|
|
| Commercial Services | | 2 | | | 2 | | | 2 | | | 2 | |
|
|
| International Card Services | | 15 | | | 12 | | | 12 | | | 12 | |
|
|
|
|
|
|
|
| Total | | $ | 8.6 | |
(a)Secured overnight financing rate (SOFR).
(b)Euro Interbank Offered Rate (EURIBOR).
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.
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 June 30, 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 June 30, 2025, our direct deposit program had approximately 3.6 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 June 30, 2025 and December 31, 2024, we had $149.4 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 tables set forth the average interest rates we paid on different types of deposits during the three and six months ended June 30, 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 June 30, |
| | 2025 | | 2024 |
(Millions, except percentages) | | Average Balance | | Interest Expense | | Average Interest Rate (a) | Average Balance | | Interest Expense | | Average Interest Rate (a) |
Savings accounts | | $ | 113,134 | | | $ | 1,012 | | | 3.6 | % | | $ | 100,510 | | | $ | 1,047 | | | 4.2 | % |
Checking accounts | | 2,414 | | 14 | | | 2.3 | | | 1,558 | | | 6 | | | 1.5 | |
| Certificates of deposit: | | | | | | | | | | | | |
| Direct | | 4,524 | | 45 | | 4.0 | | | 5,024 | | 53 | | 4.2 | |
| Third-party (brokered) | | 11,240 | | 124 | | 4.4 | | | 10,338 | | 104 | | 4.0 | |
| Sweep accounts — Third-party (brokered) | | 15,395 | | 179 | | 4.7 | | | 15,279 | | 214 | | 5.6 | |
Total U.S. interest-bearing deposits | | $ | 146,707 | | | $ | 1,374 | | | 3.8 | % | | $ | 132,709 | | | $ | 1,424 | | | 4.3 | % |
| | | | | | | | | | | | |
| | Six Months Ended June 30, |
| | 2025 | | 2024 |
(Millions, except percentages) | | Average Balance | | Interest Expense | | Average Interest Rate (a) | Average Balance | | Interest Expense | | Average Interest Rate (a) |
Savings accounts | | $ | 111,755 | | | $ | 2,024 | | | 3.7 | % | | $ | 97,989 | | | $ | 2,065 | | | 4.2 | % |
Checking accounts | | 2,298 | | | 21 | | | 1.8 | | | 1,495 | | | 10 | | | 1.4 | |
| Certificates of deposit: | | | | | | | | | | | | |
| Direct | | 4,408 | | 88 | | 4.0 | | | 5,241 | | 110 | | 4.2 | |
| Third-party (brokered) | | 10,255 | | 221 | | 4.4 | | | 11,455 | | 229 | | 4.0 | |
| Sweep accounts — Third-party (brokered) | | 15,405 | | 356 | | 4.7 | | | 15,442 | | 436 | | 5.7 | |
Total U.S. interest-bearing deposits | | $ | 144,121 | | | $ | 2,710 | | | 3.8 | % | | $ | 131,622 | | | $ | 2,850 | | | 4.4 | % |
(a)Average interest rate reflects interest expense divided by average deposits, computed on an annualized basis.
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 our Annual Report on Form 10-K for the year ended December 31, 2024 (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 June 30, 2025 and December 31, 2024, we had $57.9 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 six months ended June 30, 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 June 30, 2025, interest income exceeded the interest expense associated with the liquidity portfolio.
Securitized Borrowing Capacity
As of June 30, 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). On July 16, 2025, we extended the Charge Trust facility by two years to mature on July 17, 2028. 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 June 30, 2025, $2.5 billion was drawn on the Charge Trust facility, which was subsequently repaid in full. No amount was drawn on the Lending Trust facility as of June 30, 2025.
Committed Bank Credit Facility
As of June 30, 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 June 30, 2025, no amount 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 June 30, 2025, AENB had available borrowing capacity of $78.0 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.
Unused Credit Outstanding
As of June 30, 2025, we had approximately $496 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 six months ended June 30:
Table 22: Cash Flows | | | | | | | | | | | | | | |
| (Billions) | | 2025 | | 2024 |
| Total cash provided by (used in): | | | | |
| Operating activities | | $ | 9.1 | | | $ | 10.1 | |
| Investing activities | | (6.3) | | | (8.6) | |
| Financing activities | | 14.3 | | | 4.8 | |
| Effect of foreign currency exchange rates on cash and cash equivalents | | 0.2 | | | — | |
| Net increase in cash and cash equivalents | | $ | 17.3 | | | $ | 6.3 | |
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.
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 used in investing activities was primarily driven by higher loans outstanding and the acquisition of a business.
