due as a % of total (M) | 1.4 | % | 1.4 | % | 1.4 | % | 1.3 | % | 1.4 | % | |||||||||
| Net interest income divided by average Card Member loans including loans held for sale (O) | 12.2 | % | 11.7 | % | 12.0 | % | 11.7 | % | 12.2 | % | |||||||||
| Net interest yield on average Card Member loans including loans held for sale (O) | 12.2 | % | 11.8 | % | 12.0 | % | 11.7 | % | 12.0 | % | |||||||||
| Card Member receivables | |||||||||||||||||||
| Total Card Member receivables | $ | 58,503 | $ | 59,411 | $ | 59,042 | $ | 59,656 | $ | 59,775 | (2) | ||||||||
| Credit loss reserves | |||||||||||||||||||
| Beginning balance | $ | 171 | $ | 156 | $ | 171 | $ | 151 | $ | 174 | (2) | ||||||||
| Provisions - principal and fees | 146 | 182 | 170 | 226 | 196 | (26) | |||||||||||||
| Net write-offs - principal and fees less recoveries | (169) | (164) | (187) | (205) | (217) | (22) | |||||||||||||
| Other (N) | — | (3) | 2 | (1) | (2) | # | |||||||||||||
| Ending balance | $ | 148 | $ | 171 | $ | 156 | $ | 171 | $ | 151 | (2) | ||||||||
| Reserve as a % of Card Member receivables | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | |||||||||
| Net write-off rate (principal and fees) (L) | 1.2 | % | 1.1 | % | 1.3 | % | 1.4 | % | 1.5 | % | |||||||||
| Net write-off rate (principal only) (L)(M) | 1.3 | % | 1.2 | % | 1.4 | % | 1.5 | % | 1.7 | % | |||||||||
| 30+ days past due as a % of total (M) | 1.0 | % | 0.9 | % | 0.9 | % | 0.9 | % | 1.1 | % | # - Denotes a variance of 100 percent or more. | ||||||||
| --- |
See Appendix III for footnote references
6
| American Express Company | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Credit Related Statistical Information | |||||||||||||||||||
| Other Loans and Other Receivables | |||||||||||||||||||
| (Millions, except percentages and where indicated) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Other loans (B) | |||||||||||||||||||
| Total other loans | $ | 9,678 | $ | 9,232 | $ | 8,460 | $ | 8,157 | $ | 7,601 | 27 | ||||||||
| Credit loss reserves | |||||||||||||||||||
| Beginning balance | $ | 194 | $ | 154 | $ | 140 | $ | 136 | $ | 126 | 54 | ||||||||
| Provisions | 105 | 94 | 60 | 49 | 53 | 98 | |||||||||||||
| Net write-offs (principal only) | (53) | (51) | (44) | (43) | (42) | 26 | |||||||||||||
| Net write-offs (interest and fees only) | (2) | (2) | (2) | (2) | (1) | # | |||||||||||||
| Other (N) | — | (1) | — | — | — | — | |||||||||||||
| Ending balance | $ | 244 | $ | 194 | $ | 154 | $ | 140 | $ | 136 | 79 | ||||||||
| Reserve as a % of other loans | 2.5 | % | 2.1 | % | 1.8 | % | 1.7 | % | 1.8 | % | |||||||||
| Other receivables (B) | |||||||||||||||||||
| Total other receivables | $ | 3,752 | $ | 3,587 | $ | 3,800 | $ | 3,889 | $ | 3,785 | (1) | ||||||||
| Credit loss reserves | |||||||||||||||||||
| Beginning balance | $ | 27 | $ | 49 | $ | 44 | $ | 27 | $ | 27 | — | ||||||||
| Provisions | (2) | 5 | 12 | 23 | 6 | # | |||||||||||||
| Net write-offs | (3) | (28) | (6) | (4) | (6) | (50) | |||||||||||||
| Other (N) | 1 | 1 | (1) | (2) | — | — | |||||||||||||
| Ending balance | $ | 23 | $ | 27 | $ | 49 | $ | 44 | $ | 27 | (15) | ||||||||
| Reserve as a % of other receivables | 0.6 | % | 0.8 | % | 1.3 | % | 1.1 | % | 0.7 | % | # - Denotes a variance of 100 percent or more. | ||||||||
| --- |
See Appendix III for footnote references
7
| American Express Company | (Preliminary) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement Information by Segment | |||||||||||||||
| (Millions, except percentages) | U.S. Consumer Services<br>(USCS) | Commercial Services<br>(CS) | International Card Services<br>(ICS) | Global Merchant and Network Services<br>(GMNS) | Corporate and Other | Consolidated | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Q1'25 | |||||||||||||||
