AMERICAN EXPRESS CO - Quarter Report: 2024 June (Form 10-Q)

Total shareholders’ equity Total liabilities and shareholders’ equity$ $

See Notes to Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


Six Months Ended June 30 (Millions)	2024	2023
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)	()
Originations of loans held-for-sale		()
Proceeds from sales of loans held-for-sale
Changes in operating assets and liabilities, net of effects of dispositions and acquisitions:
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 increase in loans and Card Member receivables (b)	()	()
Purchase of premises and equipment, net of sales: 2024, $; 2023, $	()	()
Dispositions/(acquisitions), net of cash disposed/acquired		()
Net cash used in investing activities	()	()
Cash Flows from Financing Activities
Net increase in customer deposits
Net increase in short-term borrowings (b)
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)

(b) million related to non-cash activity during the three months ended March 31, 2023.

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

Three months ended June 30, 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 March 31, 2024

()

Net income

—

Other comprehensive income (loss)

()

—

()

Repurchase of common shares

()

—

()

—

()

Other changes, including employee plans

—

()

Cash dividends declared preferred Series D, $ per share

()

—

()

Cash dividends declared common, $ per share

()

—

()

Balances as of June 30, 2024

()

Six months ended June 30, 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, including employee plans

—

()

Cash dividends declared preferred Series D, $ per share

()

—

()

Cash dividends declared common, $ per share

()

—

()

Balances as of June 30, 2024

()

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

Three months ended June 30, 2023 (Millions, except per share amounts)

Total

Preferred Shares

Common Shares

Additional Paid-in Capital

Accumulated Other Comprehensive Income (Loss)

Retained Earnings

Balances as of March 31, 2023

()

Net income

—

Other comprehensive income (loss)

—

Repurchase of common shares

()

—

()

—

()

Other changes, including employee plans

—

()

Cash dividends declared preferred Series D, $ per share

()

—

()

Cash dividends declared common, $ per share

()

—

()

Balances as of June 30, 2023

()

Six months ended June 30, 2023 (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, 2022

()

Net income

—

Other comprehensive income (loss)

—

Repurchase of common shares

()

—

()

—

()

Other changes, including employee plans

—

()

Three Months Ended June 30, 2024Six Months Ended June 30, 2024

Account Balance (Millions) (a)

Interest Rate Reduction

Term ExtensionInterest Rate Reduction and Term ExtensionTotal

Interest Rate Reduction

Term ExtensionInterest Rate Reduction and Term ExtensionTotalCard Member LoansConsumer$ (b)$$ $ (b)$ $ Small Business (b) (b) Corporate (b) (b) Card Member ReceivablesConsumer(c)$ (c) Small Business(c) (c) Corporate(c) (c) Other Loans Total$ $ $ $ $ $ $ $

(a)Represents the outstanding balances as of June 30, 2024 of all modifications that defaulted in the three and six months ended June 30, 2024, respectively, 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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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

$ $ Small Business Corporate Card Member Receivables:Consumer Small Business Corporate Other Loans Total$ $ $

(a)The outstanding balance as of June 30, 2024 includes principal, fees and accrued interest on loans and principal and fees on receivables.

The following table provides information relating to the performance of loans and receivables that were modified on or after January 1, 2023 and that remained in modification programs as of, or that defaulted on or before, June 30, 2023.

As of June 30, 2023

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 balance as of June 30, 2023 includes principal, fees and accrued interest on loans and principal and fees on receivables.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

, 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. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually and incorporate a discounted cash flow model.

days past due for pay in full or revolving loans and days past due for term loans. Loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

% - %

% - ()%

Fourth quarter of 2024

% - %

% - ()%

% - %

Fourth quarter of 2025

% - %

Fourth quarter of 2026

% - %

(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 increased for the three and six months ended June 30, 2024, primarily driven by increases in loans outstanding, partially offset for the three month period by lower delinquencies.

Card Member loans reserve for credit losses increased for the three and six months ended June 30, 2023, primarily driven by increases in loans outstanding, and for the six month period, higher delinquencies.

$ $ $

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 $ million and $ million for the three months ended June 30, 2024 and 2023, respectively, and $ million and $ million for the six months ended June 30, 2024 and 2023, respectively. Recoveries of interest and fees were not significant.

