Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


Three Months Ended March 31 (Millions, except per share amounts)	2025		2024
Revenues
Non-interest revenues
Discount revenue	$	8,743	$	8,380
Net card fees	2,333		1,974
Service fees and other revenue	1,722		1,678
Total non-interest revenues	12,798		12,032
Interest income
Interest on loans	5,552		5,058
Interest and dividends on investment securities	14		25
Deposits with banks and other	569		692
Total interest income	6,135		5,775
Interest expense
Deposits	1,337		1,427
Long-term debt and other	629		579
Total interest expense	1,966		2,006
Net interest income	4,169		3,769
Total revenues net of interest expense	16,967		15,801
Provisions for credit losses
Card Member receivables	146		196
Card Member loans	901		1,014
Other	103		59
Total provisions for credit losses	1,150		1,269
Total revenues net of interest expense after provisions for credit losses	15,817		14,532
Expenses
Card Member rewards	4,378		3,774
Business development	1,529		1,392
Card Member services	1,328		1,171
Marketing	1,486		1,476
Salaries and employee benefits	2,120		2,098
Other, net	1,646		1,476
Total expenses	12,487		11,387
Pretax income	3,330		3,145
Income tax provision	746		708
Net income	$	2,584	$	2,437
Earnings per Common Share (Note 14)(a)
Basic	$	3.64	$	3.34
Diluted	$	3.64	$	3.33
Average common shares outstanding for earnings per common share:
Basic	701		721
Diluted	702		722

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

See Notes to Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended March 31,
(Millions)	2025		2024
Net income	$	2,584	$	2,437
Other comprehensive income (loss):
Net unrealized debt securities gains (losses), net of tax	3		1
Foreign currency translation adjustments, net of hedges and tax	17		(87)
Net unrealized pension and other postretirement benefits, net of tax	9		3
Other comprehensive income (loss)	29		(83)
Comprehensive income	$	2,613	$	2,354

See Notes to Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Millions, except share data)	March 31, 2025		December 31, 2024
Assets
Cash and cash equivalents
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2025, $14; 2024, $6)	$	3,024	$	3,413
Interest-bearing deposits in other banks	49,223		37,006
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2025, $88; 2024, $82)	261		221
Total cash and cash equivalents (includes restricted cash: 2025, $180; 2024, $427)	52,508		40,640
Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2025, $4,205; 2024, $3,927), less reserves for credit losses: 2025, $148; 2024, $171	58,355		59,240
Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2025, $26,667; 2024, $28,278), less reserves for credit losses: 2025, $5,592; 2024, $5,679	133,611		133,995
Card Member loans held for sale	776		758
Other loans, less reserves for credit losses: 2025, $244; 2024, $194	9,434		9,038
Investment securities	1,110		1,240
Premises and equipment, less accumulated depreciation and amortization: 2025, $11,130; 2024, $10,739	5,383		5,371
Other assets, less reserves for credit losses: 2025, $23; 2024, $27	21,067		21,179
Total assets	$	282,244	$	271,461
Liabilities and Shareholders’ Equity
Liabilities
Customer deposits	$	146,396	$	139,413
Accounts payable	13,564		13,884
Short-term borrowings	1,559		1,374
Long-term debt (includes debt issued by consolidated variable interest entities: 2025, $14,029; 2024, $13,880)	51,236		49,715
Other liabilities	38,287		36,811
Total liabilities	$	251,042	$	241,197
Contingencies (Note 7)
Shareholders’ Equity
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of March 31, 2025 and December 31, 2024	—		—
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 701 million shares as of March 31, 2025 and 702 million shares as of December 31, 2024	140		141
Additional paid-in capital	11,037		11,370
Retained earnings	23,391		22,148
Accumulated other comprehensive income (loss)	(3,366)		(3,395)




Total shareholders’ equity	31,202		30,264
Total liabilities and shareholders’ equity	$	282,244	$	271,461

See Notes to Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


Three Months Ended March 31 (Millions)	2025		2024
Cash Flows from Operating Activities
Net income	$	2,584	$	2,437
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for credit losses	1,150		1,269
Depreciation and amortization	433		390
Stock-based compensation	158		176
Deferred taxes	(20)		(134)
Other items (a)	213		(193)


Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other assets	18		195
Accounts payable & other liabilities	228		1,412
Net cash provided by operating activities	4,764		5,552
Cash Flows from Investing Activities
Sale of investments	—		2
Maturities and redemptions of investments	285		282
Purchase of investments	(239)		(407)
Net decrease (increase) in loans and Card Member receivables, including Card Member loans held for sale (b)	835		(2,625)
Purchase of premises and equipment, net of sales: 2025, nil; 2024, $1	(430)		(396)



Net cash provided by (used in) investing activities	451		(3,144)
Cash Flows from Financing Activities
Net increase in customer deposits	6,973		5,283
Net increase in short-term borrowings	131		518
Proceeds from long-term debt	4,768		2,345
Payments of long-term debt	(3,534)		(1,250)


Issuance of American Express common shares	22		29
Repurchase of American Express common shares and other	(1,208)		(1,292)
Dividends paid	(509)		(452)

Net cash provided by financing activities	6,643		5,181
Effect of foreign currency exchange rates on cash and cash equivalents	10		28
Net increase in cash and cash equivalents	11,868		7,617
Cash and cash equivalents at beginning of period	40,640		46,596
Cash and cash equivalents at end of period	$	52,508	$	54,213

(a)Primarily includes gains/losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments, movements in equity method investments and changes in reserves.

(b)Includes Card Member loans held for sale (HFS) which were previously held for investment within Card Member loans and were reclassified on the Consolidated Balance Sheets effective December 1, 2024.

See Notes to Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)


Three months ended March 31, 2025 (Millions, except per share amounts)	Total		Preferred Shares		Common Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
Balances as of December 31, 2024	$	30,264	$	—	$	141	$	11,370	$	(3,395)	$	22,148

Net income	2,584		—		—		—		—		2,584
Other comprehensive income (loss)	29		—		—		—		29		—
Repurchase of common shares	(678)		—		(1)		(36)		—		(641)
Other changes	(407)		—		—		(297)		—		(110)
Cash dividends declared preferred Series D, $8,875.00 per share	(14)		—		—		—		—		(14)
Cash dividends declared common, $0.82 per share	(576)		—		—		—		—		(576)
Balances as of March 31, 2025	$	31,202	$	—	$	140	$	11,037	$	(3,366)	$	23,391


Three months ended March 31, 2024 (Millions, except per share amounts)	Total		Preferred Shares		Common Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
Balances as of December 31, 2023	$	28,057	$	—	$	145	$	11,372	$	(3,072)	$	19,612

Net income	2,437		—		—		—		—		2,437
Other comprehensive income (loss)	(83)		—		—		—		(83)		—
Repurchase of common shares	(1,136)		—		(1)		(83)		—		(1,052)
Other changes	10		—		—		65		—		(55)


Cash dividends declared preferred Series D, $8,973.61 per share	(14)		—		—		—		—		(14)
Cash dividends declared common, $0.70 per share	(507)		—		—		—		—		(507)
Balances as of March 31, 2024	$	28,764	$	—	$	144	$	11,354	$	(3,155)	$	20,421

See Notes to Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The Company

We are a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Our various products and services are offered globally to consumers, small businesses, mid-sized companies and large corporations through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone and direct response advertising.

The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Form 10-K). If not materially different, certain note disclosures included therein have been omitted from these Consolidated Financial Statements.

The interim Consolidated Financial Statements included in this report have not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim Consolidated Financial Statements, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year.

The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ.

Certain reclassifications of prior period amounts have been made to conform to the current period presentation.

Business Events

On May 1, 2024, we completed the previously announced transaction to sell fraud prevention solutions provider Accertify, Inc. (Accertify), a wholly owned subsidiary we acquired in 2010, the operations of which were reported within the Global Merchant and Network Services (GMNS) segment. The transaction resulted in a gain of $531 million ($479 million after tax), which was reported as a reduction to Other expense in the second quarter of 2024. Prior to the completion of the transaction, the carrying amount of Accertify’s net assets were not material to our financial position.

Recently Issued Accounting Standards

In December 2023, the Financial Accounting Standards Board issued updated accounting guidance on Disclosures for Income Taxes, effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The updated guidance requires additional disclosure and disaggregated information in the Income Tax Rate reconciliation using both percentages and reporting currency amounts, with additional qualitative explanations of individually significant reconciling items. The updated guidance also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by jurisdictional categories (federal (national), state and foreign). We are currently assessing the updated guidance; however, it is not expected to have a material impact to our Consolidated Financial Statements.

