American Express Company

04/23/2026 | Press release | Distributed by Public on 04/23/2026 09:06

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
Business Introduction
American Express is a global payments and premium lifestyle brand powered by technology. Founded in 1850 and headquartered in New York, American Express' card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world.
Our range of products and services includes:
•Credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services
•Banking and other payment and financing products and services, including deposits and non-card lending
•Merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services
•Network services
These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone and direct response advertising.
We compete in the global payments industry with networks, issuers, acquirers and other payment service providers and methods of payment, including paper-based transactions (e.g., cash and checks) and electronic transfers (e.g., wire transfers and Automated Clearing House (ACH)), as well as evolving and growing alternative mechanisms, systems and products that leverage new technologies, business models and customer relationships to create payment, financing or banking solutions. The payments industry continues to undergo changes in response to evolving technologies, business dynamics and competition for premium customers.
We have updated our presentation and disclosure of Card Member loans and Card Member receivables to present them on a combined basis as Card balances. Results for the first quarter of 2026 and prior periods have been reclassified to conform to the new presentation. Previously, Card Member loans represented balances on our credit card products and revolve-eligible balances on our charge card products, which included balances that Card Members paid in full as well as balances that Card Members paid over time with interest, and Card Member receivables represented balances on our charge card products that need to be paid in full on or before the Card Member's payment due date. The updated Card balances presentation includes both revolve-eligible balances and balances that need to be paid in full, reflecting the evolution of our card products over time, primarily due to the expansion of lending features on our charge card portfolio, and is more consistent with industry convention. This presentation change has no impact on the recognition or measurement of outstanding Card balances and associated reserves for credit losses.
Forward-Looking Statements and Non-GAAP Measures
Certain of the statements in this Form 10-Q are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the "Cautionary Note Regarding Forward-Looking Statements" section. We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included within this Form 10-Q constitutes non-GAAP financial measures. Our calculations of non-GAAP financial measures may differ from the calculations of similarly titled measures by other companies.
Bank Holding Company
American Express is a bank holding company under the Bank Holding Company Act of 1956 and the Board of Governors of the Federal Reserve System (the Federal Reserve) is our primary federal regulator. As such, we are subject to the Federal Reserve's regulations, policies and minimum capital standards. See "Certain Legislative, Regulatory and Other Developments" for further information. We are also subject to evolving and extensive government regulation and supervision in jurisdictions around the world.
Table 1: Summary of Financial Performance
As of or for the Three Months Ended
March 31,
Change
2026 vs. 2025
(Millions, except percentages, per share amounts and where indicated) 2026 2025
Selected Income Statement Data
Total revenues net of interest expense $ 18,907 $ 16,967 $ 1,940 11 %
Total revenues net of interest expense (FX-adjusted) (a)
17,210 1,697 10
Provisions for credit losses 1,251 1,150 101 9
Total expenses 13,878 12,487 1,391 11
Pretax income 3,778 3,330 448 13
Income tax provision 807 746 61 8
Net income 2,971 2,584 387 15
Earnings per common share - diluted (b)
$ 4.28 $ 3.64 $ 0.64 18 %
Selected Balance Sheet and Common Share Data
Cash and cash equivalents $ 53,757 $ 52,508 $ 1,249 2 %
Total Card balances and Other loans 224,160 207,384 16,776 8
Total Card balances and Other loans (FX-adjusted) (a)
208,827 15,333 7
Average Card balances and Other loans 222,813 204,760 18,053 9 %
Customer deposits 157,948 146,396 11,552 8
Long-term debt $ 58,750 $ 51,236 $ 7,514 15
Average common shares outstanding - diluted 686 702 (16) (2)
Cash dividends declared per common share $ 0.95 $ 0.82 $ 0.13 16 %
Selected Metrics and Ratios
Network volumes (billions)
$ 486.3 $ 439.6 $ 47 11 %
Billed business (billions)
$ 428.0 387.4 41 10
Billed business (billions) (FX-adjusted) (a)
$ 393.6 $ 34 9 %
Net interest yield (c)
8.4% 8.2%
Card balances
Net write-off rate - principal, interest and fees (d)
2.3 % 2.4 %
Net write-off rate - principal only - consumer and small business (d)(e)
2.0 % 2.1 %
30+ days past due as a % of total - consumer and small business
1.3 % 1.3 %
90+ days past billing as a % of total - corporate (f)
0.4 % 0.4 %
Effective tax rate 21.4 % 22.4 %
Return on average equity (g)
35.2 % 33.6 %
Common Equity Tier 1 10.5 % 10.7 %
(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 Card balances and Other loans 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)Reflects net income, less (i) earnings allocated to participating share awards of $19 million and $18 million for the three months ended March 31, 2026 and 2025, respectively, and (ii) dividends on preferred shares of $14 million for both the three months ended March 31, 2026 and 2025.
(c)Represents net interest income, computed on an annualized basis, divided by average Card balances, Card balances held for sale (HFS) and Other loans.
(d)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.
(e)A net write-off rate based on principal losses only is not available for corporate Card balances due to system constraints.
(f)For corporate Card balances, 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 balance is classified as 90 days past billing. Corporate Card balances 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.
(g)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders' equity for the period.
Business Performance
We delivered strong results for the first quarter of 2026, reflecting continued momentum across the business and execution of our proven growth strategy. We had strong engagement on our refreshed U.S. Platinum products, expanded our membership assets with new and renewed partnerships, and furthered the development of our artificial intelligence (AI) capabilities in the quarter. Net income for the first quarter was $3.0 billion, or $4.28 per share, compared with net income of $2.6 billion, or $3.64 per share, a year ago.
Billed business growth accelerated to 10 percent year-over-year (9 percent FX-adjusted).1 G&S spend grew 10 percent (8 percent FX-adjusted), driven by continued momentum in retail spending. T&E spend grew 12 percent (9 percent FX-adjusted), reflecting sustained strength in restaurant and acceleration in airline spend, although we saw airline spend soften in the last few weeks of the quarter with travel disruptions from the Middle East conflict.1 Overall transaction growth of 10 percent for the quarter reflects continued strong engagement from our customers.
U.S. Consumer Services billed business grew 10 percent, with continued momentum in spending by Millennial and Gen-Z Card Members, our largest and fastest-growing cohort. Growth also reflected engagement across our premium card portfolios, including an acceleration in U.S. Platinum spend. Commercial Services billed business grew 4 percent, reflecting continued modest growth from U.S. small and mid-sized enterprise (SME) Card Members. Commercial Services included billed business from small business cobrand held-for-sale portfolios, which will be exited over the course of the year. Billed business for International Card Services, our fastest-growing segment, grew 20 percent (13 percent FX-adjusted), driven by continued strong growth in spend across geographies and customer types outside the United States.1
Total revenues net of interest expense increased 11 percent (10 percent FX-adjusted).1 Growth in billed business drove a 9 percent increase in Discount revenue, our largest revenue line. Net card fees grew 18 percent, reflecting high levels of new card acquisitions, strong Card Member retention and our ongoing cycle of product refreshes. Net interest income grew 13 percent, primarily reflecting growth in balances and net yield expansion.
Card balances and Other loans increased 8 percent, in line with recent trends. Provisions for credit losses increased, primarily due to higher net write-offs and a lower reserve release in the current period. The reserve release in the current period was primarily driven by a sequential decrease in Card balances; reserves for credit losses reflect uncertainty in the macroeconomic environment. Net write-off and delinquency rates remained stable and best-in-class, supported by our premium customer base.
