AMERICAN EXPRESS CO - Quarter Report: 2025 March (Form 10-Q)

(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency conversion into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared). FX-adjusted Total revenues net of interest expense and Total loans and Card Member receivables are non-GAAP measures. We believe the presentation of information on a foreign currency adjusted basis is helpful to investors by making it easier to compare our performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.

(b)Represents net income, less (i) earnings allocated to participating share awards of $18 million for both the three months ended March 31, 2025 and 2024, and (ii) dividends on preferred shares of $14 million for both the three months ended March 31, 2025 and 2024.

(c)Total loans reflects Card Member loans and Other loans.

(d)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP.

(e)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(f)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints.

(g)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables.

(h)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders’ equity for the period.

Table of Contents

Business Performance

Our first quarter results reflect the continued strong performance of our premium customer base as demonstrated by Card Member spending, customer retention, demand for our premium products and credit performance. Net income for the first quarter was $2.6 billion, or $3.64 per share, compared with net income of $2.4 billion, or $3.33 per share, a year ago.

Billed business continued to grow at a solid pace, increasing 6 percent year-over-year. Growth was impacted by the stronger U.S. dollar year-over-year, as well as one less day due to the leap year in 2024 which drove about a percentage point reduction on growth rates across segments and spend categories. Excluding these impacts, G&S spending grew at a faster pace than in 2024, and T&E spending growth was generally consistent with the levels seen through most of 2024. Within T&E, restaurants and lodging showed continued strong growth, while airline spend growth softened. U.S. Consumer Services billed business grew by 7 percent year-over-year, with continued strength in spending by Millennial and Gen-Z Card Members as our products continue to resonate with these cohorts. Commercial Services billed business grew by 2 percent on a year-over-year basis, reflecting continued modest growth from U.S. small and mid-sized enterprise (SME) Card Members. International Card Services billed business grew by 9 percent year-over-year (13 percent on an FX-adjusted basis), driven by continued strong growth in spend across all regions and customer types outside the United States.1

Total revenues net of interest expense increased 7 percent year-over-year (8 percent on an FX-adjusted basis).1 Growth in billed business drove a 4 percent increase in Discount revenue, our largest revenue line. Net card fees increased 18 percent year-over-year, reflecting high levels of new card acquisitions and Card Member retention, as well as our cycle of product refreshes. Growth in Net interest income continued to moderate and increased 11 percent versus the prior year, primarily reflecting growth in revolving loan balances.

Total Loans and Card Member receivables increased 7 percent year-over-year with growth continuing to moderate sequentially. Net write-off and delinquency rates were stable year-over-year and remain best-in-class, supported by our premium global customer base, our strong focus on risk management and disciplined growth strategy. Provisions for credit losses decreased, driven by a modest reserve release, partially offset by higher net write-offs. Our Reserves for credit losses reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end.

Card Member rewards, Card Member services and Business development expenses, which are generally driven by volumes and usage, collectively grew faster than revenues as we continue to enhance our value propositions, drive Card Member engagement and acquire more Card Members on premium products. In addition, expense growth in this quarter was elevated due to a discrete benefit in the prior year from enhancements to U.S. Membership Rewards redemption models. Marketing expense was relatively flat year-over-year as we continued to invest at comparable levels to acquire high spending, high credit-quality customers. During the first quarter we acquired 3.4 million proprietary new cards. Operating expenses grew at a slower pace than revenue, reflecting continued operating expense discipline. We remain focused on driving marketing and operating expense efficiencies over time.

During the first quarter, we maintained our CET1 capital ratio within our target range of 10 to 11 percent and returned $1.3 billion of capital to our shareholders in the form of share repurchases and common stock dividends. We plan to continue to return to shareholders the excess capital we generate while managing our CET1 capital ratio within our target range and supporting balance sheet growth. Our robust capital, funding and liquidity positions provide us with significant flexibility to maintain a strong balance sheet.

While our results in the first quarter were strong, we recognize the uncertainty of the macroeconomic environment and we cannot predict what impacts the current uncertainty or any developments will have on the economy and our customers. We believe our differentiated business model, which includes our global premium customer base, spend- and fee-centric revenue mix and operating expense leverage, is resilient and positions us well to navigate a range of economic environments. We continue to manage the company for the long term, focusing on backing our customers and colleagues, exercising disciplined expense management and strategically investing in our business.

See “Certain Legislative, Regulatory and Other Developments” for information on legislative and regulatory changes that could have a material adverse effect on our results of operations and financial condition and “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” for information on potential impacts of macroeconomic, geopolitical and competitive conditions and certain litigation and regulatory matters on our business.

1 The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency conversion into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared). FX-adjusted revenues is a non-GAAP measure. We believe the presentation of information on a foreign currency adjusted basis is helpful to investors by making it easier to compare our performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.

Table of Contents

Results of Operations

The discussions in both “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three months ended March 31, 2025 compared to the same period in the prior year, as presented in the accompanying tables.

Beginning in the first quarter of 2025, we made a presentation change to our Consolidated Statements of Income to consolidate Processed revenue within Service fees and other revenue and renamed Processed revenue to Network partnership revenue. Prior period amounts have been recast to conform to the current period presentation; there was no impact to Total non-interest revenues. Refer to Note 12 to the “Consolidated Financial Statements” for additional information.

Consolidated Results of Operations

Table 2: Total Revenues Net of Interest Expense Summary


	Three Months Ended March 31,				Change 2025 vs. 2024
(Millions, except percentages)	2025		2024
Discount revenue	$	8,743	$	8,380	$	363	4	%
Net card fees	2,333		1,974		359		18
Service fees and other revenue	1,722		1,678		44		3
Total non-interest revenues	12,798		12,032		766		6
Total interest income	6,135		5,775		360		6
Total interest expense	1,966		2,006		(40)		(2)
Net interest income	4,169		3,769		400		11
Total revenues net of interest expense	$	16,967	$	15,801	$	1,166	7	%

Total Revenues Net of Interest Expense

Discount revenue increased, primarily driven by an increase in billed business of 6 percent. See Tables 5 and 6 for more details on billed business performance.

Net card fees increased, primarily driven by growth in our premium card portfolios. See Table 5 for more details on proprietary new card acquisitions, proprietary cards-in-force and average fee per card.

Service fees and other revenue increased, primarily driven by a discrete revenue adjustment in the current period related to certain cash advance fees from prior years, higher foreign exchange-related revenues associated with Card Member cross-currency spending and higher network partnership revenues, partially offset by Accertify revenues included in the prior year.

Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.

Interest expense decreased, primarily driven by lower interest rates paid on customer deposits, partially offset by growth in customer deposits and long-term debt.

Table of Contents

Table 3: Provisions for Credit Losses Summary


	Three Months Ended March 31,				Change 2025 vs. 2024
(Millions, except percentages)	2025		2024
Card Member loans
Net write-offs	$	996	$	855	$	141	16	%
Reserve (release) build (a)	(95)		159		(254)		#
Total	901		1,014		(113)		(11)
Card Member receivables
Net write-offs	169		217		(48)		(22)
Reserve (release) build (a)	(23)		(21)		(2)		(10)
Total	146		196		(50)		(26)
Other
Net write-offs — Other loans	55		43		12		28
Net write-offs — Other receivables	3		6		(3)		(50)
Reserve build (release) — Other loans (a)	50		10		40		#
Reserve (release) build — Other receivables (a)	(5)		—		(5)		—
Total	103		59		44		75
Total provisions for credit losses	$	1,150	$	1,269	$	(119)	(9)	%
# Denotes a variance of 100 percent or more

(a)Refer to the “Glossary of Selected Terminology” for a definition of reserve build (release).

Provisions for Credit Losses

Card Member loans provision for credit losses decreased, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Our reserves for the current period reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end. The reserve build in the prior period was primarily driven by an increase in loans outstanding and slightly higher delinquencies.

Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs and a higher reserve release in the current period. The reserve releases in both the current and prior periods were primarily driven by decreases in receivables outstanding.

Other provision for credit losses increased, primarily due to a higher reserve build in the current period and higher net write-offs. The reserve builds in both the current and prior periods primarily reflect increases in other loans outstanding as we continue to grow our Personal Loans and Business Line of Credit offerings.

Table of Contents

Table 4: Expenses Summary


	Three Months Ended March 31,				Change 2025 vs. 2024
(Millions, except percentages)	2025		2024
Card Member rewards	$	4,378	$	3,774	$	604	16	%
Business development	1,529		1,392		137		10
Card Member services	1,328		1,171		157		13
Marketing	1,486		1,476		10		1
Salaries and employee benefits	2,120		2,098		22		1
Other, net	1,646		1,476		170		12
Total expenses	$	12,487	$	11,387	$	1,100	10	%

Expenses

Card Member rewards expense increased, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $488 million, and cobrand rewards expense of $116 million. The increase in Membership Rewards expense was primarily driven by a benefit in the prior year from enhancements to the models that estimate future redemptions of Membership Reward points by U.S. Card Members, as well as higher billed business and an increase in redemption costs reflecting a shift in the mix of Card Member redemptions. The increase in cobrand rewards expense was primarily driven by higher billed business.

The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 96 percent (rounded down) at both March 31, 2025 and 2024.

Business development expense increased, primarily due to increased partner payments driven by higher network volumes and higher client incentives.

Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.

Marketing expense was relatively flat, reflecting consistent levels of spending on customer acquisition and other growth initiatives.

Salaries and employee benefits expense increased, primarily driven by higher compensation costs, largely offset by a decrease in the value of deferred compensation liabilities.

Other expenses increased, primarily driven by higher professional service costs, losses on Amex Ventures investments and higher data processing costs, partially offset by higher net foreign exchange-related gains.

Table of Contents

Income Taxes

The effective tax rate was 22.4 percent and 22.5 percent for the three months ended March 31, 2025 and 2024, respectively.

Table 5: Selected Card-Related Statistical Information


	As of or for the Three Months Ended March 31,				Change 2025 vs. 2024
	2025		2024
Network volumes (billions)	$	439.6	$	419.2	5	%
Billed business	$	387.4	$	367.0	6
Cards-in-force (millions)	147.5		142.4		4
Proprietary cards-in-force	84.6		81.1		4
Basic cards-in-force (millions)	124.2		119.8		4
Proprietary basic cards-in-force	65.1		62.3		4
Average proprietary basic Card Member spending (dollars)	$	5,987	$	5,919	1
Average fee per card (dollars) (a)	$	111	$	98	13	%
Proprietary new cards acquired (millions)	3.4		3.4
Discount revenue as a % of Billed business	2.26%		2.28%

(a)Average fee per card is computed on an annualized basis based on proprietary Net card fees divided by average proprietary total cards-in-force.

Table 6: Network Volumes-Related Statistical Information


	Three Months Ended March 31, 2025
	Year over Year Percentage Increase (Decrease)		Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a)
Network volumes	5	%	6	%
Total billed business	6		6
U.S. Consumer Services	7
Commercial Services	2		2
International Card Services	9		13

Merchant industry billed business metrics
G&S spend (72% of billed business)	6		7
T&E spend (28% of billed business)	5	%	6	%

(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of conversion into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared).

