American Express Co 10-Q for FY2025 Q1
American Express Co (AXP)
10-Q
2025-04-18
For: 2025-03-31
View Original
Added on
April 09, 2026
About this 10-Q
American Express Co filed this 10-Q on April 18, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).
Headline figures
Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $16.97B
- up 7.4% from $15.8B a year earlier
- Net income
- $2.58B
- up 6.0% from net income of $2.44B a year earlier
- Diluted EPS
- $3.64
- up 9.3% from $3.33 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2025
or
EXCHANGE ACT OF 1934
For the Transition Period from ____ to ____
Commission file number 1-7657
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant’s telephone number, including area code (212 ) 640-2000
| None | ||
Former name, former address and former fiscal year, if changed since last report.
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
| 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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No þ
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at April 11, 2025 | ||||||||||
| Common Shares (par value $0.20 per share) | Shares | ||||||||||
AMERICAN EXPRESS COMPANY
FORM 10-Q
INDEX
| Page No. | |||||||||||||||||
Throughout this report the terms “American Express,” “we,” “our” or “us,” refer to American Express Company and its subsidiaries on a consolidated basis, unless stated or the context implies otherwise. The use of the term “partner” or “partnering” in this report does not mean or imply a formal legal partnership, and is not meant in any way to alter the terms of American Express’ relationship with any third parties. Refer to the “MD&A ― Glossary of Selected Terminology” for the definitions of other key terms used in this report.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
Business Introduction
American Express is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses that offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world.
Our range of products and services includes:
•Credit card, charge card, banking and other payment and financing products
•Merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services
•Network services
•Travel and lifestyle services
•Expense management products and services
•Other services, such as the design and operation of customer loyalty programs
These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone and direct response advertising.
We compete in the global payments industry with networks, issuers, acquirers and other payment service providers and methods of payment, including paper-based transactions (e.g., cash and checks) and electronic transfers (e.g., wire transfers and Automated Clearing House (ACH)), as well as evolving and growing alternative mechanisms, systems and products that leverage new technologies, business models and customer relationships to create payment, financing or banking solutions. The payments industry continues to undergo dynamic changes in response to evolving technologies, consumer habits and merchant needs.
Forward-Looking Statements and Non-GAAP Measures
Certain of the statements in this Form 10-Q are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the “Cautionary Note Regarding Forward-Looking Statements” section. We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included within this Form 10-Q constitutes non-GAAP financial measures. Our calculations of non-GAAP financial measures may differ from the calculations of similarly titled measures by other companies.
Bank Holding Company
American Express is a bank holding company under the Bank Holding Company Act of 1956 and The Board of Governors of the Federal Reserve System (the Federal Reserve) is our primary federal regulator. As such, we are subject to the Federal Reserve’s regulations, policies and minimum capital standards. We are also subject to evolving and extensive government regulation and supervision in jurisdictions around the world.
1
Table 1: Summary of Financial Performance
As of or for the Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages, per share amounts and where indicated) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Selected Income Statement Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | $ | 16,967 | $ | 15,801 | $ | 1,166 | 7 | % | ||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense (FX-adjusted) (a) | 15,652 | 1,315 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | 1,150 | 1,269 | (119) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 12,487 | 11,387 | 1,100 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||
| Pretax income | 3,330 | 3,145 | 185 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
| Income tax provision | 746 | 708 | 38 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | 2,584 | 2,437 | 147 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
Earnings per common share — diluted (b) | $ | 3.64 | $ | 3.33 | $ | 0.31 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||
Selected Balance Sheet Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 52,508 | $ | 54,213 | $ | (1,705) | (3) | % | ||||||||||||||||||||||||||||||||||||||||||
Total loans and Card Member receivables (c) | 207,384 | 193,995 | 13,389 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans and Card Member receivables (FX-adjusted) (a)(c) | 193,048 | 14,336 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||
| Customer deposits | 146,396 | 134,418 | 11,978 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt | $ | 51,236 | $ | 48,826 | $ | 2,410 | 5 | % | ||||||||||||||||||||||||||||||||||||||||||
Common Share Statistics (d) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared per common share | $ | 0.82 | $ | 0.70 | $ | 0.12 | 17 | % | ||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 701 | 721 | (20) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | 702 | 722 | (20) | (3) | % | |||||||||||||||||||||||||||||||||||||||||||||
| Selected Metrics and Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||
Network volumes (billions) | $ | 439.6 | $ | 419.2 | $ | 20 | 5 | % | ||||||||||||||||||||||||||||||||||||||||||
Billed business (billions) | $ | 387.4 | $ | 367.0 | $ | 20 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||
Card Member loans and receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net write-off rate — principal, interest and fees (e) | 2.4 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Net write-off rate — principal only — consumer and small business (e)(f) | 2.1 | % | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
30+ days past due as a % of total — consumer and small business (g) | 1.3 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 22.4 | % | 22.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Return on average equity (h) | 33.6 | % | 34.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Common Equity Tier 1 | 10.7 | % | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency conversion into U.S. dollars (i.e., 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). FX-adjusted Total revenues net of interest expense and Total loans and Card Member receivables are non-GAAP measures. We believe the presentation of information on a foreign currency adjusted basis is helpful to investors by making it easier to compare our performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.
(b)Represents net income, less (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.
(c)Total loans reflects Card Member loans and Other loans.
(d)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP.
(e)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.
(f)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints.
(g)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables.
(h)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders’ equity for the period.
2
Business Performance
Our first quarter results reflect the continued strong performance of our premium customer base as demonstrated by Card Member spending, customer retention, demand for our premium products and credit performance. Net income for the first quarter was $2.6 billion, or $3.64 per share, compared with net income of $2.4 billion, or $3.33 per share, a year ago.
Billed business continued to grow at a solid pace, increasing 6 percent year-over-year. Growth was impacted by the stronger U.S. dollar year-over-year, as well as one less day due to the leap year in 2024 which drove about a percentage point reduction on growth rates across segments and spend categories. Excluding these impacts, G&S spending grew at a faster pace than in 2024, and T&E spending growth was generally consistent with the levels seen through most of 2024. Within T&E, restaurants and lodging showed continued strong growth, while airline spend growth softened. U.S. Consumer Services billed business grew by 7 percent year-over-year, with continued strength in spending by Millennial and Gen-Z Card Members as our products continue to resonate with these cohorts. Commercial Services billed business grew by 2 percent on a year-over-year basis, reflecting continued modest growth from U.S. small and mid-sized enterprise (SME) Card Members. International Card Services billed business grew by 9 percent year-over-year (13 percent on an FX-adjusted basis), driven by continued strong growth in spend across all regions and customer types outside the United States.1
Total revenues net of interest expense increased 7 percent year-over-year (8 percent on an FX-adjusted basis).1 Growth in billed business drove a 4 percent increase in Discount revenue, our largest revenue line. Net card fees increased 18 percent year-over-year, reflecting high levels of new card acquisitions and Card Member retention, as well as our cycle of product refreshes. Growth in Net interest income continued to moderate and increased 11 percent versus the prior year, primarily reflecting growth in revolving loan balances.
Total Loans and Card Member receivables increased 7 percent year-over-year with growth continuing to moderate sequentially. Net write-off and delinquency rates were stable year-over-year and remain best-in-class, supported by our premium global customer base, our strong focus on risk management and disciplined growth strategy. Provisions for credit losses decreased, driven by a modest reserve release, partially offset by higher net write-offs. Our Reserves for credit losses reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end.
Card Member rewards, Card Member services and Business development expenses, which are generally driven by volumes and usage, collectively grew faster than revenues as we continue to enhance our value propositions, drive Card Member engagement and acquire more Card Members on premium products. In addition, expense growth in this quarter was elevated due to a discrete benefit in the prior year from enhancements to U.S. Membership Rewards redemption models. Marketing expense was relatively flat year-over-year as we continued to invest at comparable levels to acquire high spending, high credit-quality customers. During the first quarter we acquired 3.4 million proprietary new cards. Operating expenses grew at a slower pace than revenue, reflecting continued operating expense discipline. We remain focused on driving marketing and operating expense efficiencies over time.
During the first quarter, we maintained our CET1 capital ratio within our target range of 10 to 11 percent and returned $1.3 billion of capital to our shareholders in the form of share repurchases and common stock dividends. We plan to continue to return to shareholders the excess capital we generate while managing our CET1 capital ratio within our target range and supporting balance sheet growth. Our robust capital, funding and liquidity positions provide us with significant flexibility to maintain a strong balance sheet.
While our results in the first quarter were strong, we recognize the uncertainty of the macroeconomic environment and we cannot predict what impacts the current uncertainty or any developments will have on the economy and our customers. We believe our differentiated business model, which includes our global premium customer base, spend- and fee-centric revenue mix and operating expense leverage, is resilient and positions us well to navigate a range of economic environments. We 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.
See “Certain Legislative, Regulatory and Other Developments” for information on legislative and regulatory changes that could have a material adverse effect on our results of operations and financial condition and “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” for information on potential impacts of macroeconomic, geopolitical and competitive conditions and certain litigation and regulatory matters on our business.
1 The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency conversion into U.S. dollars (i.e., 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). FX-adjusted revenues is a non-GAAP measure. We believe the presentation of information on a foreign currency adjusted basis is helpful to investors by making it easier to compare our performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.
3
Results of Operations
The discussions in both “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three months ended March 31, 2025 compared to the same period in the prior year, as presented in the accompanying tables.
Beginning in the first quarter of 2025, we made a presentation change to our Consolidated Statements of Income to consolidate Processed revenue within Service fees and other revenue and renamed Processed revenue to Network partnership revenue. Prior period amounts have been recast to conform to the current period presentation; there was no impact to Total non-interest revenues. Refer to Note 12 to the “Consolidated Financial Statements” for additional information.
Consolidated Results of Operations
Table 2: Total Revenues Net of Interest Expense Summary
Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Discount revenue | $ | 8,743 | $ | 8,380 | $ | 363 | 4 | % | ||||||||||||||||||||||||||||||||||||||||||
Net card fees | 2,333 | 1,974 | 359 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||
| Service fees and other revenue | 1,722 | 1,678 | 44 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total non-interest revenues | 12,798 | 12,032 | 766 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total interest income | 6,135 | 5,775 | 360 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total interest expense | 1,966 | 2,006 | (40) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 4,169 | 3,769 | 400 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | $ | 16,967 | $ | 15,801 | $ | 1,166 | 7 | % | ||||||||||||||||||||||||||||||||||||||||||
Total Revenues Net of Interest Expense
Discount revenue increased, primarily driven by an increase in billed business of 6 percent. See Tables 5 and 6 for more details on billed business performance.
Net card fees increased, primarily driven by growth in our premium card portfolios. See Table 5 for more details on proprietary new card acquisitions, proprietary cards-in-force and average fee per card.
Service fees and other revenue increased, primarily driven by a discrete revenue adjustment in the current period related to certain cash advance fees from prior years, higher foreign exchange-related revenues associated with Card Member cross-currency spending and higher network partnership revenues, partially offset by Accertify revenues included in the prior year.
Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.
Interest expense decreased, primarily driven by lower interest rates paid on customer deposits, partially offset by growth in customer deposits and long-term debt.
4
Table 3: Provisions for Credit Losses Summary
Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net write-offs | $ | 996 | $ | 855 | $ | 141 | 16 | % | ||||||||||||||||||||||||||||||||||||||||||
Reserve (release) build (a) | (95) | 159 | (254) | # | ||||||||||||||||||||||||||||||||||||||||||||||
Total | 901 | 1,014 | (113) | (11) | ||||||||||||||||||||||||||||||||||||||||||||||
| Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net write-offs | 169 | 217 | (48) | (22) | ||||||||||||||||||||||||||||||||||||||||||||||
Reserve (release) build (a) | (23) | (21) | (2) | (10) | ||||||||||||||||||||||||||||||||||||||||||||||
Total | 146 | 196 | (50) | (26) | ||||||||||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net write-offs — Other loans | 55 | 43 | 12 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||
Net write-offs — Other receivables | 3 | 6 | (3) | (50) | ||||||||||||||||||||||||||||||||||||||||||||||
Reserve build (release) — Other loans (a) | 50 | 10 | 40 | # | ||||||||||||||||||||||||||||||||||||||||||||||
Reserve (release) build — Other receivables (a) | (5) | — | (5) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total | 103 | 59 | 44 | 75 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses | $ | 1,150 | $ | 1,269 | $ | (119) | (9) | % | ||||||||||||||||||||||||||||||||||||||||||
| # Denotes a variance of 100 percent or more | ||||||||||||||||||||||||||||||||||||||||||||||||||
(a)Refer to the “Glossary of Selected Terminology” for a definition of reserve build (release).
Provisions for Credit Losses
Card Member loans provision for credit losses decreased, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Our reserves for the current period reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end. The reserve build in the prior period was primarily driven by an increase in loans outstanding and slightly higher delinquencies.
Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs and a higher reserve release in the current period. The reserve releases in both the current and prior periods were primarily driven by decreases in receivables outstanding.
Other provision for credit losses increased, primarily due to a higher reserve build in the current period and higher net write-offs. The reserve builds in both the current and prior periods primarily reflect increases in other loans outstanding as we continue to grow our Personal Loans and Business Line of Credit offerings.
5
Table 4: Expenses Summary
Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member rewards | $ | 4,378 | $ | 3,774 | $ | 604 | 16 | % | ||||||||||||||||||||||||||||||||||||||||||
| Business development | 1,529 | 1,392 | 137 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||
| Card Member services | 1,328 | 1,171 | 157 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||
| Marketing | 1,486 | 1,476 | 10 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 2,120 | 2,098 | 22 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||
| Other, net | 1,646 | 1,476 | 170 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | $ | 12,487 | $ | 11,387 | $ | 1,100 | 10 | % | ||||||||||||||||||||||||||||||||||||||||||
Expenses
Card Member rewards expense increased, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $488 million, and cobrand rewards expense of $116 million. The increase in Membership Rewards expense was primarily driven by a benefit in the prior year from enhancements to the models that estimate future redemptions of Membership Reward points by U.S. Card Members, as well as higher billed business and an increase in redemption costs reflecting a shift in the mix of Card Member redemptions. The increase in cobrand rewards expense was primarily driven by higher billed business.
The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 96 percent (rounded down) at both March 31, 2025 and 2024.
Business development expense increased, primarily due to increased partner payments driven by higher network volumes and higher client incentives.
Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.
Marketing expense was relatively flat, reflecting consistent levels of spending on customer acquisition and other growth initiatives.
Salaries and employee benefits expense increased, primarily driven by higher compensation costs, largely offset by a decrease in the value of deferred compensation liabilities.
Other expenses increased, primarily driven by higher professional service costs, losses on Amex Ventures investments and higher data processing costs, partially offset by higher net foreign exchange-related gains.
6
Income Taxes
The effective tax rate was 22.4 percent and 22.5 percent for the three months ended March 31, 2025 and 2024, respectively.
Table 5: Selected Card-Related Statistical Information
As of or for the Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
Network volumes (billions) | $ | 439.6 | $ | 419.2 | 5 | % | ||||||||||||||||||||||||||||||||
| Billed business | $ | 387.4 | $ | 367.0 | 6 | |||||||||||||||||||||||||||||||||
Cards-in-force (millions) | 147.5 | 142.4 | 4 | |||||||||||||||||||||||||||||||||||
| Proprietary cards-in-force | 84.6 | 81.1 | 4 | |||||||||||||||||||||||||||||||||||
Basic cards-in-force (millions) | 124.2 | 119.8 | 4 | |||||||||||||||||||||||||||||||||||
| Proprietary basic cards-in-force | 65.1 | 62.3 | 4 | |||||||||||||||||||||||||||||||||||
Average proprietary basic Card Member spending (dollars) | $ | 5,987 | $ | 5,919 | 1 | |||||||||||||||||||||||||||||||||
Average fee per card (dollars) (a) | $ | 111 | $ | 98 | 13 | % | ||||||||||||||||||||||||||||||||
Proprietary new cards acquired (millions) | 3.4 | 3.4 | ||||||||||||||||||||||||||||||||||||
| Discount revenue as a % of Billed business | 2.26% | 2.28% | ||||||||||||||||||||||||||||||||||||
(a)Average fee per card is computed on an annualized basis based on proprietary Net card fees divided by average proprietary total cards-in-force.
Table 6: Network Volumes-Related Statistical Information
Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||
| Year over Year Percentage Increase (Decrease) | Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a) | |||||||||||||||||||||||||
| Network volumes | 5 | % | 6 | % | ||||||||||||||||||||||
| Total billed business | 6 | 6 | ||||||||||||||||||||||||
| U.S. Consumer Services | 7 | |||||||||||||||||||||||||
| Commercial Services | 2 | 2 | ||||||||||||||||||||||||
| International Card Services | 9 | 13 | ||||||||||||||||||||||||
| Merchant industry billed business metrics | ||||||||||||||||||||||||||
G&S spend (72% of billed business) | 6 | 7 | ||||||||||||||||||||||||
T&E spend (28% of billed business) | 5 | % | 6 | % | ||||||||||||||||||||||
(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of conversion into U.S. dollars (i.e., 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).