Growth in Card Member rewards, Card Member services and Business development expenses were driven by volumes, usage and enhancements we made to the value propositions of our refreshed U.S. Platinum cards. Marketing expense was relatively flat year-over-year. We plan to continue to invest in growth initiatives, including acquiring high spending, high credit-quality customers. Operating expense growth continues to reflect our investments in our colleagues and technology to support business growth. We remain focused on driving marketing and operating expense efficiencies over time.
During the first quarter, we maintained our Common Equity Tier 1 (CET1) capital ratio within our target range of 10 to 11 percent and returned $2.3 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.
The resiliency of our differentiated business model and the strength and stability of our performance give us confidence to navigate evolving competition and a range of economic environments. While we recognize the uncertainty of the geopolitical and regulatory landscape, 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.
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, 2026 compared to the same period in the prior year, as presented in the accompanying tables.
Consolidated Results of Operations
Table 2: Total Revenues Net of Interest Expense Summary
Three Months Ended
March 31,
Change
2026 vs. 2025
(Millions, except percentages) 2026 2025
Discount revenue $ 9,512 $ 8,743 $ 769 9 %
Net card fees
2,752 2,333 419 18
Service fees and other revenue 1,951 1,722 229 13
Total non-interest revenues 14,215 12,798 1,417 11
Total interest income 6,665 6,135 530 9
Total interest expense 1,973 1,966 7 -
Net interest income 4,692 4,169 523 13
Total revenues net of interest expense $ 18,907 $ 16,967 $ 1,940 11 %
Total Revenues Net of Interest Expense
Discount revenue increased, driven by an increase in billed business of 10 percent, partially offset by lower average merchant discount rates primarily due to shifts in geographic and merchant spend mix. 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 increases in foreign-exchange related revenues associated with Card Member cross-currency spending, network partnership revenue and loyalty coalition-related fees.
Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.
Interest expense was relatively flat, reflecting growth in customer deposits and long-term debt, offset by lower interest rates paid on customer deposits.
Table 3: Provisions for Credit Losses Summary
Three Months Ended
March 31,
Change
2026 vs. 2025
(Millions, except percentages) 2026 2025
Card balances
Net write-offs
$ 1,213 $ 1,165 $ 48 4 %
Reserve build (release) (a)
(26) (118) 92 78
Total
1,187 1,047 140 13
Other
Net write-offs - Other loans
57 55 2 4
Net write-offs - Other
5 3 2 67
Reserve build (release) - Other loans (a)
(9) 50 (59) #
Reserve build (release) - Other (a)
11 (5) 16 #
Total
64 103 (39) (38)
Total provisions for credit losses $ 1,251 $ 1,150 $ 101 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
Provision for Card balance credit losses increased, primarily due to a lower reserve release in the current period and higher net write-offs. The reserve release in the current period was primarily driven by a sequential decrease in Card balances. The reserves reflect uncertainty in the macroeconomic environment. The reserve release for the prior period reflected the quality of our premium customer base and the macroeconomic outlook.
Provision for other 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 related to partner obligations. The reserve build in the prior period was primarily driven by a sequential increase in other loans outstanding.
Table 4: Expenses Summary
Three Months Ended
March 31,
Change
2026 vs. 2025
(Millions, except percentages) 2026 2025
Card Member rewards $ 4,891 $ 4,378 $ 513 12 %
Business development 1,591 1,529 62 4
Card Member services 1,975 1,328 647 49
Marketing 1,480 1,486 (6) -
Salaries and employee benefits 2,482 2,120 362 17
Other, net 1,459 1,646 (187) (11)
Total expenses $ 13,878 $ 12,487 $ 1,391 11 %
Expenses
Card Member rewards expense increased, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $353 million, and cobrand rewards expense of $160 million, all of which were primarily driven by higher billed business. The increase in Membership Rewards expense was also driven by changes to the Membership Rewards program for U.S. Business Platinum cards.
The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 97 percent (rounded up) and 96 percent (rounded down) as of March 31, 2026 and 2025, respectively.
Business development expense increased, primarily due to increased partner payments and higher client incentives and loyalty coalition-related costs, partially offset by a reserve release related to the allocation of revenue to a joint venture partner as a result of a final arbitration award.
Card Member services expense increased, primarily due to higher usage of Card Member benefits and the new U.S. Platinum benefits.
Marketing expense was relatively flat, reflecting consistent levels of spending on customer acquisition and brand advertising.
Salaries and employee benefits expense increased, primarily driven by higher compensation and incentive costs.
Other expenses decreased, primarily driven by a release of a reserve associated with international non-income tax, a gain recognized in the current period for the remeasurement of our ownership interest in our Switzerland joint venture (Swisscard AECS GmbH) resulting from our purchase of the remaining share of the joint venture and gains on Amex Ventures investments, partially offset by higher technology costs and foreign-exchange related losses.
Income Taxes
The effective tax rate was 21.4 percent and 22.4 percent for the three months ended March 31, 2026 and 2025, respectively. The decrease in the effective tax rate primarily reflected discrete tax benefits in the current period.
Table 5: Selected Card-Related Statistical Information
As of or for the
Three Months Ended
March 31,
Change
2026
vs.
2025
2026 2025
Network volumes (billions)
$ 486.3 $ 439.6 11 %
Billed business $ 428.0 $ 387.4 10
Cards-in-force (millions)
153.9 147.5 4
Proprietary cards-in-force 87.2 84.6 3
Basic cards-in-force (millions)
130.1 124.2 5
Proprietary basic cards-in-force 67.2 65.1 3
Average proprietary basic Card Member spending (dollars)
$ 6,393 $ 5,987 7
Average fee per card (dollars) (a)
$ 127 $ 111 14 %
Proprietary new cards acquired (millions)
3.1 3.4
Discount revenue as a % of Billed business 2.22 % 2.26 %
(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, 2026
Year over Year Percentage
Increase (Decrease)
Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a)
Network volumes 11 % 9 %
Total billed business 10 9
U.S. Consumer Services 10
Commercial Services 4 4
International Card Services 20 13
Merchant industry billed business metrics
G&S spend (71% of billed business)
10 8
T&E spend (29% of billed business)
12 % 9 %
(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 7: Selected Credit-Related Statistical Information
As of or for the
Three Months Ended
March 31,
Change
2026
vs.
2025
(Millions, except percentages)
2026 2025
Card balances
$ 213,311 $ 197,706 8 %
Credit loss reserves:
Beginning reserves
$ 6,089 $ 5,850 4
Provisions - principal, interest and fees 1,187 1,047 13
Net write-offs - principal, interest and fees, less recoveries (1,213) (1,165) 4
Other (a)
1 8 (88)
Ending reserves
$ 6,065 $ 5,740 6
% of Card balances
2.8 % 2.9 %
% of past due - consumer and small business
234 % 240 %
Average Card balances 211,897 195,262 9 %
Net write-off rate - principal, interest and fees (b)
2.3 % 2.4 %
Net write-off rate - principal only - consumer and small business (b)(c)
2.0 % 2.1 %
30+ days past due as a % of total - consumer and small business
1.3 % 1.3 %
90+ days past billing as a % of total - corporate (d)
0.4 % 0.4 %
(a)Other includes foreign currency translation adjustments.
(b)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.
(c)A net write-off rate based on principal losses only is not available for corporate Card balances due to system constraints.
(d)For corporate Card balances, 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 balance is classified as 90 days past billing. Corporate Card balances 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.