Table of Contents

Table 7: Selected Credit-Related Statistical Information


	As of or for the Three Months Ended March 31,						Change 2025 vs. 2024
(Millions, except percentages)	2025			2024
Card Member loans and receivables:
Net write-off rate — principal, interest and fees (a)	2.4		%	2.3		%
Net write-off rate — principal only — consumer and small business (a)(b)	2.1		%	2.1		%
30+ days past due as a % of total — consumer and small business (c)	1.3		%	1.3		%

Card Member loans:
Card Member loans	$	139,203		$	126,619		10	%
Credit loss reserves:
Beginning balance	$	5,679		$	5,118		11
Provisions — principal, interest and fees	901			1,014			(11)
Net write-offs — principal less recoveries	(818)			(705)			16
Net write-offs — interest and fees less recoveries	(178)			(150)			19
Other (d)	8			(6)			#
Ending balance	$	5,592		$	5,271		6
% of loans	4.0		%	4.2		%
% of past due	284		%	297		%
Average loans	$	137,697		$	124,720		10
Net write-off rate — principal, interest and fees (a)	2.9		%	2.7		%
Net write-off rate — principal only (a)	2.4		%	2.3		%
30+ days past due as a % of total	1.4		%	1.4		%

Card Member receivables:
Card Member receivables	$	58,503		$	59,775		(2)
Credit loss reserves:
Beginning balance	$	171		$	174		(2)
Provisions — principal and fees	146			196			(26)
Net write-offs — principal and fees less recoveries	(169)			(217)			(22)
Other (d)	—			(2)			#
Ending balance	$	148		$	151		(2)	%
% of receivables	0.3		%	0.3		%
Net write-off rate — principal and fees (a)	1.2		%	1.5		%
Net write-off rate — principal only — consumer and small business (a)(b)	1.3		%	1.7		%
30+ days past due as a % of total — consumer and small business (c)	1.0		%	1.1		%
# Denotes a variance of 100 percent or more

(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(b)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints.

(c)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables.

(d)Other includes foreign currency translation adjustments.

Table of Contents

Table 8: Net Interest Yield on Average Card Member Loans


	Three Months Ended March 31,
(Millions, except percentages)	2025			2024
Net interest income	$	4,169		$	3,769
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)	851			882
Interest income not attributable to our Card Member loan portfolio (b)	(851)			(916)
Adjusted net interest income (c)	$	4,169		$	3,735
Average Card Member loans including loans held for sale (d)	$	138,457		$	124,720
Net interest income divided by average Card Member loans (c)	12.2		%	12.2		%
Net interest yield on average Card Member loans (c)	12.2		%	12.0		%

(a)Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.

(b)Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.

(c)Adjusted net interest income and net interest yield on average Card Member loans are non-GAAP measures. Refer to “Glossary of Selected Terminology” for the definitions of these terms. We believe adjusted net interest income is useful to investors because it represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio. Net interest yield on average Card Member loans reflects adjusted net interest income divided by average Card Member loans, computed on an annualized basis. Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans.

(d)For purposes of the calculation of net interest yield on Card Member loans, average loans includes loans held for sale (HFS) as we continue to recognize interest income on these loans until they are sold.

Table of Contents

Business Segment Results of Operations

U.S. Consumer Services

Table 9: USCS Selected Income Statement Data


	Three Months Ended March 31,				Change
(Millions, except percentages)	2025		2024		2025 vs. 2024
Revenues
Non-interest revenues	$	5,243	$	4,766	$	477	10	%
Interest income	3,763		3,481		282		8
Interest expense	757		748		9		1
Net interest income	3,006		2,733		273		10
Total revenues net of interest expense	8,249		7,499		750		10
Provisions for credit losses	631		727		(96)		(13)
Total revenues net of interest expense after provisions for credit losses	7,618		6,772		846		12
Expenses
Card Member rewards, business development and Card Member services	3,882		3,356		526		16
Marketing	765		719		46		6
Salaries and employee benefits and other operating expenses	1,239		1,084		155		14
Total expenses	5,886		5,159		727		14
Pretax segment income	$	1,732	$	1,613	$	119	7	%

U.S. Consumer Services (USCS) issues a wide range of proprietary consumer cards and provides services to U.S. consumers, including travel and lifestyle services as well as banking and non-card financing products. USCS also manages our dining platform that provides digital tools for restaurants and reservation bookings for diners.

Total Revenues Net of Interest Expense

Non-interest revenues increased across all revenue categories, primarily driven by higher Net card fees and Discount revenue.

Discount revenue increased 6 percent, primarily driven by an increase in U.S. consumer billed business. See Tables 5, 6 and 10 for more details on billed business performance.

Net card fees increased 21 percent, primarily driven by growth in our premium card portfolios.

Service fees and other revenue increased 11 percent, primarily driven by a discrete revenue adjustment in the current period related to certain cash advance fees from prior years, partially offset by lower revenue from the sale of reward points.

Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.

Interest expense increased, primarily driven by a higher cost of funds due to segment net asset growth, largely offset by lower interest rates.

Provisions for Credit Losses

Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs. The reserve releases in both the current and prior periods were primarily driven by decreases in receivables outstanding.

Table of Contents

Expenses

Total expenses increased across all expense categories, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.

Card Member rewards expense increased, primarily driven by the above-mentioned benefit from enhancements to the U.S. URR models made in the prior year, as well as higher billed business and an increase in redemption costs reflecting a shift in the mix of Card Member redemptions.

Business development expense increased, primarily due to increased partner payments driven by higher billed business.

Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.

Marketing expense increased, reflecting higher levels of spending on customer acquisitions and other growth initiatives.

Salaries and employee benefits and other expenses increased, primarily due to an increase in allocated service costs and higher compensation costs.

Table of Contents

Table 10: USCS Selected Statistical Information


	As of or for the Three Months Ended March 31,						Change 2025 vs. 2024
(Millions, except percentages and where indicated)	2025			2024
Billed business (billions)	$	164.3		$	153.4		7	%
Proprietary cards-in-force	46.8			44.4			5
Proprietary basic cards-in-force	33.0			31.1			6
Average proprietary basic Card Member spending (dollars)	$	5,014		$	4,962		1
Total segment assets	$	110,886		$	104,297		6
Card Member loans:
Total loans	$	90,072		$	82,255		10
Average loans	$	89,983		$	81,746		10
Net write-off rate — principal, interest and fees (a)	3.0		%	2.8		%
Net write-off rate — principal only (a)	2.4		%	2.3		%
30+ days past due as a % of total	1.4		%	1.4		%
Calculation of Net Interest Yield on Average Card Member Loans:
Net interest income	$	3,006		$	2,733
Exclude:
Interest expense not attributable to our Card Member loan portfolio (b)	64			36
Interest income not attributable to our Card Member loan portfolio (c)	(177)			(122)
Adjusted net interest income (d)	$	2,893		$	2,647
Average Card Member loans	$	89,983		$	81,746
Net interest income divided by average Card Member loans (d)	13.5		%	13.4		%
Net interest yield on average Card Member loans (d)	13.0		%	13.0		%
Card Member receivables:
Total receivables	$	12,824		$	13,588		(6)	%
Net write-off rate — principal and fees (a)	0.8		%	1.5		%
Net write-off rate — principal only (a)	0.7		%	1.3		%
30+ days past due as a % of total	0.7		%	0.8		%

(a)Refer to Table 7 footnote (a).

(b)Refer to Table 8 footnote (a).

(c)Refer to Table 8 footnote (b).

(d)Refer to Table 8 footnote (c).

Table of Contents

Commercial Services

Table 11: CS Selected Income Statement Data


	Three Months Ended March 31,				Change 2025 vs. 2024
(Millions, except percentages)	2025		2024
Revenues
Non-interest revenues	$	3,265	$	3,194	$	71	2	%
Interest income	1,202		1,005		197		20
Interest expense	432		414		18		4
Net interest income	770		591		179		30
Total revenues net of interest expense	4,035		3,785		250		7
Provisions for credit losses	329		355		(26)		(7)
Total revenues net of interest expense after provisions for credit losses	3,706		3,430		276		8
Expenses
Card Member rewards, business development and Card Member services	1,746		1,493		253		17
Marketing	337		326		11		3
Salaries and employee benefits and other operating expenses	787		733		54		7
Total expenses	2,870		2,552		318		12
Pretax segment income	$	836	$	878	$	(42)	(5)	%

Commercial Services (CS) issues a wide range of proprietary corporate and small business cards and provides services to U.S. businesses, including payment and expense management, banking and non-card financing products. CS also issues proprietary corporate cards and provides services to select global corporate clients.

Total Revenues Net of Interest Expense

Non-interest revenues increased, primarily driven by higher Discount revenue and Net card fees.

Discount revenue increased 2 percent, primarily driven by an increase in commercial billed business. See Tables 5, 6 and 12 for more details on billed business performance.

Net card fees increased 13 percent, primarily driven by growth in our premium card portfolios.

Service fees and other revenue decreased 6 percent, primarily driven by lower travel commissions and fees from our Amex Travel business.

Interest income increased, primarily driven by growth in revolving loan balances.

Interest expense increased, primarily driven by a higher cost of funds due to segment net asset growth, partially offset by lower interest rates.

Provisions for Credit Losses

Card Member loans provision for credit losses decreased, primarily due to a lower reserve build in the current period, partially offset by higher net write-offs. The reserve build in the current period was primarily driven by an increase in loans outstanding. The reserve build in the prior period was primarily driven by higher delinquencies and an increase in loans outstanding.

Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs and a higher reserve release in the current period. The reserve releases in both the current and prior periods reflected the quality of our receivables portfolio.

Table of Contents

Expenses

Total expenses increased, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.

Card Member rewards expense increased, primarily driven by the above-mentioned benefit from enhancements to the U.S. URR models made in the prior year, as well as higher redemption costs reflecting a shift in the mix of Card Member redemptions.

Business development expense increased, primarily due to higher client incentives and increased partner payments driven by higher billed business.

Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.

Marketing expense increased, reflecting higher levels of spending on customer acquisitions and other growth initiatives.

Salaries and employee benefits and other expenses increased, primarily due to higher compensation costs and an increase in allocated service costs.

Table of Contents

Table 12: CS Selected Statistical Information


	As of or for the Three Months Ended March 31,						Change 2025 vs 2024
(Millions, except percentages and where indicated)	2025			2024
Billed business (billions)	$	129.2		$	127.1		2	%
Proprietary cards-in-force	15.5			15.4			1
Average Card Member spending (dollars)	$	8,380		$	8,261		1
Total segment assets	$	62,012		$	58,143		7
Card Member loans:
Total loans	$	31,240		$	27,634		13
Average loans	$	30,307		$	26,553		14
Net write-off rate — principal, interest and fees (a)	3.0		%	2.6		%
Net write-off rate — principal only (a)	2.6		%	2.3		%
30+ days past due as a % of total	1.6		%	1.5		%
Calculation of Net Interest Yield on Average Card Member Loans:
Net interest income	$	770		$	591
Exclude:
Interest expense not attributable to our Card Member loan portfolio (b)	192			184
Interest income not attributable to our Card Member loan portfolio (c)	(88)			(74)
Adjusted net interest income (d)	$	874		$	701
Average Card Member loans including loans held for sale (e)	$	31,067		$	26,553
Net interest income divided by average Card Member loans (d)	10.1		%	9.0		%
Net interest yield on average Card Member loans (d)	11.4		%	10.6		%
Card Member receivables:
Total receivables	$	26,172		$	27,024		(3)	%
Net write-off rate — principal and fees (f)	1.3		%	1.4		%
Net write-off rate — principal only (a) — small business	1.9		%	2.1		%
30+ days past due as a % of total — small business	1.3		%	1.4		%
90+ days past billing as a % of total (f) — corporate	0.4		%	0.5		%

(a)Refer to Table 7 footnote (a).