7
Table 7: Selected Credit-Related Statistical Information
As of or for the Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||
(Millions, except percentages) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||
| Card Member loans and receivables: | ||||||||||||||||||||||||||||||||||||||
Net write-off rate — principal, interest and fees (a) | 2.4 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only — consumer and small business (a)(b) | 2.1 | % | 2.1 | % | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total — consumer and small business (c) | 1.3 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||
| Card Member loans: | ||||||||||||||||||||||||||||||||||||||
Card Member loans | $ | 139,203 | $ | 126,619 | 10 | % | ||||||||||||||||||||||||||||||||
| Credit loss reserves: | ||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,679 | $ | 5,118 | 11 | |||||||||||||||||||||||||||||||||
Provisions — principal, interest and fees | 901 | 1,014 | (11) | |||||||||||||||||||||||||||||||||||
| Net write-offs — principal less recoveries | (818) | (705) | 16 | |||||||||||||||||||||||||||||||||||
| Net write-offs — interest and fees less recoveries | (178) | (150) | 19 | |||||||||||||||||||||||||||||||||||
Other (d) | 8 | (6) | # | |||||||||||||||||||||||||||||||||||
| Ending balance | $ | 5,592 | $ | 5,271 | 6 | |||||||||||||||||||||||||||||||||
| % of loans | 4.0 | % | 4.2 | % | ||||||||||||||||||||||||||||||||||
| % of past due | 284 | % | 297 | % | ||||||||||||||||||||||||||||||||||
Average loans | $ | 137,697 | $ | 124,720 | 10 | |||||||||||||||||||||||||||||||||
Net write-off rate — principal, interest and fees (a) | 2.9 | % | 2.7 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only (a) | 2.4 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total | 1.4 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||
| Card Member receivables: | ||||||||||||||||||||||||||||||||||||||
Card Member receivables | $ | 58,503 | $ | 59,775 | (2) | |||||||||||||||||||||||||||||||||
| Credit loss reserves: | ||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 171 | $ | 174 | (2) | |||||||||||||||||||||||||||||||||
Provisions — principal and fees | 146 | 196 | (26) | |||||||||||||||||||||||||||||||||||
Net write-offs — principal and fees less recoveries | (169) | (217) | (22) | |||||||||||||||||||||||||||||||||||
Other (d) | — | (2) | # | |||||||||||||||||||||||||||||||||||
| Ending balance | $ | 148 | $ | 151 | (2) | % | ||||||||||||||||||||||||||||||||
| % of receivables | 0.3 | % | 0.3 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal and fees (a) | 1.2 | % | 1.5 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only — consumer and small business (a)(b) | 1.3 | % | 1.7 | % | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total — consumer and small business (c) | 1.0 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||
| # Denotes a variance of 100 percent or more | ||||||||||||||||||||||||||||||||||||||
(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.
(b)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints.
(c)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables.
(d)Other includes foreign currency translation adjustments.
8
Table 8: Net Interest Yield on Average Card Member Loans
Three Months Ended March 31, | ||||||||||||||||||||||||||
(Millions, except percentages) | 2025 | 2024 | ||||||||||||||||||||||||
| Net interest income | $ | 4,169 | $ | 3,769 | ||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (a) | 851 | 882 | ||||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (b) | (851) | (916) | ||||||||||||||||||||||||
Adjusted net interest income (c) | $ | 4,169 | $ | 3,735 | ||||||||||||||||||||||
Average Card Member loans including loans held for sale (d) | $ | 138,457 | $ | 124,720 | ||||||||||||||||||||||
Net interest income divided by average Card Member loans (c) | 12.2 | % | 12.2 | % | ||||||||||||||||||||||
Net interest yield on average Card Member loans (c) | 12.2 | % | 12.0 | % | ||||||||||||||||||||||
(a)Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(b)Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.
(c)Adjusted net interest income and net interest yield on average Card Member loans are non-GAAP measures. Refer to “Glossary of Selected Terminology” for the definitions of these terms. We believe adjusted net interest income is useful to investors because it represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio. Net interest yield on average Card Member loans reflects adjusted net interest income divided by average Card Member loans, computed on an annualized basis. Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, 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.
(d)For purposes of the calculation of net interest yield on Card Member loans, average loans includes loans held for sale (HFS) as we continue to recognize interest income on these loans until they are sold.
9
Business Segment Results of Operations
U.S. Consumer Services
Table 9: USCS Selected Income Statement Data
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | 2025 | 2024 | 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 5,243 | $ | 4,766 | $ | 477 | 10 | % | ||||||||||||||||||||||||||||||||||||||||||
| Interest income | 3,763 | 3,481 | 282 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 757 | 748 | 9 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 3,006 | 2,733 | 273 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 8,249 | 7,499 | 750 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | 631 | 727 | (96) | (13) | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 7,618 | 6,772 | 846 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member rewards, business development and Card Member services | 3,882 | 3,356 | 526 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing | 765 | 719 | 46 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses | 1,239 | 1,084 | 155 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 5,886 | 5,159 | 727 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income | $ | 1,732 | $ | 1,613 | $ | 119 | 7 | % | ||||||||||||||||||||||||||||||||||||||||||
U.S. Consumer Services (USCS) issues a wide range of proprietary consumer cards and provides services to U.S. consumers, including travel and lifestyle services as well as banking and non-card financing products. USCS also manages our dining platform that provides digital tools for restaurants and reservation bookings for diners.
Total Revenues Net of Interest Expense
Non-interest revenues increased across all revenue categories, primarily driven by higher Net card fees and Discount revenue.
Discount revenue increased 6 percent, primarily driven by an increase in U.S. consumer billed business. See Tables 5, 6 and 10 for more details on billed business performance.
Net card fees increased 21 percent, primarily driven by growth in our premium card portfolios.
Service fees and other revenue increased 11 percent, primarily driven by a discrete revenue adjustment in the current period related to certain cash advance fees from prior years, partially offset by lower revenue from the sale of reward points.
Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.
Interest expense increased, primarily driven by a higher cost of funds due to segment net asset growth, largely offset by lower interest rates.
Provisions for Credit Losses
Card Member loans provision for credit losses decreased, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Our reserves for the current period reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end. The reserve build in the prior period was primarily driven by slightly higher delinquencies.
Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs. The reserve releases in both the current and prior periods were primarily driven by decreases in receivables outstanding.
Other provision for credit losses increased, primarily due to a higher reserve build in the current period and higher net write-offs. The reserve builds in both the current and prior periods primarily reflect increases in other loans outstanding as we continue to grow our Personal Loans offerings.
10
Expenses
Total expenses increased across all expense categories, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.
Card Member rewards expense increased, primarily driven by the above-mentioned benefit from enhancements to the U.S. URR models made in the prior year, as well as higher billed business and an increase in redemption costs reflecting a shift in the mix of Card Member redemptions.
Business development expense increased, primarily due to increased partner payments driven by higher billed business.
Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.
Marketing expense increased, reflecting higher levels of spending on customer acquisitions and other growth initiatives.
Salaries and employee benefits and other expenses increased, primarily due to an increase in allocated service costs and higher compensation costs.
11
Table 10: USCS Selected Statistical Information
As of or for the Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||
Billed business (billions) | $ | 164.3 | $ | 153.4 | 7 | % | ||||||||||||||||||||||||||||||||
| Proprietary cards-in-force | 46.8 | 44.4 | 5 | |||||||||||||||||||||||||||||||||||
| Proprietary basic cards-in-force | 33.0 | 31.1 | 6 | |||||||||||||||||||||||||||||||||||
Average proprietary basic Card Member spending (dollars) | $ | 5,014 | $ | 4,962 | 1 | |||||||||||||||||||||||||||||||||
Total segment assets | $ | 110,886 | $ | 104,297 | 6 | |||||||||||||||||||||||||||||||||
| Card Member loans: | ||||||||||||||||||||||||||||||||||||||
Total loans | $ | 90,072 | $ | 82,255 | 10 | |||||||||||||||||||||||||||||||||
Average loans | $ | 89,983 | $ | 81,746 | 10 | |||||||||||||||||||||||||||||||||
Net write-off rate — principal, interest and fees (a) | 3.0 | % | 2.8 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only (a) | 2.4 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 1.4 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||
| Calculation of Net Interest Yield on Average Card Member Loans: | ||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 3,006 | $ | 2,733 | ||||||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (b) | 64 | 36 | ||||||||||||||||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (c) | (177) | (122) | ||||||||||||||||||||||||||||||||||||
Adjusted net interest income (d) | $ | 2,893 | $ | 2,647 | ||||||||||||||||||||||||||||||||||
Average Card Member loans | $ | 89,983 | $ | 81,746 | ||||||||||||||||||||||||||||||||||
Net interest income divided by average Card Member loans (d) | 13.5 | % | 13.4 | % | ||||||||||||||||||||||||||||||||||
Net interest yield on average Card Member loans (d) | 13.0 | % | 13.0 | % | ||||||||||||||||||||||||||||||||||
Card Member receivables: | ||||||||||||||||||||||||||||||||||||||
Total receivables | $ | 12,824 | $ | 13,588 | (6) | % | ||||||||||||||||||||||||||||||||
Net write-off rate — principal and fees (a) | 0.8 | % | 1.5 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only (a) | 0.7 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 0.7 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||
(a)Refer to Table 7 footnote (a).
(b)Refer to Table 8 footnote (a).
(c)Refer to Table 8 footnote (b).
(d)Refer to Table 8 footnote (c).
12
Commercial Services
Table 11: CS Selected Income Statement Data
Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 3,265 | $ | 3,194 | $ | 71 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Interest income | 1,202 | 1,005 | 197 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 432 | 414 | 18 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 770 | 591 | 179 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 4,035 | 3,785 | 250 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | 329 | 355 | (26) | (7) | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 3,706 | 3,430 | 276 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member rewards, business development and Card Member services | 1,746 | 1,493 | 253 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing | 337 | 326 | 11 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits and other operating expenses | 787 | 733 | 54 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 2,870 | 2,552 | 318 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income | $ | 836 | $ | 878 | $ | (42) | (5) | % | ||||||||||||||||||||||||||||||||||||||||||
Commercial Services (CS) issues a wide range of proprietary corporate and small business cards and provides services to U.S. businesses, including payment and expense management, banking and non-card financing products. CS also issues proprietary corporate cards and provides services to select global corporate clients.
Total Revenues Net of Interest Expense
Non-interest revenues increased, primarily driven by higher Discount revenue and Net card fees.
Discount revenue increased 2 percent, primarily driven by an increase in commercial billed business. See Tables 5, 6 and 12 for more details on billed business performance.
Net card fees increased 13 percent, primarily driven by growth in our premium card portfolios.
Service fees and other revenue decreased 6 percent, primarily driven by lower travel commissions and fees from our Amex Travel business.
Interest income increased, primarily driven by growth in revolving loan balances.
Interest expense increased, primarily driven by a higher cost of funds due to segment net asset growth, partially offset by lower interest rates.
Provisions for Credit Losses
Card Member loans provision for credit losses decreased, primarily due to a lower reserve build in the current period, partially offset by higher net write-offs. The reserve build in the current period was primarily driven by an increase in loans outstanding. The reserve build in the prior period was primarily driven by higher delinquencies and an increase in loans outstanding.
Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs and a higher reserve release in the current period. The reserve releases in both the current and prior periods reflected the quality of our receivables portfolio.
Other provision for credit losses increased, primarily due to a higher reserve build in the current period and higher net write-offs. The reserve builds in both the current and prior periods primarily reflect increases in other loans outstanding as we continue to grow our Business Line of Credit offerings.
13
Expenses
Total expenses increased, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.
Card Member rewards expense increased, primarily driven by the above-mentioned benefit from enhancements to the U.S. URR models made in the prior year, as well as higher redemption costs reflecting a shift in the mix of Card Member redemptions.
Business development expense increased, primarily due to higher client incentives and increased partner payments driven by higher billed business.
Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.
Marketing expense increased, reflecting higher levels of spending on customer acquisitions and other growth initiatives.
Salaries and employee benefits and other expenses increased, primarily due to higher compensation costs and an increase in allocated service costs.
14
Table 12: CS Selected Statistical Information
As of or for the Three Months Ended March 31, | Change 2025 vs 2024 | |||||||||||||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||
Billed business (billions) | $ | 129.2 | $ | 127.1 | 2 | % | ||||||||||||||||||||||||||||||||
| Proprietary cards-in-force | 15.5 | 15.4 | 1 | |||||||||||||||||||||||||||||||||||
Average Card Member spending (dollars) | $ | 8,380 | $ | 8,261 | 1 | |||||||||||||||||||||||||||||||||
Total segment assets | $ | 62,012 | $ | 58,143 | 7 | |||||||||||||||||||||||||||||||||
| Card Member loans: | ||||||||||||||||||||||||||||||||||||||
Total loans | $ | 31,240 | $ | 27,634 | 13 | |||||||||||||||||||||||||||||||||
Average loans | $ | 30,307 | $ | 26,553 | 14 | |||||||||||||||||||||||||||||||||
Net write-off rate — principal, interest and fees (a) | 3.0 | % | 2.6 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only (a) | 2.6 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 1.6 | % | 1.5 | % | ||||||||||||||||||||||||||||||||||
| Calculation of Net Interest Yield on Average Card Member Loans: | ||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 770 | $ | 591 | ||||||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (b) | 192 | 184 | ||||||||||||||||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (c) | (88) | (74) | ||||||||||||||||||||||||||||||||||||
Adjusted net interest income (d) | $ | 874 | $ | 701 | ||||||||||||||||||||||||||||||||||
Average Card Member loans including loans held for sale (e) | $ | 31,067 | $ | 26,553 | ||||||||||||||||||||||||||||||||||
Net interest income divided by average Card Member loans (d) | 10.1 | % | 9.0 | % | ||||||||||||||||||||||||||||||||||
Net interest yield on average Card Member loans (d) | 11.4 | % | 10.6 | % | ||||||||||||||||||||||||||||||||||
| Card Member receivables: | ||||||||||||||||||||||||||||||||||||||
Total receivables | $ | 26,172 | $ | 27,024 | (3) | % | ||||||||||||||||||||||||||||||||
Net write-off rate — principal and fees (f) | 1.3 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only (a) — small business | 1.9 | % | 2.1 | % | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total — small business | 1.3 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||
90+ days past billing as a % of total (f) — corporate | 0.4 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||
(a)Refer to Table 7 footnote (a).
(b)Refer to Table 8 footnote (a).
(c)Refer to Table 8 footnote (b).
(d)Refer to Table 8 footnote (c).
(e)Refer to Table 8 footnote (d).
(f)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. Corporate receivables delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.
15
International Card Services
Table 13: ICS Selected Income Statement Data
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | 2025 | 2024 | 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 2,646 | $ | 2,437 | $ | 209 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Interest income | 596 | 583 | 13 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 306 | 307 | (1) | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 290 | 276 | 14 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 2,936 | 2,713 | 223 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | 192 | 182 | 10 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 2,744 | 2,531 | 213 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member rewards, business development and Card Member services | 1,312 | 1,203 | 109 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing | 300 | 352 | (52) | (15) | ||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses | 751 | 724 | 27 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 2,363 | 2,279 | 84 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income | $ | 381 | $ | 252 | $ | 129 | 51 | % | ||||||||||||||||||||||||||||||||||||||||||
International Card Services (ICS) issues a wide range of proprietary consumer, small business and corporate cards outside the United States. ICS also provides services to our international customers, including travel and lifestyle services, and manages certain international joint ventures and our loyalty coalition business.
Total Revenues Net of Interest Expense
Non-interest revenues increased across all revenue categories, primarily driven by higher Discount revenue and Net card fees.
Discount revenue increased 7 percent (11 percent on an FX-adjusted basis), primarily reflecting an increase in billed business.2 See Tables 5, 6 and 14 for more details on billed business performance.
Net card fees increased 16 percent (21 percent on an FX-adjusted basis), primarily driven by growth in our premium card portfolios.2
Service fees and other revenue increased 5 percent (9 percent on an FX-adjusted basis), primarily driven by higher foreign exchange related revenues associated with Card Member cross-currency spending and higher loyalty coalition-related fees.2
Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.
Interest expense was relatively flat, reflecting a stable cost of funds due to lower interest rates, largely offset by segment net asset growth.
Provisions for Credit Losses
Card Member loans provision for credit losses increased, primarily due to a reserve build in the current period, versus a reserve release in the prior period, partially offset by lower net write-offs. The reserve build in the current period was primarily driven by an increase in loans outstanding and higher delinquencies. The reserve release in the prior period was driven by the performance of portfolios in certain international markets.
Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs, partially offset by a higher reserve build in the current period. The reserve build in the current period was primarily driven by higher delinquencies.