In 2024, the net cash used in investing activities was primarily driven by higher loans outstanding, partially offset by net maturities of investment securities and net proceeds received from the sale of Accertify.
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.
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.
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.
Antitrust Litigation
We continue to vigorously defend antitrust and other claims initiated by merchants and others. 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 cases, could have a material adverse effect on our business. For more information on the potential impacts of an adverse decision in these cases 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.
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 could 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.
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.”
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.
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.
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; changes in the competitive environment; impacts related to acquisitions, cobrand and other partner agreements, portfolio sales and joint ventures; and the impact of regulation and litigation, which 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 spending by U.S. consumer and small business Card Members, such as due to uncertain business and economic conditions, as well as a decline or slowdown in cross-border and travel & entertainment spending volumes; 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 (including U.S. Consumer and Business Platinum Cards), grow spending and lending with customers across age cohorts (including Millennial and Gen-Z customers) and commercial segments 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 fee revenues not performing consistently with expectations, which could be impacted by, among other things, the pace of Card Member acquisition activity and demand for our fee-based products; higher Card Member attrition rates; our inability to implement our strategy of refreshing card products and realize our anticipated growth from those refreshes; a decrease in the ability and desire of Card Members to pay card fees, such as due to a deterioration in macroeconomic conditions; the competitive environment and the perception of the value provided by premium cards; and our inability to deliver and enhance benefits and services, innovate with respect to our products and develop attractive premium value propositions for new and existing customers;
•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, grow lending with premium customers and capture a greater share of Card Members’ spending and borrowings and attract new, and retain existing, customers; our ability to effectively enhance lending features on our products and 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;
•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; card portfolio sales; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; collections capabilities and recoveries of previously written-off loans and receivables; and the impact of the usage of debt settlement companies;
•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; investments and enhancements that we make with respect to our rewards programs and product benefits, such as in connection with card refreshes, 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 enterprise risk management and compliance and consulting, legal and other professional services fees, including as a result of our growth, litigation and internal and regulatory reviews; the impact of changes in foreign currency exchange rates on costs; 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; and impairments of goodwill or other assets;
•our tax rate not remaining consistent with expectations, which could be impacted by, among other things, further changes in tax laws and regulation, 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;
•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 competitor premium card products and competition for partnerships and premium experiences, services and benefits; competition for new and existing cobrand relationships; competition from new and non-traditional competitors, such as financial technology companies, and with respect to new products, services and technologies, such as the emergence or increase in popularity of agentic commerce, digital payment platforms and currencies and other alternative payment mechanisms; and the success of marketing, promotion, rewards programs, offers and travel and lifestyle-related benefits (e.g., lounges, dining and entertainment);
•our ability to sustain our momentum and leadership in the premium consumer space, including with Millennial and Gen-Z consumers, and successfully refresh our U.S. Consumer Platinum Card®, which will be impacted in part by competition, levels of consumer demand for premium card products, 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 and successfully refresh our U.S. Business Platinum Card®, which will depend in part on competition, including from financial technology companies; 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; the acceptance of, and economics related to, 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, cash flow and expense 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, and marketing of capabilities related to, 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 our applications and platforms 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 enhance our products and address servicing and other business and customer needs, and supporting the use of our products as a means of payment through online, mobile and other digital 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;
•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 or our digital platforms 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, liquidity needs, 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;
•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 (such as in the Middle East and Ukraine), 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, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and other reports filed with the Securities and Exchange Commission.
ITEM 1. FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | | | | | | |
| Three Months Ended June 30 (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) million and $ million for the three months ended June 30, 2025 and 2024, respectively, and (ii) dividends on preferred shares of $ million for both the three months ended June 30, 2025 and 2024.
See Notes to Consolidated Financial Statements.
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) | | | | | | | | | | | | | | |
| Six Months Ended June 30 (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) million and $ million for the six months ended June 30, 2025 and 2024, respectively, and (ii) dividends on preferred shares of $ million for both the six months ended June 30, 2025 and 2024.
See Notes to Consolidated Financial Statements.
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| (Millions) | | 2025 | | 2024 | | 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.