In November 2024 and as amended in January 2025, the Financial Accounting Standards Board issued updated accounting guidance on the Disaggregation of Income Statement Expenses for annual reporting periods beginning after December 15, 2026 and for interim reporting periods beginning December 15, 2027, with early adoption permitted. The updated guidance includes the requirement for a new tabular disclosure within a Note to the Consolidated Financial Statements, to disaggregate defined expense categories from the expense report lines presented on the Consolidated Statements of Income. We are currently assessing the updated guidance and its impact to our Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Loans and Card Member Receivables

Our lending and charge payment card products that we offer to consumer, small business and corporate customers result in the generation of Card Member loans and Card Member receivables. We also extend credit to customers through financing products that are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship, resulting in Other loans.

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

Table 2.1: Card Member and Other Loans


(Millions)	2025		2024
Consumer (a)	$	105,213	$	107,646
Small Business	33,903		31,991
Corporate	87		37
Card Member loans	139,203		139,674
Less: Reserves for credit losses	5,592		5,679
Card Member loans, net	$	133,611	$	133,995
Other loans, net (b)	$	9,434	$	9,038

(a)Includes approximately $26.7 billion and $28.3 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2025 and December 31, 2024, respectively.

(b)Other loans are presented net of reserves for credit losses of $244 million and $194 million as of March 31, 2025 and December 31, 2024, respectively.

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

Table 2.2: Card Member Receivables


(Millions)	2025		2024
Consumer	$	23,211	$	25,431
Small Business	18,631		18,619
Corporate (a)	16,661		15,361
Card Member receivables	58,503		59,411
Less: Reserves for credit losses	148		171
Card Member receivables, net	$	58,355	$	59,240

(a)Includes $4.2 billion and $3.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31, 2025 and December 31, 2024, respectively.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Card Member Loans and Receivables Aging

Generally, a Card Member account is considered past due if payment due is not received within 30 days after the billing statement date. The following tables present the aging of Card Member loans and receivables as of March 31, 2025 and December 31, 2024:

Table 2.3: Card Member Loans and Receivables Aging


2025 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total		90+ Days Past Due and Still Accruing Interest (c)		Non-Accruals(d)
Card Member Loans:
Consumer	$	103,764	$	452	$	315	$	682	$	105,213	$	421	$	422
Small Business	33,385		172		120		226		33,903		131		140
Corporate (a)	(b)		(b)		(b)		—		87		—		—
Card Member Receivables:
Consumer	23,029		59		41		82		23,211		—		—
Small Business	$	18,395	$	84	$	60	92		18,631		—		—
Corporate (a)	(b)		(b)		(b)		$	61	$	16,661	$	—	$	—


2024 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total		90+ Days Past Due and Still Accruing Interest (c)		Non-Accruals(d)
Card Member Loans:
Consumer	$	106,155	$	437	$	329	$	725	$	107,646	$	435	$	464
Small Business	31,510		151		107		223		31,991		132		135
Corporate (a)	(b)		(b)		(b)		—		37		—		—
Card Member Receivables:
Consumer	25,255		58		39		79		25,431		—		—
Small Business	$	18,400	$	77	$	54	88		18,619		—		—
Corporate (a)	(b)		(b)		(b)		$	65	$	15,361	$	—	$	—

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

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

(c)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected.

(d)Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Other Loans Aging and Gross Write-Offs by Origination Year

Generally, a customer loan is considered past due if payment due is not received within 30 days after the payment due date. The following tables present the aging and gross write-offs for other loans by year of origination as of or for the three months ended March 31, 2025, and as of or for the twelve months ended December 31, 2024:

Table 2.4: Other Loans Aging and Gross Write-Offs by Origination Year


2025 (Millions)	2025		2024		2023		2022		2021		Prior		Revolving Loans (a)		Total
Current	$	1,726	$	4,047	$	1,223	$	210	$	9	$	66	$	2,339	$	9,620
30-59 Days Past Due	—		6		6		2		—		1		11		26
60-89 Days Past Due	—		6		3		1		—		—		7		17
90+ Days Past Due (b)	—		4		3		1		—		1		6		15
Total (c)	$	1,726	$	4,063	$	1,235	$	214	$	9	$	68	$	2,363	$	9,678
Gross Write-Offs	$	—	$	17	$	15	$	6	$	—	$	—	$	24	$	62

2024 (Millions)	2024		2023		2022		2021		2020		Prior		Revolving Loans (a)		Total
Current	$	4,950	$	1,578	$	356	$	10	$	14	$	57	$	2,209	$	9,174
30-59 Days Past Due	5		5		2		—		—		—		10		22
60-89 Days Past Due	5		4		2		—		—		—		7		18
90+ Days Past Due (b)	4		4		2		—		—		1		7		18
Total (c)	$	4,964	$	1,591	$	362	$	10	$	14	$	58	$	2,233	$	9,232
Gross Write-Offs	$	13	$	59	$	42	$	6	$	—	$	—	$	87	$	207

(a)Revolving loans consist primarily of lines of credit offered to small business customers.