2 Refer to footnote 1 on page 3 for details regarding foreign currency adjusted information.
16
Expenses
Total expenses increased, primarily driven by higher Card Member rewards, Business development and Salaries and employee benefits and other expenses, partially offset by lower Marketing expense.
Card Member rewards expense increased, primarily driven by higher billed business.
Business development expense increased, primarily due to increased partner payments driven by higher billed business.
Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.
Marketing expense decreased, primarily due to management decisions regarding the timing of spend on customer acquisitions and engagement campaigns for the full year.
Salaries and employee benefits and other expenses increased, primarily due to higher allocated service costs and compensation costs, partially offset by a non-income tax reimbursement.
17
Table 14: ICS Selected Statistical Information
As of or for the Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||
Billed business (billions) | $ | 92.9 | $ | 85.4 | 9 | % | ||||||||||||||||||||||||||||||||
| Proprietary cards-in-force | 22.3 | 21.3 | 5 | |||||||||||||||||||||||||||||||||||
| Proprietary basic cards-in-force | 16.7 | 15.8 | 6 | |||||||||||||||||||||||||||||||||||
Average proprietary basic Card Member spending (dollars) | $ | 5,619 | $ | 5,436 | 3 | |||||||||||||||||||||||||||||||||
Total segment assets | $ | 42,620 | $ | 41,472 | 3 | |||||||||||||||||||||||||||||||||
Card Member loans — consumer and small business: | ||||||||||||||||||||||||||||||||||||||
Total loans | $ | 17,891 | $ | 16,730 | 7 | |||||||||||||||||||||||||||||||||
Average loans | $ | 17,407 | $ | 16,422 | 6 | |||||||||||||||||||||||||||||||||
Net write-off rate — principal, interest and fees (a) | 2.3 | % | 2.6 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only (a) | 2.0 | % | 2.2 | % | ||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 1.2 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||
| Calculation of Net Interest Yield on Average Card Member Loans: | ||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 290 | $ | 276 | ||||||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (b) | 123 | 126 | ||||||||||||||||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (c) | (11) | (15) | ||||||||||||||||||||||||||||||||||||
Adjusted net interest income (d) | $ | 402 | $ | 387 | ||||||||||||||||||||||||||||||||||
Average Card Member loans | $ | 17,407 | $ | 16,422 | ||||||||||||||||||||||||||||||||||
Net interest income divided by average Card Member loans (d) | 6.8 | % | 6.8 | % | ||||||||||||||||||||||||||||||||||
Net interest yield on average Card Member loans (d) | 9.4 | % | 9.5 | % | ||||||||||||||||||||||||||||||||||
| Card Member receivables: | ||||||||||||||||||||||||||||||||||||||
Total receivables | $ | 19,507 | $ | 19,163 | 2 | % | ||||||||||||||||||||||||||||||||
Net write-off rate — principal and fees (e) | 1.3 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||
Net write-off rate — principal only (a) — consumer and small business | 1.3 | % | 1.7 | % | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total — consumer and small business | 1.0 | % | 1.0 | % | ||||||||||||||||||||||||||||||||||
90+ days past billing as a % of total (e) — corporate | 0.4 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||
(a)Refer to Table 7 footnote (a).
(b)Refer to Table 8 footnote (a).
(c)Refer to Table 8 footnote (b).
(d)Refer to Table 8 footnote (c).
(e)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. Corporate receivables delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.
18
Global Merchant and Network Services
Table 15: GMNS Selected Income Statement and Other Data
Three Months Ended March 31, | Change 2025 vs. 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 1,660 | $ | 1,655 | $ | 5 | — | % | ||||||||||||||||||||||||||||||||||||||||||
| Interest income | 12 | 17 | (5) | (29) | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (143) | (198) | 55 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 155 | 215 | (60) | (28) | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 1,815 | 1,870 | (55) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | (2) | 6 | (8) | # | ||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 1,817 | 1,864 | (47) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Business development and Card Member services | 283 | 279 | 4 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing | 76 | 73 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses | 468 | 495 | (27) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 827 | 847 | (20) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income | 990 | 1,017 | (27) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||
Network volumes (billions) | 439.6 | 419.2 | $ | 20 | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Total segment assets | $ | 18,083 | $ | 24,885 | (27) | % | ||||||||||||||||||||||||||||||||||||||||||||
| # Denotes a variance of 100 percent or more | ||||||||||||||||||||||||||||||||||||||||||||||||||
Global Merchant and Network Services (GMNS) operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network.
Total Revenues Net of Interest Expense
Non-interest revenues increased, primarily driven by higher Discount revenue, partially offset by lower Service fees and other revenue.
Discount revenue increased 2 percent, primarily driven by an increase in billed business, partially offset by lower average merchant discount rates. See Tables 5 and 6 for more details on billed business performance.
Service fees and other revenue decreased, primarily driven by Accertify revenues included in the prior year, partially offset by increases in network partnership revenues and foreign exchange related revenues associated with Card Member cross-currency spending.
GMNS receives an interest expense credit relating to internal transfer pricing due to its merchant payables. Net interest income decreased, primarily due to a lower interest expense credit, largely driven by a decrease in interest rates in international markets and lower average merchant payables.
Expenses
Total expenses decreased, primarily driven by lower Salaries and employee benefits and other expenses, partially offset by higher Business development and Marketing expenses.
Business development expense increased, primarily due to increased partner payments driven by higher volumes from certain network issuing partners.
Marketing expense increased, reflecting higher levels of spending on merchant engagement and other growth initiatives.
Salaries and employee benefits and other expenses decreased, primarily driven by Accertify costs included in the prior year and lower allocated service costs.
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Corporate & Other
Corporate functions and certain other businesses are included in Corporate & Other.
Corporate & Other pretax loss was $609 million and $615 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in pretax loss was primarily driven by a decrease in the value of deferred compensation liabilities, partially offset by losses on Amex Ventures investments.
CONSOLIDATED CAPITAL RESOURCES AND LIQUIDITY
Our balance sheet management objectives are to maintain:
•A solid and flexible equity capital profile;
•A broad, deep and diverse set of funding sources to finance our assets and meet operating requirements; and
•Liquidity programs that enable us to continuously meet expected future financing obligations and business requirements for at least a twelve month period under a variety of adverse circumstances.
We continue to see volatility in the capital markets due to a variety of factors and manage our balance sheet to reflect evolving circumstances.
Capital
We believe capital allocated to growing businesses with a return on risk-adjusted equity in excess of our costs will generate shareholder value. Our objective is to retain sufficient levels of capital generated through net income and other sources, such as the issuance of subordinated debt and preferred shares, as well as the exercise of stock options by colleagues, to maintain a strong balance sheet, provide flexibility to support future business growth, and distribute excess capital to shareholders through dividends and share repurchases. See “Dividends and Share Repurchases” below.
We seek to maintain capital levels and ratios in excess of our minimum regulatory requirements, specifically within a 10 to 11 percent target range for American Express Company’s Common Equity Tier 1 (CET1) risk-based capital ratio.
We maintain certain flexibility to shift capital across our businesses as appropriate. For example, we may infuse additional capital into subsidiaries to maintain capital at targeted levels in consideration of debt ratings and regulatory requirements. These infused amounts can affect the capital and liquidity positions at American Express Company or at our subsidiaries.
We report our capital ratios using the Basel III capital definitions and the Basel III standardized approach for calculating risk-weighted assets.
20
The following table presents our regulatory risk-based capital and leverage ratios and those of American Express National Bank (AENB), as of March 31, 2025:
Table 16: Regulatory Risk-Based Capital and Leverage Ratios
Effective Minimum (a) | Ratios as of March 31, 2025 | |||||||||||||
| Risk-Based Capital | ||||||||||||||
| Common Equity Tier 1 | 7.0 | % | ||||||||||||
| American Express Company | 10.7 | % | ||||||||||||
| American Express National Bank | 11.8 | |||||||||||||
| Tier 1 | 8.5 | |||||||||||||
| American Express Company | 11.4 | |||||||||||||
| American Express National Bank | 11.8 | |||||||||||||
| Total | 10.5 | |||||||||||||
| American Express Company | 13.4 | |||||||||||||
| American Express National Bank | 13.4 | |||||||||||||
| Tier 1 Leverage | 4.0 | |||||||||||||
| American Express Company | 10.0 | |||||||||||||
| American Express National Bank | 9.5 | |||||||||||||
Supplementary Leverage Ratio | 3.0 | % | ||||||||||||
| American Express Company | 8.5 | |||||||||||||
| American Express National Bank | 8.0 | % | ||||||||||||
(a)Represents Basel III minimum requirements and applicable regulatory buffers as defined by the federal banking regulators, which includes the stress capital buffer (SCB) for American Express Company and the capital conservation buffer for AENB.
The following table presents American Express Company’s regulatory risk-based capital and risk-weighted assets as of March 31, 2025:
Table 17: Regulatory Risk-Based Capital Components and Risk-Weighted Assets
American Express Company ($ in Billions) | March 31, 2025 | |||||||
| Risk-Based Capital | ||||||||
| Common Equity Tier 1 | $ | 25.6 | ||||||
| Tier 1 Capital | 27.2 | |||||||
Tier 2 Capital | 4.8 | |||||||
| Total Capital | 32.0 | |||||||
| Risk-Weighted Assets | 239.6 | |||||||
| Average Total Assets to calculate the Tier 1 Leverage Ratio | 273.1 | |||||||
Total Leverage Exposure to calculate the Supplementary Leverage Ratio | $ | 322.4 | ||||||
The following are definitions for our regulatory risk-based capital and leverage ratios, which are calculated as per standard regulatory guidance:
Risk-Weighted Assets — Assets are weighted for risk according to a formula used by the Federal Reserve to conform to capital adequacy guidelines. On- and off-balance sheet items are risk weighted, with off-balance sheet items converted to balance sheet equivalents, using risk conversion factors, before being assigned a risk weight. Off-balance sheet exposures comprise a minimal part of the total risk-weighted assets.
Common Equity Tier 1 Risk-Based Capital Ratio — Calculated as CET1 capital, divided by risk-weighted assets. CET1 capital is common shareholders’ equity, adjusted for ineligible goodwill and intangible assets and certain deferred tax assets.
Tier 1 Risk-Based Capital Ratio — Calculated as Tier 1 capital divided by risk-weighted assets. Tier 1 capital is the sum of CET1 capital, preferred shares and third-party non-controlling interests in consolidated subsidiaries, adjusted for capital held by insurance subsidiaries. We have $1.6 billion of preferred shares outstanding to help address a portion of the Tier 1 capital requirements in excess of common equity requirements.
21
Total Risk-Based Capital Ratio — Calculated as the sum of Tier 1 capital and Tier 2 capital, divided by risk-weighted assets. Tier 2 capital is the sum of the allowable allowance for credit losses and $1,750 million of eligible subordinated notes, adjusted for capital held by insurance subsidiaries. The $1,750 million of eligible subordinated notes includes the $500 million subordinated debt issued in April 2024, the $500 million subordinated debt issued in July 2023 and the $750 million subordinated debt issued in May 2022.
Tier 1 Leverage Ratio — Calculated as Tier 1 capital divided by average total consolidated assets for the most recent quarter.
Supplementary Leverage Ratio — 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 continue to include accumulated other comprehensive income (loss) in regulatory capital.
We are subject to an annual supervisory stress test conducted by the Federal Reserve. We submitted our annual capital plan to the Federal Reserve in April 2025. Our current SCB of 2.5 percent is effective until September 30, 2025. The Federal Reserve is expected to notify us in the second quarter of 2025 of the SCB that will be effective October 1, 2025 to September 30, 2026, subject to final confirmation.
Dividends and Share Repurchases
We return capital to common shareholders through dividends and share repurchases. The share repurchases reduce common shares outstanding and generally more than offset the issuance of new shares as part of employee compensation plans.
During the three months ended March 31, 2025, we returned $1.3 billion to our shareholders in the form of share repurchases of $0.7 billion and common stock dividends of $0.6 billion. We repurchased 2.3 million common shares at an average price of $297.37 in the first quarter of 2025.
In addition, during the three months ended March 31, 2025, we paid $14 million in dividends on non-cumulative perpetual preferred shares outstanding.
Funding Strategy
Our principal funding objective is to maintain broad and well-diversified funding sources to allow us to finance our global businesses and to maintain a strong liquidity profile. Our funding strategy and activities are integrated into our asset-liability management activities. We have in place a funding policy covering American Express Company and all of our subsidiaries.
We aim to satisfy our financing needs with a diverse set of funding sources. The diversity of funding sources by type of instrument, by tenor and by investor base, among other factors, mitigates the impact of disruptions in any one type of instrument, tenor or investor. We seek to achieve diversity and cost efficiency in our funding sources by maintaining scale and market relevance in deposits, unsecured debt and asset securitizations and access to secured borrowing facilities and a committed bank credit facility. In particular, we are focused on continuing to grow our direct deposit program as a funding source.
22
Summary of Consolidated Debt
We had the following customer deposits and consolidated debt outstanding as of March 31, 2025 and December 31, 2024:
Table 18: Summary of Customer Deposits and Consolidated Debt
| (Billions) | March 31, 2025 | December 31, 2024 | ||||||||||||
| Customer deposits | $ | 146.4 | $ | 139.4 | ||||||||||
| Short-term borrowings | 1.6 | 1.4 | ||||||||||||
| Long-term debt | 51.2 | 49.7 | ||||||||||||
| Total customer deposits and debt | $ | 199.2 | $ | 190.5 | ||||||||||
We may redeem from time to time certain debt securities prior to the original contractual maturity dates in accordance with the optional redemption provisions of those debt securities.
Our funding needs are driven by, among other factors, maturing obligations, our liquidity position and the pace of growth in our loans and receivables balances. Actual funding activities can vary due to various factors, such as future business growth, the impact of global economic, political and other events on market capacity and funding needs, demand for securities offered by us, regulatory changes, ability to securitize and sell loans and receivables, and the performance of loans and receivables previously sold in securitization transactions. Many of these factors are beyond our control.
The following table presents our debt issuances for the three months ended March 31, 2025:
Table 19: Debt Issuances
| (Billions) | Three Months Ended March 31, 2025 | |||||||
| American Express Company: | ||||||||
Floating Rate Senior Notes (compounded SOFR(a) plus 102 basis points) | $ | 0.3 | ||||||
Fixed-to-Floating Rate Senior Notes (weighted-average coupon of 5.25% during the fixed rate period and compounded SOFR(a) plus weighted-average spread of 116 basis points during the floating rate period) | 2.7 | |||||||
| American Express Credit Account Master Trust: | ||||||||
Fixed Rate Class A Certificates (coupon of 4.56%) | $ | 1.4 | ||||||
| Total | $ | 4.4 | ||||||
(a)Secured overnight financing rate (SOFR).
23
Our equity capital and funding strategies are designed, among other things, to maintain appropriate and stable unsecured debt ratings from the major credit rating agencies: Moody’s Investor Services (Moody’s), Standard & Poor’s (S&P) and Fitch Ratings (Fitch). Such ratings help support our access to cost-effective unsecured funding as part of our overall funding strategy. Our asset securitization activities are rated separately.
Table 20: Unsecured Debt Ratings
| American Express Entity | Moody’s | S&P | Fitch | |||||||||||
| American Express Company | Long Term | A2 | A- | A | ||||||||||
| Short Term | N/R | A-2 | F1 | |||||||||||
| Outlook | Stable | Stable | Stable | |||||||||||
| American Express Travel Related Services Company, Inc. | Long Term | A2 | A | A | ||||||||||
| Short Term | P-1 | A-1 | F1 | |||||||||||
| Outlook | Stable | Stable | Stable | |||||||||||
| American Express National Bank | Long Term | A3 | A | A | ||||||||||
| Short Term | P-1 | A-1 | F1 | |||||||||||
| Outlook | Stable | Stable | Stable | |||||||||||
| American Express Credit Corporation | Long Term | A2 | A | A | ||||||||||
| Short Term | N/R | N/R | N/R | |||||||||||
| Outlook | Stable | Stable | Stable | |||||||||||
These ratings are not a recommendation to buy or hold any of our securities and they may be revised or revoked at any time at the sole discretion of the rating organization.
Downgrades in the ratings of our unsecured debt or asset securitization program securities could result in higher funding costs, as well as higher fees related to borrowings under our unused credit facilities. Declines in credit ratings could also reduce our borrowing capacity in the unsecured debt and asset securitization capital markets. We believe our funding mix, including the proportion of U.S. direct deposits insured by the Federal Deposit Insurance Corporation (FDIC) to total funding, should reduce the impact that credit rating downgrades would have on our funding capacity and costs.