| Non-interest revenues | $ | 5,243 | $ | 3,265 | $ | 2,646 | $ | 1,660 | $ | (16) | $ | 12,798 | |||
| Interest income | 3,763 | 1,202 | 596 | 12 | 562 | 6,135 | |||||||||
| Interest expense | 757 | 432 | 306 | (143) | 614 | 1,966 | |||||||||
| Total revenues net of interest expense | 8,249 | 4,035 | 2,936 | 1,815 | (68) | 16,967 | |||||||||
| Total provisions for credit losses | 631 | 329 | 192 | (2) | — | 1,150 | |||||||||
| Total revenues net of interest expense after provisions for credit losses | 7,618 | 3,706 | 2,744 | 1,817 | (68) | 15,817 | |||||||||
| Card Member rewards, business development and Card Member services | 3,882 | 1,746 | 1,312 | 283 | 12 | 7,235 | |||||||||
| Marketing | 765 | 337 | 300 | 76 | 8 | 1,486 | |||||||||
| Salaries and employee benefits and other operating expenses | 1,239 | 787 | 751 | 468 | 521 | 3,766 | |||||||||
| Total expenses | 5,886 | 2,870 | 2,363 | 827 | 541 | 12,487 | |||||||||
| Pretax income (loss) | $ | 1,732 | $ | 836 | $ | 381 | $ | 990 | $ | (609) | $ | 3,330 | |||
| Q1'24 | |||||||||||||||
| Non-interest revenues | $ | 4,766 | $ | 3,194 | $ | 2,437 | $ | 1,655 | $ | (20) | $ | 12,032 | |||
| Interest income | 3,481 | 1,005 | 583 | 17 | 689 | 5,775 | |||||||||
| Interest expense | 748 | 414 | 307 | (198) | 735 | 2,006 | |||||||||
| Total revenues net of interest expense | 7,499 | 3,785 | 2,713 | 1,870 | (66) | 15,801 | |||||||||
| Total provisions for credit losses | 727 | 355 | 182 | 6 | (1) | 1,269 | |||||||||
| Total revenues net of interest expense after provisions for credit losses | 6,772 | 3,430 | 2,531 | 1,864 | (65) | 14,532 | |||||||||
| Card Member rewards, business development and Card Member services | 3,356 | 1,493 | 1,203 | 279 | 6 | 6,337 | |||||||||
| Marketing | 719 | 326 | 352 | 73 | 6 | 1,476 | |||||||||
| Salaries and employee benefits and other operating expenses | 1,084 | 733 | 724 | 495 | 538 | 3,574 | |||||||||
| Total expenses | 5,159 | 2,552 | 2,279 | 847 | 550 | 11,387 | |||||||||
| Pretax income (loss) | $ | 1,613 | $ | 878 | $ | 252 | $ | 1,017 | $ | (615) | $ | 3,145 | |||
| YOY % change | |||||||||||||||
| Non-interest revenues | 10 | 2 | 9 | — | 20 | 6 | |||||||||
| Interest income | 8 | 20 | 2 | (29) | (18) | 6 | |||||||||
| Interest expense | 1 | 4 | — | 28 | (16) | (2) | |||||||||
| Total revenues net of interest expense | 10 | 7 | 8 | (3) | (3) | 7 | |||||||||
| Total provisions for credit losses | (13) | (7) | 5 | # | # | (9) | |||||||||
| Total revenues net of interest expense after provisions for credit losses | 12 | 8 | 8 | (3) | (5) | 9 | |||||||||
| Card Member rewards, business development and Card Member services | 16 | 17 | 9 | 1 | # | 14 | |||||||||
| Marketing | 6 | 3 | (15) | 4 | 33 | 1 | |||||||||
| Salaries and employee benefits and other operating expenses | 14 | 7 | 4 | (5) | (3) | 5 | |||||||||
| Total expenses | 14 | 12 | 4 | (2) | (2) | 10 | |||||||||
| Pretax income (loss) | 7 | (5) | 51 | (3) | 1 | 6 | # - Denotes a variance of 100 percent or more. | ||||||||
| --- |
See Appendix III for footnote references
8
| U.S. Consumer Services | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement and Statistical Information | |||||||||||||||||||
| (Millions, except percentages and where indicated) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Non-interest revenues | $ | 5,243 | $ | 5,314 | $ | 5,028 | $ | 5,029 | $ | 4,766 | 10 | ||||||||
| Interest income | 3,763 | 3,753 | 3,722 | 3,474 | 3,481 | 8 | |||||||||||||