Business Segment Results of Operations
U.S. Consumer Services
Table 8: USCS Selected Income Statement Data
Three Months Ended
March 31,
Change
(Millions, except percentages) 2026 2025
2026 vs. 2025
Revenues
Non-interest revenues $ 5,803 $ 5,243 $ 560 11 %
Interest income 4,072 3,763 309 8
Interest expense 751 757 (6) (1)
Net interest income 3,321 3,006 315 10
Total revenues net of interest expense 9,123 8,249 874 11
Provisions for credit losses 631 631 - -
Total revenues net of interest expense after provisions for credit losses 8,493 7,618 875 11
Expenses
Card Member rewards, business development and Card Member services
4,605 3,882 723 19
Marketing
764 765 (1) -
Salaries and employee benefits and other operating expenses 1,367 1,239 128 10
Total expenses 6,736 5,886 850 14
Pretax segment income $ 1,757 $ 1,732 $ 25 1 %
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 reservation and dining platform that provides digital tools for restaurants and venues and reservation bookings for diners and other registered users.
Total Revenues Net of Interest Expense
Non-interest revenues increased, primarily driven by higher Discount revenue and Net card fees.
Discount revenue increased 10 percent, primarily driven by an increase in U.S. consumer billed business. See Tables 5, 6, and 9 for more details on billed business performance.
Net card fees increased 18 percent, primarily driven by growth in our premium card portfolios.
Service fees and other revenue decreased 5 percent, primarily driven by a prior year discrete revenue adjustment related to certain cash advance fees, partially offset by higher travel commissions and fees from our consumer travel business.
Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.
Interest expense was relatively flat, reflecting lower interest rates, offset by higher cost of funds due to segment net asset growth.
Provisions for Credit Losses
Provision for Card balance credit losses increased, primarily due to a lower reserve release in the current period, partially offset by lower net write-offs. The reserve release in the current period was primarily driven by a sequential decrease in Card balances. Our reserves for the prior period reflected the quality of our customer base and the macroeconomic outlook.
Provision for other 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 related to partner obligations. The reserve build in the prior period was primarily driven by a sequential increase in other loans outstanding.
Expenses
Total expenses increased, primarily driven by higher Card Member services, Card Member rewards and Salaries and employee benefits and other operating expenses.
Card Member rewards expense increased, primarily driven by increases in Membership Rewards and cobrand rewards expenses, both of which were 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 new U.S. Platinum benefits and higher usage of Card Member benefits.
Marketing expense was relatively flat, reflecting consistent levels of spending on customer acquisition and brand advertising.
Salaries and employee benefits and other operating expenses increased, primarily due to an increase in allocated service costs and compensation costs.
Table 9: USCS Selected Statistical Information
As of or for the
Three Months Ended
March 31,
Change
2026
vs.
2025
(Millions, except percentages and where indicated) 2026 2025
Billed business (billions)
$ 180.2 $ 164.3 10 %
Proprietary cards-in-force 48.7 46.8 4
Proprietary basic cards-in-force 34.6 33.0 5
Average proprietary basic Card Member spending (dollars)
$ 5,248 $ 5,014 5
Total segment assets
$ 119,517 $ 110,886 8
Total Card balances $ 110,849 $ 102,896 8
Average Card balances $ 110,664 $ 103,237 7 %
Net write-off rate - principal, interest and fees (a)
2.4 % 2.7 %
Net write-off rate - principal only (a)
1.9 % 2.2 %
30+ days past due as a % of total 1.3 % 1.3 %
(a)Refer to Table 7 footnote (b).
Commercial Services
Table 10: CS Selected Income Statement Data
Three Months Ended
March 31,
Change
2026 vs. 2025
(Millions, except percentages) 2026 2025
Revenues
Non-interest revenues $ 3,408 $ 3,265 $ 143 4 %
Interest income 1,345 1,202 143 12
Interest expense 432 432 - -
Net interest income 913 770 143 19
Total revenues net of interest expense 4,321 4,035 286 7
Provisions for credit losses 380 329 51 16
Total revenues net of interest expense after provisions for credit losses 3,941 3,706 235 6
Expenses
Card Member rewards, business development and Card Member services
1,986 1,746 240 14
Marketing
311 337 (26) (8)
Salaries and employee benefits and other operating expenses
828 787 41 5
Total expenses 3,126 2,870 256 9
Pretax segment income $ 816 $ 836 $ (20) (2) %
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 3 percent, primarily driven by an increase in commercial billed business. See Tables 5, 6, and 11 for more details on billed business performance.
Net card fees increased 10 percent, primarily driven by growth in our premium card portfolios.
Service fees and other revenue increased 9 percent, primarily driven by higher travel commissions and fees, delinquency fees and foreign-exchange related revenues associated with Card Member cross-currency spending.
Interest income increased, primarily driven by higher interest rates and growth in revolving loan balances.
Interest expense was relatively flat, reflecting higher cost of funds due to segment net asset growth, offset by lower interest rates.
Provisions for Credit Losses
Provision for Card balance credit losses increased, primarily due to a reserve build in the current period versus a reserve release in the prior period and higher net write-offs. The reserve build in the current period was primarily driven by higher delinquencies. The reserve release in the prior period reflected the quality of our customer base.
Provision for other credit losses decreased, primarily due to a reserve release in the current period versus a reserve build in the prior period and lower net write-offs. The reserve release in the current period was primarily driven by the performance of small business loans. The reserve build in the prior period was primarily driven by a sequential increase in other loans outstanding.
Expenses
Total expenses increased, primarily driven by higher Card Member rewards, Card Member services, Business development and Salaries and employee benefits and other operating expenses.
Card Member rewards expense increased, primarily driven by higher Membership Rewards expense due to changes to the Membership Rewards program for U.S. Business Platinum cards and higher billed business, as well as higher cobrand rewards expense driven by higher billed business.
Business development expense increased, primarily due to higher client incentives, which were driven by higher billed business.
Card Member services expense increased, primarily due to the new U.S. Business Platinum benefits.
Marketing expense decreased, reflecting lower levels of spending on customer acquisitions and other growth initiatives.
Salaries and employee benefits and other operating expenses increased, primarily due to an increase in allocated service costs.
Table 11: CS Selected Statistical Information
As of or for the
Three Months Ended
March 31,
Change
2026
vs.
2025
(Millions, except percentages and where indicated) 2026 2025
Billed business (billions)
$ 134.4 $ 129.2 4 %
Proprietary cards-in-force 15.3 15.5 (1)
Average Card Member spending (dollars)
$ 8,793 $ 8,380 5
Total segment assets
$ 66,076 $ 62,012 7
Total Card balances $ 58,754 $ 57,412 2
Average Card balances $ 57,283 $ 55,538 3 %
Net write-off rate - principal, interest and fees (a)
2.4 % 2.2 %
Net write-off rate - principal only - small business (a)(b)
2.5 % 2.4 %
30+ days past due as a % of total - small business
1.6 % 1.5 %
90+ days past billing as a % of total - corporate (b)
0.4 % 0.4 %
(a)Refer to Table 7 footnote (b).
(b)Refer to Table 7 footnote (d).
International Card Services
Table 12: ICS Selected Income Statement Data
Three Months Ended
March 31,
Change
(Millions, except percentages) 2026 2025
2026 vs. 2025
Revenues
Non-interest revenues $ 3,164 $ 2,646 $ 518 20 %
Interest income 728 596 132 22
Interest expense 360 306 54 18
Net interest income 367 290 77 27
Total revenues net of interest expense 3,532 2,936 596 20
Provisions for credit losses 238 192 46 24
Total revenues net of interest expense after provisions for credit losses 3,294 2,744 550 20
Expenses
Card Member rewards, business development and Card Member services
1,551 1,312 239 18
Marketing
332 300 32 11
Salaries and employee benefits and other operating expenses 630 751 (121) (16)
Total expenses 2,513 2,363 150 6
Pretax segment income $ 781 $ 381 $ 400 # %
# Denotes a variance of 100 percent or more
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.