24
Deposit Programs
We offer deposits within our U.S. bank subsidiary, AENB. These funds are currently insured up to an amount that is at least $250,000 per depositor, per ownership category through the FDIC; as of March 31, 2025, approximately 92 percent of these deposits were insured. Our ability to obtain deposit funding and offer competitive interest rates is dependent on, among other factors, the capital level of AENB. The direct deposit program offered by AENB is our primary deposit product channel, which makes FDIC-insured high-yield savings account, certificates of deposit (CDs), business checking and consumer rewards checking account products available directly to customers. As of March 31, 2025, our direct deposit program had approximately 3.5 million accounts. AENB also sources deposits through third-party distribution channels as needed to meet our overall funding objectives. CDs carry stated maturities while high-yield savings account, checking account and third-party sweep deposit products do not. We manage the duration of our maturing obligations, including CDs, to reduce concentration and refinancing risk.
As of March 31, 2025 and December 31, 2024, we had $146.4 billion and $139.4 billion, respectively, in deposits. Refer to Note 6 to the “Consolidated Financial Statements” for a further description of these deposits and scheduled maturities of certificates of deposits.
The following table sets forth the average interest rates we paid on different types of deposits during the three months ended March 31, 2025 and 2024. The change in the average interest rate we paid on our interest-bearing deposits compared to the prior year was primarily due to the impact of lower market interest rates offered for savings deposits.
Table 21: Average Interest Rates Paid on Deposits
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2025 | 2024 | |||||||||||||||||||||||||||||||||||||
(Millions, except percentages) | Average Balance | Interest Expense | Average Interest Rate (a) | Average Balance | Interest Expense | Average Interest Rate (a) | ||||||||||||||||||||||||||||||||
Savings accounts | $ | 110,749 | $ | 1,012 | 3.7 | % | $ | 95,947 | $ | 1,018 | 4.3 | % | ||||||||||||||||||||||||||
Checking accounts | 2,188 | 7 | 1.4 | 1,438 | 4 | 1.2 | ||||||||||||||||||||||||||||||||
| Certificates of deposit: | ||||||||||||||||||||||||||||||||||||||
| Direct | 4,261 | 43 | 4.1 | 5,438 | 57 | 4.2 | ||||||||||||||||||||||||||||||||
| Third-party (brokered) | 9,236 | 98 | 4.3 | 12,481 | 126 | 4.0 | ||||||||||||||||||||||||||||||||
| Sweep accounts — Third-party (brokered) | 15,443 | 177 | 4.6 | 15,696 | 221 | 5.7 | ||||||||||||||||||||||||||||||||
Total U.S. interest-bearing deposits | $ | 141,877 | $ | 1,337 | 3.8 | % | $ | 131,000 | $ | 1,426 | 4.4 | % | ||||||||||||||||||||||||||
(a)Average interest rate reflects interest expense divided by average deposits, computed on an annualized basis.
25
Liquidity Management
Our liquidity objective is to maintain access to a diverse set of on- and off-balance sheet liquidity sources. We seek to maintain liquidity sources in amounts sufficient to meet our expected future financial obligations and business requirements for liquidity for a period of at least twelve months under a variety of adverse circumstances. These include, but are not limited to, an event where we are unable to raise new funds under our regular funding programs during a substantial weakening in economic conditions.
Our liquidity management strategy includes a number of elements, including, but not limited to:
•Maintaining diversified funding sources (refer to “Funding Strategy” above for more details);
•Maintaining unencumbered liquid assets and off-balance sheet liquidity sources;
•Projecting cash inflows and outflows under a variety of economic and market scenarios; and
•Establishing clear objectives for liquidity risk management, including compliance with regulatory requirements.
We seek to maintain access to a diverse set of on-balance sheet and off-balance sheet liquidity sources, including cash and other liquid assets, secured borrowing facilities and a committed bank credit facility. Through our U.S. bank subsidiary, AENB, we have also pledged collateral eligible for use at the Federal Reserve’s discount window.
The amount and type of liquidity resources we maintain can vary over time, based upon the results of stress scenarios required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as additional stress scenarios required under our liquidity risk policy. Additionally, we are subject to the regulatory requirements under the liquidity coverage ratio and net stable funding ratio rules, subject to applicable transition periods. See the “Supervision and Regulation — Capital and Liquidity Regulation” section of the 2024 Form 10-K for more information. We believe that we currently maintain sufficient liquidity to meet all internal and regulatory liquidity requirements.
As of March 31, 2025 and December 31, 2024, we had $52.5 billion and $40.6 billion in Cash and cash equivalents, respectively. Refer to the “Cash Flows” section below for a discussion of the major drivers impacting cash flows for the three months ended March 31, 2025. Depending on the interest rate environment, our funding composition and the amount of liquidity resources we maintain, the level of future net interest income or expense associated with our liquidity resources will vary. During the three months ended March 31, 2025, interest income exceeded the interest expense associated with the liquidity portfolio.
Securitized Borrowing Capacity
As of March 31, 2025, we maintained our committed, revolving, secured borrowing facility, with a maturity date of July 15, 2026, which gives us the right to sell up to $3.0 billion face amount of eligible AAA notes from the American Express Issuance Trust II (the Charge Trust). We also maintained our committed, revolving, secured borrowing facility, with a maturity date of September 15, 2026, which gives us the right to sell up to $3.0 billion face amount of eligible AAA certificates from American Express Credit Account Master Trust (the Lending Trust). These facilities enhance our contingent funding resources and are also used in the ordinary course of business to fund working capital needs. As of March 31, 2025, no amounts were drawn on the Charge Trust facility or Lending Trust facility.
Committed Bank Credit Facility
As of March 31, 2025, we maintained a committed syndicated bank credit facility of $4.0 billion with a maturity date of October 30, 2026. This facility enhances our contingent funding resources and is also used in the ordinary course of business to fund working capital needs. As of March 31, 2025, $350 million was drawn on this facility.
Other Sources of Liquidity
In addition to cash and other liquid assets and the secured borrowing facilities and committed bank credit facility described above, as an insured depository institution, AENB may borrow from the Federal Reserve Bank of San Francisco through the discount window against the U.S. credit card loans and charge card receivables that it pledged.
As of March 31, 2025, AENB had available borrowing capacity of $75.5 billion based on the amount and collateral valuation of receivables that were pledged to the Federal Reserve Bank of San Francisco. Whether specific assets will be considered qualifying collateral and the amount that may be borrowed against the collateral remain at the discretion of the Federal Reserve and can change from time to time. Due to regulatory restrictions, liquidity generated by AENB can generally be used only to fund obligations within AENB, and transfers to the parent company or non-bank affiliates may be subject to prior regulatory approval.
26
Unused Credit Outstanding
As of March 31, 2025, we had approximately $483 billion of unused credit available to customers. Total unused credit does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Charge card products with no pre-set spending limits are not reflected in unused credit.
Cash Flows
The following table summarizes our cash flow activity, followed by a discussion of the major drivers impacting operating, investing and financing cash flows for the three months ended March 31:
Table 22: Cash Flows
| (Billions) | 2025 | 2024 | ||||||||||||
| Total cash provided by (used in): | ||||||||||||||
| Operating activities | $ | 4.8 | $ | 5.5 | ||||||||||
| Investing activities | 0.5 | (3.1) | ||||||||||||
| Financing activities | 6.6 | 5.2 | ||||||||||||
| Net increase in cash and cash equivalents | $ | 11.9 | $ | 7.6 | ||||||||||
Cash Flows from Operating Activities
Our cash flows from operating activities primarily include net income adjusted for (i) non-cash items included in net income, such as provisions for credit losses, depreciation and amortization, stock-based compensation, deferred taxes and other non-cash items and (ii) changes in the balances of operating assets and liabilities, which can vary significantly in the normal course of business due to the amount and timing of payments.
In both periods, the net cash provided by operating activities was driven by cash generated from net income for the period and higher net operating liabilities, primarily driven by higher book overdrafts due to timing differences arising in the ordinary course of business, partially offset by payments related to annual incentive compensation.
Cash Flows from Investing Activities
Our cash flows from investing activities primarily include changes in loans and Card Member receivables, as well as changes in our available-for-sale investment securities portfolio.
In 2025, the net cash provided by investing activities was primarily driven by lower Card Member receivables outstanding, partially offset by higher loans outstanding.
In 2024, the net cash used in investing activities was primarily driven by higher loans and Card Member receivables outstanding.
Cash Flows from Financing Activities
Our cash flows from financing activities primarily include changes in customer deposits, long-term debt and short-term borrowings, as well as dividend payments and share repurchases.
In both periods, the net cash provided by financing activities was primarily driven by growth in customer deposits and net proceeds from long-term debt, partially offset by share repurchases and dividend payments.
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OTHER MATTERS
Certain Legislative, Regulatory and Other Developments
Supervision & Regulation
We are subject to evolving and extensive government regulation and supervision in jurisdictions around the world, and the costs of ongoing compliance are substantial. The financial services industry is subject to rigorous scrutiny, high regulatory expectations, a range of regulations and a stringent and unpredictable enforcement environment.
Governmental authorities have focused, and we believe will continue to focus, considerable attention on reviewing compliance by financial services firms and payment systems with laws and regulations, and as a result, we continually work to evolve and improve our risk management framework, governance structures, practices and procedures. Reviews by us and governmental authorities to assess compliance with laws and regulations, as well as our own internal reviews to assess compliance with internal policies, including errors or misconduct by colleagues or third parties or control failures, have resulted in, and are likely to continue to result in, changes to our products, practices and procedures, restitution to our customers and increased costs related to regulatory oversight, supervision and examination. We have also been subject to regulatory actions and may continue to be the subject of such actions, including governmental inquiries, investigations, enforcement proceedings and the imposition of fines or civil money penalties, in the event of noncompliance or alleged noncompliance with laws or regulations. For example, as previously disclosed, we have identified certain issues related to our rewards and benefits programs and have taken actions to remediate the issues and enhance our related procedures and controls.
Please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K for further information.
Enhanced Prudential Standards
We are subject to the U.S. federal bank regulatory agencies’ rules that tailor the application of enhanced prudential standards to bank holding companies and depository institutions with $100 billion or more in total consolidated assets. Under these rules, American Express Company became a Category III firm in the third quarter of 2024. Category III firms are subject to heightened capital, liquidity and prudential requirements, single-counterparty credit limits and additional stress tests, which in some cases are subject to a transition period. Please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K for further information.
Consumer Financial Products Regulation
Our consumer-oriented activities are subject to regulation and supervision in the United States and internationally. In the United States, our marketing, sale and servicing of consumer financial products and our compliance with certain federal consumer financial laws are supervised and examined by the Consumer Financial Protection Bureau (CFPB), which has broad rulemaking and enforcement authority over providers of credit, savings and payment services and products and authority to prevent “unfair, deceptive or abusive” acts or practices. In addition, a number of U.S. states and international jurisdictions have significant consumer protection, suitability and other laws (in certain cases more stringent than U.S. federal laws). U.S. federal law also regulates abusive debt collection practices, which, along with bankruptcy and debtor relief laws, can affect our ability to collect amounts owed to us or subject us to regulatory scrutiny.
For more information on consumer financial products regulation, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K.
Payments Regulation
Legislators and regulators in various countries in which we operate have focused on the operation of card networks, including through enforcement actions, legislation and regulations to change certain practices or pricing of card issuers, merchant acquirers and payment networks, and, in some cases, to establish broad regulatory regimes for payment systems.
Pricing for card acceptance, including interchange fees (that is, the fee paid by the bankcard merchant acquirer to the card issuer in payment networks like Visa and Mastercard), has been a focus of legislators and regulators in Australia, Canada, the European Union (EU), the United States and other jurisdictions. Recently, certain states in the United States have passed or are considering laws prohibiting interchange from being charged on all or certain components of transactions, such as sales tax and gratuities. Jurisdictions have also sought to regulate various other aspects of network operations and contract terms and practices governing merchant card acceptance, including information associated with electronic transactions, such as state legislation regarding the use of specific merchant categories codes or limiting the use of transaction data.
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Regulation and other governmental actions relating to operations, pricing or practices could affect all networks and/or acquirers directly or indirectly, as well as adversely impact consumers and merchants. Among other things, regulation of bankcard fees has negatively impacted, and may continue to negatively impact, the discount revenue we earn, including as a result of downward pressure on our merchant discount rates from decreases in competitor pricing in connection with caps on interchange fees. In some cases, regulations also extend to certain aspects of our business, such as network and cobrand arrangements or the terms of card acceptance for merchants. For example, we exited our network business in the EU and Australia as a result of regulation in those jurisdictions. In addition, there is uncertainty as to when or how interchange fee caps and other provisions of the EU payments legislation might apply when we work with cobrand partners and agents in the EU. In 2018, the EU Court of Justice (CJEU) confirmed the validity of fee capping and other provisions in circumstances where three-party networks issue cards with a cobrand partner or through an agent, although its ruling provided only limited guidance as to when or how the provisions might apply in such circumstances and remains subject to differing interpretations by regulators and participants in cobrand arrangements. In December 2024, the CJEU held a hearing on questions referred by the Dutch Trade and Industry Appeals Tribunal regarding the interpretation of the application of the interchange fee caps in connection with an administrative proceeding by the Netherlands Authority for Consumers and Markets regarding our cobrand relationship with KLM Royal Dutch Airlines. As a precursor to the CJEU’s final ruling, an advisory opinion was issued by the Advocate General on March 6, 2025, advising the CJEU that our payments to the cobrand partner can be subject to the interchange fee caps but certain payments and services provided by the cobrand partner could potentially be netted against such payments for purposes of determining the capped amount. The advisory opinion is not binding on the CJEU and there can be no assurance as to the outcome of the proceeding. Given differing interpretations by regulators and participants in cobrand arrangements, we are subject to regulatory action, penalties and the possibility we will not be able to maintain our existing cobrand and agent relationships in the EU.
For more information on payments regulation, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K.
Surcharging
In various countries, such as certain Member States in the EU, Australia and Canada (other than in the Province of Quebec), merchants are permitted by law to surcharge card purchases. In addition, the laws of a number of states in the United States that prohibit surcharging have been overturned and certain states have passed or are considering laws to permit surcharging by merchants. In jurisdictions allowing surcharging, we have seen an increase in merchant surcharging on American Express cards, particularly in certain merchant categories. Surcharging is an adverse customer experience and could have a material adverse effect on us, particularly where it only or disproportionately impacts credit card usage or card usage generally, our Card Members or our business. In addition, we also encounter steering or differential acceptance practices by merchants, which could also have a material adverse effect on us.
For more information on the potential impacts of surcharging and other actions that could impair the Card Member experience, please see the “Risk Factors” section of the 2024 Form 10-K.
Merchant Litigation
We continue to vigorously defend antitrust and other claims initiated by merchants. See Note 7 to the “Consolidated Financial Statements” for descriptions of the cases. It is possible that actions impairing the Card Member experience, or the resolution of one or any combination of these merchant claims, could have a material adverse effect on our business. For more information on the potential impacts of an adverse decision in the merchant litigations on our business, please see the “Risk Factors” section of the 2024 Form 10-K.
Privacy, Data Protection, Data Management, Artificial Intelligence, Resiliency, Information Security and Cybersecurity
Regulatory and legislative activity in the areas of privacy, data protection, data management, artificial intelligence, resiliency, information security and cybersecurity continues to increase worldwide. We have established, and continue to maintain, policies and a governance framework to comply with applicable laws and requirements, meet evolving customer and industry expectations and support and enable business innovation and growth; however, our policies and governance framework may be insufficient given the size and complexity of our business and heightened regulatory scrutiny. Regulators and legislators have heightened their focus on the use of artificial intelligence and machine learning through the application of existing laws and regulations as well as by adopting new laws and regulations, which are reshaping how we develop, deploy and manage artificial intelligence systems, including by imposing new obligations related to data use, recordkeeping, transparency and human oversight.
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Global financial institutions like us, as well as our customers, colleagues, regulators, service providers and other third parties, have experienced a significant increase in information security and cybersecurity risk in recent years and will likely continue to be the target of increasingly sophisticated cyberattacks, including computer viruses, malicious or destructive code, ransomware, social engineering attacks (including phishing, impersonation and identity takeover attempts), artificial intelligence-assisted deepfake attacks and disinformation campaigns, corporate espionage, hacking, website defacement, denial-of-service attacks, exploitation of vulnerabilities and other attacks and similar disruptions from the misconfiguration or unauthorized use of or access to computer systems and company accounts. For more information on privacy, data protection and information security and cybersecurity regulation and the potential impacts of a major information security or cybersecurity incident on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K.
Anti-Money Laundering, Countering the Financing of Terrorism and Economic Sanctions Compliance
We are subject to significant supervision and regulation, and an increasingly stringent enforcement environment, with respect to compliance with anti-money laundering (AML) and countering the financing of terrorism (CFT) laws and regulations.
Among other things, these laws and regulations generally require us to establish AML/CFT programs that meet certain standards, including, policies and procedures to collect information from and verify the identities of our customers, and to monitor for and report suspicious transactions, in addition to other information gathering and recordkeeping requirements. Our AML/CFT programs have become the subject of heightened scrutiny and any errors, failures or delays in complying with AML/CFT laws, deficiencies in our AML/CFT programs or association of our business with money laundering, terrorist financing, tax fraud or other illicit activity can give rise to significant supervisory, criminal and civil proceedings and lawsuits, which could result in significant penalties and forfeiture of assets, loss of licenses or restrictions on business activities or other enforcement actions.