| Interest expense | 757 | 815 | 806 | 771 | 748 | 1 | |||||||||||||
| Net interest income | 3,006 | 2,938 | 2,916 | 2,703 | 2,733 | 10 | |||||||||||||
| Total revenues net of interest expense | 8,249 | 8,252 | 7,944 | 7,732 | 7,499 | 10 | |||||||||||||
| Total provisions for credit losses | 631 | 784 | 812 | 706 | 727 | (13) | |||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 7,618 | 7,468 | 7,132 | 7,026 | 6,772 | 12 | |||||||||||||
| Card Member rewards, business development and Card Member services | 3,882 | 3,816 | 3,570 | 3,587 | 3,356 | 16 | |||||||||||||
| Marketing | 765 | 813 | 755 | 764 | 719 | 6 | |||||||||||||
| Salaries and employee benefits and other operating expenses | 1,239 | 1,294 | 1,148 | 1,115 | 1,084 | 14 | |||||||||||||
| Total expenses | 5,886 | 5,923 | 5,473 | 5,466 | 5,159 | 14 | |||||||||||||
| Pretax segment income | $ | 1,732 | $ | 1,545 | $ | 1,659 | $ | 1,560 | $ | 1,613 | 7 | ||||||||
| Billed business (billions) (G) | $ | 164.3 | $ | 174.0 | $ | 162.3 | $ | 165.1 | $ | 153.4 | 7 | ||||||||
| Proprietary cards-in-force (H) | 46.8 | 46.3 | 45.7 | 45.2 | 44.4 | 5 | |||||||||||||
| Proprietary basic cards-in-force (H) | 33.0 | 32.5 | 32.1 | 31.7 | 31.1 | 6 | |||||||||||||
| Average proprietary basic Card Member spending (dollars) | $ | 5,014 | $ | 5,387 | $ | 5,091 | $ | 5,258 | $ | 4,962 | 1 | ||||||||
| Segment assets | $ | 110,886 | $ | 114,228 | $ | 106,201 | $ | 108,224 | $ | 104,297 | 6 | ||||||||
| Card Member loans | |||||||||||||||||||
| Total loans | $ | 90,072 | $ | 92,632 | $ | 86,752 | $ | 84,958 | $ | 82,255 | 10 | ||||||||
| Average loans | $ | 89,983 | $ | 89,178 | $ | 86,223 | $ | 83,452 | $ | 81,746 | 10 | ||||||||
| Net write-off rate (principal, interest and fees) (L) | 3.0 | % | 2.6 | % | 2.6 | % | 2.9 | % | 2.8 | % | |||||||||
| Net write-off rate (principal only) (L) | 2.4 | % | 2.1 | % | 2.1 | % | 2.4 | % | 2.3 | % | |||||||||
| 30+ days past due as a % of total | 1.4 | % | 1.4 | % | 1.4 | % | 1.3 | % | 1.4 | % | |||||||||
| Net interest income divided by average Card Member loans (O) | 13.5 | % | 13.1 | % | 13.5 | % | 13.0 | % | 13.4 | % | |||||||||
| Net interest yield on average Card Member loans (O) | 13.0 | % | 12.7 | % | 13.0 | % | 12.6 | % | 13.0 | % | |||||||||
| Card Member receivables | |||||||||||||||||||
| Total receivables | $ | 12,824 | $ | 14,419 | $ | 13,168 | $ | 13,796 | $ | 13,588 | (6) | ||||||||
| Net write-off rate (principal and fees) (L) | 0.8 | % | 0.9 | % | 1.2 | % | 1.2 | % | 1.5 | % | |||||||||
| Net write-off rate (principal only) (L) | 0.7 | % | 0.8 | % | 1.1 | % | 1.1 | % | 1.3 | % | |||||||||
| 30+ days past due as a % of total | 0.7 | % | 0.6 | % | 0.7 | % | 0.7 | % | 0.8 | % |
See Appendix III for footnote references
9
| Commercial Services | (Preliminary) | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement and Statistical Information | |||||||||||||||||
| (Millions, except percentages and where indicated) | |||||||||||||||||
| Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | ||||||||||||
| Non-interest revenues | $ | 3,265 | $ | 3,388 | $ | 3,304 | $ | 3,333 | $ | 3,194 | 2 | ||||||
| Interest income | 1,202 | 1,176 | 1,142 | 1,051 | 1,005 | 20 | |||||||||||
| Interest expense | 432 | 442 | 448 | 430 | 414 | 4 | |||||||||||
| Net interest income | 770 | 734 | 694 | 621 | 591 | 30 | |||||||||||
| Total revenues net of interest expense | 4,035 | 4,122 | 3,998 | 3,954 | 3,785 | 7 | |||||||||||
| Total provisions for credit losses | 329 | 311 | 374 | 349 | 355 | (7) | |||||||||||
| Total revenues net of interest expense after provisions for credit losses | 3,706 | 3,811 | 3,624 | 3,605 | 3,430 | 8 | |||||||||||