AMERICAN EXPRESS COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | | | | | | | | | | | | |
| (Millions, except share data) | | June 30,
2025 | | December 31,
2024 |
| Assets | | | | |
| Cash and cash equivalents | | | | |
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2025, $; 2024, $) | | $ | | | | $ | | |
| Interest-bearing deposits in other banks | | | | | | |
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2025, $; 2024, $) | | | | | | |
Total cash and cash equivalents (includes restricted cash: 2025, $; 2024, $) | | | | | | |
Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2025, $; 2024, $), less reserves for credit losses: 2025, $; 2024, $ | | | | | | |
Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2025, $; 2024, $), less reserves for credit losses: 2025, $; 2024, $ | | | | | | |
| Card Member loans held for sale | | | | | | |
Other loans, less reserves for credit losses: 2025, $; 2024, $ | | | | | | |
| Investment securities | | | | | | |
Premises and equipment, less accumulated depreciation and amortization: 2025, $; 2024, $ | | | | | | |
Other assets, less reserves for credit losses: 2025, $; 2024, $ | | | | | | |
| 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, $; 2024, $) | | | | | | |
| Other liabilities | | | | | | |
| Total liabilities | | $ | | | | $ | | |
| Contingencies (Note 7) | | | | |
| Shareholders’ Equity | | | | |
Preferred shares, $1.662/3 par value, authorized million shares; issued and outstanding shares as of June 30, 2025 and December 31, 2024 | | | | | | |
Common shares, $ par value, authorized billion shares; issued and outstanding million shares as of June 30, 2025 and million shares as of December 31, 2024 | | | | | | |
| 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.
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | | | | | | | | | | | | | |
Six Months Ended June 30 (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 increase in loans and Card Member receivables, including Card Member loans held for sale (b) | | () | | | () | |
Purchase of premises and equipment, net of sales: 2025, ; 2024, $ | | () | | | () | |
| Acquisitions, net of cash acquired | | () | | | | |
| Dispositions, net of cash disposed | | | | | | |
| |
| Net cash 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)
(b)
See Notes to Consolidated Financial Statements.
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three months ended June 30, 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 March 31, 2025 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | |
| Net income | | | | | — | | | — | | | — | | | — | | | | |
Other comprehensive income (loss) | | | | | — | | | — | | | — | | | | | | | |
| | | |
| | | |
| Repurchase of common shares | | () | | | — | | | | | | () | | | — | | | () | |
Other changes | | | | | — | | | — | | | | | | — | | | | |
Cash dividends declared preferred Series D, $ per share | | () | | | — | | | — | | | — | | | — | | | () | |
Cash dividends declared common, $ per share | | () | | | — | | | — | | | — | | | — | | | () | |
| Balances as of June 30, 2025 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | |
| | | | | | | | | | | | |
Six months ended June 30, 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, $ per share | | () | | | — | | | — | | | — | | | — | | | () | |
Cash dividends declared common, $ per share | | () | | | — | | | — | | | — | | | — | | | () | |
| Balances as of June 30, 2025 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | |
See Notes to Consolidated Financial Statements.
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 | | | | | — | | | — | | | | | | — | | | () | |
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) | | () | | | — | | | — | | | — | | | () | | | | |
| | | |
| | | |
|
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|
|
|
|
|
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|
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(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 days past due). We establish reserves for interest that we believe will not be collected.
(d)Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | 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 $ million as of both June 30, 2025 and December 31, 2024 of loans on which interest is still accruing. Our policy is generally to accrue interest through the date of write-off (typically 120 days past due) except for lines of credit offered to small business customers, where interest ceases to accrue at 90 days past due. We establish reserves for interest that we believe will not be collected.
(c)This total includes non-accrual loans of $ million as of both June 30, 2025 and December 31, 2024. Non-accruals for consumer installment loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
% | | | % | | | % | | | % | | | % | | | % | | 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 % as of both June 30, 2025 and 2024.
Refer to Note 3 for additional indicators, including external qualitative factors, management considers in its evaluation process for reserves for credit losses.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| | | % | | | % | | (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 | | $ | | | | | | | | | | $ | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, |
| | 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 June 30, 2025 and 2024, respectively, of all modifications undertaken in the current and preceding three and six months for loans and receivables that remain in modification programs as of, or that defaulted on or before, June 30, 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.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| | (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 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, |
| | 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 June 30, 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.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| | $ | | | | $ | | | | Small Business | | | | | | | | | |
| Corporate | | | | | | | | | |
| Card Member Receivables: | | | | | | |
| Consumer | | | | | | | | | |
| Small Business | | | | | | | | | |
| Corporate | | | | | | | | | |
| Other Loans | | | | | | | | | |
| Total | | $ | | | | $ | | | | $ | | |
| | | | | | | | | | | | | | | | | | | | |
| | As of June 30, 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.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
3.
, 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.
days past due for Card Member loans and receivables and days past due for Other loans. Balances in bankruptcy or owed by deceased individuals are generally written off upon notification.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| % - % | | % | | % - ()% | 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 increased for both the three and six months ended June 30, 2025, primarily driven by increases in loans outstanding and deterioration in the macroeconomic outlook used in our reserve models, partially offset by the release of a reserve upon the previously-mentioned reclassification of a small business cobrand portfolio to Card Member loans HFS.