National governments and international bodies, such as the United Nations and the EU, have imposed economic sanctions against individuals, entities, vessels, governments, regions and countries that endanger their interests or violate international norms of behavior. Sanctions have been used to advance a range of foreign policy goals, including conflict resolution, counterterrorism, counternarcotics and promotion of democracy and human rights, among other national and international interests. We maintain a global sanctions compliance program designed to meet the requirements of applicable sanctions regimes. Failure to comply with such requirements could subject us to serious legal and reputational consequences, including criminal penalties.
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Securities Exchange Act of 1934, as amended (the Exchange Act), an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure is generally required even where the activities, transactions or dealings were conducted outside the United States by non-U.S. affiliates in compliance with applicable law and whether or not the activities are sanctionable under U.S. law.
In connection with an ongoing internal review, we identified certain transactions and accounts that we disclosed pursuant Section 13(r) of the Exchange Act in the 2024 Form 10-K, and we voluntarily reported certain transactions and accounts, some of which related to Iran, to the U.S. Department of the Treasury’s Office of Foreign Assets Control. In the quarter ended March 31, 2025, we identified approximately 5 consumer accounts of individuals that may be, or may have been, employed by the Government of Iran. We believe the accounts were used only for personal expenses. We had negligible gross revenues and net profits attributable to these accounts. All of the accounts are closed and we do not intend to continue to engage in this activity.
For more information on AML/CFT laws and regulations and economic sanctions, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K.
Recently Issued Accounting Standards
Refer to the Recently Issued Accounting Standards section of Note 1 to the “Consolidated Financial Statements.”
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Glossary of Selected Terminology
Adjusted net interest income — A non-GAAP measure that 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.
Allocated service costs — Represents salaries and benefits associated with our technology and customer servicing groups, allocated based on activities directly attributable to our reportable operating segments, as well as overhead expenses, which are allocated to our reportable operating segments based on their relative levels of revenue and Card Member loans and receivables.
Asset securitizations — Asset securitization involves the transfer and sale of loans or receivables to a special-purpose entity created for the securitization activity, typically a trust. The trust, in turn, issues securities, commonly referred to as asset-backed securities that are secured by the transferred loans and receivables. The trust uses the proceeds from the sale of such securities to pay the purchase price for the transferred loans or receivables. The securitized loans and receivables of our Lending Trust and Charge Trust (collectively, the Trusts) are reported as assets and the securities issued by the Trusts are reported as liabilities on our Consolidated Balance Sheets.
Billed business (Card Member spending) — Represents transaction volumes (including cash advances) on payment products issued by American Express.
Capital ratios — Represents the minimum standards established by regulatory agencies as a measure to determine whether the regulated entity has sufficient capital to absorb on- and off-balance sheet losses beyond current loss accrual estimates. Refer to the Capital Strategy section under “Consolidated Capital Resources and Liquidity” for further related definitions under Basel III.
Card Member — The individual holder of an issued American Express-branded card.
Card Member loans — Represents balances on our credit card products and revolve-eligible balances on our charge card products.
Card Member receivables — Represents balances on our charge card products that need to be paid in full on or before the Card Member’s payment due date.
Cards-in-force — Represents 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.
Charge cards — Represents cards that generally carry no pre-set spending limits and are primarily designed as a method of payment and not as a means of financing purchases. Each transaction on a charge card with no pre-set spending limit is authorized based on its likely economics reflecting a Card Member’s most recent credit information and spend patterns. Charge Card Members must pay the full amount of balances billed each month, with the exception of balances that can be revolved under lending features offered on certain charge cards, such as Pay Over Time and Plan It®, that allow Card Members to pay for eligible purchases with interest over time.
Cobrand cards — Represents cards issued under cobrand agreements with selected commercial partners. Pursuant to the cobrand agreements, we make payments to our cobrand partners, which can be significant, based primarily on the amount of Card Member spending and corresponding rewards earned on such spending and, under certain arrangements, on the number of accounts acquired and retained. The partner is then liable for providing rewards to the Card Member under the cobrand partner’s own loyalty program.
Credit cards — Represents cards that have a range of revolving payment terms, structured payment features (e.g., Plan It, Expanded Buying Power), grace periods, and rate and fee structures.
Discount revenue — Primarily represents the amount we earn and retain from the merchant payable for facilitating transactions between Card Members and merchants on payment products issued by American Express.
Goods & Services (G&S) spend — Includes spend in merchant categories other than T&E-related merchant categories, which includes B2B spending by small and mid-sized enterprise customers in our CS and ICS segments.
Interest expense — Includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on our long-term financing and short-term borrowings, (e.g., commercial paper, federal funds purchased, bank overdrafts and other short-term borrowings), as well as the realized impact of derivatives hedging interest rate risk on our long-term debt.
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Interest income — Includes (i) interest on loans, (ii) interest and dividends on investment securities and (iii) interest income on deposits with banks and other.
Interest on loans — Assessed using the average daily balance method for Card Member loans. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding in accordance with the terms of the applicable account agreement until the outstanding balance is paid or written off.
Interest and dividends on investment securities — Primarily relates to our performing fixed-income securities. Interest income is recognized using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so a constant rate of return is recognized on the outstanding balance of the related investment security throughout its term. Amounts are recognized until securities are in default or when it is likely that future interest payments will not be made as scheduled.
Interest income on deposits with banks and other — Primarily relates to the placement of cash in excess of near-term funding requirements in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts.
Loyalty coalitions — Programs that enable consumers to earn rewards points and use them to save on purchases from a variety of participating merchants through multi-category rewards platforms. Merchants in these programs generally fund the consumer offers and are responsible to us for the cost of rewards points; we earn revenue from operating the loyalty platform and by providing marketing support.
Net card fees — Represents the card membership fees earned during the period recognized as revenue over the covered card membership period (typically one year), net of the provision for projected refunds for Card Membership cancellation and deferred acquisition costs.
Net interest yield on average Card Member loans — A non-GAAP measure that is computed by dividing adjusted net interest income by average Card Member loans, computed on an annualized basis. Reserves and net write-offs related to uncollectible interest are recorded through provision for credit losses and are thus not included in the net interest yield calculation.
Net write-off rate — principal only — Represents the amount of proprietary consumer or small business Card Member loans or receivables written off, consisting of principal (resulting from authorized transactions), less recoveries, as a percentage of the average loan or receivable balance during the period.
Net write-off rate — principal, interest and fees — Includes, in the calculation of the net write-off rate, amounts for interest and fees in addition to principal for Card Member loans, and fees in addition to principal for Card Member receivables.
Network volumes — Represents 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.
Operating expenses — Represents salaries and employee benefits, professional services, data processing and equipment, and other expenses.
Other loans — Represents balances on non-card payment and financing products that are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship. Other loans consist primarily of consumer installment loans and lines of credit offered to small business customers.
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.
Reserve build (release) — Represents 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 build represents the amount by which the provision for credit losses exceeds net write-offs, while reserve release represents the amount by which net write-offs exceed the provision for credit losses.
T&E spend — Represents spend on travel and entertainment, which primarily includes airline, cruise, lodging and dining merchant categories.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report 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 our current expectations regarding business and financial performance, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “estimate,” “potential,” “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. We undertake 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:
•our ability to grow earnings per share 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 our ability to continue investing at high levels in areas that can drive sustainable growth (including our brand, value propositions, coverage, marketing, technology and talent), controlling operating expenses, effectively managing risk and executing our 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 our 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 our business activities, limit our ability to pursue business opportunities, require changes to business practices or alter our relationships with Card Members, partners and merchants;
•our ability to grow revenues net of interest expense and the sustainability of our future growth, 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 our Membership Model of premium products, differentiated services and partnerships, successfully refresh our 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 our products; merchant discount rates changing from our expectations; and changes in foreign currency exchange rates;
•net card fees not performing consistently with 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 our fee-based products; and our inability to address competitive pressures, develop attractive premium value propositions and implement our strategy of refreshing card products and realize our anticipated growth from those refreshes, enhancing and delivering benefits and services and continuing to innovate with respect to our 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 our strategies to enhance Card Member value propositions, capture a greater share of Card Members’ spending and borrowings and attract new, and retain existing, customers; our ability to effectively manage underwriting risk; changes in benchmark interest rates, including where such changes affect our 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; and our deposit levels or the interest rates we offer on deposits changing from current expectations; loss or impacts to cobrand relationships; and governmental actions to cap credit card interest rates;
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•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 us; changes in loans and receivables outstanding, such as from the implementation of our 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, 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 our 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 our 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; our ability to identify and negotiate partner-funded value for Card Members; and the pace and cost of the expansion of our global lounge collection;
•the actual amount we spend on marketing in the future and the effectiveness and efficiency of our marketing spend, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance, including the levels of demand for our products; our 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;
•our ability to control operating expenses, including relative to revenue growth, and the actual amount we spend on operating expenses in the future, which could be impacted by, among other things, salary and benefit expenses to attract and retain talent; our 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; our 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 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 our investments; impairments of goodwill or other assets; and the impact of changes in foreign currency exchange rates on costs;
•our 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, our geographic mix of income, unfavorable tax audits, assessments and tax litigation outcomes, and the occurrence or nonoccurrence of other discrete tax items;
•changes affecting our plans regarding the return of capital to shareholders, which will depend on factors such as our capital levels and regulatory capital ratios; the results of our 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 the U.S. federal bank regulatory agencies’ Basel III rulemaking; our results of operations and financial condition; our credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;
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•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 our 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;
•our ability to expand our 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 our 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 our dining strategy and evolving our infrastructure to support new products, services and benefits;
•our ability to build on our 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 our other products and services for financing needs; perceived or actual difficulties and costs related to setting up B2B payment platforms; our ability to offer attractive value propositions and new products to current and potential customers; our ability to enhance and expand our payment, lending and cash flow management solutions, increase customer engagement, and build out a multi-product digital ecosystem to integrate our broad product set, which is dependent on our continued investment in capabilities, features, functionalities, platforms and technologies and the successful integration of our Center acquisition; and the success of our initiatives to support businesses, such as Small Business Saturday and other Shop Small campaigns;
•our ability to expand merchant coverage globally and our 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 our 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 our authorization platform;
•our ability to successfully invest in, benefit from and expand the use of technological developments, digital payments, servicing and travel solutions and other technological capabilities, which will depend in part on our success in evolving our products and processes for the digital environment, developing new features in the Amex® app and enhancing our digital channels, effectively utilizing data and data platforms, building partnerships and executing programs with other companies, effectively utilizing artificial intelligence and machine learning and increasing automation, including to address servicing and other business and customer needs, and supporting the use of our products as a means of payment through online and mobile channels, all of which will be impacted by investment levels, customer and colleague receptiveness and ability to adopt new technologies, new product innovation and development and the platforms and infrastructure to support new products, services, benefits and partner integrations;
•our 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 our brand in international jurisdictions; our inability to successfully replicate aspects of our 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 us and our 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;
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•our ability to successfully implement our dining strategy and grow our dining platform, which will depend in part on our ability to grow the number of diners, restaurants and other bookable venues using the platform and transactions on the platform; expand and innovate in the tools and capabilities offered through the platform, including integrating the Tock and Rooam acquisitions and benefiting from their added capabilities, users and/or bookable venues; successfully compete with other dining platforms and means of booking venues; and effectively utilize our dining platform to provide value to Card Members and merchants and sell our products and services;
•a failure in or breach of our 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 our 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 our ability to meet our liquidity needs and expectations regarding capital ratios; our access to capital and funding costs; the valuation of our assets; and our credit ratings or those of our subsidiaries;
•our funding plan being implemented in a manner inconsistent with current expectations, which will depend on various factors such as future business growth, the impact of global economic, political and other events on market capacity, demand for securities we offer, regulatory changes, our ability to securitize and sell loans and receivables and the performance of loans and receivables previously sold in securitization transactions;
•our ability to achieve our climate-related goals, which depend in part on the amount and efficacy of our investments in emissions reduction projects, the ability of our partners to set and achieve sustainability targets, the success of our supply chain and sustainability initiatives, and colleague programs; customer preferences and behaviors; the cost and availability of renewable energy, carbon removal and carbon offset projects and energy attribute certificates; changes in our real estate, technology and colleague strategies or an inability to execute those strategies; and brand perceptions and reputation;
•legal and regulatory developments, which could affect the profitability of our business activities; limit our ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or governance, or alter our relationships with Card Members, partners, merchants and other third parties, including affecting our network operations and practices governing merchant acceptance, as well as our ability to continue certain cobrand relationships in the EU; impact card fees and rewards programs; exert further pressure on merchant discount rates and our network business, as well as result in an increase in surcharging, steering or other differential acceptance practices; alter the competitive landscape; subject us 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;
•changes in the financial condition and creditworthiness of our business partners, such as bankruptcies, restructurings or consolidations, including of cobrand partners, merchants that represent a significant portion of our business, network partners or financial institutions that we rely on for routine funding and liquidity, which could materially affect our financial condition or results of operations; and
•factors beyond our 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 our business and results of operations or disrupt our global network systems and ability to process transactions.
A further description of these uncertainties and other risks can be found in the 2024 Form 10-K and other reports filed with the Securities and Exchange Commission.
36
ITEM 1. FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended March 31 (Millions, except per share amounts) | 2025 | 2024 | ||||||||||||
| Revenues | ||||||||||||||
| Non-interest revenues | ||||||||||||||
| Discount revenue | $ | $ | ||||||||||||
| Net card fees | ||||||||||||||
| Service fees and other revenue | ||||||||||||||
| Total non-interest revenues | ||||||||||||||
| Interest income | ||||||||||||||
| Interest on loans | ||||||||||||||
| Interest and dividends on investment securities | ||||||||||||||
| Deposits with banks and other | ||||||||||||||
| Total interest income | ||||||||||||||
| Interest expense | ||||||||||||||
| Deposits | ||||||||||||||
| Long-term debt and other | ||||||||||||||
| Total interest expense | ||||||||||||||
| Net interest income | ||||||||||||||
| Total revenues net of interest expense | ||||||||||||||
| Provisions for credit losses | ||||||||||||||
| Card Member receivables | ||||||||||||||
| Card Member loans | ||||||||||||||
| Other | ||||||||||||||
| Total provisions for credit losses | ||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | ||||||||||||||
| Expenses | ||||||||||||||
| Card Member rewards | ||||||||||||||
| Business development | ||||||||||||||
| Card Member services | ||||||||||||||
| Marketing | ||||||||||||||
| Salaries and employee benefits | ||||||||||||||
| Other, net | ||||||||||||||
| Total expenses | ||||||||||||||
| Pretax income | ||||||||||||||
| Income tax provision | ||||||||||||||
| Net income | $ | $ | ||||||||||||
Earnings per Common Share (Note 14)(a) | ||||||||||||||
| Basic | $ | $ | ||||||||||||
| Diluted | $ | $ | ||||||||||||
| Average common shares outstanding for earnings per common share: | ||||||||||||||
| Basic | ||||||||||||||
| Diluted | ||||||||||||||
(a)Represents net income less (i) earnings allocated to participating share awards of $18 14
See Notes to Consolidated Financial Statements.
37
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
| Net income | $ | $ | ||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
| Net unrealized debt securities gains (losses), net of tax | ||||||||||||||||||||||||||
| Foreign currency translation adjustments, net of hedges and tax | ( | |||||||||||||||||||||||||
| Net unrealized pension and other postretirement benefits, net of tax | ||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | |||||||||||||||||||||||||
| Comprehensive income | $ | $ | ||||||||||||||||||||||||
See Notes to Consolidated Financial Statements.
38
AMERICAN EXPRESS COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (Millions, except share data) | March 31, 2025 | December 31, 2024 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | ||||||||||||||
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2025, $ | $ | $ | ||||||||||||
Interest-bearing deposits in other banks | ||||||||||||||
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2025, $ | ||||||||||||||
Total cash and cash equivalents (includes restricted cash: 2025, $ | ||||||||||||||
Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2025, $ | ||||||||||||||
Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2025, $ | ||||||||||||||
Card Member loans held for sale | ||||||||||||||
Other loans, less reserves for credit losses: 2025, $ | ||||||||||||||
| Investment securities | ||||||||||||||
Premises and equipment, less accumulated depreciation and amortization: 2025, $ | ||||||||||||||
Other assets, less reserves for credit losses: 2025, $ | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||
| Liabilities | ||||||||||||||
| Customer deposits | $ | $ | ||||||||||||
| Accounts payable | ||||||||||||||
| Short-term borrowings | ||||||||||||||
Long-term debt (includes debt issued by consolidated variable interest entities: 2025, $ | ||||||||||||||
| Other liabilities | ||||||||||||||
| Total liabilities | $ | $ | ||||||||||||
| Contingencies (Note 7) | ||||||||||||||
| Shareholders’ Equity | ||||||||||||||
Preferred shares, $1.662/3 par value, authorized | ||||||||||||||
Common shares, $ | ||||||||||||||
| Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
| Accumulated other comprehensive income (loss) | ( | ( | ||||||||||||
| Total shareholders’ equity | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | $ | ||||||||||||
See Notes to Consolidated Financial Statements.