(b)Over 90 days past due includes $6 million as of both March 31, 2025 and December 31, 2024 of loans on which interest is still accruing. Our policy is generally to accrue interest through the date of write-off (typically 120 days past due) except for lines of credit offered to small business customers, where interest ceases to accrue at 90 days past due. We establish reserves for interest that we believe will not be collected.

(c)This total includes non-accrual loans of $17 million and $19 million as of March 31, 2025 and December 31, 2024, respectively. Non-accruals for consumer installment loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Credit Quality Indicators for Loans and Card Member Receivables

The following table presents the key credit quality indicators as of or for the three months ended March 31:

Table 2.5: Credit Quality Indicators for Loans and Card Member Receivables


		2025									2024
	Net Write-Off Rate									Net Write-Off Rate
	Principal Only (a)			Principal, Interest & Fees (a)			30+ Days Past Due as a % of Total			Principal Only (a)			Principal, Interest & Fees (a)			30+ Days Past Due as a % of Total
Card Member Loans:
Consumer		2.3	%		2.9	%		1.4	%		2.3	%		2.8	%		1.4	%
Small Business		2.5	%		2.9	%		1.5	%		2.2	%		2.6	%		1.4	%
Card Member Receivables:
Consumer		0.9	%		1.0	%		0.8	%		1.4	%		1.5	%		0.9	%
Small Business		1.9	%		2.0	%		1.3	%		2.1	%		2.3	%		1.3	%
Corporate		(b)			0.5	%		(c)			(b)			0.5	%		(c)
Other Loans		2.2	%		2.3	%		0.6	%		2.3	%		2.4	%		0.7	%

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

(b)Net write-off rate based on principal losses only is not available due to system constraints.

(c)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ days past billing as a % of total was 0.4% and 0.5% as of March 31, 2025 and 2024, respectively.

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

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Loans and Receivables Restructurings for Borrowers Experiencing Financial Difficulty

We evaluate all loans and receivables restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether such loan modification should be accounted for as a new loan or a continuation of the existing loan. Our loans and receivables restructurings for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan, which reflects the ongoing effort to support our customer and recover our investment in the existing loan.

We offer several types of loans and receivables modification programs to customers experiencing financial difficulty. In such instances, we may modify loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief.

Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (reducing interest rates to as low as zero percent, in which case the loan is characterized as non-accrual), and/or (ii) placing the customer on a fixed payment plan not to exceed 60 months. Upon entering the modification program, the customer’s ability to make future purchases is limited, canceled or, in certain cases, suspended until the customer successfully exits from the modification program. As of March 31, 2025 and 2024, we had $19 million and $28 million, respectively, of unused credit available to customers with loans and receivables modified during each of the respective three month periods. In accordance with the modification agreement with the customer, loans and/or receivables may revert to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is either (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program.

The following table provides information relating to loans and receivables modifications for borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024:

Table 2.6: Loans and Receivables Modifications for Borrowers experiencing Financial Difficulty


	Three Months Ended March 31,
	2025							2024
	Account Balances (Millions) (a)		% of Total Class of Financing Receivables		Weighted Average Interest Rate Reduction (% points)		Weighted Average Payment Term Extensions (# of months)	Account Balances (Millions) (a)		% of Total Class of Financing Receivables		Weighted Average Interest Rate Reduction (% points)		Weighted Average Payment Term Extensions (# of months)
Interest Rate Reduction
Card Member Loans
Consumer	$	545	0.5	%	18.4	%	(b)	$	586	0.6	%	18.0	%	(b)
Small Business	229		0.7	%	17.7	%	(b)	206		0.7	%	17.4	%	(b)
Corporate	—		—		—		(b)	—		—		—		(b)
Term Extension
Card Member Receivables
Consumer	76		0.3	%	(c)		31	114		0.5	%	(c)		29
Small Business	137		0.7	%	(c)		29	174		0.9	%	(c)		29
Corporate	5		0.03	%	(c)		11	6		0.04	%	(c)		9
Other Loans	12		0.1	%	—		17	11		0.1	%	—		19
Interest Rate Reduction and Term Extension
Other Loans	17		0.2	%	3.1	%	21	18		0.2	%	2.3	%	19
Total	$	1,021						$	1,115

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

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

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

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides information with respect to modified loans and receivables that defaulted during the periods presented and were modified in the twelve months prior to the payment default. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.