| Card Member rewards, business development and Card Member services | 1,746 | 1,751 | 1,627 | 1,633 | 1,493 | 17 | |||||||||||
| Marketing | 337 | 360 | 308 | 325 | 326 | 3 | |||||||||||
| Salaries and employee benefits and other operating expenses | 787 | 886 | 781 | 742 | 733 | 7 | |||||||||||
| Total expenses | 2,870 | 2,997 | 2,716 | 2,700 | 2,552 | 12 | |||||||||||
| Pretax segment income | $ | 836 | $ | 814 | $ | 908 | $ | 905 | $ | 878 | (5) | ||||||
| Billed business (billions) (G) | $ | 129.2 | $ | 136.0 | $ | 131.0 | $ | 132.3 | $ | 127.1 | 2 | ||||||
| Proprietary cards-in-force (H) | 15.5 | 15.4 | 15.5 | 15.4 | 15.4 | 1 | |||||||||||
| Average proprietary basic Card Member spending (dollars) | $ | 8,380 | $ | 8,804 | $ | 8,474 | $ | 8,588 | $ | 8,261 | 1 | ||||||
| Segment assets | $ | 62,012 | $ | 58,969 | $ | 59,716 | $ | 58,993 | $ | 58,143 | 7 | ||||||
| Card Member loans | |||||||||||||||||
| Total loans | $ | 31,240 | $ | 29,647 | $ | 29,869 | $ | 28,621 | $ | 27,634 | 13 | ||||||
| Average loans | $ | 30,307 | $ | 30,203 | $ | 29,428 | $ | 28,031 | $ | 26,553 | 14 | ||||||
| Net write-off rate (principal, interest and fees) (L) | 3.0 | % | 2.7 | % | 2.6 | % | 2.7 | % | 2.6 | % | |||||||
| Net write-off rate (principal only) (L) | 2.6 | % | 2.3 | % | 2.2 | % | 2.3 | % | 2.3 | % | |||||||
| 30+ days past due as a % of total | 1.6 | % | 1.5 | % | 1.5 | % | 1.4 | % | 1.5 | % | |||||||
| Net interest income divided by average Card Member loans including loans held for sale (O) | 10.1 | % | 9.6 | % | 9.4 | % | 8.9 | % | 9.0 | % | |||||||
| Net interest yield on average Card Member loans including loans held for sale (O) | 11.4 | % | 11.1 | % | 10.9 | % | 10.5 | % | 10.6 | % | |||||||
| Card Member receivables | |||||||||||||||||
| Total receivables | $ | 26,172 | $ | 24,945 | $ | 26,341 | $ | 26,737 | $ | 27,024 | (3) | ||||||
| Net write-off rate (principal and fees) (L) | 1.3 | % | 1.1 | % | 1.3 | % | 1.4 | % | 1.4 | % | |||||||
| Net write-off rate (principal only) - small business (L) | 1.9 | % | 1.6 | % | 1.8 | % | 2.0 | % | 2.1 | % | |||||||
| 30+ days past due as a % of total - small business | 1.3 | % | 1.3 | % | 1.2 | % | 1.2 | % | 1.4 | % | |||||||
| 90+ days past billing as a % of total - corporate | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.5 | % |
See Appendix III for footnote references
10
| International Card Services | (Preliminary) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement and Statistical Information | |||||||||||||||||||
| (Millions, except percentages and where indicated) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Non-interest revenues | $ | 2,646 | $ | 2,725 | $ | 2,659 | $ | 2,548 | $ | 2,437 | 9 | ||||||||
| Interest income | 596 | 583 | 588 | 577 | 583 | 2 | |||||||||||||
| Interest expense | 306 | 318 | 311 | 303 | 307 | — | |||||||||||||
| Net interest income | 290 | 265 | 277 | 274 | 276 | 5 | |||||||||||||
| Total revenues net of interest expense | 2,936 | 2,990 | 2,936 | 2,822 | 2,713 | 8 | |||||||||||||
| Total provisions for credit losses | 192 | 194 | 158 | 192 | 182 | 5 | |||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 2,744 | 2,796 | 2,778 | 2,630 | 2,531 | 8 | |||||||||||||
| Card Member rewards, business development and Card Member services | 1,312 | 1,442 | 1,296 | 1,302 | 1,203 | 9 | |||||||||||||
| Marketing | 300 | 306 | 287 | 290 | 352 | (15) | |||||||||||||
| Salaries and employee benefits and other operating expenses | 751 | 1,014 | 740 | 748 | 724 | 4 | |||||||||||||
| Total expenses | 2,363 | 2,762 | 2,323 | 2,340 | 2,279 | 4 | |||||||||||||
| Pretax segment income | $ | 381 | $ | 34 | $ | 455 | $ | 290 | $ | 252 | 51 | ||||||||