(b)Refer to Table 8 footnote (a).

(c)Refer to Table 8 footnote (b).

(d)Refer to Table 8 footnote (c).

(e)Refer to Table 8 footnote (d).

(f)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. Corporate receivables delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.

Table of Contents

International Card Services

Table 13: ICS Selected Income Statement Data


	Three Months Ended March 31,				Change
(Millions, except percentages)	2025		2024		2025 vs. 2024
Revenues
Non-interest revenues	$	2,646	$	2,437	$	209	9	%
Interest income	596		583		13		2
Interest expense	306		307		(1)		—
Net interest income	290		276		14		5
Total revenues net of interest expense	2,936		2,713		223		8
Provisions for credit losses	192		182		10		5
Total revenues net of interest expense after provisions for credit losses	2,744		2,531		213		8
Expenses
Card Member rewards, business development and Card Member services	1,312		1,203		109		9
Marketing	300		352		(52)		(15)
Salaries and employee benefits and other operating expenses	751		724		27		4
Total expenses	2,363		2,279		84		4
Pretax segment income	$	381	$	252	$	129	51	%

International Card Services (ICS) issues a wide range of proprietary consumer, small business and corporate cards outside the United States. ICS also provides services to our international customers, including travel and lifestyle services, and manages certain international joint ventures and our loyalty coalition business.

Total Revenues Net of Interest Expense

Non-interest revenues increased across all revenue categories, primarily driven by higher Discount revenue and Net card fees.

Discount revenue increased 7 percent (11 percent on an FX-adjusted basis), primarily reflecting an increase in billed business.2 See Tables 5, 6 and 14 for more details on billed business performance.

Net card fees increased 16 percent (21 percent on an FX-adjusted basis), primarily driven by growth in our premium card portfolios.2

Service fees and other revenue increased 5 percent (9 percent on an FX-adjusted basis), primarily driven by higher foreign exchange related revenues associated with Card Member cross-currency spending and higher loyalty coalition-related fees.2

Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.

Interest expense was relatively flat, reflecting a stable cost of funds due to lower interest rates, largely offset by segment net asset growth.

Provisions for Credit Losses

Card Member loans provision for credit losses increased, primarily due to a reserve build in the current period, versus a reserve release in the prior period, partially offset by lower net write-offs. The reserve build in the current period was primarily driven by an increase in loans outstanding and higher delinquencies. The reserve release in the prior period was driven by the performance of portfolios in certain international markets.

Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs, partially offset by a higher reserve build in the current period. The reserve build in the current period was primarily driven by higher delinquencies.

2 Refer to footnote 1 on page 3 for details regarding foreign currency adjusted information.

Table of Contents

Expenses

Total expenses increased, primarily driven by higher Card Member rewards, Business development and Salaries and employee benefits and other expenses, partially offset by lower Marketing expense.

Card Member rewards expense increased, primarily driven by higher billed business.

Business development expense increased, primarily due to increased partner payments driven by higher billed business.

Card Member services expense increased, primarily due to growth in premium card accounts, contributing to a higher usage of travel-related benefits.

Marketing expense decreased, primarily due to management decisions regarding the timing of spend on customer acquisitions and engagement campaigns for the full year.

Salaries and employee benefits and other expenses increased, primarily due to higher allocated service costs and compensation costs, partially offset by a non-income tax reimbursement.

Table of Contents

Table 14: ICS Selected Statistical Information


	As of or for the Three Months Ended March 31,						Change 2025 vs. 2024
(Millions, except percentages and where indicated)	2025			2024
Billed business (billions)	$	92.9		$	85.4		9	%
Proprietary cards-in-force	22.3			21.3			5
Proprietary basic cards-in-force	16.7			15.8			6
Average proprietary basic Card Member spending (dollars)	$	5,619		$	5,436		3
Total segment assets	$	42,620		$	41,472		3
Card Member loans — consumer and small business:
Total loans	$	17,891		$	16,730		7
Average loans	$	17,407		$	16,422		6
Net write-off rate — principal, interest and fees (a)	2.3		%	2.6		%
Net write-off rate — principal only (a)	2.0		%	2.2		%
30+ days past due as a % of total	1.2		%	1.3		%
Calculation of Net Interest Yield on Average Card Member Loans:
Net interest income	$	290		$	276
Exclude:
Interest expense not attributable to our Card Member loan portfolio (b)	123			126
Interest income not attributable to our Card Member loan portfolio (c)	(11)			(15)
Adjusted net interest income (d)	$	402		$	387
Average Card Member loans	$	17,407		$	16,422
Net interest income divided by average Card Member loans (d)	6.8		%	6.8		%
Net interest yield on average Card Member loans (d)	9.4		%	9.5		%
Card Member receivables:
Total receivables	$	19,507		$	19,163		2	%
Net write-off rate — principal and fees (e)	1.3		%	1.6		%
Net write-off rate — principal only (a) — consumer and small business	1.3		%	1.7		%
30+ days past due as a % of total — consumer and small business	1.0		%	1.0		%
90+ days past billing as a % of total (e) — corporate	0.4		%	0.5		%

(a)Refer to Table 7 footnote (a).

(b)Refer to Table 8 footnote (a).

(c)Refer to Table 8 footnote (b).

(d)Refer to Table 8 footnote (c).

(e)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. Corporate receivables delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.

Table of Contents

Global Merchant and Network Services

Table 15: GMNS Selected Income Statement and Other Data


	Three Months Ended March 31,				Change 2025 vs. 2024
(Millions, except percentages and where indicated)	2025		2024
Revenues
Non-interest revenues	$	1,660	$	1,655	$	5	—	%
Interest income	12		17		(5)		(29)
Interest expense	(143)		(198)		55		28
Net interest income	155		215		(60)		(28)
Total revenues net of interest expense	1,815		1,870		(55)		(3)
Provisions for credit losses	(2)		6		(8)		#
Total revenues net of interest expense after provisions for credit losses	1,817		1,864		(47)		(3)
Expenses
Business development and Card Member services	283		279		4		1
Marketing	76		73		3		4
Salaries and employee benefits and other operating expenses	468		495		(27)		(5)
Total expenses	827		847		(20)		(2)
Pretax segment income	990		1,017		(27)		(3)
Network volumes (billions)	439.6		419.2		$	20	5
Total segment assets	$	18,083	$	24,885			(27)	%
# Denotes a variance of 100 percent or more

Global Merchant and Network Services (GMNS) operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network.

Total Revenues Net of Interest Expense

Non-interest revenues increased, primarily driven by higher Discount revenue, partially offset by lower Service fees and other revenue.

Discount revenue increased 2 percent, primarily driven by an increase in billed business, partially offset by lower average merchant discount rates. See Tables 5 and 6 for more details on billed business performance.

Service fees and other revenue decreased, primarily driven by Accertify revenues included in the prior year, partially offset by increases in network partnership revenues and foreign exchange related revenues associated with Card Member cross-currency spending.

GMNS receives an interest expense credit relating to internal transfer pricing due to its merchant payables. Net interest income decreased, primarily due to a lower interest expense credit, largely driven by a decrease in interest rates in international markets and lower average merchant payables.

Expenses

Total expenses decreased, primarily driven by lower Salaries and employee benefits and other expenses, partially offset by higher Business development and Marketing expenses.

Business development expense increased, primarily due to increased partner payments driven by higher volumes from certain network issuing partners.

Marketing expense increased, reflecting higher levels of spending on merchant engagement and other growth initiatives.

Salaries and employee benefits and other expenses decreased, primarily driven by Accertify costs included in the prior year and lower allocated service costs.

Table of Contents

Corporate & Other

Corporate functions and certain other businesses are included in Corporate & Other.

Corporate & Other pretax loss was $609 million and $615 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in pretax loss was primarily driven by a decrease in the value of deferred compensation liabilities, partially offset by losses on Amex Ventures investments.

CONSOLIDATED CAPITAL RESOURCES AND LIQUIDITY

Our balance sheet management objectives are to maintain:

•A solid and flexible equity capital profile;

•A broad, deep and diverse set of funding sources to finance our assets and meet operating requirements; and

•Liquidity programs that enable us to continuously meet expected future financing obligations and business requirements for at least a twelve month period under a variety of adverse circumstances.

We continue to see volatility in the capital markets due to a variety of factors and manage our balance sheet to reflect evolving circumstances.

Capital

We believe capital allocated to growing businesses with a return on risk-adjusted equity in excess of our costs will generate shareholder value. Our objective is to retain sufficient levels of capital generated through net income and other sources, such as the issuance of subordinated debt and preferred shares, as well as the exercise of stock options by colleagues, to maintain a strong balance sheet, provide flexibility to support future business growth, and distribute excess capital to shareholders through dividends and share repurchases. See “Dividends and Share Repurchases” below.

We seek to maintain capital levels and ratios in excess of our minimum regulatory requirements, specifically within a 10 to 11 percent target range for American Express Company’s Common Equity Tier 1 (CET1) risk-based capital ratio.

We maintain certain flexibility to shift capital across our businesses as appropriate. For example, we may infuse additional capital into subsidiaries to maintain capital at targeted levels in consideration of debt ratings and regulatory requirements. These infused amounts can affect the capital and liquidity positions at American Express Company or at our subsidiaries.

We report our capital ratios using the Basel III capital definitions and the Basel III standardized approach for calculating risk-weighted assets.

Table of Contents

The following table presents our regulatory risk-based capital and leverage ratios and those of American Express National Bank (AENB), as of March 31, 2025:

Table 16: Regulatory Risk-Based Capital and Leverage Ratios


	Effective Minimum (a)		Ratios as of March 31, 2025
Risk-Based Capital
Common Equity Tier 1	7.0	%
American Express Company			10.7	%
American Express National Bank			11.8
Tier 1	8.5
American Express Company			11.4
American Express National Bank			11.8
Total	10.5
American Express Company			13.4
American Express National Bank			13.4
Tier 1 Leverage	4.0
American Express Company			10.0
American Express National Bank			9.5
Supplementary Leverage Ratio	3.0	%
American Express Company			8.5
American Express National Bank			8.0	%

(a)Represents Basel III minimum requirements and applicable regulatory buffers as defined by the federal banking regulators, which includes the stress capital buffer (SCB) for American Express Company and the capital conservation buffer for AENB.

The following table presents American Express Company’s regulatory risk-based capital and risk-weighted assets as of March 31, 2025:

Table 17: Regulatory Risk-Based Capital Components and Risk-Weighted Assets


American Express Company ($ in Billions)	March 31, 2025
Risk-Based Capital
Common Equity Tier 1	$	25.6
Tier 1 Capital	27.2
Tier 2 Capital	4.8
Total Capital	32.0

Risk-Weighted Assets	239.6
Average Total Assets to calculate the Tier 1 Leverage Ratio	273.1
Total Leverage Exposure to calculate the Supplementary Leverage Ratio	$	322.4

The following are definitions for our regulatory risk-based capital and leverage ratios, which are calculated as per standard regulatory guidance:

Risk-Weighted Assets — Assets are weighted for risk according to a formula used by the Federal Reserve to conform to capital adequacy guidelines. On- and off-balance sheet items are risk weighted, with off-balance sheet items converted to balance sheet equivalents, using risk conversion factors, before being assigned a risk weight. Off-balance sheet exposures comprise a minimal part of the total risk-weighted assets.