Card Member loans reserve for credit losses increased for both 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.
| | $ | | | | $ | | | | $ | | | 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. In addition, provisions for both the three and six months ended June 30, 2025 include the reserve release of $ million upon the previously-mentioned reclassification of a small business cobrand portfolio to Card Member loans HFS in the second quarter of 2025. See Note 1 for additional information.
(b)Principal write-offs are presented less recoveries of $ million and $ million for the three months ended June 30, 2025 and 2024, respectively, and $ million and $ million for the six months ended June 30, 2025 and 2024, respectively. Recoveries of interest and fees were not significant.
(c)Primarily includes foreign currency translation adjustments.
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, 2025 and 2024, respectively, and $ million and $ million for the six months ended June 30, 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 each of the three and six months ended June 30, 2025 and 2024, primarily driven by increases in other loans outstanding.
| | $ | | | | $ | | | | $ | | | 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 $ million and $ million for the three months ended June 30, 2025 and 2024, respectively, and $ million and $ million for the six months ended June 30, 2025 and 2024, respectively. Recoveries of interest and fees were not significant.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
4.
We had accrued interest on our AFS debt securities totaling $ million and $ million as of June 30, 2025 and December 31, 2024, 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 and mutual funds.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| | $ | | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | | | $ | () | | | 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.
| | $ | | | | $ | | | | | | $ | | | | $ | () | | | | | | $ | | | | $ | () | | | Less than 90% | | | | | $ | | | | $ | | | | | | | $ | | | | $ | () | | | | | | $ | | | | $ | () | |
| Total as of June 30, 2025 | | | | | $ | | | | $ | | | | | | | $ | | | | $ | () | | | | | | $ | | | | $ | () | |
| 2024: | | | | | | | | | | | | | | | | | | |
| 90–100% | | | | | $ | | | | $ | | | | | | | $ | | | | $ | () | | | | | | $ | | | | $ | () | |
| Less than 90% | | | | | $ | | | | $ | | | | | | | $ | | | | $ | () | | | | | | $ | | | | $ | () | |
| Total as of December 31, 2024 | | | | | $ | | | | $ | | | | | | | $ | | | | $ | () | | | | | | $ | | | | $ | () | |
| | $ | | | | 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.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
5.
Our ownership of variable interests in the Lending Trust was $ billion and $ billion as of June 30, 2025 and December 31, 2024, respectively, and in the Charge Trust was $ billion and $ billion as of June 30, 2025 and December 31, 2024, respectively.
Restricted cash and cash equivalents held by the Lending Trust was $ million and $ million as of June 30, 2025 and December 31, 2024, respectively, and by the Charge Trust was $ million and as of June 30, 2025 and December 31, 2024, respectively. 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, 2025 and the year ended December 31, 2024, no such triggering events occurred.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
6.
| | $ | | | Non-interest-bearing (includes Card Member credit balances of: 2025, $; 2024, $) | | | | | | |
| Non-U.S.: | | | | |
| Interest-bearing | | | | | | |
Non-interest-bearing (includes Card Member credit balances of: 2025, $; 2024, $) | | | | | | |
| Total customer deposits | | $ | | | | $ | | |
Customer deposits by deposit type as of June 30, 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 | | $ | | | | $ | | |
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | (a)Includes $ million of non-U.S. direct certificates of deposit as of June 30, 2025.
As of June 30, 2025 and December 31, 2024, certificates of deposit in denominations that met or exceeded the insured limit were $ billion and $ billion, respectively.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
7.
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. 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.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
8.
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, 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 June 30, 2025 and December 31, 2024, 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, 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.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| | $ | () | | | $ | () | | | $ | | | | 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, 2025 and December 31, 2024, 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, 2025 and 2024, respectively, and net increases of $ million and $ million for the six months ended June 30, 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
A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation.
We had notional amounts of approximately $ billion and $ billion designated as net investment hedges as of June 30, 2025 and December 31, 2024, respectively. The gain or loss on these net investment hedges, net of taxes, recorded in Accumulated other comprehensive income (loss) (AOCI) as part of the cumulative translation adjustment, was a loss of $ million and a gain of $ million for the three months ended June 30, 2025 and 2024, respectively, and a loss of $ million and a gain of $ million for the six months ended June 30, 2025 and 2024, 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, 2025 and 2024.