On January 12, 2026, we acquired our partner's interest in our Switzerland joint venture, resulting in Swisscard becoming a wholly owned subsidiary with its financial results reflected within the respective report lines across our financial statements. Prior to the acquisition date, we accounted for Swisscard under the equity method, with our share of Swisscard's net income reported within Service fees and other revenue.
Total Revenues Net of Interest Expense
Non-interest revenues increased, primarily driven by higher Discount revenue and Net card fees.
Discount revenue increased 18 percent (11 percent FX-adjusted), primarily reflecting an increase in billed business. See Tables 5, 6, and 13 for more details on billed business performance.2
Net card fees increased 22 percent (15 percent FX-adjusted), primarily driven by growth in our premium card portfolios.2
Service fees and other revenue increased 21 percent (11 percent FX-adjusted). The current year reflected higher foreign-exchange related revenues associated with Card Member cross-currency spending, including such revenues now included from Swisscard, and higher loyalty coalition-related fees. The prior year reflected revenues previously earned from Swisscard as a joint venture.2
Interest income increased, primarily driven by growth in revolving loan balances, partially offset by lower interest rates.
Interest expense increased, primarily driven by higher cost of funds due to segment net asset growth, partially offset by lower interest rates.
Provisions for Credit Losses
Provision for Card balance credit losses increased, primarily due to higher net write-offs, partially offset by a lower reserve build in the current period. The reserve builds in both periods were primarily driven by higher delinquencies.
2 Refer to footnote 1 on page 3 for details regarding foreign currency adjusted information.
Expenses
Total expenses increased, primarily driven by higher Card Member rewards and Card Member services expenses.
Card Member rewards expense increased, primarily driven by increases in Membership Rewards and cobrand rewards expenses, both of which were primarily driven by higher billed business.
Business development expense decreased, primarily due to a reserve release related to the allocation of revenue to a joint venture partner as a result of the final arbitration award, partially offset by higher loyalty coalition-related costs.
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 acquisition and other growth initiatives, including such expenses now included from Swisscard.
Salaries and employee benefits and other operating expenses decreased, primarily driven by a release of a reserve associated with international non-income tax and the previously mentioned gain on acquisition of the remaining share of Swisscard, partially offset by higher allocated service costs and increased compensation costs, including such expenses now included from Swisscard.
Table 13: ICS Selected Statistical Information
As of or for the
Three Months Ended
March 31,
Change
2026
vs.
2025
(Millions, except percentages and where indicated) 2026 2025
Billed business (billions)
$ 111.7 $ 92.9 20 %
Proprietary cards-in-force 23.2 22.3 4
Proprietary basic cards-in-force 17.4 16.7 4
Average proprietary basic Card Member spending (dollars)
$ 6,452 $ 5,619 15
Total segment assets
$ 50,180 $ 42,620 18
Total Card balances $ 43,708 $ 37,398 17
Average Card balances $ 43,950 $ 36,487 20 %
Net write-off rate - principal, interest and fees (a)
2.0 % 1.8 %
Net write-off rate - principal only - consumer and small business (a)(b)
1.8 % 1.7 %
30+ days past due as a % of total - consumer and small business 1.2 % 1.1 %
90+ days past billing as a % of total - corporate (b)
0.4 % 0.4 %
(a)Refer to Table 7 footnote (b).
(b)Refer to Table 7 footnote (d).
Global Merchant and Network Services
Table 14: GMNS Selected Income Statement and Other Data
Three Months Ended
March 31,
Change
2026 vs. 2025
(Millions, except percentages and where indicated) 2026 2025
Revenues
Non-interest revenues $ 1,825 $ 1,660 $ 165 10 %
Interest income 10 12 (2) (17)
Interest expense (169) (143) (26) (18)
Net interest income 180 155 25 16
Total revenues net of interest expense 2,004 1,815 189 10
Provisions for credit losses 4 (2) 6 #
Total revenues net of interest expense after provisions for credit losses 2,000 1,817 183 10
Expenses
Business development and Card Member services
306 283 23 8
Marketing
65 76 (11) (14)
Salaries and employee benefits and other operating expenses 514 468 46 10
Total expenses 885 827 58 7
Pretax segment income 1,115 990 125 13
Network volumes (billions)
486.3 439.6 $ 47 11
Total segment assets
$ 19,353 $ 18,083 7 %
# 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 Service fees and other revenue and Discount revenue.
Discount revenue increased 7 percent, driven by an increase in billed business, partially offset by lower average merchant discount rates, primarily due to shifts in geographic and merchant spend mix. See Tables 5 and 6 for more details on billed business performance.
Service fees and other revenue increased 14 percent, primarily driven 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 increased, primarily due to higher interest expense credit, which was primarily driven by an increase in average merchant payables, partially offset by lower interest rates in international markets.
Expenses
Total expenses increased, primarily driven by higher Salaries and employee benefits and other operating expenses.
Business development expense increased, primarily due to increased partner payments driven by higher network volumes.
Marketing expense decreased, primarily due to lower spend on merchant engagement and other growth initiatives.
Salaries and employee benefits and other operating expenses increased, primarily driven by higher compensation costs.
Corporate & Other
Corporate functions and certain other businesses are included in Corporate & Other.
Corporate & Other pretax loss was $691 million and $609 million for the three months ended March 31, 2026 and 2025, respectively. The increase in the pretax loss was primarily driven by higher compensation and foreign-exchange losses, partially offset by gains 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 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.
The following table presents our regulatory risk-based capital and leverage ratios and those of American Express National Bank (AENB), as of March 31, 2026:
Table 15: Regulatory Risk-Based Capital and Leverage Ratios
Effective Minimum (a)
Ratios as of March 31, 2026
Risk-Based Capital
Common Equity Tier 1 7.0 %
American Express Company 10.5 %
American Express National Bank 11.0
Tier 1 8.5
American Express Company 11.1
American Express National Bank 11.0
Total 10.5
American Express Company 13.2
American Express National Bank 13.1
Tier 1 Leverage 4.0
American Express Company 9.7
American Express National Bank 8.7
Supplementary Leverage Ratio
3.0 %
American Express Company 8.2
American Express National Bank 7.3 %
(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, 2026:
Table 16: Regulatory Risk-Based Capital Components and Risk-Weighted Assets
American Express Company
($ in Millions)
March 31, 2026
Risk-Based Capital
Common Equity Tier 1 $ 27,523
Tier 1 Capital 29,141
Tier 2 Capital
5,570
Total Capital 34,711
Risk-Weighted Assets 262,924
Average Total Assets to calculate the Tier 1 Leverage Ratio 301,879
Total Leverage Exposure to calculate the Supplementary Leverage Ratio
$ 356,176
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.
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 $2,250 million of eligible subordinated notes, adjusted for capital held by insurance subsidiaries. The $2,250 million of eligible subordinated notes includes the $500 million subordinated debt issued in February 2026, 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. Average total consolidated assets reflect quarterly average assets adjusted for applicable regulatory deductions from Tier 1 capital.
Supplementary Leverage Ratio - Calculated as Tier 1 capital divided by total leverage exposure. Total leverage exposure includes average on-balance sheet assets and certain off-balance sheet exposures, adjusted for applicable regulatory deductions from Tier 1 capital.