Table 2.7: Modified Loans and Receivables that Defaulted within Twelve Months of Modification


	Three Months Ended March 31,
	2025								2024
Account Balance (Millions) (a)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total		Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total
Card Member Loans
Consumer	$	45	(b)		$	—	$	45	$	40	(b)		$	—	$	40
Small Business	22		(b)		—		22		18		(b)		—		18
Corporate	—		(b)		—		—		—		(b)		—		—
Card Member Receivables
Consumer	(c)		$	5	—		5		(c)		$	6	—		6
Small Business	(c)		11		—		11		(c)		13		—		13
Corporate	(c)		—		—		—		(c)		1		—		1
Other Loans	—		—		1		1		—		—		1		1
Total	$	67	$	16	$	1	$	84	$	58	$	20	$	1	$	79

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

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

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

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables provide information relating to the performance of loans and receivables that were modified during the prior twelve months and that remain in modification programs as of, or that defaulted on or before, March 31, 2025 and 2024:

Table 2.8: Performance of Modified Loans and Receivables


	As of March 31, 2025
Account Balances (Millions) (a)	Current		30-89 Days Past Due		90+ Days Past Due
Card Member Loans
Consumer	$	1,597	$	106	$	42
Small Business	596		59		20
Corporate	—		—		—
Card Member Receivables:
Consumer	215		13		5
Small Business	345		35		8
Corporate	8		3		1
Other Loans	81		5		1
Total	$	2,842	$	221	$	77


	As of March 31, 2024
Account Balances (Millions) (a)	Current		30-89 Days Past Due		90+ Days Past Due
Card Member Loans
Consumer	$	1,635	$	106	$	39
Small Business	535		51		17
Corporate	—		—		—
Card Member Receivables:
Consumer	312		23		6
Small Business	468		48		13
Corporate	8		1		2
Other Loans	71		6		2
Total	$	3,029	$	235	$	79

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

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Reserves for Credit Losses

Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The Current Expected Credit Loss (CECL) methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses.

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

PD models are used to estimate the likelihood an account will be written-off.
EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors.
Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions.

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

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

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

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

For Other loans, we use vintage-based historical performance to estimate expected credit losses over the life of the loan, net of recovery estimates.

Loans and receivable balances are written off when we consider amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due for Card Member loans and receivables and 120 days past due for Other loans. Balances in bankruptcy or owed by deceased individuals are generally written off upon notification.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table reflects the range of macroeconomic scenario key variables available to us as of March 31, 2025 and December 31, 2024, respectively, which were used, in conjunction with other inputs, to calculate reserves for credit losses:

Table 3.1: Key Macroeconomic Variables


	U.S. Unemployment Rate		U.S. GDP Growth (Contraction) (a)
	March 31, 2025	December 31, 2024	March 31, 2025	December 31, 2024
First quarter of 2025	4%	4% - 6%	2%	4% - (3)%
Fourth quarter of 2025	3% - 8%	3% - 8%	3% - (4)%	3% - 1%
Fourth quarter of 2026	3% - 8%	3% - 7%	2%	2%
Fourth quarter of 2027	4% - 7%	3% - 6%	4% - 2%	4% - 2%

(a)Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates.

Changes in Card Member Loans Reserve for Credit Losses

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

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

The following table presents changes in the Card Member loans reserve for credit losses for the three months ended March 31:

Table 3.2: Changes in Card Member Loans Reserve for Credit Losses


	Three Months Ended March 31,
(Millions)	2025		2024
Beginning Balance	$	5,679	$	5,118
Provisions (a)	901		1,014
Net write-offs (b)
Principal	(818)		(705)
Interest and fees	(178)		(150)
Other (c)	8		(6)
Ending Balance	$	5,592	$	5,271

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

(b)Principal write-offs are presented less recoveries of $221 million and $159 million for the three months ended March 31, 2025 and 2024, respectively. Recoveries of interest and fees were not significant.