Derivatives Not Designated as Hedges
We had notional amounts of approximately $ billion and $ billion as of June 30, 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 $ million and $ million for the three months ended June 30, 2025 and 2024, respectively, and net gains of $ million and $ million for the six months ended June 30, 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 $ million as of both June 30, 2025 and December 31, 2024. The changes in the fair value of the embedded derivative resulted in a loss of $ million and a gain of $ million for the three months ended June 30, 2025 and 2024, respectively, and losses of $ million and $ million for the six months ended June 30, 2025 and 2024, respectively, which were recognized in Service fees and other revenue in the Consolidated Statements of Income.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
9.
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | 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.
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) | | | | | | | | | | | | | | | |
| 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 $ billion and $ billion held by a consolidated VIE as of June 30, 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 $ billion and $ billion as of June 30, 2025 and December 31, 2024, respectively, and the fair values of Long-term debt were $ billion and $ billion as of June 30, 2025 and December 31, 2024, respectively.
(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The carrying value of equity investments without readily determinable fair values totaled $ billion and $ billion as of June 30, 2025 and December 31, 2024, respectively, of which investments subject to nonrecurring Level 3 fair value measurement during the six months ended June 30, 2025 and the year ended December 31, 2024 totaled $ billion and $ million, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets.
We recorded unrealized gains of $ million for both the three and six months ended June 30, 2025, and $ million for both the three and six months ended June 30, 2024. Unrealized losses were and $ million for the three months ended June 30, 2025 and 2024, respectively, and $ million and $ million for the six months ended June 30, 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 and losses for equity investments without readily determinable fair values totaled $ billion and $ billion as of June 30, 2025, 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, 2025 and December 31, 2024.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
10.
billion and $ million, respectively, as of June 30, 2025 and $ billion and $ 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.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
11.
) | | $ | | | | $ | () | | | $ | () | | | $ | | | | $ | () | | Foreign Currency Translation Adjustment Gains (Losses), net of hedges (a) | | () | | | | | | () | | | () | | | () | | | () | |
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) | | () | | | | | | () | | | () | | | | | | () | |
Accumulated Other Comprehensive Income (Loss) | | $ | () | | | $ | | | | $ | () | | | $ | () | | | $ | () | | | $ | () | |
| | | | | | | | | | | | |
(Millions), net of tax | | Six Months Ended |
| June 30, 2025 | | Net Change | | December 31, 2024 | | June 30, 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.
| | $ | | | | $ | | | | $ | | | | 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, 2025 and 2024 were t significant.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
12.
| | $ | | | | $ | | | | $ | | | Loyalty coalition, merchant and other service fees (b) | | | | | | | | | | | | |
| Foreign currency-related revenue | | | | | | | | | | | | |
| Delinquency fees | | | | | | | | | | | | |
| Travel commissions and fees | | | | | | | | | | | | |
| Other fees and revenues | | | | | | | | | | | | |
Total Service fees and other revenue (a) | | $ | | | | $ | | | | $ | | | | $ | | |
(a)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.
(b)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.
| | $ | | | | $ | | | | $ | | | | Professional services | | | | | | | | | | | | |
Gain on sale of Accertify (a) | | | | | () | | | | | | () | |
|
Other | | | | | | | | | | | | |
| Total Other expenses | | $ | | | | $ | | | | $ | | | | $ | | |
(a) Refer to Note 1 for additional information.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
13.
percent and percent for the three months ended June 30, 2025 and 2024, respectively and percent and percent for the six months ended June 30, 2025 and 2024, respectively. The lower effective tax rates for the three and six month periods primarily reflected discrete tax benefits in the current periods relating to the resolution of certain prior-year tax items.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 $ million for 2017 and 2018, excluding interest and state income taxes, and asserts penalties of approximately $ 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 $ 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 $ million of unrecognized tax benefits, approximately $ million relates to amounts that, if recognized, would impact the effective tax rate in a future period.
Tax Credit Investments
As of June 30, 2025 and 2024, we had $ million and $ 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.
| | $ | | | | $ | | | | $ | | | Income tax credits and Other income tax benefits (a) recognized in tax provision | | | | | | | | | | | | |
(a) Other income tax benefits are a result of tax deductible expenses generated by our tax credit investmentsIncome 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.
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
14.
| | $ | | | | $ | | | | $ | | | | Preferred dividends | | () | | | () | | | () | | | () | |
|
|
|
|
|
| 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) |
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 18, 2025 | By | /s/ Christophe Y. Le Caillec |
| | Christophe Y. Le Caillec Chief Financial Officer |
| | |
| Date: July 18, 2025 | By | /s/ Jessica Lieberman Quinn |
| | Jessica Lieberman Quinn
Executive Vice President and
Corporate Controller
(Principal Accounting Officer) |
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