We continue to include accumulated other comprehensive income (loss) in regulatory capital.
We are subject to annual supervisory stress testing conducted by the Federal Reserve. We submitted our annual capital plan to the Federal Reserve in April 2026. On February 4, 2026, the Federal Reserve announced that it is maintaining SCB requirements for firms at their current levels until 2027. As a result, absent further action from the Federal Reserve, we will continue to be subject to our current SCB requirement of 2.5 percent through September 30, 2027.
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, 2026, we returned $2,316 million to our shareholders in the form of share repurchases of $1,664 million and common stock dividends of $652 million. We repurchased 5.3 million common shares at an average price of $311.04 in the first quarter of 2026. These share repurchase and common stock dividend amounts collectively represent approximately 78 percent of net income available to common shareholders during the three months ended March 31, 2026.
In addition, during the three months ended March 31, 2026, 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.
Summary of Consolidated Debt
We had the following customer deposits and consolidated debt outstanding as of March 31, 2026 and December 31, 2025:
Table 17: Summary of Customer Deposits and Consolidated Debt
(Billions) March 31, 2026 December 31, 2025
Customer deposits $ 157.9 $ 152.5
Short-term borrowings 1.7 1.4
Long-term debt 58.8 56.4
Total customer deposits and debt $ 218.4 $ 210.3
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 Card balances and Other loans. Actual funding activities can vary due to various factors, such as future business growth, liquidity requirements, the impact of global economic, political and other events on market capacity, demand for securities offered by us, regulatory changes, ability to securitize and sell Card balances, and the performance of Card balances 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, 2026:
Table 18: Debt Issuances
($ in Billions)
Three Months Ended
March 31, 2026
American Express Company:
Floating Rate Senior Notes (compounded SOFR(a) plus 59 basis points)
$ 0.7
Fixed-to-Floating Rate Senior Notes (weighted-average coupon of 4.20% during the fixed rate period and compounded SOFR(a) plus weighted-average spread of 70 basis points during the floating rate period)
2.4
Fixed-to-Fixed Rate Subordinated Notes (coupon of 5.41% during the initial fixed rate period and five-year Treasury rate plus 115 basis points during the reset period)
0.5
Total $ 3.5
(a)Secured overnight financing rate (SOFR).
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 19: Unsecured Debt Ratings
American Express Entity Moody's S&P Fitch
American Express Company Long Term
A2
A-
A
Short Term
N/R
A-2
F1
Outlook
Stable
Stable
Stable
American Express Travel Related Services Company, Inc. Long Term
A2
A
A
Short Term
P-1
A-1
F1
Outlook
Stable
Stable
Stable
American Express National Bank Long Term
A3
A
A+
Short Term
P-1
A-1
F1
Outlook
Stable
Stable
Stable
American Express Credit Corporation Long Term
A2
A
A
Short Term
N/R
N/R
N/R
Outlook
Stable
Stable
Stable
These ratings are not a recommendation to buy or hold any of our securities and they may be revised or revoked at any time at the sole discretion of the rating organization.
Downgrades in the ratings of our unsecured debt or asset securitization program securities could result in higher funding costs, as well as higher fees related to borrowings under our unused credit facilities. Declines in credit ratings could also reduce our borrowing capacity in the unsecured debt and asset securitization capital markets. We believe our funding mix, including the proportion of U.S. direct deposits insured by the Federal Deposit Insurance Corporation (FDIC) to total funding, should reduce the impact that credit rating downgrades would have on our funding capacity and costs.
Deposit Programs
We offer deposits within our U.S. bank subsidiary, AENB. These funds are currently insured up to an amount that is at least $250,000 per depositor, per ownership category through the FDIC; as of March 31, 2026, 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 checking account products available directly to customers. As of March 31, 2026, our direct deposit program had approximately 4.3 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, 2026 and December 31, 2025, we had $157.9 billion and $152.5 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, 2026 and 2025. 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 20: Average Interest Rates Paid on Deposits
Three Months Ended March 31,
2026
2025
(Millions, except percentages)
Average Balance Interest Expense
Average Interest Rate (a)
Average Balance Interest Expense
Average Interest Rate (a)
Savings accounts
$ 118,881 $ 955 3.3 % $ 110,749 $ 1,012 3.7 %
Checking accounts
3,128 13 1.6 2,188 7 1.4
Certificates of deposit:
Direct 6,653 62 3.8 4,261 43 4.1
Third-party (brokered) 9,788 104 4.3 9,236 98 4.3
Sweep accounts - Third-party (brokered) 15,534 152 4.0 15,443 177 4.6
Total U.S. interest-bearing deposits
$ 153,985 $ 1,286 3.4 % $ 141,877 $ 1,337 3.8 %
(a)Average interest rate reflects interest expense divided by average deposits, computed on an annualized basis.
Liquidity Management
Our liquidity objective is to maintain access to a diverse set of on- and off-balance sheet liquidity sources. We seek to maintain liquidity sources in amounts sufficient to meet our expected future financial obligations and business requirements for liquidity for a period of at least twelve months under a variety of adverse circumstances. These include, but are not limited to, an event where we are unable to raise new funds under our regular funding programs during a substantial weakening in economic conditions.
Our liquidity management strategy includes a number of elements, including, but not limited to:
•Maintaining diversified funding sources (refer to "Funding Strategy" above for more details);
•Maintaining unencumbered liquid assets and off-balance sheet liquidity sources;
•Projecting cash inflows and outflows under a variety of economic and market scenarios; and
•Establishing clear objectives for liquidity risk management, including compliance with regulatory requirements.
We seek to maintain access to a diverse set of on-balance sheet and off-balance sheet liquidity sources, including cash and other liquid assets, secured borrowing facilities and a committed bank credit facility. Through our U.S. bank subsidiary, AENB, we have also pledged collateral eligible for use at the Federal Reserve's discount window.
The amount and type of liquidity resources we maintain can vary over time, based upon the results of stress scenarios required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as additional stress scenarios required under our liquidity risk policy.
We are subject to standards for liquidity risk supervision as implemented by the U.S. federal bank regulatory agencies, including the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR), and are required to calculate the LCR and the NSFR on a daily basis and make separate public disclosures related to the LCR on a quarterly basis and the NSFR on a semi-annual basis. For the three months ended March 31, 2026, the average LCR and NSFR for American Express Company each exceeded the minimum requirement of 100 percent. The following table presents American Express Company's average LCR for the three months ended March 31, 2026:
Table 21: Liquidity Coverage Ratio
(Millions, except percentages)
Three Months Ended (a)
March 31, 2026
American Express Company:
Average high-quality liquid assets (HQLA) amount (b)
$ 22,128
Average total adjusted net cash outflow (c)
$ 10,596
Average Liquidity Coverage Ratio 209 %
(a)Represents the average weighted amount after applying regulatory-prescribed HQLA haircuts or cash outflow and inflow rates.
(b)Excludes average excess eligible HQLA not freely transferable by AENB.
(c)Represents total net cash outflow multiplied by an adjustment of 85 percent because American Express Company is a Category III firm with less than $75 billion in average weighted short-term wholesale funding.
See the "Supervision and Regulation - Capital and Liquidity Regulation" and "Enhanced Prudential Standards" sections of our Annual Report on Form 10-K for the year ended December 31, 2025 (the 2025 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, 2026 and December 31, 2025, we had $53.8 billion and $47.8 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, 2026. 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. For the three months ended March 31, 2026, interest expense exceeded the interest income associated with the liquidity portfolio.