39
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31 (Millions) | 2025 | 2024 | ||||||||||||
| Cash Flows from Operating Activities | ||||||||||||||
| Net income | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Provisions for credit losses | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Stock-based compensation | ||||||||||||||
| Deferred taxes | ( | ( | ||||||||||||
Other items (a) | ( | |||||||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||
| Other assets | ||||||||||||||
| Accounts payable & other liabilities | ||||||||||||||
| Net cash provided by operating activities | ||||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||
| Sale of investments | ||||||||||||||
| Maturities and redemptions of investments | ||||||||||||||
| Purchase of investments | ( | ( | ||||||||||||
Net decrease (increase) in loans and Card Member receivables, including Card Member loans held for sale (b) | ( | |||||||||||||
Purchase of premises and equipment, net of sales: 2025, | ( | ( | ||||||||||||
| Net cash provided by (used in) investing activities | ( | |||||||||||||
| Cash Flows from Financing Activities | ||||||||||||||
| Net increase in customer deposits | ||||||||||||||
Net increase in short-term borrowings | ||||||||||||||
| Proceeds from long-term debt | ||||||||||||||
| Payments of long-term debt | ( | ( | ||||||||||||
| Issuance of American Express common shares | ||||||||||||||
| Repurchase of American Express common shares and other | ( | ( | ||||||||||||
| Dividends paid | ( | ( | ||||||||||||
| Net cash provided by financing activities | ||||||||||||||
| Effect of foreign currency exchange rates on cash and cash equivalents | ||||||||||||||
| Net increase in cash and cash equivalents | ||||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
(a)Primarily includes gains/losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments, movements in equity method investments and changes in reserves.
(b)Includes Card Member loans held for sale (HFS) which were previously held for investment within Card Member loans and were reclassified on the Consolidated Balance Sheets effective December 1, 2024.
See Notes to Consolidated Financial Statements.
40
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
| Three months ended March 31, 2025 (Millions, except per share amounts) | Total | Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||||||||||
Balances as of December 31, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | |||||||||||||||||||||||||||||||||||
| Repurchase of common shares | ( | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Other changes | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series D, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared common, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
| Balances as of March 31, 2025 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
| Three months ended March 31, 2024 (Millions, except per share amounts) | Total | Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||||||||||
| Balances as of December 31, 2023 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||
| Repurchase of common shares | ( | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Other changes | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series D, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared common, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
| Balances as of March 31, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements.
41
1. Basis of Presentation
The Company
We are a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Our various products and services are offered globally to consumers, small businesses, mid-sized companies and large corporations through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone and direct response advertising.
The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Form 10-K). If not materially different, certain note disclosures included therein have been omitted from these Consolidated Financial Statements.
The interim Consolidated Financial Statements included in this report have not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim Consolidated Financial Statements, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year.
The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ.
Certain reclassifications of prior period amounts have been made to conform to the current period presentation.
Business Events
On May 1, 2024, we completed the previously announced transaction to sell fraud prevention solutions provider Accertify, Inc. (Accertify), a wholly owned subsidiary we acquired in 2010, the operations of which were reported within the Global Merchant and Network Services (GMNS) segment. The transaction resulted in a gain of $531 million ($479 million after tax), which was reported as a reduction to Other expense in the second quarter of 2024. Prior to the completion of the transaction, the carrying amount of Accertify’s net assets were not material to our financial position.
Recently Issued Accounting Standards
In December 2023, the Financial Accounting Standards Board issued updated accounting guidance on Disclosures for Income Taxes, effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The updated guidance requires additional disclosure and disaggregated information in the Income Tax Rate reconciliation using both percentages and reporting currency amounts, with additional qualitative explanations of individually significant reconciling items. The updated guidance also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by jurisdictional categories (federal (national), state and foreign). We are currently assessing the updated guidance; however, it is not expected to have a material impact to our Consolidated Financial Statements.
In November 2024 and as amended in January 2025, the Financial Accounting Standards Board issued updated accounting guidance on the Disaggregation of Income Statement Expenses for annual reporting periods beginning after December 15, 2026 and for interim reporting periods beginning December 15, 2027, with early adoption permitted. The updated guidance includes the requirement for a new tabular disclosure within a Note to the Consolidated Financial Statements, to disaggregate defined expense categories from the expense report lines presented on the Consolidated Statements of Income. We are currently assessing the updated guidance and its impact to our Consolidated Financial Statements.
42
2. Loans and Card Member Receivables
Our lending and charge payment card products that we offer to consumer, small business and corporate customers result in the generation of Card Member loans and Card Member receivables. We also extend credit to customers through financing products that are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship, resulting in Other loans.
Card Member and Other loans as of March 31, 2025 and December 31, 2024 consisted of:
Table 2.1: Card Member and Other Loans
| (Millions) | 2025 | 2024 | ||||||||||||
Consumer (a) | $ | $ | ||||||||||||
| Small Business | ||||||||||||||
| Corporate | ||||||||||||||
| Card Member loans | ||||||||||||||
| Less: Reserves for credit losses | ||||||||||||||
| Card Member loans, net | $ | $ | ||||||||||||
Other loans, net (b) | $ | $ | ||||||||||||
(a)Includes approximately $26.7 billion and $28.3 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2025 and December 31, 2024, respectively.
(b)Other loans are presented net of reserves for credit losses of $244 million and $194 million as of March 31, 2025 and December 31, 2024, respectively.
Card Member receivables as of March 31, 2025 and December 31, 2024 consisted of:
Table 2.2: Card Member Receivables
| (Millions) | 2025 | 2024 | ||||||||||||
Consumer | $ | $ | ||||||||||||
| Small Business | ||||||||||||||
Corporate (a) | ||||||||||||||
| Card Member receivables | ||||||||||||||
| Less: Reserves for credit losses | ||||||||||||||
| Card Member receivables, net | $ | $ | ||||||||||||
(a)Includes $4.2 billion and $3.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31, 2025 and December 31, 2024, respectively.
43
Card Member Loans and Receivables Aging
Generally, a Card Member account is considered past due if payment due is not received within 30 The following tables present the aging of Card Member loans and receivables as of March 31, 2025 and December 31, 2024:
Table 2.3: Card Member Loans and Receivables Aging
2025 (Millions) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | 90+ Days Past Due and Still Accruing Interest (c) | Non-Accruals(d) | |||||||||||||||||||||||||||||||||||||
| Card Member Loans: | ||||||||||||||||||||||||||||||||||||||||||||
| Consumer | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| Small Business | ||||||||||||||||||||||||||||||||||||||||||||
Corporate (a) | (b) | (b) | (b) | |||||||||||||||||||||||||||||||||||||||||
| Card Member Receivables: | ||||||||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||||||||
| Small Business | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Corporate (a) | (b) | (b) | (b) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
2024 (Millions) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | 90+ Days Past Due and Still Accruing Interest (c) | Non-Accruals(d) | |||||||||||||||||||||||||||||||||||||||||||
| Card Member Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Small Business | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate (a) | (b) | (b) | (b) | |||||||||||||||||||||||||||||||||||||||||||||||
| Card Member Receivables: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Small Business | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate (a) | (b) | (b) | (b) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
(a)For corporate accounts, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).
(b)Delinquency data for periods other than 90+ days past billing has not historically been available due to system constraints. Therefore, such data has not been a material input for risk management purposes. The balances that are current to 89 days past billing can be derived as the difference between the Total and the 90+ Days Past Due balances.
(c)Our policy is generally to accrue interest through the date of write-off (typically 180
(d)Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.
44
Other Loans Aging and Gross Write-Offs by Origination Year
Generally, a customer loan is considered past due if payment due is not received within 30 days after the payment due date. The following tables present the aging and gross write-offs for other loans by year of origination as of or for the three months ended March 31, 2025, and as of or for the twelve months ended December 31, 2024:
Table 2.4: Other Loans Aging and Gross Write-Offs by Origination Year
2025 (Millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans (a) | Total | ||||||||||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | ||||||||||||||||||||||||||||||||||||||||||||||||||
60-89 Days Past Due | ||||||||||||||||||||||||||||||||||||||||||||||||||
90+ Days Past Due (b) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total (c) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Gross Write-Offs | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
2024 (Millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans (a) | Total | ||||||||||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | ||||||||||||||||||||||||||||||||||||||||||||||||||
60-89 Days Past Due | ||||||||||||||||||||||||||||||||||||||||||||||||||
90+ Days Past Due (b) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total (c) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Gross Write-Offs | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(a)Revolving loans consist primarily of lines of credit offered to small business customers.
(b)Over 90 days past due includes $6
(c)This total includes non-accrual loans of $17 million and $19 million as of March 31, 2025 and December 31, 2024, respectively. Non-accruals for consumer installment loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.
45
Credit Quality Indicators for Loans and Card Member Receivables
The following table presents the key credit quality indicators as of or for the three months ended March 31:
Table 2.5: Credit Quality Indicators for Loans and Card Member Receivables
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| Net Write-Off Rate | Net Write-Off Rate | |||||||||||||||||||||||||||||||||||||
Principal Only (a) | Principal, Interest & Fees (a) | 30+ Days Past Due as a % of Total | Principal Only (a) | Principal, Interest & Fees (a) | 30+ Days Past Due as a % of Total | |||||||||||||||||||||||||||||||||
| Card Member Loans: | ||||||||||||||||||||||||||||||||||||||
| Consumer | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
| Small Business | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
| Card Member Receivables: | ||||||||||||||||||||||||||||||||||||||
| Consumer | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
| Small Business | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
| Corporate | (b) | % | (c) | (b) | % | (c) | ||||||||||||||||||||||||||||||||
Other Loans | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.
(b)Net write-off rate based on principal losses only is not available due to system constraints.
(c)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ days past billing as a % of total was 0.4 % and 0.5 % as of March 31, 2025 and 2024, respectively.
Refer to Note 3 for additional indicators, including external qualitative factors, management considers in its evaluation process for reserves for credit losses.
46
Loans and Receivables Restructurings for Borrowers Experiencing Financial Difficulty
We evaluate all loans and receivables restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether such loan modification should be accounted for as a new loan or a continuation of the existing loan. Our loans and receivables restructurings for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan, which reflects the ongoing effort to support our customer and recover our investment in the existing loan.
We offer several types of loans and receivables modification programs to customers experiencing financial difficulty. In such instances, we may modify loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief.
Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (reducing interest rates to as low as zero percent, in which case the loan is characterized as non-accrual), and/or (ii) placing the customer on a fixed payment plan not to exceed 60 months. Upon entering the modification program, the customer’s ability to make future purchases is limited, canceled or, in certain cases, suspended until the customer successfully exits from the modification program. As of March 31, 2025 and 2024, we had $19 million and $28 million, respectively, of unused credit available to customers with loans and receivables modified during each of the respective three month periods. In accordance with the modification agreement with the customer, loans and/or receivables may revert to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is either (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program.
The following table provides information relating to loans and receivables modifications for borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024:
Table 2.6: Loans and Receivables Modifications for Borrowers experiencing Financial Difficulty
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Account Balances (Millions) (a) | % of Total Class of Financing Receivables | Weighted Average Interest Rate Reduction (% points) | Weighted Average Payment Term Extensions (# of months) | Account Balances (Millions) (a) | % of Total Class of Financing Receivables | Weighted Average Interest Rate Reduction (% points) | Weighted Average Payment Term Extensions (# of months) | |||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Reduction | ||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | $ | % | % | (b) | $ | % | % | (b) | ||||||||||||||||||||||||||||||||||||||||||
| Small Business | % | % | (b) | % | % | (b) | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | (b) | (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Term Extension | ||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member Receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | % | (c) | % | (c) | ||||||||||||||||||||||||||||||||||||||||||||||
| Small Business | % | (c) | % | (c) | ||||||||||||||||||||||||||||||||||||||||||||||
| Corporate | % | (c) | % | (c) | ||||||||||||||||||||||||||||||||||||||||||||||
| Other Loans | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Reduction and Term Extension | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Loans | % | % | % | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
(a)Represents the outstanding balances as of March 31, 2025 and 2024, respectively, of all modifications undertaken in the current and preceding three months for loans and receivables that remain in modification programs as of, or that defaulted on or before, March 31, 2025 and 2024, respectively. The outstanding balances include principal, fees, and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance.
(b)For Card Member loans, we generally do not offer payment term extensions.
(c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.
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The following table provides information with respect to modified loans and receivables that defaulted during the periods presented and were modified in the twelve months prior to the payment default. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.
Table 2.7: Modified Loans and Receivables that Defaulted within Twelve Months of Modification
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Account Balance (Millions) (a) | Interest Rate Reduction | Term Extension | Interest Rate Reduction and Term Extension | Total | Interest Rate Reduction | Term Extension | Interest Rate Reduction and Term Extension | Total | ||||||||||||||||||||||||||||||||||||||||||
| Card Member Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | $ | (b) | $ | $ | $ | (b) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Small Business | (b) | (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate | (b) | (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member Receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | (c) | $ | (c) | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Small Business | (c) | (c) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate | (c) | (c) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Other Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(a)Represents the outstanding balances as of March 31, 2025 and 2024, respectively, of all modifications that defaulted in the periods presented and were modified in the twelve months prior to payment default. The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables.
(b)For Card Member loans, we generally do not offer payment term extensions.
(c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.
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The following tables provide information relating to the performance of loans and receivables that were modified during the prior twelve months and that remain in modification programs as of, or that defaulted on or before, March 31, 2025 and 2024:
Table 2.8: Performance of Modified Loans and Receivables
As of March 31, 2025 | ||||||||||||||||||||
Account Balances (Millions) (a) | Current | 30-89 Days Past Due | 90+ Days Past Due | |||||||||||||||||
Card Member Loans | ||||||||||||||||||||
| Consumer | $ | $ | $ | |||||||||||||||||
| Small Business | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Card Member Receivables: | ||||||||||||||||||||
| Consumer | ||||||||||||||||||||
| Small Business | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Other Loans | ||||||||||||||||||||
| Total | $ | $ | $ | |||||||||||||||||
As of March 31, 2024 | ||||||||||||||||||||
Account Balances (Millions) (a) | Current | 30-89 Days Past Due | 90+ Days Past Due | |||||||||||||||||
Card Member Loans | ||||||||||||||||||||
| Consumer | $ | $ | $ | |||||||||||||||||
| Small Business | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Card Member Receivables: | ||||||||||||||||||||
| Consumer | ||||||||||||||||||||
| Small Business | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Other Loans | ||||||||||||||||||||
| Total | $ | $ | $ | |||||||||||||||||
(a)The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables.
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3. Reserves for Credit Losses
Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The Current Expected Credit Loss (CECL) methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years , beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses.
We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD), and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates.
•PD models are used to estimate the likelihood an account will be written-off.
•EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors.
•Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions.
We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions, even if such expected recoveries exceed expected losses. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses. This history includes the performance of loans and receivables modifications for borrowers experiencing financial difficulty, including their subsequent defaults.
Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios each period and assigns probability weights to each scenario, generally with a consistent initial distribution. At times, due to macroeconomic uncertainty and volatility, management may apply judgment and assign different probability weights to scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models.
We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions.
Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income.
For Other loans, we use vintage-based historical performance to estimate expected credit losses over the life of the loan, net of recovery estimates.
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The following table reflects the range of macroeconomic scenario key variables available to us as of March 31, 2025 and December 31, 2024, respectively, which were used, in conjunction with other inputs, to calculate reserves for credit losses:
Table 3.1: Key Macroeconomic Variables
| U.S. Unemployment Rate | U.S. GDP Growth (Contraction) (a) | |||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
First quarter of 2025 | ||||||||||||||||||||||||||
Fourth quarter of 2025 | ||||||||||||||||||||||||||
Fourth quarter of 2026 | ||||||||||||||||||||||||||
Fourth quarter of 2027 | ||||||||||||||||||||||||||
(a)Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates.
Changes in Card Member Loans Reserve for Credit Losses
Card Member loans reserve for credit losses decreased for the three months ended March 31, 2025. Our reserves for the current period reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end.
Card Member loans reserve for credit losses increased for the three months ended March 31, 2024, primarily driven by an increase in loans outstanding and slightly higher delinquencies.
The following table presents changes in the Card Member loans reserve for credit losses for the three months ended March 31:
Table 3.2: Changes in Card Member Loans Reserve for Credit Losses
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
Beginning Balance | $ | $ | ||||||||||||||||||||||||
Provisions (a) | ||||||||||||||||||||||||||
Net write-offs (b) | ||||||||||||||||||||||||||
| Principal | ( | ( | ||||||||||||||||||||||||
| Interest and fees | ( | ( | ||||||||||||||||||||||||
Other (c) | ( | |||||||||||||||||||||||||
| Ending Balance | $ | $ | ||||||||||||||||||||||||
(a)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.