(c)Primarily includes foreign currency translation adjustments.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

$ $ $

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 $ million and $ million for the three months ended June 30, 2024 and 2023, respectively, and $ million and $ million for the six months ended June 30, 2024 and 2023, respectively.

(c)Primarily includes foreign currency translation adjustments.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We had accrued interest on our available-for-sale debt securities totaling $ million and $ million as of June 30, 2024 and December 31, 2023, respectively, presented as Other assets on the Consolidated Balance Sheets.

$ $()$ $ $ $()$ 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, exchange-traded funds and mutual funds.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

$ $ $()$ $ $ $()U.S. Government treasury obligations () ()Mortgage-backed securities () ()Total$ $ $ $()$ $ $ $()

The gross unrealized losses on our available-for-sale debt securities are primarily attributable to an increase in the current benchmark interest rate. Overall, for the available-for-sale 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.

$ $ $ $() $ $()Less than 90% $ $ $ $() $ $()Total as of June 30, 2024 $ $ $ $() $ $()2023:90–100% $ $ $ $() $ $()Less than 90% $ $ $ $() $ $()Total as of December 31, 2023 $ $ $ $() $ $() $ 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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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Our ownership of variable interests for the Lending Trust was $ billion and $ billion as of June 30, 2024 and December 31, 2023, respectively, and for the Charge Trust was $ billion and $ billion as of June 30, 2024 and December 31, 2023, respectively.

Restricted cash and cash equivalents held by the Lending Trust was $ million and $ million as of June 30, 2024 and December 31, 2023, respectively, and for the Charge Trust was as of both June 30, 2024 and December 31, 2023. These amounts relate to collections of Card Member loans and receivables to be used by the Trusts to fund future expenses and obligations, including interest on debt securities, credit losses and upcoming debt maturities.

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 six months ended June 30, 2024 and the year ended December 31, 2023, no such triggering events occurred.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Non-interest-bearing (includes Card Member credit balances of: 2024, $; 2023, $)

Non-U.S.:Interest-bearing

Non-interest-bearing (includes Card Member credit balances of: 2024, $; 2023, $)

Total customer deposits$ $

Customer deposits by deposit type as of June 30, 2024 and December 31, 2023 were as follows:


(Millions)	2024	2023
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	$	$

$ $ $ $ $ $

(a)Includes $ million of non-U.S. direct certificates of deposit as of June 30, 2024.

As of June 30, 2024 and December 31, 2023, certificates of deposit in denominations that met or exceeded the insured limit were $ billion and $ billion, respectively.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 states and Washington, D.C. We have appealed the court’s class certification decisions.

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. An amended complaint was filed on July 15, 2016. On September 30, 2016, the court denied our motion to dismiss as to claims brought by merchants who do not accept American Express cards, and 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.

In July 2004, we were named as a defendant in a putative class action filed in the Southern District of New York and subsequently transferred to the Eastern District of New York, captioned The Marcus Corporation v. American Express Co., et al., in which the plaintiffs allege an unlawful antitrust tying arrangement between certain of our charge cards and credit cards in violation of various state and federal laws. The plaintiffs in this action seek injunctive relief and an unspecified amount of damages.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

to $ 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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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 June 30, 2024, 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 June 30, 2024 and December 31, 2023, credit risk adjustment to the derivative portfolio was required.

$ $ $ 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 $ million and $ million as of June 30, 2024 and December 31, 2023, 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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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

billion and $ billion of fixed-rate debt obligations designated in fair value hedging relationships as of June 30, 2024 and December 31, 2023, respectively.)$ $ $()Derivatives designated as hedging instruments ()() Total$ $()$()$()

The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $ billion and $ billion as of June 30, 2024 and December 31, 2023, respectively, including the cumulative amount of fair value hedging adjustments of $() million and $ million for the respective periods.

We recognized in Interest expense on Long-term debt net increases of $ million and $ million for the three months ended June 30, 2024 and 2023, respectively, and a net increases of $ million and $ million for the six months ended June 30, 2024 and 2023, 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 $ billion and $ billion of foreign currency derivatives designated as net investment hedges as of June 30, 2024 and December 31, 2023, respectively. The gain or loss on net investment hedges, net of taxes, recorded in Accumulated other comprehensive income (loss) (AOCI) as part of the cumulative translation adjustment, was a gain of $ million and a loss of $ million for the three months ended June 30, 2024 and 2023, respectively, and a gain of $ million and a loss of $ million for the six months ended June 30, 2024 and 2023, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income were t significant for any of the three and the six months ended June 30, 2024 and 2023.