Securitized Borrowing Capacity
As of March 31, 2026, we maintained our committed, revolving, secured borrowing facility, with a maturity date of July 17, 2028, 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, 2028, which gives us the right to sell up to $2.0 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, 2026, no amounts were drawn on the Charge Trust facility or Lending Trust facility.
Committed Bank Credit Facility
As of March 31, 2026, we maintained a committed syndicated bank credit facility of $6.0 billion, with a maturity date of September 24, 2028. 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, 2026, no amount was drawn on this facility.
Other Sources of Liquidity
In addition to cash and other liquid assets and the secured borrowing facilities and committed bank credit facility described above, as an insured depository institution, AENB may borrow from the Federal Reserve Bank of San Francisco through the discount window against pledged U.S. Card balances.
As of March 31, 2026, AENB had available borrowing capacity of $79.5 billion based on the amount and collateral valuation of Card balances that were pledged to the Federal Reserve Bank of San Francisco. Whether specific assets will be considered qualifying collateral and the amount that may be borrowed against the collateral remain at the discretion of the Federal Reserve and can change from time to time. Due to regulatory restrictions, liquidity generated by AENB can generally be used only to fund obligations within AENB, and transfers to the parent company or non-bank affiliates may be subject to prior regulatory approval.
Unused Credit Outstanding
As of March 31, 2026, we had approximately $529 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, 2026 and 2025:
Table 22: Cash Flows
(Billions) 2026 2025
Total cash provided by (used in):
Operating activities $ 3.8 $ 4.8
Investing activities (2.9) 0.5
Financing activities 5.0 6.6
Effect of foreign currency exchange rates on cash and cash equivalents 0.1 -
Net increase in cash and cash equivalents $ 6.0 $ 11.9
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 2026 and 2025, the net cash provided by operating activities was driven by cash generated from net income for the period and higher 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 Card balances and Other loans, as well as changes in our available-for-sale investment securities portfolio.
In 2026, net cash used in investing activities was primarily driven by net purchases of investment securities, costs associated with building our new headquarters and the acquisition of our partner's interest in Swisscard, partly offset by lower Card balances outstanding.
In 2025, the net cash provided by investing activities was primarily driven by lower Card balances 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 2026 and 2025, the net cash provided by financing activities was primarily driven by growth in customer deposits and net proceeds from long-term debt, partially offset by share repurchases and dividend payments.
OTHER MATTERS
Certain Legislative, Regulatory and Other Developments
Supervision & Regulation
We are subject to evolving and extensive government regulation and supervision in jurisdictions around the world, and the costs of ongoing compliance are substantial. The financial services industry is subject to rigorous scrutiny, high regulatory expectations, a range of regulations and a stringent and unpredictable enforcement environment.
Governmental authorities have focused, and we believe will continue to focus, considerable attention on reviewing compliance by financial services firms and payment systems with laws and regulations, and as a result, we continually work to evolve and improve our risk management framework, governance structures, practices and procedures. Reviews by us and governmental authorities to assess compliance with laws and regulations, as well as our own internal reviews to assess compliance with internal policies, including errors or misconduct by colleagues or third parties or control failures, have resulted in, and are likely to continue to result in, changes to our products, practices and procedures, restitution to our customers and increased costs related to regulatory oversight, supervision and examination. We have also been subject to regulatory actions and may continue to be the subject of such actions, including governmental inquiries, investigations, enforcement proceedings and the imposition of fines or civil money penalties, in the event of noncompliance or alleged noncompliance with laws or regulations.
Please see the "Supervision and Regulation" and "Risk Factors" sections of the 2025 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 has been a Category III firm since 2024 and we anticipate becoming a Category II firm in the second quarter of 2026 as a result of our cross-jurisdictional activity exceeding $75 billion (based on a four-quarter trailing average). Category II firms are subject to heightened capital, liquidity and prudential requirements, with relevant transition periods and extensions.
Please see the "Supervision and Regulation" and "Risk Factors" sections of the 2025 Form 10-K for further information.
Regulatory Capital Proposals
On March 19, 2026, the Federal Reserve, the Office of the Comptroller of the Currency and the FDIC issued notices of proposed rulemaking to modernize the regulatory capital framework for banking organizations, including (i) a proposal to apply an expanded risk-based approach to Category I and II firms rather than the current requirements to calculate capital ratios under both the advanced and standardized approaches and (ii) a proposal to modify certain aspects of the current standardized approach to risk-based capital. Under the proposals, Category I and II firms would be required to apply the expanded risk-based approach, while firms outside of those categories could choose to opt into the expanded risk-based approach or apply the revised standardized approach.
The U.S. federal bank regulatory agencies are soliciting comments on the proposals and the rules may not be adopted as proposed, however, based on a preliminary analysis, we estimate that these two proposals could result in a range of outcomes, from modest reduction in risk-weighted assets to broadly neutral. This estimated impact reflects our current understanding of the proposals, the application to our businesses as currently conducted and the current composition of our balance sheet, and therefore does not reflect the impact of any changes we may make in the future. The ultimate impact could materially differ from our current estimate, and will depend on final rulemakings, as well as management decisions regarding our capital strategy and product constructs.
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. 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. 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). State regulators and state attorneys general may increase regulatory, investigative and enforcement activity with respect to consumer protection, including in response to changes in regulation, supervision and enforcement of consumer protection laws by federal regulators.
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 2025 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 EU, the United States and other jurisdictions. Recently, certain states in the United States have passed or are considering laws prohibiting interchange from being charged on all or certain components of transactions, such as sales tax and gratuities. Jurisdictions have also sought to regulate various other aspects of network operations and contract terms and practices governing merchant card acceptance, including information associated with electronic transactions, such as state legislation regarding the use of specific merchant categories codes or limiting the use of transaction data.
Regulation and other governmental actions relating to operations, pricing or practices could affect all networks and/or acquirers directly or indirectly, as well as adversely impact consumers and merchants. Among other things, regulation of bankcard fees has negatively impacted, and may continue to negatively impact, the discount revenue we earn, including as a result of downward pressure on our merchant discount rates from decreases in competitor pricing in connection with caps on interchange fees. In some cases, regulations also extend to certain aspects of our business, such as network and cobrand arrangements or the terms of card acceptance for merchants. For example, we exited our network business in the EU and Australia as a result of regulation in those jurisdictions. In addition, there has been 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. On April 16, 2026, the CJEU issued a ruling 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. The CJEU held that under EU rules payments to a cobrand partner by a card scheme are only subject to caps if they have an equivalent object or effect to an interchange fee, which is a matter for case-by-case assessment. The CJEU also clarified that if, following individual assessment, caps apply, the value of payments and services provided by the cobrand partner should be netted against any such payments for purposes of determining the capped amount. The Dutch Trade and Industry Appeals Tribunal will now apply the CJEU's ruling to the specific facts in our case in the Netherlands.
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 2025 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. Certain jurisdictions are also reconsidering or may in the future reconsider their laws relating to surcharging, such as in Australia. In March 2026, the central bank in Australia released its final decisions from a review of merchant card payment costs and surcharging, including that it will no longer require surcharging to be permitted with respect to designated card networks (Visa, Mastercard and EFTPOS) and will reduce certain interchange fee caps for such networks. The central bank also indicated that it intends to consider the regulatory settings for retail payment systems that were not covered in this review, including three-party card networks such as American Express, as part of its next review planned for mid-2026. The outcome of such review and the impacts of the regulations that were adopted by the central bank remain uncertain. In the United States, a number of state laws 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 2025 Form 10-K.