(b)Principal write-offs are presented less recoveries of $221 million and $159 million for the three months ended March 31, 2025 and 2024, respectively. Recoveries of interest and fees were not significant.
(c)Primarily includes foreign currency translation adjustments.
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Changes in Card Member Receivables Reserve for Credit Losses
Card Member receivables reserve for credit losses decreased for both the three months ended March 31, 2025 and 2024, primarily driven by decreases in receivables outstanding.
The following table presents changes in the Card Member receivables reserve for credit losses for the three months ended March 31:
Table 3.3: Changes in Card Member Receivables Reserve for Credit Losses
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
Beginning Balance | $ | $ | ||||||||||||||||||||||||
Provisions (a) | ||||||||||||||||||||||||||
Net write-offs (b) | ( | ( | ||||||||||||||||||||||||
Other (c) | ( | |||||||||||||||||||||||||
| Ending Balance | $ | $ | ||||||||||||||||||||||||
(a)Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.
(b)Net write-offs are presented less recoveries of $73 million and $76 million for the three months ended March 31, 2025 and 2024, respectively.
(c)Primarily includes foreign currency translation adjustments.
Changes in Other Loans Reserve for Credit Losses
Other loans reserve for credit losses increased for both the three months ended March 31, 2025 and 2024, primarily reflecting increases in other loans outstanding as we continue to grow our Personal Loans and Business Line of Credit offerings.
The following table presents changes in the Other loans reserve for credit losses for the three months ended March 31:
Table 3.4: Changes in Other Loans Reserve for Credit Losses
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
Beginning Balance | $ | $ | ||||||||||||||||||||||||
Provisions (a) | ||||||||||||||||||||||||||
Net write-offs (b) | ||||||||||||||||||||||||||
Principal | ( | ( | ||||||||||||||||||||||||
Interest and Fees | ( | ( | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
| Ending Balance | $ | $ | ||||||||||||||||||||||||
(a)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.
(b)Principal write-offs are presented less recoveries of $7 million and $4 million for the three months ended March 31, 2025 and 2024, respectively. Recoveries of interest and fees were not significant.
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4. Investment Securities
Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense.
The following is a summary of investment securities as of March 31, 2025 and December 31, 2024:
Table 4.1: Investment Securities
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities (Millions) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||||||
| Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| State and municipal obligations | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
| U.S. Government agency obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government treasury obligations | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities (a) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign government bonds and obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other (b) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities (c) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
(a)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
(b)Represents investments in debt securities issued by Community Development Financial Institutions.
(c)Equity securities comprise investments in common stock and mutual funds.
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The following table provides information about our AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2025 and December 31, 2024:
Table 4.2: AFS Debt Securities with Gross Unrealized Losses by Duration
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Less than 12 months | 12 months or more | |||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities (Millions) | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||
| State and municipal obligations | $ | $ | $ | $ | ( | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||
| U.S. Government treasury obligations | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ( | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||
The gross unrealized losses on our AFS debt securities are primarily attributable to an increase in the current benchmark interest rate. Overall, for the AFS debt securities in gross unrealized loss positions, (i) we do not intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losses, and (iii) we expect that the contractual principal and interest will be received on the securities. We concluded that there was no credit loss attributable to the securities in an unrealized loss position for the periods presented.
The following table summarizes the gross unrealized losses for AFS debt securities by ratio of fair value to amortized cost as of March 31, 2025 and December 31, 2024:
Table 4.3: AFS Gross Unrealized Losses by Ratio of Fair Value to Amortized Cost
| Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of Fair Value to Amortized Cost (Dollars in millions) | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 90–100% | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Less than 90% | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total as of March 31, 2025 | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2024: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 90–100% | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Less than 90% | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total as of December 31, 2024 | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Contractual maturities for AFS debt securities with stated maturities as of March 31, 2025 were as follows:
Table 4.4: Contractual Maturities of AFS Debt Securities
| (Millions) | Cost | Estimated Fair Value | ||||||||||||
| Due within 1 year | $ | $ | ||||||||||||
| Due after 1 year but within 5 years | ||||||||||||||
| Due after 5 years but within 10 years | ||||||||||||||
| Due after 10 years | ||||||||||||||
| Total | $ | $ | ||||||||||||
The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.
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5. Asset Securitizations
We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors.
Restricted cash and cash equivalents held by the Lending Trust was $102 million and $88 million as of March 31, 2025 and December 31, 2024, respectively, and by the Charge Trust was nil
Under the respective terms of the Lending Trust and the Charge Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve funds, or, in a worst-case scenario, early amortization of debt securities. During the three months ended March 31, 2025 and the year ended December 31, 2024, no such triggering events occurred.
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6. Customer Deposits
As of March 31, 2025 and December 31, 2024, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:
Table 6.1: Interest-bearing and Non-Interest-bearing Customer Deposits
| (Millions) | 2025 | 2024 | ||||||||||||
| U.S.: | ||||||||||||||
| Interest-bearing | $ | $ | ||||||||||||
Non-interest-bearing (includes Card Member credit balances of: 2025, $ | ||||||||||||||
| Non-U.S.: | ||||||||||||||
| Interest-bearing | ||||||||||||||
Non-interest-bearing (includes Card Member credit balances of: 2025, $ | ||||||||||||||
| Total customer deposits | $ | $ | ||||||||||||
Customer deposits by deposit type as of March 31, 2025 and December 31, 2024 were as follows:
Table 6.2: Customer Deposits by Type
| (Millions) | 2025 | 2024 | ||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||
Savings accounts | $ | $ | ||||||||||||
Checking accounts | ||||||||||||||
Certificates of deposit: | ||||||||||||||
| Direct | ||||||||||||||
| Third-party (brokered) | ||||||||||||||
| Sweep accounts – Third-party (brokered) | ||||||||||||||
Total U.S. interest-bearing deposits | $ | $ | ||||||||||||
| Other deposits | ||||||||||||||
| Card Member credit balances | ||||||||||||||
| Total customer deposits | $ | $ | ||||||||||||
The scheduled maturities of certificates of deposit as of March 31, 2025 were as follows:
Table 6.3: Scheduled Maturities of Certificates of Deposit
| (Millions) | 2025 | 2026 | 2027 | 2028 | 2029 | After 5 Years | Total | |||||||||||||||||||||||||||||||||||||
Certificates of deposit (a) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
(a)Includes $10 million of non-U.S. direct certificates of deposit as of March 31, 2025.
As of both March 31, 2025 and December 31, 2024, certificates of deposit in denominations that met or exceeded the insured limit were $1.4
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7. Contingencies
In the ordinary course of business, we and our subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, regulatory proceedings, information gathering requests, subpoenas, inquiries and matters relating to compliance with laws and regulations (collectively, legal proceedings).
Based on our current knowledge, and taking into consideration our litigation-related liabilities, we do not believe we are a party to, nor are any of our properties the subject of, any legal proceeding that would have a material adverse effect on our consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, penalties or fines, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described below.
On September 30, 2024, we were named as a defendant in a case filed in the United States District Court for the District of Massachusetts, captioned Pizza Hazel, Inc., et al. v. American Express Co., et al., in which plaintiffs allege that the anti-steering and non-discrimination provisions in our merchant agreements violate federal antitrust law and that the arbitration provision in our merchant agreements violates federal antitrust law to the extent it prevents antitrust challenges to our anti-steering and non-discrimination provisions. Plaintiffs seek, on behalf of themselves and a class of merchants that accept through the OptBlue Program, unspecified damages and an injunction prohibiting us from enforcing our anti-steering and non-discrimination provisions and prohibiting us from enforcing our arbitration provision to the extent the arbitration provision prevents antitrust challenges to our anti-steering and non-discrimination provisions.
On March 21, 2024, we were named as a defendant in a case filed in the United States District Court for the District of Rhode Island, captioned 5-Star General Store aka Bento LLC, et al. v. American Express Co., et al., in which plaintiffs allege that the anti-steering and non-discrimination provisions in our merchant agreements violate federal antitrust law and seek, on behalf of themselves and a class of merchants, an injunction prohibiting us from enforcing our anti-steering and non-discrimination provisions and a declaration that we have violated antitrust laws.
On January 29, 2019, we were named in a putative class action brought in the United States District Court for the Eastern District of New York, captioned Anthony Oliver, et al. v. American Express Company and American Express Travel Related Services Company Inc., in which the plaintiffs are holders of MasterCard, Visa and/or Discover credit and/or debit cards (but not American Express cards) and allege they paid higher prices as a result of the anti-steering and non-discrimination provisions in our merchant agreements in violation of federal antitrust law and the antitrust and consumer laws of various states. Plaintiffs seek unspecified damages and other forms of relief. The court dismissed plaintiffs’ federal antitrust claim, numerous state antitrust and consumer protection claims and their unjust enrichment claim. For the remaining state antitrust or consumer protection claims, the court certified classes for (i) holders of Visa and MasterCard debit cards in eight states and Washington, D.C.; and (ii) holders of Visa, MasterCard and Discover credit cards that do not offer rewards or charge an annual fee in two states and Washington, D.C. Trial is scheduled for July 2025.
On March 8, 2016, plaintiffs B&R Supermarket, Inc. d/b/a Milam’s Market and Grove Liquors LLC, on behalf of themselves and others, filed a suit, captioned B&R Supermarket, Inc. d/b/a Milam’s Market, et al. v. Visa Inc., et al., for violations of the Sherman Antitrust Act, the Clayton Antitrust Act, California’s Cartwright Act and unjust enrichment in the United States District Court for the Northern District of California, against American Express Company, other credit and charge card networks, other issuing banks and EMVCo, LLC. Plaintiffs allege that the defendants, through EMVCo, conspired to shift liability for fraudulent, faulty and otherwise rejected consumer credit card transactions from themselves to merchants after the implementation of EMV chip payment terminals. Plaintiffs seek damages and injunctive relief. On May 4, 2017, the California court transferred the case to the United States District Court for the Eastern District of New York. On August 28, 2020, the court granted plaintiffs’ motion for class certification. On August 14, 2024, the court granted our motion to compel arbitration as to class members who are subject to our merchant agreements, but did not stay the claims pending arbitration. On November 15, 2024, we appealed to the Second Circuit requesting a stay of all claims against us that are subject to arbitration. On March 31, 2025, we reached an agreement in principle with the class representatives to settle this action, which is subject to negotiation of a complete stipulation of settlement and court approval.
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In 2006, Mawarid Investments Limited filed a request for confidential arbitration under the 1998 London Court of International Arbitration Rules in connection with certain claims arising under a shareholders agreement between Mawarid and American Express Travel Related Services Company, Inc. relating to a joint venture between the parties, Amex (Middle East) BSC(c) (AEME). In 2008, the tribunal rendered a partial award, including a direction that an audit should take place to verify whether acquirer discount revenue related to transactions occurring with airlines located in the Middle East region had been properly allocated to AEME since its inception in 1992. In September 2021, the tribunal rendered a further partial award regarding the location of transactions through non-physical channels. In May 2022, the tribunal further clarified the 2021 partial award and the discount rate that should apply to transactions through non-physical channels. In December 2024, the tribunal rendered a further partial award providing further clarifications on the allocation of revenue. A final award is expected in 2025.
We are being challenged in a number of countries regarding our application of value-added taxes (VAT) to certain of our international transactions, which are in various stages of audit, or are being contested in legal actions. While we believe we have complied with all applicable tax laws, rules and regulations in the relevant jurisdictions, the tax authorities may determine that we owe additional VAT. In certain jurisdictions where we are contesting the assessments, we were required to pay the VAT assessments prior to contesting.
Our legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members to governmental proceedings. These legal proceedings involve various lines of business and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against us specify the damages sought, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficiently such that we are able to estimate an amount of loss or a range of possible loss.
We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable.
For those disclosed legal proceedings where a loss is reasonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies, or where there is no such accrual, and for which we are able to estimate a range of possible loss, the current estimated range is zero to $190 million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business and results of operations.
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8. Derivatives and Hedging Activities
We use derivative financial instruments to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates and foreign exchange rates, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of our market risk management. We do not transact in derivatives for trading purposes.
A majority of our derivative assets and liabilities as of March 31, 2025 and December 31, 2024 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets.
In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate the relevant agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of March 31, 2025, these derivatives were not in a material net liability position. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of March 31, 2025 and December 31, 2024, no
The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31, 2025 and December 31, 2024:
Table 8.1: Fair Value of Derivative Assets and Liabilities
| Other Assets Fair Value | Other Liabilities Fair Value | |||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||
Fair value hedges - Interest rate contracts (a) | $ | $ | $ | $ | ||||||||||||||||||||||
| Net investment hedges - Foreign exchange contracts | ||||||||||||||||||||||||||
| Total derivatives designated as hedging instruments | ||||||||||||||||||||||||||
| Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Foreign exchange contracts and other | ||||||||||||||||||||||||||
| Total derivatives, gross | ||||||||||||||||||||||||||
Derivative asset and derivative liability netting (b) | ( | ( | ( | ( | ||||||||||||||||||||||
Cash collateral netting (c) | ( | ( | ( | |||||||||||||||||||||||
| Total derivatives, net | $ | $ | $ | $ | ||||||||||||||||||||||
(a)For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.
(b)Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
(c)Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.
We posted $464 million and $368 million as of March 31, 2025 and December 31, 2024, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances.
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Fair Value Hedges
We are exposed to interest rate risk associated with our fixed-rate debt obligations. At the time of issuance, certain fixed-rate long-term debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rate. We had $23.1 billion and $18.9 billion of fixed-rate debt obligations designated in fair value hedging relationships as of March 31, 2025 and December 31, 2024, respectively.
The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three months ended March 31:
Table 8.2: Gains and Losses associated with Fair Value Hedges on Fixed-rate Long Term Debt
| Gains (losses) | ||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
| Fixed-rate long-term debt | $ | ( | $ | |||||||||||||||||||||||
| Derivatives designated as hedging instruments | ( | |||||||||||||||||||||||||
| Total | $ | $ | ( | |||||||||||||||||||||||
The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $23.3 billion and $18.9 billion as of March 31, 2025 and December 31, 2024, respectively, including the cumulative amount of fair value hedging adjustments of $290 million and $27 million for the respective periods.
We recognized in Interest expense on Long-term debt net increases of $12 million and $63 million for the three months ended March 31, 2025 and 2024, respectively, primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges.
Net Investment Hedges
We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We had notional amounts of approximately $14.3 198 million and a gain of $86 million for the three months ended March 31, 2025 and 2024, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income were no
Derivatives Not Designated as Hedges
The changes in the fair value of derivatives that are not designated as hedges are primarily intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. We had notional amounts of approximately $30.5 billion and $28.8 billion as of March 31, 2025 and December 31, 2024, respectively. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in net gains of $15 million and $16 million for the three months ended March 31, 2025 and 2024, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income.
Our embedded derivative related to seller earnout shares granted to us upon the completion of a business combination in the second quarter of 2022 between our equity method investee, American Express Global Business Travel, and Apollo Strategic Growth Capital had a notional amount of $78 17 million and $4 million for the three months ended March 31, 2025 and 2024, respectively, which were recognized in Service fees and other revenue in the Consolidated Statements of Income.
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9. Fair Values
Financial Assets and Financial Liabilities Carried at Fair Value
The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of March 31, 2025 and December 31, 2024:
Table 9.1: Financial Assets and Financial Liabilities measured at Fair Value
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, gross (a)(b) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, gross (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(a)Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis.
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Financial Assets and Financial Liabilities Carried at Other Than Fair Value
The following tables summarize the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of March 31, 2025 and December 31, 2024. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of March 31, 2025 and December 31, 2024, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.
Table 9.2: Fair Value of Financial Assets and Financial Liabilities measured at Amortized Cost
| Carrying Value | Corresponding Fair Value Amount | |||||||||||||||||||||||||||||||
| 2025 (Billions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
| Financial Assets: | ||||||||||||||||||||||||||||||||
| Financial assets for which carrying values equal or approximate fair value | ||||||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Other financial assets (b) | ||||||||||||||||||||||||||||||||
| Financial assets carried at other than fair value | ||||||||||||||||||||||||||||||||
Card Member and Other loans, less reserves (c) | ||||||||||||||||||||||||||||||||
Card Member loans HFS | ||||||||||||||||||||||||||||||||
| Financial Liabilities: | ||||||||||||||||||||||||||||||||
| Financial liabilities for which carrying values equal or approximate fair value | ||||||||||||||||||||||||||||||||
| Financial liabilities carried at other than fair value | ||||||||||||||||||||||||||||||||
Certificates of deposit (d) | ||||||||||||||||||||||||||||||||
Long-term debt (c) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Carrying Value | Corresponding Fair Value Amount | |||||||||||||||||||||||||||||||
| 2024 (Billions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
| Financial Assets: | ||||||||||||||||||||||||||||||||
| Financial assets for which carrying values equal or approximate fair value | ||||||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Other financial assets (b) | ||||||||||||||||||||||||||||||||
| Financial assets carried at other than fair value | ||||||||||||||||||||||||||||||||
Card Member and Other loans, less reserves (c) | ||||||||||||||||||||||||||||||||
Card Member loans HFS | ||||||||||||||||||||||||||||||||
| Financial Liabilities: | ||||||||||||||||||||||||||||||||
| Financial liabilities for which carrying values equal or approximate fair value | ||||||||||||||||||||||||||||||||
| Financial liabilities carried at other than fair value | ||||||||||||||||||||||||||||||||
Certificates of deposit (d) | ||||||||||||||||||||||||||||||||
Long-term debt (c) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
(a)Level 2 fair value amounts reflect time deposits and short-term investments.