| Billed business (billions) (G) | $ | 92.9 | $ | 97.7 | $ | 93.6 | $ | 90.2 | $ | 85.4 | 9 | ||||||||
| Proprietary cards-in-force (H) | 22.3 | 21.9 | 21.7 | 21.5 | 21.3 | 5 | |||||||||||||
| Proprietary basic cards-in-force (H) | 16.7 | 16.4 | 16.2 | 16.0 | 15.8 | 6 | |||||||||||||
| Average proprietary basic Card Member spending (dollars) | $ | 5,619 | $ | 6,003 | $ | 5,829 | $ | 5,681 | $ | 5,436 | 3 | ||||||||
| Segment assets | $ | 42,620 | $ | 42,879 | $ | 43,073 | $ | 41,982 | $ | 41,472 | 3 | ||||||||
| Card Member loans - consumer and small business | |||||||||||||||||||
| Total loans | $ | 17,891 | $ | 17,395 | $ | 17,927 | $ | 17,272 | $ | 16,730 | 7 | ||||||||
| Average loans | $ | 17,407 | $ | 17,591 | $ | 17,305 | $ | 16,838 | $ | 16,422 | 6 | ||||||||
| Net write-off rate (principal, interest and fees) (L) | 2.3 | % | 2.3 | % | 2.4 | % | 2.5 | % | 2.6 | % | |||||||||
| Net write-off rate (principal only) (L) | 2.0 | % | 1.9 | % | 2.0 | % | 2.1 | % | 2.2 | % | |||||||||
| 30+ days past due as a % of total | 1.2 | % | 1.2 | % | 1.2 | % | 1.2 | % | 1.3 | % | |||||||||
| Net interest income divided by average Card Member loans (O) | 6.8 | % | 6.0 | % | 6.4 | % | 6.5 | % | 6.8 | % | |||||||||
| Net interest yield on average Card Member loans (O) | 9.4 | % | 8.7 | % | 8.8 | % | 9.0 | % | 9.5 | % | |||||||||
| Card Member receivables | |||||||||||||||||||
| Total receivables | $ | 19,507 | $ | 20,047 | $ | 19,533 | $ | 19,123 | $ | 19,163 | 2 | ||||||||
| Net write-off rate (principal and fees) (L) | 1.3 | % | 1.3 | % | 1.3 | % | 1.5 | % | 1.6 | % | |||||||||
| Net write-off rate (principal only) - consumer and small business (L) | 1.3 | % | 1.3 | % | 1.4 | % | 1.6 | % | 1.7 | % | |||||||||
| 30+ days past due as a % of total - consumer and small business | 1.0 | % | 0.8 | % | 0.9 | % | 0.9 | % | 1.0 | % | |||||||||
| 90+ days past billing as a % of total - corporate | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.5 | % |
See Appendix III for footnote references
11
| Global Merchant and Network Services | (Preliminary) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Income Statement and Statistical Information | ||||||||||||||
| (Millions, except percentages and where indicated) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | YOY % change | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Non-interest revenues | $ | 1,660 | $ | 1,723 | $ | 1,667 | $ | 1,684 | $ | 1,655 | — | |||
| Interest income | 12 | 11 | 11 | 13 | 17 | (29) | ||||||||
| Interest expense | (143) | (160) | (169) | (176) | (198) | 28 | ||||||||
| Net interest income | 155 | 171 | 180 | 189 | 215 | (28) | ||||||||
| Total revenues net of interest expense | 1,815 | 1,894 | 1,847 | 1,873 | 1,870 | (3) | ||||||||
| Total provisions for credit losses | (2) | 6 | 10 | 20 | 6 | # | ||||||||
| Total revenues net of interest expense after provisions for credit losses | 1,817 | 1,888 | 1,837 | 1,853 | 1,864 | (3) | ||||||||
| Business development and Card Member services | 283 | 322 | 269 | 278 | 279 | 1 | ||||||||
| Marketing | 76 | 130 | 112 | 96 | 73 | 4 | ||||||||
| Salaries and employee benefits and other operating expenses | 468 | 583 | 465 | (58) | 495 | (5) | ||||||||
| Total expenses | 827 | 1,035 | 846 | 316 | 847 | (2) | ||||||||
| Pretax segment income | $ | 990 | $ | 853 | $ | 991 | $ | 1,537 | $ | 1,017 | (3) | |||
| Total network volumes (billions) (F) | $ | 439.6 | $ | 464.0 | $ | 441.0 | $ | 440.6 | $ | 419.2 | 5 | |||
| Segment assets | $ | 18,083 | $ | 17,712 | $ | 17,739 | $ | 24,446 | $ | 24,885 | (27) | # - Denotes a variance of 100 percent or more. | ||