Antitrust Litigation
We continue to vigorously defend antitrust and other claims initiated by merchants and others. See Note 7 to the "Consolidated Financial Statements" for descriptions of the cases. It is possible that actions impairing the Card Member experience, or the resolution of one or any combination of these cases, could have a material adverse effect on our business. For more information on the potential impacts of an adverse decision in these cases on our business, please see the "Risk Factors" section of the 2025 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 (AI), 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 in these areas, 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 AI 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 AI systems, including by imposing new obligations related to data use, recordkeeping, transparency and human oversight.
Global financial institutions like us, as well as our customers, colleagues, regulators, service providers and other third parties, have experienced a significant increase in information security and cybersecurity risk in recent years and will likely continue to be the target of increasingly sophisticated cyberattacks, including computer viruses, malicious or destructive code, ransomware, social engineering attacks (including phishing, impersonation and identity takeover attempts), AI-assisted deepfake attacks and disinformation campaigns, corporate espionage, hacking, website defacement, denial-of-service attacks, exploitation of vulnerabilities (including by AI models) 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, data management, artificial intelligence, resiliency 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 2025 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 we are working to make enhancements to our existing programs, policies and procedures and to identify and remediate deficiencies. Errors, failures or delays in complying with AML/CFT laws, deficiencies in our AML/CFT programs or association of our business with money laundering, terrorist financing, tax fraud or other illicit activity could give rise to significant supervisory, criminal and civil proceedings and lawsuits, which could result in significant penalties and forfeiture of assets, loss of licenses or restrictions on business activities or other enforcement actions.
National governments and international bodies, such as the United Nations and the EU, have imposed economic sanctions against individuals, entities, vessels, governments, regions and countries that endanger their interests or violate international norms of behavior. Sanctions have been used to advance a range of foreign policy goals, including conflict resolution, counterterrorism, counternarcotics and promotion of democracy and human rights, among other national and international interests. We maintain a global sanctions compliance program designed to meet the requirements of applicable sanctions regimes. Failure to comply with such requirements could subject us to serious legal and reputational consequences, including criminal penalties.
For more information on AML/CFT laws and regulations and economic sanctions, as well as the potential impacts on our results of operations and business, please see the "Supervision and Regulation" and "Risk Factors" sections of the 2025 Form 10-K.
Recently Issued Accounting Standards
Refer to the Recently Issued Accounting Standards section of Note 1 to the "Consolidated Financial Statements."
Glossary of Selected Terminology
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 balances.
Asset securitizations - Asset securitization involves the transfer and sale of Card balances 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 Card balances. The trust uses the proceeds from the sale of such securities to pay the purchase price for the transferred Card balances. The securitized Card balances 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.
Card balances - Represents balances on our card products, including both revolve-eligible balances and balances that need to be paid in full on or before the Card Member's payment due date. Card balances consist of principal (resulting from authorized transactions), associated interest and fees.
Card Member - The individual holder of an issued American Express-branded card.
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 balances, general corporate purposes and liquidity needs. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on our long-term financing and short-term borrowings, (e.g., commercial paper, federal funds purchased, bank overdrafts and other short-term borrowings), as well as the realized impact of derivatives hedging interest rate risk on our long-term debt.
Interest income - Includes (i) interest on Card balances and Other loans, (ii) interest and dividends on investment securities and (iii) interest income on deposits with banks and other.
Interest on Card balances and Other loans - Assessed using the average daily balance method for Card balances and Other loans. Unless the balance 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.
Locations in force (LIF) - Represents proprietary and partner acquired merchant locations where the merchant is enabled to accept American Express. LIF estimates incorporate data provided to us by certain third parties and include merchants that accept American Express through payment facilitators and merchants that accept American Express through digital wallets.
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 - Represents net interest income, computed on an annualized basis, divided by average Card balances, Card balances HFS and Other loans. 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 balances written off, consisting of principal (resulting from authorized transactions), less recoveries, as a percentage of the average Card 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 revolve-eligible Card balances, and fees in addition to principal for Card balances that need to be paid in full on or before the Card Member's payment due date.
Network partnership revenue - Represents revenues related to network partnership agreements, comprising royalties, fees and amounts earned for facilitating transactions on cards issued by network partners. Network partnership revenue also includes fees earned on alternative payment solutions facilitated by American Express.
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.
See "Consolidated Capital Resources and Liquidity - Capital" for definitions of our regulatory risk-based capital and leverage ratios.
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 and expense levels and the effective tax rate remaining consistent with current expectations and our ability to continue investing in growth initiatives (such as our brand, value propositions, coverage, marketing, technology, partnerships 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 a slowdown in U.S. or global economic growth, changes to consumer and business confidence, higher rates of unemployment and wide-scale layoffs, impacts of the Middle East conflict and other international hostilities and deteriorations in global trade, the effects of announced or future tariffs, changes in interest rates, inflation, supply chain issues, energy costs, market volatility, government shutdowns and fiscal and monetary policies; the effects of technology changes and the adoption of AI; the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and our reputation; changes in the competitive environment and an inability to realize benefits from new and extended sponsorships; impacts related to acquisitions, cobrand relationships and other partners; and the impact of regulation and litigation, which could affect the profitability of our business activities, limit our ability to pursue business opportunities, require changes to business practices or alter our relationships with Card Members, partners and merchants;
•our ability to grow revenues net of interest expense and the sustainability of our future growth, which could be impacted by, among other things, the factors identified above and in the subsequent paragraphs, as well as the following: spending volumes not being consistent with expectations, including spending by U.S. consumer and small & mid-sized business Card Members and airline and other T&E spending volumes, such as due to uncertain business and economic conditions, as well as geopolitical 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 and introduce card products, grow spending and lending with customers across age cohorts (including Millennial and Gen-Z customers) and commercial segments and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the impacts of portfolio sales; the effects of regulatory initiatives, including pricing regulation, such as pricing for card acceptance and potential credit card interest rate caps, and network regulation; merchant coverage growing less than expected or the reduction of merchant acceptance or perceptions of coverage; increased surcharging, steering, suppression or other differential acceptance practices with respect to our products; merchant discount rates changing from our expectations; and changes in foreign currency exchange rates;
•net card fee revenues not performing consistently with expectations, which could be impacted by, among other things, the pace of Card Member acquisition activity and demand for our fee-based products; higher Card Member attrition rates; the success and timing of our refreshes of our card products (including acquisition and retention levels of the U.S. Consumer and Business Platinum Card portfolios); a decrease in the ability and desire of Card Members to pay card fees, such as due to a deterioration in macroeconomic conditions or as a result of changes in card fees; the competitive environment and the perception of the value provided by premium cards; regulatory initiatives impacting card fees; and our inability to deliver and enhance benefits and services, innovate with respect to our products and develop attractive premium value propositions for new and existing customers;
•net interest income, the effects of changes in interest rates and the growth of net interest income relative to the growth of Card balances and Other loans outstanding, being higher or lower than expectations, which could be impacted by, among other things, the behavior and financial strength of Card Members and their actual spending, borrowing and paydown patterns; the effectiveness of our strategies to enhance Card Member value propositions, grow lending with premium customers and capture a greater share of Card Members' spending and borrowings, and attract new, and retain existing, customers; our ability to effectively introduce and enhance lending features on our products and manage underwriting risk; governmental actions to cap credit card interest rates; changes in benchmark interest rates, including where such changes affect our assets or liabilities differently than expected; our ability to grow deposits, including from Card Members; 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 revolve-eligible Card balances and Other loans differing from current expectations; and loss or impacts to cobrand relationships;