Common Equity Tier 1 Risk-Based Capital Ratio — Calculated as CET1 capital, divided by risk-weighted assets. CET1 capital is common shareholders’ equity, adjusted for ineligible goodwill and intangible assets and certain deferred tax assets.

Tier 1 Risk-Based Capital Ratio — Calculated as Tier 1 capital divided by risk-weighted assets. Tier 1 capital is the sum of CET1 capital, preferred shares and third-party non-controlling interests in consolidated subsidiaries, adjusted for capital held by insurance subsidiaries. We have $1.6 billion of preferred shares outstanding to help address a portion of the Tier 1 capital requirements in excess of common equity requirements.

Table of Contents

Total Risk-Based Capital Ratio — Calculated as the sum of Tier 1 capital and Tier 2 capital, divided by risk-weighted assets. Tier 2 capital is the sum of the allowable allowance for credit losses and $1,750 million of eligible subordinated notes, adjusted for capital held by insurance subsidiaries. The $1,750 million of eligible subordinated notes includes the $500 million subordinated debt issued in April 2024, the $500 million subordinated debt issued in July 2023 and the $750 million subordinated debt issued in May 2022.

Tier 1 Leverage Ratio — Calculated as Tier 1 capital divided by average total consolidated assets for the most recent quarter.

Supplementary Leverage Ratio — Calculated as Tier 1 capital divided by total leverage exposure. Total leverage exposure includes total average on-balance sheet assets and certain off-balance sheet exposures, less amounts permitted to be deducted from Tier 1 capital.

We continue to include accumulated other comprehensive income (loss) in regulatory capital.

We are subject to an annual supervisory stress test conducted by the Federal Reserve. We submitted our annual capital plan to the Federal Reserve in April 2025. Our current SCB of 2.5 percent is effective until September 30, 2025. The Federal Reserve is expected to notify us in the second quarter of 2025 of the SCB that will be effective October 1, 2025 to September 30, 2026, subject to final confirmation.

Dividends and Share Repurchases

We return capital to common shareholders through dividends and share repurchases. The share repurchases reduce common shares outstanding and generally more than offset the issuance of new shares as part of employee compensation plans.

During the three months ended March 31, 2025, we returned $1.3 billion to our shareholders in the form of share repurchases of $0.7 billion and common stock dividends of $0.6 billion. We repurchased 2.3 million common shares at an average price of $297.37 in the first quarter of 2025.

In addition, during the three months ended March 31, 2025, we paid $14 million in dividends on non-cumulative perpetual preferred shares outstanding.

Funding Strategy

Our principal funding objective is to maintain broad and well-diversified funding sources to allow us to finance our global businesses and to maintain a strong liquidity profile. Our funding strategy and activities are integrated into our asset-liability management activities. We have in place a funding policy covering American Express Company and all of our subsidiaries.

We aim to satisfy our financing needs with a diverse set of funding sources. The diversity of funding sources by type of instrument, by tenor and by investor base, among other factors, mitigates the impact of disruptions in any one type of instrument, tenor or investor. We seek to achieve diversity and cost efficiency in our funding sources by maintaining scale and market relevance in deposits, unsecured debt and asset securitizations and access to secured borrowing facilities and a committed bank credit facility. In particular, we are focused on continuing to grow our direct deposit program as a funding source.

Table of Contents

Summary of Consolidated Debt

We had the following customer deposits and consolidated debt outstanding as of March 31, 2025 and December 31, 2024:

Table 18: Summary of Customer Deposits and Consolidated Debt


(Billions)	March 31, 2025		December 31, 2024
Customer deposits	$	146.4	$	139.4
Short-term borrowings	1.6		1.4
Long-term debt	51.2		49.7
Total customer deposits and debt	$	199.2	$	190.5

We may redeem from time to time certain debt securities prior to the original contractual maturity dates in accordance with the optional redemption provisions of those debt securities.

Our funding needs are driven by, among other factors, maturing obligations, our liquidity position and the pace of growth in our loans and receivables balances. Actual funding activities can vary due to various factors, such as future business growth, the impact of global economic, political and other events on market capacity and funding needs, demand for securities offered by us, regulatory changes, ability to securitize and sell loans and receivables, and the performance of loans and receivables previously sold in securitization transactions. Many of these factors are beyond our control.

The following table presents our debt issuances for the three months ended March 31, 2025:

Table 19: Debt Issuances


(Billions)	Three Months Ended March 31, 2025
American Express Company:

Floating Rate Senior Notes (compounded SOFR(a) plus 102 basis points)	$	0.3
Fixed-to-Floating Rate Senior Notes (weighted-average coupon of 5.25% during the fixed rate period and compounded SOFR(a) plus weighted-average spread of 116 basis points during the floating rate period)	2.7

American Express Credit Account Master Trust:
Fixed Rate Class A Certificates (coupon of 4.56%)	$	1.4
Total	$	4.4

(a)Secured overnight financing rate (SOFR).

Table of Contents

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

A-

Short Term

N/R

A-2

Outlook

Stable

American Express Travel Related Services Company, Inc.

Long Term

Short Term

P-1

A-1

Outlook

Stable

American Express National Bank

Long Term

Short Term

P-1

A-1

Outlook

Stable

American Express Credit Corporation

Long Term

Short Term

N/R

Outlook

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.

Table of Contents

Deposit Programs

We offer deposits within our U.S. bank subsidiary, AENB. These funds are currently insured up to an amount that is at least $250,000 per depositor, per ownership category through the FDIC; as of March 31, 2025, approximately 92 percent of these deposits were insured. Our ability to obtain deposit funding and offer competitive interest rates is dependent on, among other factors, the capital level of AENB. The direct deposit program offered by AENB is our primary deposit product channel, which makes FDIC-insured high-yield savings account, certificates of deposit (CDs), business checking and consumer rewards checking account products available directly to customers. As of March 31, 2025, our direct deposit program had approximately 3.5 million accounts. AENB also sources deposits through third-party distribution channels as needed to meet our overall funding objectives. CDs carry stated maturities while high-yield savings account, checking account and third-party sweep deposit products do not. We manage the duration of our maturing obligations, including CDs, to reduce concentration and refinancing risk.

As of March 31, 2025 and December 31, 2024, we had $146.4 billion and $139.4 billion, respectively, in deposits. Refer to Note 6 to the “Consolidated Financial Statements” for a further description of these deposits and scheduled maturities of certificates of deposits.

The following table sets forth the average interest rates we paid on different types of deposits during the three months ended March 31, 2025 and 2024. The change in the average interest rate we paid on our interest-bearing deposits compared to the prior year was primarily due to the impact of lower market interest rates offered for savings deposits.

Table 21: Average Interest Rates Paid on Deposits


	Three Months Ended March 31,
	2025						2024
(Millions, except percentages)	Average Balance		Interest Expense		Average Interest Rate (a)		Average Balance		Interest Expense		Average Interest Rate (a)
Savings accounts	$	110,749	$	1,012	3.7	%	$	95,947	$	1,018	4.3	%
Checking accounts	2,188		7		1.4		1,438		4		1.2
Certificates of deposit:
Direct	4,261		43		4.1		5,438		57		4.2
Third-party (brokered)	9,236		98		4.3		12,481		126		4.0
Sweep accounts — Third-party (brokered)	15,443		177		4.6		15,696		221		5.7
Total U.S. interest-bearing deposits	$	141,877	$	1,337	3.8	%	$	131,000	$	1,426	4.4	%

(a)Average interest rate reflects interest expense divided by average deposits, computed on an annualized basis.

Table of Contents

Liquidity Management

Our liquidity objective is to maintain access to a diverse set of on- and off-balance sheet liquidity sources. We seek to maintain liquidity sources in amounts sufficient to meet our expected future financial obligations and business requirements for liquidity for a period of at least twelve months under a variety of adverse circumstances. These include, but are not limited to, an event where we are unable to raise new funds under our regular funding programs during a substantial weakening in economic conditions.

Our liquidity management strategy includes a number of elements, including, but not limited to:

•Maintaining diversified funding sources (refer to “Funding Strategy” above for more details);

•Maintaining unencumbered liquid assets and off-balance sheet liquidity sources;

•Projecting cash inflows and outflows under a variety of economic and market scenarios; and

•Establishing clear objectives for liquidity risk management, including compliance with regulatory requirements.

We seek to maintain access to a diverse set of on-balance sheet and off-balance sheet liquidity sources, including cash and other liquid assets, secured borrowing facilities and a committed bank credit facility. Through our U.S. bank subsidiary, AENB, we have also pledged collateral eligible for use at the Federal Reserve’s discount window.

The amount and type of liquidity resources we maintain can vary over time, based upon the results of stress scenarios required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as additional stress scenarios required under our liquidity risk policy. Additionally, we are subject to the regulatory requirements under the liquidity coverage ratio and net stable funding ratio rules, subject to applicable transition periods. See the “Supervision and Regulation — Capital and Liquidity Regulation” section of the 2024 Form 10-K for more information. We believe that we currently maintain sufficient liquidity to meet all internal and regulatory liquidity requirements.

As of March 31, 2025 and December 31, 2024, we had $52.5 billion and $40.6 billion in Cash and cash equivalents, respectively. Refer to the “Cash Flows” section below for a discussion of the major drivers impacting cash flows for the three months ended March 31, 2025. Depending on the interest rate environment, our funding composition and the amount of liquidity resources we maintain, the level of future net interest income or expense associated with our liquidity resources will vary. During the three months ended March 31, 2025, interest income exceeded the interest expense associated with the liquidity portfolio.

Securitized Borrowing Capacity

As of March 31, 2025, we maintained our committed, revolving, secured borrowing facility, with a maturity date of July 15, 2026, which gives us the right to sell up to $3.0 billion face amount of eligible AAA notes from the American Express Issuance Trust II (the Charge Trust). We also maintained our committed, revolving, secured borrowing facility, with a maturity date of September 15, 2026, which gives us the right to sell up to $3.0 billion face amount of eligible AAA certificates from American Express Credit Account Master Trust (the Lending Trust). These facilities enhance our contingent funding resources and are also used in the ordinary course of business to fund working capital needs. As of March 31, 2025, no amounts were drawn on the Charge Trust facility or Lending Trust facility.

Committed Bank Credit Facility

As of March 31, 2025, we maintained a committed syndicated bank credit facility of $4.0 billion with a maturity date of October 30, 2026. This facility enhances our contingent funding resources and is also used in the ordinary course of business to fund working capital needs. As of March 31, 2025, $350 million was drawn on this facility.

Other Sources of Liquidity

In addition to cash and other liquid assets and the secured borrowing facilities and committed bank credit facility described above, as an insured depository institution, AENB may borrow from the Federal Reserve Bank of San Francisco through the discount window against the U.S. credit card loans and charge card receivables that it pledged.