| --- |
See Appendix III for footnote references
12
| American Express Company | (Preliminary) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Appendix I | ||||||||||||||||||
| Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE) | ||||||||||||||||||
| (Millions, except percentages) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| ROE | ||||||||||||||||||
| Annualized Net income | $ | 10,336 | $ | 10,129 | $ | 10,028 | $ | 12,060 | $ | 9,748 | ||||||||
| Average shareholders' equity | $ | 30,733 | $ | 29,266 | $ | 29,623 | $ | 29,152 | $ | 28,410 | ||||||||
| Return on average equity (C) | 33.6 | % | 34.6 | % | 33.9 | % | 41.4 | % | 34.3 | % | ||||||||
| Reconciliation of ROCE | ||||||||||||||||||
| Annualized Net income | $ | 10,336 | $ | 10,129 | $ | 10,028 | $ | 12,060 | $ | 9,748 | ||||||||
| Preferred share dividends and equity related adjustments | 57 | 58 | 58 | 59 | 57 | |||||||||||||
| Earnings allocated to participating share awards and other | 69 | 76 | 75 | 92 | 73 | |||||||||||||
| Net income attributable to common shareholders | $ | 10,210 | $ | 9,995 | $ | 9,895 | $ | 11,909 | $ | 9,618 | ||||||||
| Average shareholders' equity | $ | 30,733 | $ | 29,266 | $ | 29,623 | $ | 29,152 | $ | 28,410 | ||||||||
| Average preferred shares | 1,584 | 1,584 | 1,584 | 1,584 | 1,584 | |||||||||||||
| Average common shareholders' equity | $ | 29,149 | $ | 27,682 | $ | 28,039 | $ | 27,568 | $ | 26,826 | ||||||||
| Return on average common equity (C) | 35.0 | % | 36.1 | % | 35.3 | % | 43.2 | % | 35.9 | % |
See Appendix III for footnote references
13
| American Express Company | (Preliminary) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Appendix II | ||||||||||||||||||
| Net Interest Yield on Average Card Member Loans | ||||||||||||||||||
| (Millions, except percentages and where indicated) | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Consolidated | ||||||||||||||||||
| Net interest income | $ | 4,169 | $ | 4,038 | $ | 4,006 | $ | 3,730 | $ | 3,769 | ||||||||
| Exclude: | ||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (P) | 851 | 865 | 940 | 912 | 882 | |||||||||||||
| Interest income not attributable to our Card Member loan portfolio (Q) | (851) | (823) | (940) | (920) | (916) | |||||||||||||
| Adjusted net interest income (O) | $ | 4,169 | $ | 4,080 | $ | 4,006 | $ | 3,722 | $ | 3,735 | ||||||||
| Average Card Member loans including loans held for sale | $ | 138,457 | $ | 137,161 | $ | 132,956 | $ | 128,321 | $ | 124,720 | ||||||||
| Net interest income divided by average Card Member loans including loans held for sale (O) | 12.2 | % | 11.7 | % | 12.0 | % | 11.7 | % | 12.2 | % | ||||||||
| Net interest yield on average Card Member loans including loans held for sale (O) | 12.2 | % | 11.8 | % | 12.0 | % | 11.7 | % | 12.0 | % | ||||||||
| U.S. Consumer Services | ||||||||||||||||||
| Net interest income | $ | 3,006 | $ | 2,938 | $ | 2,916 | $ | 2,703 | $ | 2,733 | ||||||||
| Exclude: | ||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (P) | 64 | 73 | 45 | 44 | 36 | |||||||||||||
| Interest income not attributable to our Card Member loan portfolio (Q) | (177) | (160) | (143) | (132) | (122) | |||||||||||||
| Adjusted net interest income (O) | $ | 2,893 | $ | 2,851 | $ | 2,818 | $ | 2,615 | $ | 2,647 | ||||||||
| Average Card Member loans | $ | 89,983 | $ | 89,178 | $ | 86,223 | $ | 83,452 | $ | 81,746 | ||||||||
| Net interest income divided by average Card Member loans (O) | 13.5 | % | 13.1 | % | 13.5 | % | 13.0 | % | 13.4 | % | ||||||||
| Net interest yield on average Card Member loans (O) | 13.0 | % | 12.7 | % | 13.0 | % | 12.6 | % | 13.0 | % | ||||||||