(b)Balances include Card Member receivables (including fair values of Card Member receivables of $4.2 billion and $3.9 billion held by a consolidated VIE as of March 31, 2025 and December 31, 2024, respectively), other receivables and other miscellaneous assets.
(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $26.7 billion and $28.3 billion as of March 31, 2025 and December 31, 2024, respectively, and the fair values of Long-term debt were $14.2 billion and $14.0 billion as of March 31, 2025 and December 31, 2024, respectively.
(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.
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Nonrecurring Fair Value Measurements
We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values.
We estimate the Level 3 fair value of equity investments without readily determinable fair values, which include investments in our Amex Ventures portfolio, based on price changes as of the date of new similar equity financing transactions completed by the companies in the portfolio. In addition, impairments on such investments are recorded to account for the difference between the estimated fair value and carrying value of an investment based on a qualitative assessment of impairment indicators such as business performance, general market conditions and the economic and regulatory environment. When an impairment triggering event occurs, the fair value measurement is generally derived by taking into account all available information, such as share prices of publicly traded peer companies, internal valuations performed by our investees, and other third-party fair value data. The fair value of impaired investments represents a Level 3 fair value measurement.
The carrying value of equity investments without readily determinable fair values totaled $0.9 nil and $1 million as of March 31, 2025 and December 31, 2024, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets.
We recorded no 39 million and nil for the three months ended March 31, 2025 and 2024, respectively. Unrealized gains and losses are recorded in Other, net on the Consolidated Statements of Income. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains for equity investments without readily determinable fair values totaled $1.1 499 million and $460 million as of March 31, 2025 and December 31, 2024, respectively.
In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both March 31, 2025 and December 31, 2024.
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10. Guarantees
The maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by us in the ordinary course of business were $1 billion and $11 million, respectively, as of March 31, 2025 and $1 billion and $10 million, respectively, as of December 31, 2024, all of which were primarily related to our real estate arrangements and business dispositions.
To date, we have not experienced any significant losses related to guarantees or indemnifications. Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated.
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11. Changes In Accumulated Other Comprehensive Income (Loss)
AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three months ended March 31, 2025 and 2024 were as follows:
Table 11.1: Changes in Accumulated Other Comprehensive Income (Loss)
(Millions), net of tax | Three Months Ended, | |||||||||||||||||||||||||||||||||||||
| March 31, 2025 | Net Change | December 31, 2024 | March 31, 2024 | Net Change | December 31, 2023 | |||||||||||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Debt Securities | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||
Foreign Currency Translation Adjustment Gains (Losses), net of hedges (a) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
(a)Refer to Note 8 for additional information on hedging activity.
The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above:
Table 11.2: Tax Impact for Changes in Accumulated Other Comprehensive Income (Loss)
| Tax expense (benefit) | ||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
Net unrealized gains on debt securities | $ | $ | ||||||||||||||||||||||||
| Foreign currency translation adjustment, net of hedges | ( | |||||||||||||||||||||||||
| Pension and other postretirement benefits | ( | |||||||||||||||||||||||||
| Total tax impact | $ | ( | $ | |||||||||||||||||||||||
Reclassifications out of AOCI into the Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 were no
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12. Service Fees and Other Revenue and Other Expenses
The following is a detail of Service fees and other revenue for the three months ended March 31:
Table 12.1: Components of Service Fees and Other Revenue
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
Loyalty coalition, merchant and other service fees (a) | $ | $ | ||||||||||||||||||||||||
Network partnership revenue(b) | ||||||||||||||||||||||||||
| Foreign currency-related revenue | ||||||||||||||||||||||||||
| Delinquency fees | ||||||||||||||||||||||||||
| Travel commissions and fees | ||||||||||||||||||||||||||
| Other fees and revenues | ||||||||||||||||||||||||||
Total Service fees and other revenue (b) | $ | $ | ||||||||||||||||||||||||
(a)Effective for the first quarter of 2025, the revenue line previously reported as Service fees was renamed to Loyalty coalition, merchant and other service fees to better reflect its nature and components.
(b)Effective for the first quarter of 2025, Network partnership revenue, previously reported as Processed revenue on our Consolidated Statements of Income, is consolidated within Service fees and other revenue. Prior period amounts have been recast to conform to the current period presentation.
The following is a detail of Other expenses for the three months ended March 31:
Table 12.2: Components of Other Expense
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
Data processing and equipment | $ | $ | ||||||||||||||||||||||||
| Professional services | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
| Total Other expenses | $ | $ | ||||||||||||||||||||||||
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13. Income Taxes
The effective tax rate was 22.4 percent and 22.5 percent for the three months ended March 31, 2025 and 2024, respectively.
We are under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which we have significant business operations. The tax years under examination and open for examination vary by jurisdiction. We are currently under examination by the IRS for the 2017 and 2018 tax years.
In 2024, we received a Notice of Proposed Adjustment (Notice) from the IRS regarding transfer pricing between our U.S. and foreign subsidiaries for the 2017 and 2018 tax years currently under examination. The Notice proposes an increase to our U.S. taxable income that would result in an additional estimated U.S. federal income tax payment of approximately $185 million for 2017 and 2018, excluding interest and state income taxes, and asserts penalties of approximately $50 million for the same period. Although the Notice only applies to the 2017 and 2018 tax years currently under examination, the IRS may seek similar adjustments for subsequent tax years.
We strongly disagree with the IRS’s positions and plan to pursue all available remedies to vigorously contest the adjustments made by the IRS. We believe our income tax reserves are appropriate for all open tax years and that final resolution of this matter will not have a material impact on our results of operations. However, the ultimate outcome of this matter is uncertain, and if we are required to pay the IRS additional U.S. taxes, interest and/or potential penalties, our results of operations could be materially affected for the period in which the matter is resolved.
We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next twelve months by as much as $132 million, principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $132 million of unrecognized tax benefits, approximately $104 million relates to amounts that, if recognized, would impact the effective tax rate in a future period.
Tax Credit Investments
As of March 31, 2025 and 2024, we had $1,699 million and $1,454 million in tax credit investments, respectively, included in Other assets on the Consolidated Balance Sheets, comprised of Low Income Housing Tax Credit investments and other qualifying investments. We account for such tax credit investments using the Proportional Amortization Method.
The following table presents tax credit investment expenses and associated income tax credits and other income tax benefits for the three months ended March 31:
Table 13.1: Tax Credit Investments Expenses and Credits
(a) Other income tax benefits are a result of tax deductible expenses generated by our tax credit investments
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||||||||||||||
Proportional amortization recognized in tax provision | $ | $ | ||||||||||||||||||||||||
Income tax credits and Other income tax benefits (a) recognized in tax provision | ||||||||||||||||||||||||||
Income tax credits and other income tax benefits associated with our tax credit investments are also recognized in the Consolidated Statements of Cash Flows in the Operating activities section primarily under Accounts payable and other liabilities. Refer to Note 6 to our “Consolidated Financial Statements” in the 2024 Form 10-K for additional information on our tax credit investments for the year ended December 31, 2024.
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14. Earnings Per Common Share (EPS)
The computations of basic and diluted EPS for the three months ended March 31 were as follows:
Table 14.1: Computation of Basic and Diluted Earnings per Share
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (Millions, except per share amounts) | 2025 | 2024 | ||||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||
| Basic and diluted: | ||||||||||||||||||||||||||
| Net income | $ | $ | ||||||||||||||||||||||||
| Preferred dividends | ( | ( | ||||||||||||||||||||||||
| Net income available to common shareholders | $ | $ | ||||||||||||||||||||||||
Earnings allocated to participating share awards (a) | ( | ( | ||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | $ | ||||||||||||||||||||||||
Denominator:(a) | ||||||||||||||||||||||||||
| Basic: Weighted-average common stock | ||||||||||||||||||||||||||
Add: Weighted-average stock options (b) | ||||||||||||||||||||||||||
| Diluted | ||||||||||||||||||||||||||
| Basic EPS | $ | $ | ||||||||||||||||||||||||
| Diluted EPS | $ | $ | ||||||||||||||||||||||||
(a)Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.
(b)The dilutive effect of unexercised stock options excludes from the computation of EPS 0.1 million of options for both the three months ended March 31, 2025 and 2024, because inclusion of the options would have been anti-dilutive.
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15. Reportable Operating Segments
The following tables present certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three months ended March 31:
Table 15.1: Selected Financial Information by Segment
| Three Months Ended March 31, 2025 (Millions) | USCS | CS | ICS | GMNS | Corporate & Other (a) | Consolidated | ||||||||||||||||||||||||||||||||
| Total non-interest revenues | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Revenue from contracts with customers (b) | ( | |||||||||||||||||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||||||||||||
| Interest expense | ( | |||||||||||||||||||||||||||||||||||||
Net interest income | ( | |||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | ( | |||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | ( | |||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | ( | |||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||
Card Member rewards, business development and Card Member services (c) | ||||||||||||||||||||||||||||||||||||||
| Marketing | ||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses | ||||||||||||||||||||||||||||||||||||||
| Total expenses | ||||||||||||||||||||||||||||||||||||||
| Pretax income (loss) | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2024 (Millions) | USCS | CS | ICS | GMNS | Corporate & Other (a) | Consolidated | ||||||||||||||||||||||||||||||||
| Total non-interest revenues | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Revenue from contracts with customers (b) | ( | |||||||||||||||||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||||||||||||
| Interest expense | ( | |||||||||||||||||||||||||||||||||||||
| Net interest income | ( | |||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | ( | |||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | ( | |||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | ( | |||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||
Card Member rewards, business development and Card Member services (c) | ||||||||||||||||||||||||||||||||||||||
| Marketing | ||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses | ||||||||||||||||||||||||||||||||||||||
| Total expenses | ||||||||||||||||||||||||||||||||||||||
| Pretax income (loss) | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
(a)Corporate & Other includes adjustments and eliminations for intersegment activity.
(b)Includes discount revenue and certain service fees and other revenue from customers.
(c)Card Member rewards, business development and Card Member services expenses are generally correlated to volumes or are variable based on usage.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Our market risk exposures include (i) interest rate risk due to changes in the relationship between the interest rates on our assets (such as loans, receivables and investment securities) and the interest rates on our liabilities (such as debt and deposits); and (ii) foreign exchange risk related to transactions, funding, investments and earnings in currencies other than the U.S. dollar. Since December 31, 2024, there have been no material changes in our market risk exposures associated with interest rates or foreign currencies.
The actual impact of interest rate and foreign exchange rate changes will depend on, among other factors, the timing of rate changes, the extent to which different rates do not move in the same direction or in the same direction to the same degree, changes in the cost, volume and mix of our hedging activities and changes in the volume and mix of our businesses.
ITEM 4. CONTROLS AND PROCEDURES
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective and designed to ensure that the information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
For information that updates the disclosures set forth under Part I, Item 3. “Legal Proceedings” in the 2024 Form 10-K, refer to Note 7 to the “Consolidated Financial Statements” in this Form 10-Q.
ITEM 1A. RISK FACTORS
For a discussion of our risk factors, including risks and uncertainties related to business, economic and geopolitical conditions, see Part I, Item 1A. “Risk Factors” of the 2024 Form 10-K. The risks and uncertainties that we face are not limited to those set forth in the 2024 Form 10-K. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business and the trading price of our securities.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(c) ISSUER PURCHASES OF SECURITIES
The table below sets forth the information with respect to purchases of our common stock made by or on behalf of us during the three months ended March 31, 2025.
| Total Number of Shares Purchased | Average Price Paid Per Share (c) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||||||
| January 1-31, 2025 | ||||||||||||||||||||||||||
Repurchase programs(a) | — | $ | — | — | 75,170,819 | |||||||||||||||||||||
Employee transactions(b) | 721,245 | $ | 316.84 | N/A | N/A | |||||||||||||||||||||
| February 1-28, 2025 | ||||||||||||||||||||||||||
Repurchase programs(a) | 1,625,500 | $ | 303.16 | 1,625,500 | 73,545,319 | |||||||||||||||||||||
Employee transactions(b) | 96,398 | $ | 317.45 | N/A | N/A | |||||||||||||||||||||
| March 1-31, 2025 | ||||||||||||||||||||||||||
Repurchase programs(a) | 644,800 | $ | 282.79 | 644,800 | 72,900,519 | |||||||||||||||||||||
Employee transactions(b) | — | $ | — | N/A | N/A | |||||||||||||||||||||
| Total | ||||||||||||||||||||||||||
Repurchase programs(a) | 2,270,300 | $ | 297.37 | 2,270,300 | 72,900,519 | |||||||||||||||||||||
Employee transactions(b) | 817,643 | $ | 316.91 | N/A | N/A | |||||||||||||||||||||
(a)On March 8, 2023, the Board of Directors authorized the repurchase of up to 120 million common shares from time to time, subject to market conditions and in accordance with our capital plans. This authorization replaced the prior repurchase authorization. See “MD&A – Consolidated Capital Resources and Liquidity” for additional information regarding share repurchases.
(b)Includes: (i) shares surrendered by holders of employee stock options who exercised options (granted under our incentive compensation plans) in satisfaction of the exercise price and/or tax withholding obligation of such holders and (ii) restricted shares withheld (under the terms of grants under our incentive compensation plans) to offset tax withholding obligations that occur upon vesting and release of restricted shares. Our incentive compensation plans provide that the value of the shares delivered or attested to, or withheld, be based on the price of our common stock on the date the relevant transaction occurs.
(c)The average price paid per share does not reflect costs and taxes associated with the purchase of shares.
(d)Share purchases under publicly announced programs are made pursuant to open market purchases, plans intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, privately negotiated transactions or other purchases, including block trades, accelerated share repurchase programs or any combination of such methods as market conditions warrant and at prices we deem appropriate.
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ITEM 5. OTHER INFORMATION
Director Departure
On April 17, 2025, Walter J. Clayton III notified us of his decision to resign from the Board of Directors, effective April 21, 2025, to join the Department of Justice. Mr. Clayton’s decision to resign was not the result of any disagreement with management or the Board. Mr. Clayton has served as a director since 2022.
Rule 10b5-1 Trading Plans
During the three months ended March 31, 2025, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted terminated
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ITEM 6. EXHIBITS
The following exhibits are filed as part of this Quarterly Report:
| Exhibit | Description | ||||
| 31.1 | |||||
| 31.2 | |||||
| 32.1 | |||||
| 32.2 | |||||
| 101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | ||||
| 101.SCH | XBRL Taxonomy Extension Schema Document | ||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | ||||
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SIGNATURES
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 thereunto duly authorized.
| AMERICAN EXPRESS COMPANY | ||||||||
| (Registrant) | ||||||||
| Date: April 18, 2025 | By | /s/ Christophe Y. Le Caillec | ||||||
Christophe Y. Le Caillec Chief Financial Officer | ||||||||
| Date: April 18, 2025 | By | /s/ Jessica Lieberman Quinn | ||||||
| Jessica Lieberman Quinn Executive Vice President and Corporate Controller (Principal Accounting Officer) | ||||||||
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EXHIBIT 31.1
CERTIFICATION
I, Stephen J. Squeri, certify that:
1.I have reviewed this quarterly report on Form 10-Q of American Express Company;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: April 18, 2025 | |||||
/s/ Stephen J. Squeri | |||||
| Stephen J. Squeri Chief Executive Officer | |||||
EXHIBIT 31.2
CERTIFICATION
I, Christophe Y. Le Caillec, certify that:
1.I have reviewed this quarterly report on Form 10-Q of American Express Company;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: April 18, 2025 | |||||
/s/ Christophe Y. Le Caillec | |||||
Christophe Y. Le Caillec Chief Financial Officer | |||||
EXHIBIT 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of American Express Company (the “Company”) for the quarterly period ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Stephen J. Squeri, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Stephen J. Squeri | ||
| Name: Stephen J. Squeri Title: Chief Executive Officer | ||
| Date: April 18, 2025 | ||
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing.
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
EXHIBIT 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of American Express Company (the “Company”) for the quarterly period ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Christophe Y. Le Caillec, as Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Christophe Y. Le Caillec | ||
Name: Christophe Y. Le Caillec Title: Chief Financial Officer | ||
| Date: April 18, 2025 | ||
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.2 is expressly and specifically incorporated by reference in any such filing.
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.