As of March 31, 2025, AENB had available borrowing capacity of $75.5 billion based on the amount and collateral valuation of receivables that were pledged to the Federal Reserve Bank of San Francisco. Whether specific assets will be considered qualifying collateral and the amount that may be borrowed against the collateral remain at the discretion of the Federal Reserve and can change from time to time. Due to regulatory restrictions, liquidity generated by AENB can generally be used only to fund obligations within AENB, and transfers to the parent company or non-bank affiliates may be subject to prior regulatory approval.

Table of Contents

Unused Credit Outstanding

As of March 31, 2025, we had approximately $483 billion of unused credit available to customers. Total unused credit does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Charge card products with no pre-set spending limits are not reflected in unused credit.

Cash Flows

The following table summarizes our cash flow activity, followed by a discussion of the major drivers impacting operating, investing and financing cash flows for the three months ended March 31:

Table 22: Cash Flows


(Billions)	2025		2024
Total cash provided by (used in):
Operating activities	$	4.8	$	5.5
Investing activities	0.5		(3.1)
Financing activities	6.6		5.2

Net increase in cash and cash equivalents	$	11.9	$	7.6

Cash Flows from Operating Activities

Our cash flows from operating activities primarily include net income adjusted for (i) non-cash items included in net income, such as provisions for credit losses, depreciation and amortization, stock-based compensation, deferred taxes and other non-cash items and (ii) changes in the balances of operating assets and liabilities, which can vary significantly in the normal course of business due to the amount and timing of payments.

In both periods, the net cash provided by operating activities was driven by cash generated from net income for the period and higher net operating liabilities, primarily driven by higher book overdrafts due to timing differences arising in the ordinary course of business, partially offset by payments related to annual incentive compensation.

Cash Flows from Investing Activities

Our cash flows from investing activities primarily include changes in loans and Card Member receivables, as well as changes in our available-for-sale investment securities portfolio.

In 2025, the net cash provided by investing activities was primarily driven by lower Card Member receivables outstanding, partially offset by higher loans outstanding.

In 2024, the net cash used in investing activities was primarily driven by higher loans and Card Member receivables outstanding.

Cash Flows from Financing Activities

Our cash flows from financing activities primarily include changes in customer deposits, long-term debt and short-term borrowings, as well as dividend payments and share repurchases.

In both periods, the net cash provided by financing activities was primarily driven by growth in customer deposits and net proceeds from long-term debt, partially offset by share repurchases and dividend payments.

Table of Contents

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.

Table of Contents

Regulation and other governmental actions relating to operations, pricing or practices could affect all networks and/or acquirers directly or indirectly, as well as adversely impact consumers and merchants. Among other things, regulation of bankcard fees has negatively impacted, and may continue to negatively impact, the discount revenue we earn, including as a result of downward pressure on our merchant discount rates from decreases in competitor pricing in connection with caps on interchange fees. In some cases, regulations also extend to certain aspects of our business, such as network and cobrand arrangements or the terms of card acceptance for merchants. For example, we exited our network business in the EU and Australia as a result of regulation in those jurisdictions. In addition, there is uncertainty as to when or how interchange fee caps and other provisions of the EU payments legislation might apply when we work with cobrand partners and agents in the EU. In 2018, the EU Court of Justice (CJEU) confirmed the validity of fee capping and other provisions in circumstances where three-party networks issue cards with a cobrand partner or through an agent, although its ruling provided only limited guidance as to when or how the provisions might apply in such circumstances and remains subject to differing interpretations by regulators and participants in cobrand arrangements. In December 2024, the CJEU held a hearing on questions referred by the Dutch Trade and Industry Appeals Tribunal regarding the interpretation of the application of the interchange fee caps in connection with an administrative proceeding by the Netherlands Authority for Consumers and Markets regarding our cobrand relationship with KLM Royal Dutch Airlines. As a precursor to the CJEU’s final ruling, an advisory opinion was issued by the Advocate General on March 6, 2025, advising the CJEU that our payments to the cobrand partner can be subject to the interchange fee caps but certain payments and services provided by the cobrand partner could potentially be netted against such payments for purposes of determining the capped amount. The advisory opinion is not binding on the CJEU and there can be no assurance as to the outcome of the proceeding. Given differing interpretations by regulators and participants in cobrand arrangements, we are subject to regulatory action, penalties and the possibility we will not be able to maintain our existing cobrand and agent relationships in the EU.

For more information on payments regulation, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K.

Surcharging

In various countries, such as certain Member States in the EU, Australia and Canada (other than in the Province of Quebec), merchants are permitted by law to surcharge card purchases. In addition, the laws of a number of states in the United States that prohibit surcharging have been overturned and certain states have passed or are considering laws to permit surcharging by merchants. In jurisdictions allowing surcharging, we have seen an increase in merchant surcharging on American Express cards, particularly in certain merchant categories. Surcharging is an adverse customer experience and could have a material adverse effect on us, particularly where it only or disproportionately impacts credit card usage or card usage generally, our Card Members or our business. In addition, we also encounter steering or differential acceptance practices by merchants, which could also have a material adverse effect on us.

For more information on the potential impacts of surcharging and other actions that could impair the Card Member experience, please see the “Risk Factors” section of the 2024 Form 10-K.

Merchant Litigation

We continue to vigorously defend antitrust and other claims initiated by merchants. See Note 7 to the “Consolidated Financial Statements” for descriptions of the cases. It is possible that actions impairing the Card Member experience, or the resolution of one or any combination of these merchant claims, could have a material adverse effect on our business. For more information on the potential impacts of an adverse decision in the merchant litigations on our business, please see the “Risk Factors” section of the 2024 Form 10-K.

Privacy, Data Protection, Data Management, Artificial Intelligence, Resiliency, Information Security and Cybersecurity

Regulatory and legislative activity in the areas of privacy, data protection, data management, artificial intelligence, resiliency, information security and cybersecurity continues to increase worldwide. We have established, and continue to maintain, policies and a governance framework to comply with applicable laws and requirements, meet evolving customer and industry expectations and support and enable business innovation and growth; however, our policies and governance framework may be insufficient given the size and complexity of our business and heightened regulatory scrutiny. Regulators and legislators have heightened their focus on the use of artificial intelligence and machine learning through the application of existing laws and regulations as well as by adopting new laws and regulations, which are reshaping how we develop, deploy and manage artificial intelligence systems, including by imposing new obligations related to data use, recordkeeping, transparency and human oversight.

Table of Contents

Global financial institutions like us, as well as our customers, colleagues, regulators, service providers and other third parties, have experienced a significant increase in information security and cybersecurity risk in recent years and will likely continue to be the target of increasingly sophisticated cyberattacks, including computer viruses, malicious or destructive code, ransomware, social engineering attacks (including phishing, impersonation and identity takeover attempts), artificial intelligence-assisted deepfake attacks and disinformation campaigns, corporate espionage, hacking, website defacement, denial-of-service attacks, exploitation of vulnerabilities and other attacks and similar disruptions from the misconfiguration or unauthorized use of or access to computer systems and company accounts. For more information on privacy, data protection and information security and cybersecurity regulation and the potential impacts of a major information security or cybersecurity incident on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K.

Anti-Money Laundering, Countering the Financing of Terrorism and Economic Sanctions Compliance

We are subject to significant supervision and regulation, and an increasingly stringent enforcement environment, with respect to compliance with anti-money laundering (AML) and countering the financing of terrorism (CFT) laws and regulations.

Among other things, these laws and regulations generally require us to establish AML/CFT programs that meet certain standards, including, policies and procedures to collect information from and verify the identities of our customers, and to monitor for and report suspicious transactions, in addition to other information gathering and recordkeeping requirements. Our AML/CFT programs have become the subject of heightened scrutiny and any errors, failures or delays in complying with AML/CFT laws, deficiencies in our AML/CFT programs or association of our business with money laundering, terrorist financing, tax fraud or other illicit activity can give rise to significant supervisory, criminal and civil proceedings and lawsuits, which could result in significant penalties and forfeiture of assets, loss of licenses or restrictions on business activities or other enforcement actions.

National governments and international bodies, such as the United Nations and the EU, have imposed economic sanctions against individuals, entities, vessels, governments, regions and countries that endanger their interests or violate international norms of behavior. Sanctions have been used to advance a range of foreign policy goals, including conflict resolution, counterterrorism, counternarcotics and promotion of democracy and human rights, among other national and international interests. We maintain a global sanctions compliance program designed to meet the requirements of applicable sanctions regimes. Failure to comply with such requirements could subject us to serious legal and reputational consequences, including criminal penalties.

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Securities Exchange Act of 1934, as amended (the Exchange Act), an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure is generally required even where the activities, transactions or dealings were conducted outside the United States by non-U.S. affiliates in compliance with applicable law and whether or not the activities are sanctionable under U.S. law.

In connection with an ongoing internal review, we identified certain transactions and accounts that we disclosed pursuant Section 13(r) of the Exchange Act in the 2024 Form 10-K, and we voluntarily reported certain transactions and accounts, some of which related to Iran, to the U.S. Department of the Treasury’s Office of Foreign Assets Control. In the quarter ended March 31, 2025, we identified approximately 5 consumer accounts of individuals that may be, or may have been, employed by the Government of Iran. We believe the accounts were used only for personal expenses. We had negligible gross revenues and net profits attributable to these accounts. All of the accounts are closed and we do not intend to continue to engage in this activity.

For more information on AML/CFT laws and regulations and economic sanctions, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2024 Form 10-K.

Recently Issued Accounting Standards

Refer to the Recently Issued Accounting Standards section of Note 1 to the “Consolidated Financial Statements.”

Table of Contents

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.

Table of Contents

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.

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address our current expectations regarding business and financial performance, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “estimate,” “potential,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:

•our ability to grow earnings per share in the future, which will depend in part on revenue growth, credit performance, credit reserve levels and the effective tax rate remaining consistent with current expectations and our ability to continue investing at high levels in areas that can drive sustainable growth (including our brand, value propositions, coverage, marketing, technology and talent), controlling operating expenses, effectively managing risk and executing our share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs as well as the following: macroeconomic and geopolitical conditions, including the effects of announced or future tariff increases, global trade relations, changes to consumer and business confidence, international tensions, hostilities and instability, a slowdown in U.S. or global economic growth, higher rates of unemployment, changes in interest rates, inflation, supply chain issues, market volatility, energy costs and fiscal and monetary policies; the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and our reputation; impacts related to acquisitions, cobrand and other partner agreements, portfolio sales and joint ventures; and the impact of regulation and litigation, which may be heightened due to the uncertain political environment and could affect the profitability of our business activities, limit our ability to pursue business opportunities, require changes to business practices or alter our relationships with Card Members, partners and merchants;

•our ability to grow revenues net of interest expense and the sustainability of our future growth, which could be impacted by, among other things, the factors identified above and in the subsequent paragraphs, as well as the following: spending volumes and the spending environment not being consistent with expectations, including a decline or slowdown in cross-border and travel & entertainment spending volumes, as well as spending by U.S. consumer and small and mid-sized enterprise Card Members, such as due to uncertain business and economic conditions; an inability to address competitive pressures, attract and retain customers, invest in and enhance our Membership Model of premium products, differentiated services and partnerships, successfully refresh our card products, grow spending and lending with customers across age cohorts, including Millennial and Gen-Z customers, and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the effects of regulatory initiatives, including pricing and network regulation; merchant coverage growing less than expected or the reduction of merchant acceptance or the perception of coverage; increased surcharging, steering, suppression or other differential acceptance practices with respect to our products; merchant discount rates changing from our expectations; and changes in foreign currency exchange rates;