| Commercial Services | ||||||||||||||||||
| Net interest income | $ | 770 | $ | 734 | $ | 694 | $ | 621 | $ | 591 | ||||||||
| Exclude: | ||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (P) | 192 | 198 | 193 | 190 | 184 | |||||||||||||
| Interest income not attributable to our Card Member loan portfolio (Q) | (88) | (86) | (84) | (81) | (74) | |||||||||||||
| Adjusted net interest income (O) | $ | 874 | $ | 846 | $ | 803 | $ | 730 | $ | 701 | ||||||||
| Average Card Member loans including loans held for sale | $ | 31,067 | $ | 30,392 | $ | 29,428 | $ | 28,031 | $ | 26,553 | ||||||||
| Net interest income divided by average Card Member loans including loans held for sale (O) | 10.1 | % | 9.6 | % | 9.4 | % | 8.9 | % | 9.0 | % | ||||||||
| Net interest yield on average Card Member loans including loans held for sale (O) | 11.4 | % | 11.1 | % | 10.9 | % | 10.5 | % | 10.6 | % | ||||||||
| International Card Services | ||||||||||||||||||
| Net interest income | $ | 290 | $ | 265 | $ | 277 | $ | 274 | $ | 276 | ||||||||
| Exclude: | ||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (P) | 123 | 130 | 122 | 118 | 126 | |||||||||||||
| Interest income not attributable to our Card Member loan portfolio (Q) | (11) | (12) | (14) | (15) | (15) | |||||||||||||
| Adjusted net interest income (O) | $ | 402 | $ | 383 | $ | 385 | $ | 377 | $ | 387 | ||||||||
| Average Card Member loans | $ | 17,407 | $ | 17,591 | $ | 17,305 | $ | 16,838 | $ | 16,422 | ||||||||
| Net interest income divided by average Card Member loans (O) | 6.8 | % | 6.0 | % | 6.4 | % | 6.5 | % | 6.8 | % | ||||||||
| Net interest yield on average Card Member loans (O) | 9.4 | % | 8.7 | % | 8.8 | % | 9.0 | % | 9.5 | % |
See Appendix III for footnote references
14
| Appendix III | (Preliminary) |
|---|---|
| All Information in the preceding tables is presented on a basis prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), unless otherwise indicated. Certain reclassifications of prior period amounts have been made to conform to the current period presentation. | |
| --- | --- |
| (A) | Represents net income, less (i) earnings allocated to participating share awards of $18 million, $17 million, $18 million, $23 million and $18 million in Q1'25, Q4'24, Q3'24, Q2'24 and Q1'24, respectively; and (ii) dividends on preferred shares of $14 million, $14 million, $15 million, $15 million and $14 million in Q1'25, Q4'24, Q3'24, Q2'24 and Q1'24, respectively. |
| (B) | Within assets, "other" includes the following items as presented in our Consolidated Balance Sheets: Other loans, less reserves for credit losses, Premises and equipment and Other assets (including Other receivables); and within liabilities, "other" includes the following items: Accounts payable and Other liabilities. |
| (C) | Return on Average Equity (ROE) is calculated by dividing annualized net income for the period by average shareholders' equity for the period. Return on Average Common Equity (ROCE) is calculated by dividing annualized net income attributable to common shareholders for the period by average common shareholders' equity for the period. |
| (D) | Supplementary Leverage Ratio is calculated as Tier 1 capital divided by total leverage exposure. Total leverage exposure includes total average on-balance sheet assets and certain off-balance sheet exposures, less amounts permitted to be deducted from Tier 1 capital. We became a Category III firm in the third quarter of 2024 and thus are subject to a minimum supplementary leverage ratio from the fourth quarter onwards. |
| (E) | Presented for the purpose of calculating the Tier 1 Leverage Ratio. |