(c)Primarily includes foreign currency translation adjustments.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Changes in Card Member Receivables Reserve for Credit Losses

Card Member receivables reserve for credit losses decreased for both the three months ended March 31, 2025 and 2024, primarily driven by decreases in receivables outstanding.

The following table presents changes in the Card Member receivables reserve for credit losses for the three months ended March 31:

Table 3.3: Changes in Card Member Receivables Reserve for Credit Losses


	Three Months Ended March 31,
(Millions)	2025		2024
Beginning Balance	$	171	$	174
Provisions (a)	146		196
Net write-offs (b)	(169)		(217)
Other (c)	—		(2)
Ending Balance	$	148	$	151

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

(b)Net write-offs are presented less recoveries of $73 million and $76 million for the three months ended March 31, 2025 and 2024, respectively.

(c)Primarily includes foreign currency translation adjustments.

Changes in Other Loans Reserve for Credit Losses

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

The following table presents changes in the Other loans reserve for credit losses for the three months ended March 31:

Table 3.4: Changes in Other Loans Reserve for Credit Losses


	Three Months Ended March 31,
(Millions)	2025		2024
Beginning Balance	$	194	$	126
Provisions (a)	105		53
Net write-offs (b)
Principal	(53)		(42)
Interest and Fees	(2)		(1)
Other	—		—
Ending Balance	$	244	$	136

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

(b)Principal write-offs are presented less recoveries of $7 million and $4 million for the three months ended March 31, 2025 and 2024, respectively. Recoveries of interest and fees were not significant.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

4. Investment Securities

Investment securities principally include available-for-sale (AFS) debt securities carried at fair value on the Consolidated Balance Sheets. Unrealized losses attributable to credit deterioration are recorded in the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. We had accrued interest on our AFS debt securities totaling $3 million as of both March 31, 2025 and December 31, 2024 presented as Other assets on the Consolidated Balance Sheets.

Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense.

Realized gains and losses are recognized upon disposition of the securities using the specific identification method and recorded in the Consolidated Statements of Income as Other, net expense.

The following is a summary of investment securities as of March 31, 2025 and December 31, 2024:

Table 4.1: Investment Securities


	2025								2024
Description of Securities (Millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
State and municipal obligations	$	56	$	1	$	(8)	$	49	$	57	$	1	$	(9)	$	49
U.S. Government agency obligations	4		—		—		4		4		—		—		4
U.S. Government treasury obligations	278		—		(1)		277		289		—		(2)		287
Mortgage-backed securities (a)	10		—		—		10		11		—		(1)		10
Foreign government bonds and obligations	652		—		—		652		765		—		—		765
Other (b)	72		—		—		72		77		—		—		77
Equity securities (c)	53		1		(8)		46		53		4		(9)		48
Total	$	1,125	$	2	$	(17)	$	1,110	$	1,256	$	5	$	(21)	$	1,240

(a)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

(b)Represents investments in debt securities issued by Community Development Financial Institutions.

(c)Equity securities comprise investments in common stock and mutual funds.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides information about our AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2025 and December 31, 2024:

Table 4.2: AFS Debt Securities with Gross Unrealized Losses by Duration


	2025								2024
	Less than 12 months				12 months or more				Less than 12 months				12 months or more
Description of Securities (Millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
State and municipal obligations	$	—	$	—	$	22	$	(8)	$	—	$	—	$	22	$	(9)
U.S. Government treasury obligations	—		—		123		(1)		—		—		123		(2)
Mortgage-backed securities	—		—		—		—		—		—		7		(1)

Total	$	—	$	—	$	145	$	(9)	$	—	$	—	$	152	$	(12)

The gross unrealized losses on our AFS debt securities are primarily attributable to an increase in the current benchmark interest rate. Overall, for the AFS debt securities in gross unrealized loss positions, (i) we do not intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losses, and (iii) we expect that the contractual principal and interest will be received on the securities. We concluded that there was no credit loss attributable to the securities in an unrealized loss position for the periods presented.