Derivatives Not Designated as Hedges

The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. We had notional amounts of approximately $ billion and $ billion as of June 30, 2024 and December 31, 2023, respectively. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in net gains of $ million and $ million for the three months ended June 30, 2024 and 2023, respectively, and net gains of $ million and $ million for the six months ended June 30, 2024 and 2023, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income.

million as of both June 30, 2024 and December 31, 2023. The changes in the fair value of the embedded derivative resulted in gains of $ million and $ million for the three months ended June 30, 2024 and 2023, respectively, and a loss of $ million and for the six months ended June 30, 2024 and 2023, respectively, which were recognized in Service fees and other revenue in the Consolidated Statements of Income.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

$ $ $ $ $ $ $

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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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

$ $ $ $

Other financial assets (b)

Financial assets carried at other than fair value

Card Member and Other loans, less reserves (c)

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

2023 (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)

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 $ billion and $ billion held by a consolidated VIE as of June 30, 2024 and December 31, 2023, 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 $ billion and $ billion as of June 30, 2024 and December 31, 2023, respectively, and the fair values of Long-term debt were $ billion and $ billion as of June 30, 2024 and December 31, 2023, respectively.

(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

billion as of both June 30, 2024 and December 31, 2023, of which investments representing nonrecurring Level 3 fair value measurement were $ million and as of June 30, 2024 and December 31, 2023, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets.

We recorded unrealized gains of $ million and for the three months ended June 30, 2024 and 2023, respectively, and $ million and for the six months ended June 30, 2024 and 2023, respectively. Unrealized losses were $ million and $ million for the three months ended June 30, 2024 and 2023, respectively, and $ million and $ million for the six months ended June 30, 2024 and 2023, 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 $ billion as of both June 30, 2024 and December 31, 2023, and cumulative unrealized losses were $ million and $ million as of June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

10.

billion and $ million, respectively, as of June 30, 2024 and $ billion and $ million, respectively, as of December 31, 2023, 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.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

11.

)$()$()$()Net change () ()Balances as of June 30, 2024$()$()$()$())$()$()$()Net change () ()Balances as of June 30, 2024$()$()$()$()

Three Months Ended June 30, 2023 (Millions), net of tax

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)

Balances as of March 31, 2023

()

Net change

()

Balances as of June 30, 2023

()

Six Months Ended June 30, 2023 (Millions), net of tax

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)

Balances as of December 31, 2022

()

Net change

Balances as of June 30, 2023

()

(a)Refer to Note 8 for additional information on hedging activity.

$ $ $ 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, net of taxes, for the three and six months ended June 30, 2024 and 2023 were significant.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

12.

$ $ $ Foreign currency-related revenue Delinquency fees Travel commissions and fees Other fees and revenues Total Service fees and other revenue$ $ $ $ $ $ $ Professional services

(a) Other income tax benefits are a result of tax deductible expenses generated by our tax credit investments

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 2023 Form 10-K for additional information on our tax credit investments for the year ended December 31, 2023.

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AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

14.

$ $ $ Preferred dividends ()()()()10.1

American Express Company 2016 Incentive Compensation Plan (as ame nded and restated effective May 6, 2024) (incorporated by reference to Exhibit 10.1 of the Company ’s Current Report on Form 8-K (Commission File No. 1 -7657), dated May 6 , 202 4 (filed May 8 , 202 4 )).

31.1

Certification of Stephen J. Squeri pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

31.2

Certification of Christophe Y. Le Caillec pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

32.1

Certification of Stephen J. Squeri pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certification of Christophe Y. Le Caillec pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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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: July 19, 2024	By	/s/ Christophe Y. Le Caillec
		Christophe Y. Le Caillec Chief Financial Officer

Date: July 19, 2024	By	/s/ Jessica Lieberman Quinn
		Jessica Lieberman Quinn Executive Vice President and Corporate Controller (Principal Accounting Officer)

AMERICAN EXPRESS CO - Quarter Report: 2024 June (Form 10-Q)

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