•net card fees not performing consistently with expectations, which could be impacted by, among other things, a decrease in the ability and desire of Card Members to pay card fees, such as due to a deterioration in macroeconomic conditions; higher Card Member attrition rates; the pace of Card Member acquisition activity and demand for our fee-based products; and our inability to address competitive pressures, develop attractive premium value propositions and implement our strategy of refreshing card products and realize our anticipated growth from those refreshes, enhancing and delivering benefits and services and continuing to innovate with respect to our products;

•net interest income, the effects of changes in interest rates and the growth of loans and Card Member receivables outstanding and revolving balances, being higher or lower than expectations, which could be impacted by, among other things, the behavior and financial strength of Card Members and their actual spending, borrowing and paydown patterns; the effectiveness of our strategies to enhance Card Member value propositions, capture a greater share of Card Members’ spending and borrowings and attract new, and retain existing, customers; our ability to effectively manage underwriting risk; changes in benchmark interest rates, including where such changes affect our assets or liabilities differently than expected; continued volatility and other changes in capital and credit market conditions and the availability and cost of capital; credit actions, including line size and other adjustments to credit availability; the yield on Card Member loans not remaining consistent with current expectations; and our deposit levels or the interest rates we offer on deposits changing from current expectations; loss or impacts to cobrand relationships; and governmental actions to cap credit card interest rates;

Table of Contents

•future credit performance, the level of future delinquency, reserve and write-off rates and the amount and timing of future reserve builds and releases, which will depend in part on macroeconomic factors such as actual and projected unemployment rates, GDP and the volume of bankruptcies; the ability and willingness of Card Members to pay amounts owed to us; changes in loans and receivables outstanding, such as from the implementation of our strategy to capture spending and borrowings, or from changes in consumer behavior that affect loan and receivable balances (e.g., paydown and revolve rates); changes in the levels of customer acquisitions and the credit profiles of new customers acquired; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; the impact of the usage of debt settlement companies; and collections capabilities and recoveries of previously written-off loans and receivables;

•the actual amount to be spent on Card Member rewards and services and business development, and the relationship of these variable customer engagement costs to revenues, which could be impacted by continued changes in macroeconomic conditions and Card Member behavior as it relates to their spending patterns (including the level of spend in bonus categories), the redemption of rewards and offers (including travel redemptions) and usage of travel-related benefits; the costs related to reward point redemptions; further enhancements to our rewards programs and product benefits, including to make them attractive to Card Members and prospective customers, potentially in a manner that is not cost-effective; changes in our models or assumptions used to estimate these expenses; new and renegotiated contractual obligations with business partners, which may be affected by business partners with greater scale and leverage; our ability to identify and negotiate partner-funded value for Card Members; and the pace and cost of the expansion of our global lounge collection;

•the actual amount we spend on marketing in the future and the effectiveness and efficiency of our marketing spend, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance, including the levels of demand for our products; our ability to realize marketing efficiencies and balance expense control and investments in the business; management’s decisions regarding the timing of spending on marketing and the effectiveness of management’s investment optimization process; management’s identification and assessment of attractive investment opportunities; management’s ability to develop premium value propositions and drive customer demand, including continued customer spend growth and retention; and the receptivity of Card Members and prospective customers to advertising and customer acquisition initiatives;

•our ability to control operating expenses, including relative to revenue growth, and the actual amount we spend on operating expenses in the future, which could be impacted by, among other things, salary and benefit expenses to attract and retain talent; our ability to realize operational efficiencies, including through increased scale and automation and continued adoption of artificial intelligence technologies; management’s ability to balance expense control and investments in the business and its decisions regarding spending in such areas as technology, business and product development, sales force, premium servicing and digital capabilities; our ability to innovate efficient channels of customer interactions and the willingness of Card Members to self-service and address issues through digital channels; restructuring activity; fraud costs; inflation; supply chain issues and increased technology costs; expenses related to control management and compliance and consulting, legal and other professional services fees, including as a result of litigation or internal and regulatory reviews; regulatory assessments; the level of M&A activity and related expenses; information security or cybersecurity incidents; the payment of fines, penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; the performance of Amex Ventures and other of our investments; impairments of goodwill or other assets; and the impact of changes in foreign currency exchange rates on costs;

•our tax rate not remaining consistent with expectations, which could be impacted by, among other things, further changes in tax laws and regulation (including as a result of the expiration of provisions of tax laws or regulations), the effects of the Organization for Economic Cooperation and Development’s global minimum tax guidelines, our geographic mix of income, unfavorable tax audits, assessments and tax litigation outcomes, and the occurrence or nonoccurrence of other discrete tax items;

•changes affecting our plans regarding the return of capital to shareholders, which will depend on factors such as our capital levels and regulatory capital ratios; the results of our stress testing and capital planning process and new rulemakings and guidance from the Federal Reserve and other banking regulators, including changes to regulatory capital requirements, such as from the U.S. federal bank regulatory agencies’ Basel III rulemaking; our results of operations and financial condition; our credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;

Table of Contents

•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure and competitor settlements and mergers that may materially impact the prices charged to merchants that accept American Express cards; merchant acceptance and surcharging, steering and suppression by merchants; the desirability of our premium card products; competition for new and existing cobrand relationships; competition from new and non-traditional competitors, and with respect to new products, services and technologies, such as the emergence or increase in popularity of alternative payment mechanisms; and the success of marketing, promotion and rewards programs;

•our ability to expand our leadership in the premium consumer space, including with Millennial and Gen-Z consumers, which will be impacted in part by competition, brand perceptions (including perceptions related to merchant coverage) and reputation, and our ability to develop and market new benefits and value propositions that appeal to Card Members and new customers, grow spending with new and younger age cohort Card Members, offer attractive services and rewards programs and build greater customer loyalty, which will depend in part on identifying and funding investment opportunities, addressing changing customer behaviors, new product innovation and development, Card Member acquisition efforts and enrollment processes, including through digital channels, continuing to realize the benefits from strategic partnerships, successfully implementing our dining strategy and evolving our infrastructure to support new products, services and benefits;

•our ability to build on our leadership in commercial payments, which will depend in part on competition; the willingness and ability of companies to use credit and charge cards for procurement and other business expenditures as well as use our other products and services for financing needs; perceived or actual difficulties and costs related to setting up B2B payment platforms; our ability to offer attractive value propositions and new products to current and potential customers; our ability to enhance and expand our payment, lending and cash flow management solutions, increase customer engagement, and build out a multi-product digital ecosystem to integrate our broad product set, which is dependent on our continued investment in capabilities, features, functionalities, platforms and technologies and the successful integration of our Center acquisition; and the success of our initiatives to support businesses, such as Small Business Saturday and other Shop Small campaigns;

•our ability to expand merchant coverage globally and our success, as well as the success of third-party merchant acquirers, aggregators and processors, in signing merchants to accept American Express, which will depend on, among other factors, the value propositions offered to merchants and merchant acquirers for card acceptance, the awareness and willingness of Card Members to use American Express cards at merchants, scaling marketing and expanding programs to increase card usage, identifying and growing acceptance in low- and new-to-plastic industries and businesses as they form, working with commercial buyers and suppliers to establish B2B acceptance, executing on our plans to increase coverage in priority international cities, destinations, countries and industry verticals, and continued network investments, including in capabilities that allow for greater digital integration and modernization of our authorization platform;

•our ability to successfully invest in, benefit from and expand the use of technological developments, digital payments, servicing and travel solutions and other technological capabilities, which will depend in part on our success in evolving our products and processes for the digital environment, developing new features in the Amex® app and enhancing our digital channels, effectively utilizing data and data platforms, building partnerships and executing programs with other companies, effectively utilizing artificial intelligence and machine learning and increasing automation, including to address servicing and other business and customer needs, and supporting the use of our products as a means of payment through online and mobile channels, all of which will be impacted by investment levels, customer and colleague receptiveness and ability to adopt new technologies, new product innovation and development and the platforms and infrastructure to support new products, services, benefits and partner integrations;

•our ability to grow internationally, which could be impacted by regulation and business practices, such as those capping interchange or other fees, mandating network access or data localization, favoring local competitors or prohibiting or limiting foreign ownership of certain businesses; perceptions of our brand in international jurisdictions; our inability to successfully replicate aspects of our business model internationally and tailor products and services to make them attractive to local customers; competitors with more scale, local experience and established relationships with relevant customers, regulators and industry participants; the success of us and our network partners in acquiring Card Members and/or merchants; and geopolitical and economic instability, hostilities and tensions (such as involving China and the U.S.), and impacts to cross-border trade and travel;

Table of Contents

•our ability to successfully implement our dining strategy and grow our dining platform, which will depend in part on our ability to grow the number of diners, restaurants and other bookable venues using the platform and transactions on the platform; expand and innovate in the tools and capabilities offered through the platform, including integrating the Tock and Rooam acquisitions and benefiting from their added capabilities, users and/or bookable venues; successfully compete with other dining platforms and means of booking venues; and effectively utilize our dining platform to provide value to Card Members and merchants and sell our products and services;

•a failure in or breach of our operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks or outages, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt our operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;

•changes in capital and credit market conditions, including those resulting from recent volatility, which may significantly affect our ability to meet our liquidity needs and expectations regarding capital ratios; our access to capital and funding costs; the valuation of our assets; and our credit ratings or those of our subsidiaries;

•our funding plan being implemented in a manner inconsistent with current expectations, which will depend on various factors such as future business growth, the impact of global economic, political and other events on market capacity, demand for securities we offer, regulatory changes, our ability to securitize and sell loans and receivables and the performance of loans and receivables previously sold in securitization transactions;

•our ability to achieve our climate-related goals, which depend in part on the amount and efficacy of our investments in emissions reduction projects, the ability of our partners to set and achieve sustainability targets, the success of our supply chain and sustainability initiatives, and colleague programs; customer preferences and behaviors; the cost and availability of renewable energy, carbon removal and carbon offset projects and energy attribute certificates; changes in our real estate, technology and colleague strategies or an inability to execute those strategies; and brand perceptions and reputation;

•legal and regulatory developments, which could affect the profitability of our business activities; limit our ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or governance, or alter our relationships with Card Members, partners, merchants and other third parties, including affecting our network operations and practices governing merchant acceptance, as well as our ability to continue certain cobrand relationships in the EU; impact card fees and rewards programs; exert further pressure on merchant discount rates and our network business, as well as result in an increase in surcharging, steering or other differential acceptance practices; alter the competitive landscape; subject us to heightened regulatory scrutiny and result in increased costs related to regulatory oversight and compliance, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or monetary penalties; materially affect capital or liquidity requirements, results of operations or ability to pay dividends; or result in harm to the American Express brand;

•changes in the financial condition and creditworthiness of our business partners, such as bankruptcies, restructurings or consolidations, including of cobrand partners, merchants that represent a significant portion of our business, network partners or financial institutions that we rely on for routine funding and liquidity, which could materially affect our financial condition or results of operations; and

•factors beyond our control such as business, economic and geopolitical conditions, consumer and business confidence and spending generally, unemployment rates, market volatility, political developments, further escalations or widening of international tensions, regional hostilities and military conflicts, adverse developments affecting third parties, including other financial institutions, merchants or vendors, as well as severe weather conditions and natural disasters (e.g., hurricanes and wildfires), power loss, disruptions in telecommunications, pandemics, terrorism and other catastrophic events, any of which could significantly affect demand for and spending on American Express cards, credit metrics and reserves, loan and receivable balances, deposit levels and other aspects of our business and results of operations or disrupt our global network systems and ability to process transactions.