•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 and GDP, as well as the occurrence of events that increase macroeconomic uncertainty or volatility; the ability and willingness of Card Members to pay amounts owed to us; changes in Card balances and Other loans outstanding, such as from the implementation of our strategy to capture spending and borrowings, or from changes in consumer behavior that affect customer balances (e.g., paydown and revolve rates); changes in the levels of customer acquisitions and the credit profiles of new customers acquired; financial stress and volume of bankruptcies of Card Members and business partners; credit-related fraud levels; the magnitude of seasonal fluctuations in credit metrics; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; the effects of the resumption of student loan repayments; collections capabilities and recoveries of previously written-off customer balances; and the impact of the usage of debt settlement companies;
•the actual amount to be spent on Card Member rewards and services and business development, and the relationship of these variable customer engagement costs to revenues, which could be impacted by the investments and enhancements that we make with respect to our value propositions, including our reward programs and product benefits, such as in connection with card refreshes (e.g., benefits on the refreshed U.S. Consumer and Business Platinum Cards), to make them attractive to Card Members and prospective customers, potentially in a manner that is not cost-effective; changes in the level of Card Member spending and spending patterns (including the level of spend in bonus categories), the redemption of rewards and offers (including travel redemptions) and usage of travel-, lifestyle- and business-related benefits; the costs related to reward point redemptions; levels of Card Member acquisitions on premium card products; changes in our models or assumptions used to estimate these expenses; new and renegotiated contractual obligations with business partners; 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, including as a result of investments in our product value propositions and the use of technology, such as the personalization of offers, and balance expense control and investments in the business; management's investment optimization process and its ability to develop premium value propositions and drive customer demand; management's identification and assessment of attractive investment opportunities and decisions regarding the timing of investments; 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 AI 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 AI initiatives; 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 and supply chain issues; increased technology costs, including investments in technology innovations and system upgrades; expenses related to enterprise risk management and compliance and consulting, legal and other professional services fees, including as a result of our growth, litigation and internal and regulatory reviews; the impact of changes in foreign currency exchange rates on costs; regulatory assessments; the level of M&A activity and related expenses; information security or cybersecurity incidents; the payment of fines, penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; the performance of Amex Ventures and other of our investments; and impairments of goodwill or other assets;
•our tax rate not remaining consistent with expectations, which could be impacted by, among other things, further changes in tax laws and regulation, the implementation by jurisdictions of the Organization for Economic Cooperation and Development's global minimum tax guidelines (including safe harbors for U.S. multinational enterprises), 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; new rulemakings and guidance from the Federal Reserve and other banking regulators, including changes to regulatory capital requirements, such as from recent regulatory capital rule proposals, and changes to the tailoring of enhanced prudential standards applicable to banking organizations; our results of operations and financial condition; our credit ratings and rating agency considerations; the results of our stress testing and capital planning process; and the economic environment and market conditions in any given period;
•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure and competitor settlements that may materially impact the prices charged to merchants that accept American Express cards; merchant acceptance, surcharging, steering and other differential acceptance practices; the desirability of competitor premium card products and competition for partnerships and premium experiences, services and benefits; competition for new and existing cobrand relationships; the effects of the emergence of agentic commerce on the payments landscape and customer payment experiences; competition from new and non-traditional competitors, such as financial technology companies, and with respect to new products, services and technologies, such as the emergence or increase in popularity of digital payment platforms and currencies and other alternative payment mechanisms; competitor acquisitions and transactions; and the success of marketing, promotion, rewards programs, offers and travel-, lifestyle- and business-related benefits (e.g., lounges, dining, entertainment and business tools);
•our ability to sustain our momentum and leadership in the premium consumer space, including with Millennial and Gen-Z consumers, which will be impacted in part by competition, levels of consumer demand for premium card products, brand perceptions (including perceptions related to merchant coverage) and reputation, and our ability to successfully refresh our products and develop and market new benefits, services, experiences and other value propositions, as well as new AI and digital capabilities, 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 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, including from financial technology companies and as a result of competitor acquisitions and transactions; the willingness and ability of companies to use credit and charge cards for procurement and other business expenditures as well as use our other products and services for financing needs; the acceptance of, and economics related to, B2B payment platforms; our ability to successfully refresh our products and offer attractive value propositions and new products to current and potential customers, including through our new Graphite Business Cash Unlimited Card and upcoming Corporate Cash Back Card, as well as new AI benefits and capabilities; our ability to enhance and expand our payment, lending, cash flow and expense management solutions, including the release of new expense management software in 2026, increase customer engagement, enhance the corporate card onboarding experience 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 introduction of capabilities related to, our Center acquisition; and the success of our initiatives to support businesses, such as Small Business Saturday and other Shop Small campaigns;
•our ability to expand merchant coverage globally and our success, as well as the success of third-party merchant acquirers, processors and payment facilitators, 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, merchant point-of-sale practices, 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, generative AI, digital payments, servicing, travel, dining & expense management solutions and other technological capabilities, which will depend in part on our success in advancing our agentic commerce initiatives, including embedding our payment capabilities in emerging AI ecosystems, such as through the Amex Agentic Commerce Experiences™ developer kit and Amex Agent Purchase Protection™, making Membership assets discoverable and actionable on AI platforms and building proprietary AI-powered experiences across our platforms; embedding AI into our business and increasing automation, including to streamline and improve internal processes and decision making, enhance our products, develop new capabilities and address servicing and other business and customer needs; developing new features in our applications and platforms and enhancing our digital channels; supporting the use of our products as a means of payment through online, mobile, agentic and other digital channels; building partnerships and executing programs with other companies; and effectively utilizing data and data & analytics platforms, including successfully migrating to new platforms, all of which will be impacted by investment levels, customer and colleague receptiveness and ability to adopt new technologies, partner engagement, 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, imposing greater requirements on payment networks, 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 the effects of the Middle East conflict), and impacts to cross-border trade and travel;
•our ability to successfully implement our dining strategy and grow our dining platform, which will depend in part on our ability to deliver value to diners, restaurants and other bookable venues; expand and innovate the tools and capabilities offered through the platform, including successfully integrating Tock into the Resy dining platform and developing AI-powered experiences in the Resy app; enable the search and booking of Resy venues through AI platforms; and successfully implement partnerships and compete with other dining platforms and means of booking reservations;
•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 or our partners' operations, reduce the use and acceptance of American Express cards or our digital platforms and lead to regulatory scrutiny, litigation, remediation and response costs and reputational harm;
•changes in capital and credit market conditions, including those resulting from recent volatility, which may significantly affect our ability to meet our liquidity needs and expectations regarding capital ratios; our access to capital and funding costs; the valuation of our assets; and our credit ratings or those of our subsidiaries;
•our funding plan being implemented in a manner inconsistent with current expectations, which will depend on various factors such as future business growth, liquidity needs, the impact of global economic, political and other events on market capacity, demand for securities we offer, regulatory changes, our ability to securitize and sell Card balances and the performance of Card balances previously sold in securitization transactions;
•legal and regulatory developments, which could affect the profitability of our business activities; limit our ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or governance, or alter our relationships with Card Members, partners, merchants and other third parties, including affecting our network operations and practices governing merchant acceptance; impact interest income, 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, financial distress 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 & wide-scale layoffs, market volatility, energy costs, impacts to travel, government shutdowns and other political developments, a continuation or further escalation or widening of the Middle East conflict or other military conflicts, regional hostilities and international tensions, adverse developments affecting third parties, including other financial institutions, merchants, partners 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, customer 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 2025 Form 10-K and other reports filed with the Securities and Exchange Commission.
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