| (F) | Network volumes represent total transaction volumes (including cash advances) on payment products issued by American Express and under network partnership agreements with banks and other institutions, including joint ventures, as well as alternative payment solutions facilitated by American Express. |
| (G) | Billed business represents transaction volumes (including cash advances) on payment products issued by American Express. |
| (H) | Cards-in-force represent the number of cards that are issued and outstanding by American Express (proprietary cards-in-force) and cards issued and outstanding under network partnership agreements with banks and other institutions, except for retail cobrand cards issued by network partners that had no out-of-store spending activity during the prior twelve months. Basic cards-in-force excludes supplemental cards issued on consumer accounts. Cards-in-force is useful in understanding the size of our Card Member base. |
| (I) | Average fee per card is computed on an annualized basis based on proprietary net card fees divided by average proprietary total cards-in-force. |
| (J) | Proprietary new cards acquired represents the number of new cards issued by American Express during the referenced period, net of replacement cards. Proprietary new cards acquired is useful as a measure of the effectiveness of our customer acquisition strategy. |
| (K) | FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of conversion into U.S. dollars (e.g., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared). |
| (L) | Our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses and we therefore present a net write-off rate including principal, interest and/or fees. We also present a net write-off rate based on principal losses only to be consistent with industry convention. |
| (M) | Net write-off rate for principal losses only and 30+ days past due metrics represent consumer and small business, and are not available for corporate due to system constraints. |
| (N) | Other includes foreign currency impact on balance sheet re-measurement and translation. |
| (O) | For purposes of the calculation of net interest yield on Card Member loans and net interest income divided by average Card Member loans, average loans include loans held for sale (HFS) as we continue to recognize interest income on these loans until they are sold. Net interest income divided by average Card Member loans, computed on an annualized basis, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans. Net interest yield on average Card Member loans, a non-GAAP measure, is computed by dividing adjusted net interest income (also a non-GAAP measure) by average Card Member loans, computed on an annualized basis. Adjusted net interest income represents net interest income attributable to our Card Member loans (which includes, on a GAAP basis, interest that is deemed uncollectible), excluding the impact of interest expense and interest income not attributable to our Card Member loans. Reserves and net write-offs related to uncollectible interest are recorded through provisions for credit losses, and thus not included in the net interest yield calculation. We believe that net interest yield on average Card Member loans is useful to investors because it provides a measure of profitability of our Card Member loan portfolio. See Appendix II for calculations of net interest income divided by average Card Member loans and net interest yield on average Card Member loans. |
| (P) | Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables. |
| (Q) | Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios. |
15