A further description of these uncertainties and other risks can be found in the 2024 Form 10-K and other reports filed with the Securities and Exchange Commission.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended March 31 (Millions, except per share amounts)

2025

2024

Revenues

Non-interest revenues

Discount revenue

Net card fees

Service fees and other revenue

Total non-interest revenues

Interest income

Interest on loans

Interest and dividends on investment securities

Deposits with banks and other

Total interest income

Interest expense

Deposits

Long-term debt and other

Total interest expense

Net interest income

Total revenues net of interest expense

Provisions for credit losses

Card Member receivables

Card Member loans

Other

Total provisions for credit losses

Total revenues net of interest expense after provisions for credit losses

Expenses

Card Member rewards

Business development

Card Member services

Marketing

Salaries and employee benefits

Other, net

Total expenses

Pretax income

Income tax provision

Net income

Earnings per Common Share (Note 14)(a)

Basic

Diluted

Average common shares outstanding for earnings per common share:

Basic

Diluted

(a) million for both the three months ended March 31, 2025 and 2024, and (ii) dividends on preferred shares of $ million for both the three months ended March 31, 2025 and 2024.

See Notes to Consolidated Financial Statements.

Table of Contents

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended March 31,
(Millions)	2025	2024
Net income	$	$
Other comprehensive income (loss):
Net unrealized debt securities gains (losses), net of tax
Foreign currency translation adjustments, net of hedges and tax		()
Net unrealized pension and other postretirement benefits, net of tax
Other comprehensive income (loss)		()
Comprehensive income	$	$

See Notes to Consolidated Financial Statements.

Table of Contents

AMERICAN EXPRESS COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions, except share data)

March 31,
2025

December 31,
2024

Assets

Cash and cash equivalents

Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2025, $; 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 March 31, 2025 and December 31, 2024

Common shares, $ par value, authorized billion shares; issued and outstanding million shares as of March 31, 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.

Table of Contents

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31 (Millions)

2025

2024

Cash Flows from Operating Activities

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Provisions for credit losses

Depreciation and amortization

Stock-based compensation

Deferred taxes

()

Other items (a)

()

Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:

Other assets

Accounts payable & other liabilities

Net cash provided by operating activities

Cash Flows from Investing Activities

Sale of investments

Maturities and redemptions of investments

Purchase of investments

()

Net decrease (increase) in loans and Card Member receivables, including Card Member loans held for sale (b)

()

Purchase of premises and equipment, net of sales: 2025, ; 2024, $

()

Net cash provided by (used in) investing activities

()

Cash Flows from Financing Activities

Net increase in customer deposits

Net increase in short-term borrowings

Proceeds from long-term debt

Payments of long-term debt

()

Issuance of American Express common shares

Repurchase of American Express common shares and other

()

Dividends paid

()

Net cash provided by financing activities

Effect of foreign currency exchange rates on cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

(a)

(b)

See Notes to Consolidated Financial Statements.

Table of Contents

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

Three months ended March 31, 2025 (Millions, except per share amounts)

Total

Preferred
Shares

Common
Shares

Additional
Paid-in
Capital

Accumulated
Other
Comprehensive
Income (Loss)

Retained
Earnings

Balances as of December 31, 2024

()

Net income

—

Other comprehensive income (loss)

—

Repurchase of common shares

()

—

()

—

()

Other changes

()

—

()

—

()

Cash dividends declared preferred Series D, $ per share

()

—

()

Cash dividends declared common, $ per share

()

—

()

Balances as of March 31, 2025

()

Three months ended March 31, 2024 (Millions, except per share amounts)

Total

Preferred Shares

Common Shares

Additional Paid-in Capital

Accumulated Other Comprehensive Income (Loss)

Retained Earnings

Balances as of December 31, 2023

()

Net income

—

Other comprehensive income (loss)

()

—

()

Repurchase of common shares

()

—

()

—

()

Other changes

—

()

Cash dividends declared preferred Series D, $ per share

()

—

()

Cash dividends declared common, $ per share

()

—

()

Balances as of March 31, 2024

()

See Notes to Consolidated Financial Statements.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Business Events

On May 1, 2024, we completed the previously announced transaction to sell fraud prevention solutions provider Accertify, Inc. (Accertify), a wholly owned subsidiary we acquired in 2010, the operations of which were reported within the Global Merchant and Network Services (GMNS) segment. The transaction resulted in a gain of $ million ($ million after tax), which was reported as a reduction to Other expense in the second quarter of 2024. Prior to the completion of the transaction, the carrying amount of Accertify’s net assets were not material to our financial position.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

$ Small Business Corporate Card Member loans Less: Reserves for credit losses Card Member loans, net$ $

Other loans, net (b)

$ $

(a)Includes approximately $ billion and $ billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2025 and December 31, 2024, respectively.

(b)Other loans are presented net of reserves for credit losses of $ million and $ million as of March 31, 2025 and December 31, 2024, respectively.

Card Member receivables as of March 31, 2025 and December 31, 2024 consisted of:

Table 2.2: Card Member Receivables


(Millions)	2025	2024
Consumer	$	$
Small Business
Corporate (a)
Card Member receivables
Less: Reserves for credit losses
Card Member receivables, net	$	$

(a)Includes $ billion and $ billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31, 2025 and December 31, 2024, respectively.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

days after the billing statement date. $ $ $ $ $ $ Small Business

Corporate (a)

(b)(b)(b) Card Member Receivables:Consumer Small Business$ $ $

Corporate (a)

(b)(b)(b)$ $ $ $

2024 (Millions)

Current

30-59
Days
Past Due

60-89
Days
Past Due

90+
Days
Past Due

Total

90+ Days Past Due and Still Accruing Interest (c)

Non-Accruals(d)

Card Member Loans:

Consumer

Small Business

Corporate (a)

(b)

Card Member Receivables:

Consumer

Small Business

Corporate (a)

(b)

(a)For corporate accounts, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).

(b)Delinquency data for periods other than 90+ days past billing has not historically been available due to system constraints. Therefore, such data has not been a material input for risk management purposes. The balances that are current to 89 days past billing can be derived as the difference between the Total and the 90+ Days Past Due balances.

(c)Our policy is generally to accrue interest through the date of write-off (typically 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.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

days after the payment due date. $ $ $ $ $ $ $

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 March 31, 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 and $ million as of March 31, 2025 and December 31, 2024, respectively. Non-accruals for consumer installment loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

% % % % % %Small Business % % % % % %Card Member Receivables:Consumer % % % % % %Small Business % % % % % %Corporate (b) %(c)(b) %(c)

Other Loans

% % % % % %

(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 % and % as of March 31, 2025 and 2024, respectively.

Refer to Note 3 for additional indicators, including external qualitative factors, management considers in its evaluation process for reserves for credit losses.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

months. Upon entering the modification program, the customer’s ability to make future purchases is limited, canceled or, in certain cases, suspended until the customer successfully exits from the modification program. As of March 31, 2025 and 2024, we had $ million and $ million, respectively, of unused credit available to customers with loans and receivables modified during each of the respective three month periods. In accordance with the modification agreement with the customer, loans and/or receivables may revert to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is either (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program. % %(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 ExtensionOther Loans % % % %Total$ $

(a)Represents the outstanding balances as of March 31, 2025 and 2024, respectively, of all modifications undertaken in the current and preceding three months for loans and receivables that remain in modification programs as of, or that defaulted on or before, March 31, 2025 and 2024, respectively. The outstanding balances include principal, fees, and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance.

(b)For Card Member loans, we generally do not offer payment term extensions.

(c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(b)$$ $ (b)$ $ Small Business (b) (b) Corporate (b) (b) Card Member ReceivablesConsumer(c)$ (c)$ Small Business(c) (c) Corporate(c) (c) Other Loans Total$ $ $ $ $ $ $ $

(a)Represents the outstanding balances as of March 31, 2025 and 2024, respectively, of all modifications that defaulted in the periods presented and were modified in the twelve months prior to payment default. The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables.

(b)For Card Member loans, we generally do not offer payment term extensions.

(c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

As of March 31, 2024

Account Balances (Millions) (a)

Current

30-89 Days Past Due

90+ Days Past Due

Card Member Loans

Consumer

Small Business

Corporate

Card Member Receivables:

Consumer

Small Business

Corporate

Other Loans

Total

(a)The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses.

We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD), and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates.

•PD models are used to estimate the likelihood an account will be written-off.

•EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors.

•Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions.

We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions, even if such expected recoveries exceed expected losses. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses. This history includes the performance of loans and receivables modifications for borrowers experiencing financial difficulty, including their subsequent defaults.

Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios each period and assigns probability weights to each scenario, generally with a consistent initial distribution. At times, due to macroeconomic uncertainty and volatility, management may apply judgment and assign different probability weights to scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models.

We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions.

Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income.

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.

Table of Contents

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 decreased for the three months ended March 31, 2025. Our reserves for the current period reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end.

Card Member loans reserve for credit losses increased for the three months ended March 31, 2024, primarily driven by an increase in loans outstanding and slightly higher delinquencies.

Provisions (a)

Net write-offs (b)

Principal()()Interest and fees()()

Other (c)

()Ending Balance$ $

(a)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(b)Principal write-offs are presented less recoveries of $ million and $ million for the three months ended March 31, 2025 and 2024, respectively. Recoveries of interest and fees were not significant.

(c)Primarily includes foreign currency translation adjustments.

Table of Contents

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 March 31, 2025 and 2024, respectively.

(c)Primarily includes foreign currency translation adjustments.

Changes in Other Loans Reserve for Credit Losses

Other loans reserve for credit losses increased for both the three months ended March 31, 2025 and 2024, primarily reflecting increases in other loans outstanding as we continue to grow our Personal Loans and Business Line of Credit offerings.

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.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We had accrued interest on our AFS debt securities totaling $ million as of both March 31, 2025 and December 31, 2024 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.

Table of Contents

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 March 31, 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.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Our ownership of variable interests in the Lending Trust was $ billion and $ billion as of March 31, 2025 and December 31, 2024, respectively, and in the Charge Trust was $ billion and $ billion as of March 31, 2025 and December 31, 2024, respectively.

Restricted cash and cash equivalents held by the Lending Trust was $ million and $ million as of March 31, 2025 and December 31, 2024, respectively, and by the Charge Trust was as of both March 31, 2025 and December 31, 2024. 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 three months ended March 31, 2025 and the year ended December 31, 2024, no such triggering events occurred.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 March 31, 2025 and December 31, 2024 were as follows:

Table 6.2: Customer Deposits by Type


(Millions)	2025	2024
U.S. interest-bearing deposits:
Savings accounts	$	$
Checking accounts
Certificates of deposit:
Direct
Third-party (brokered)
Sweep accounts – Third-party (brokered)
Total U.S. interest-bearing deposits	$	$
Other deposits
Card Member credit balances
Total customer deposits	$	$

$ $ $ $ $ $

(a)Includes $ million of non-U.S. direct certificates of deposit as of March 31, 2025.

As of both March 31, 2025 and December 31, 2024, certificates of deposit in denominations that met or exceeded the insured limit were $ billion.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

states and Washington, D.C.; and (ii) holders of Visa, MasterCard and Discover credit cards that do not offer rewards or charge an annual fee in states and Washington, D.C. 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.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

to $ million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business and results of operations.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate the relevant agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of March 31, 2025, these derivatives were not in a material net liability position. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of March 31, 2025 and December 31, 2024, 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 March 31, 2025 and December 31, 2024, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

billion and $ billion of fixed-rate debt obligations designated in fair value hedging relationships as of March 31, 2025 and December 31, 2024, respectively.)$ Derivatives designated as hedging instruments ()Total$ $()

The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $ billion and $ billion as of March 31, 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 March 31, 2025 and 2024, respectively, primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges.

Net Investment Hedges

We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We had notional amounts of approximately $ billion of foreign currency derivatives designated as net investment hedges as of both March 31, 2025 and December 31, 2024. The gain or loss on net investment hedges, net of taxes, recorded in Accumulated other comprehensive income (loss) (AOCI) as part of the cumulative translation adjustment, was a loss of $ million and a gain of $ million for the three months ended March 31, 2025 and 2024, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income were t significant for both the three months ended March 31, 2025 and 2024.

Derivatives Not Designated as Hedges

The changes in the fair value of derivatives that are not designated as hedges are primarily intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. We had notional amounts of approximately $ billion and $ billion as of March 31, 2025 and December 31, 2024, respectively. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in net gains of $ million and $ million for the three months ended March 31, 2025 and 2024, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income.

Our embedded derivative related to seller earnout shares granted to us upon the completion of a business combination in the second quarter of 2022 between our equity method investee, American Express Global Business Travel, and Apollo Strategic Growth Capital had a notional amount of $ million as of both March 31, 2025 and December 31, 2024. The changes in the fair value of the embedded derivative resulted in losses of $ million and $ million for the three months ended March 31, 2025 and 2024, respectively, which were recognized in Service fees and other revenue in the Consolidated Statements of Income.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

$ $ $ $ $ $ $

Debt securities

Derivatives, gross (a)(b)

Total Assets Liabilities:

Derivatives, gross (a)

Total Liabilities$ $ $ $ $ $ $ $

(a)Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis.

Table of Contents

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 March 31, 2025 and December 31, 2024, respectively), other receivables and other miscellaneous assets.

(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $ billion and $ billion as of March 31, 2025 and December 31, 2024, respectively, and the fair values of Long-term debt were $ billion and $ billion as of March 31, 2025 and December 31, 2024, respectively.

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

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The carrying value of equity investments without readily determinable fair values totaled $ billion as of both March 31, 2025 and December 31, 2024, of which investments representing nonrecurring Level 3 fair value measurement were and $ million as of March 31, 2025 and December 31, 2024, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets.

We recorded unrealized gains for both the three months ended March 31, 2025 and 2024. Unrealized losses were $ million and for the three months ended March 31, 2025 and 2024, respectively. Unrealized gains and losses are recorded in Other, net on the Consolidated Statements of Income. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains for equity investments without readily determinable fair values totaled $ billion as of both March 31, 2025 and December 31, 2024, and cumulative unrealized losses were $ million and $ million as of March 31, 2025 and December 31, 2024, respectively.

In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both March 31, 2025 and December 31, 2024.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

10.

billion and $ million, respectively, as of March 31, 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.

Table of Contents

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)

$()$ $()$()$()$()

(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 for the three months ended March 31, 2025 and 2024 were t significant.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

12.

Network partnership revenue(b)

Foreign currency-related revenue Delinquency fees Travel commissions and fees Other fees and revenues

Total Service fees and other revenue (b)

$ $

(a)Effective for the first quarter of 2025, the revenue line previously reported as Service fees was renamed to Loyalty coalition, merchant and other service fees to better reflect its nature and components.

(b)Effective for the first quarter of 2025, Network partnership revenue, previously reported as Processed revenue on our Consolidated Statements of Income, is consolidated within Service fees and other revenue. Prior period amounts have been recast to conform to the current period presentation.

$ Professional services

Other

Total Other expenses$ $

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

13.

percent and percent for the three months ended March 31, 2025 and 2024, respectively.

We are under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which we have significant business operations. The tax years under examination and open for examination vary by jurisdiction. We are currently under examination by the IRS for the 2017 and 2018 tax years.

In 2024, we received a Notice of Proposed Adjustment (Notice) from the IRS regarding transfer pricing between our U.S. and foreign subsidiaries for the 2017 and 2018 tax years currently under examination. The Notice proposes an increase to our U.S. taxable income that would result in an additional estimated U.S. federal income tax payment of approximately $ 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 March 31, 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 investments

Income tax credits and other income tax benefits associated with our tax credit investments are also recognized in the Consolidated Statements of Cash Flows in the Operating activities section primarily under Accounts payable and other liabilities. Refer to Note 6 to our “Consolidated Financial Statements” in the 2024 Form 10-K for additional information on our tax credit investments for the year ended December 31, 2024.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

14.

$ Preferred dividends ()()Net income available to common shareholders$ $

Earnings allocated to participating share awards (a)

()()Net income attributable to common shareholders$ $

Denominator:(a)

Basic: Weighted-average common stock

Add: Weighted-average stock options (b)

Diluted Basic EPS$ $ Diluted EPS$ $

(a)Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.

(b)The dilutive effect of unexercised stock options excludes from the computation of EPS million of options for both the three months ended March 31, 2025 and 2024, because inclusion of the options would have been anti-dilutive.

Table of Contents

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

15.

$ $ $ $()$

Revenue from contracts with customers (b)

() Interest income Interest expense ()

Net interest income

() Total revenues net of interest expense () Provisions for credit losses () Total revenues net of interest expense after provisions for credit losses () Expenses

Card Member rewards, business development and Card Member services (c)

Marketing Salaries and employee benefits and other operating expenses Total expenses Pretax income (loss)$ $ $ $ $()$

Total assets

$ $ $ $ $ $

Three Months Ended March 31, 2024 (Millions)

USCS

ICS

GMNS

Corporate & Other (a)

Consolidated

Total non-interest revenues

()

Revenue from contracts with customers (b)

()

Interest income

Interest expense

()

Net interest income

()

Total revenues net of interest expense

()

Provisions for credit losses

()

Total revenues net of interest expense after provisions for credit losses

()

Expenses

Card Member rewards, business development and Card Member services (c)

Marketing

Salaries and employee benefits and other operating expenses

Total expenses

Pretax income (loss)

()

Total assets

(a)Corporate & Other includes adjustments and eliminations for intersegment activity.

(b)Includes discount revenue and certain service fees and other revenue from customers.

(c)Card Member rewards, business development and Card Member services expenses are generally correlated to volumes or are variable based on usage.

Table of Contents

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Our market risk exposures include (i) interest rate risk due to changes in the relationship between the interest rates on our assets (such as loans, receivables and investment securities) and the interest rates on our liabilities (such as debt and deposits); and (ii) foreign exchange risk related to transactions, funding, investments and earnings in currencies other than the U.S. dollar. Since December 31, 2024, there have been no material changes in our market risk exposures associated with interest rates or foreign currencies.

The actual impact of interest rate and foreign exchange rate changes will depend on, among other factors, the timing of rate changes, the extent to which different rates do not move in the same direction or in the same direction to the same degree, changes in the cost, volume and mix of our hedging activities and changes in the volume and mix of our businesses.

ITEM 4. CONTROLS AND PROCEDURES

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective and designed to ensure that the information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For information that updates the disclosures set forth under Part I, Item 3. “Legal Proceedings” in the 2024 Form 10-K, refer to Note 7 to the “Consolidated Financial Statements” in this Form 10-Q.

ITEM 1A. RISK FACTORS

For a discussion of our risk factors, including risks and uncertainties related to business, economic and geopolitical conditions, see Part I, Item 1A. “Risk Factors” of the 2024 Form 10-K. The risks and uncertainties that we face are not limited to those set forth in the 2024 Form 10-K. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business and the trading price of our securities.

Table of Contents

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below sets forth the information with respect to purchases of our common stock made by or on behalf of us during the three months ended March 31, 2025.


	Total Number of Shares Purchased	Average Price Paid Per Share (c)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d)	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 1-31, 2025
Repurchase programs(a)	—	$	—	—	75,170,819
Employee transactions(b)	721,245	$	316.84	N/A	N/A

February 1-28, 2025
Repurchase programs(a)	1,625,500	$	303.16	1,625,500	73,545,319
Employee transactions(b)	96,398	$	317.45	N/A	N/A

March 1-31, 2025
Repurchase programs(a)	644,800	$	282.79	644,800	72,900,519
Employee transactions(b)	—	$	—	N/A	N/A

Total
Repurchase programs(a)	2,270,300	$	297.37	2,270,300	72,900,519
Employee transactions(b)	817,643	$	316.91	N/A	N/A

(a)On March 8, 2023, the Board of Directors authorized the repurchase of up to 120 million common shares from time to time, subject to market conditions and in accordance with our capital plans. This authorization replaced the prior repurchase authorization. See “MD&A – Consolidated Capital Resources and Liquidity” for additional information regarding share repurchases.

(b)Includes: (i) shares surrendered by holders of employee stock options who exercised options (granted under our incentive compensation plans) in satisfaction of the exercise price and/or tax withholding obligation of such holders and (ii) restricted shares withheld (under the terms of grants under our incentive compensation plans) to offset tax withholding obligations that occur upon vesting and release of restricted shares. Our incentive compensation plans provide that the value of the shares delivered or attested to, or withheld, be based on the price of our common stock on the date the relevant transaction occurs.

(c)The average price paid per share does not reflect costs and taxes associated with the purchase of shares.

(d)Share purchases under publicly announced programs are made pursuant to open market purchases, plans intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, privately negotiated transactions or other purchases, including block trades, accelerated share repurchase programs or any combination of such methods as market conditions warrant and at prices we deem appropriate.

Table of Contents

ITEM 5. OTHER INFORMATION

Director Departure

On April 17, 2025, Walter J. Clayton III notified us of his decision to resign from the Board of Directors, effective April 21, 2025, to join the Department of Justice. Mr. Clayton’s decision to resign was not the result of any disagreement with management or the Board. Mr. Clayton has served as a director since 2022.

Rule 10b5-1 Trading Plans

During the three months ended March 31, 2025, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) or any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K.

Table of Contents

ITEM 6. EXHIBITS

The following exhibits are filed as part of this Quarterly Report:


Exhibit			Description




31.1			Certification of Stephen J. Squeri pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2			Certification of Christophe Y. Le Caillec pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32.1			Certification of Stephen J. Squeri pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2			Certification of Christophe Y. Le Caillec pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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)

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	AMERICAN EXPRESS COMPANY
	(Registrant)

Date: April 18, 2025	By	/s/ Christophe Y. Le Caillec
		Christophe Y. Le Caillec Chief Financial Officer

Date: April 18, 2025	By	/s/ Jessica Lieberman Quinn
		Jessica Lieberman Quinn Executive Vice President and Corporate Controller (Principal Accounting Officer)

AMERICAN EXPRESS CO - Quarter Report: 2025 March (Form 10-Q)

Similar companies