The following table summarizes the gross unrealized losses for AFS debt securities by ratio of fair value to amortized cost as of March 31, 2025 and December 31, 2024:

Table 4.3: AFS Gross Unrealized Losses by Ratio of Fair Value to Amortized Cost


	Less than 12 months					12 months or more					Total
Ratio of Fair Value to Amortized Cost (Dollars in millions)	Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses
2025:
90–100%	—	$	—	$	—	5	$	128	$	(2)	5	$	128	$	(2)
Less than 90%	—	$	—	$	—	4	$	17	$	(7)	4	$	17	$	(7)
Total as of March 31, 2025	—	$	—	$	—	9	$	145	$	(9)	9	$	145	$	(9)
2024:
90–100%	—	$	—	$	—	30	$	129	$	(3)	30	$	129	$	(3)
Less than 90%	—	$	—	$	—	15	$	23	$	(9)	15	$	23	$	(9)
Total as of December 31, 2024	—	$	—	$	—	45	$	152	$	(12)	45	$	152	$	(12)

Contractual maturities for AFS debt securities with stated maturities as of March 31, 2025 were as follows:

Table 4.4: Contractual Maturities of AFS Debt Securities


(Millions)	Cost		Estimated Fair Value
Due within 1 year	$	862	$	861
Due after 1 year but within 5 years	136		136
Due after 5 years but within 10 years	27		28
Due after 10 years	47		39
Total	$	1,072	$	1,064

The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

5. Asset Securitizations

We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors.

The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. Our ownership of variable interests in the Lending Trust was $12.8 billion and $14.6 billion as of March 31, 2025 and December 31, 2024, respectively, and in the Charge Trust was $4.2 billion and $3.9 billion as of March 31, 2025 and December 31, 2024, respectively. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts and therefore consolidate the Trusts.

Restricted cash and cash equivalents held by the Lending Trust was $102 million and $88 million as of March 31, 2025 and December 31, 2024, respectively, and by the Charge Trust was nil as of both March 31, 2025 and December 31, 2024. These amounts relate to collections of Card Member loans and receivables to be used by the Trusts to fund future expenses and obligations, including interest on debt securities, credit losses and upcoming debt maturities.

Under the respective terms of the Lending Trust and the Charge Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve funds, or, in a worst-case scenario, early amortization of debt securities. During the three months ended March 31, 2025 and the year ended December 31, 2024, no such triggering events occurred.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6. Customer Deposits

As of March 31, 2025 and December 31, 2024, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:

Table 6.1: Interest-bearing and Non-Interest-bearing Customer Deposits


(Millions)	2025		2024
U.S.:
Interest-bearing	$	145,494	$	138,433
Non-interest-bearing (includes Card Member credit balances of: 2025, $440; 2024, $513)	501		566
Non-U.S.:
Interest-bearing	17		17
Non-interest-bearing (includes Card Member credit balances of: 2025, $381; 2024, $395)	384		397
Total customer deposits	$	146,396	$	139,413

Customer deposits by deposit type as of March 31, 2025 and December 31, 2024 were as follows:

Table 6.2: Customer Deposits by Type


(Millions)	2025		2024
U.S. interest-bearing deposits:
Savings accounts	$	113,243	$	108,364
Checking accounts	2,324		2,045
Certificates of deposit:
Direct	4,291		4,303
Third-party (brokered)	10,117		8,109
Sweep accounts – Third-party (brokered)	15,519		15,612
Total U.S. interest-bearing deposits	$	145,494	$	138,433
Other deposits	81		72
Card Member credit balances	821		908
Total customer deposits	$	146,396	$	139,413

The scheduled maturities of certificates of deposit as of March 31, 2025 were as follows:

Table 6.3: Scheduled Maturities of Certificates of Deposit


(Millions)						2025						2026						2027						2028						2029						After 5 Years						Total
Certificates of deposit (a)						$	5,663					$	2,946					$	2,488					$	1,697					$	668					$	956					$	14,418

(a)Includes $10 million of non-U.S. direct certificates of deposit as of March 31, 2025.

As of both March 31, 2025 and December 31, 2024, certificates of deposit in denominations that met or exceeded the insured limit were $1.4 billion.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

7. Contingencies

In the ordinary course of business, we and our subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, regulatory proceedings, information gathering requests, subpoenas, inquiries and matters relating to compliance with laws and regulations (collectively, legal proceedings).

Based on our current knowledge, and taking into consideration our litigation-related liabilities, we do not believe we are a party to, nor are any of our properties the subject of, any legal proceeding that would have a material adverse effect on our consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, penalties or fines, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described below.

On September 30, 2024, we were named as a defendant in a case filed in the United States District Court for the District of Massachusetts, captioned Pizza Hazel, Inc., et al. v. American Express Co., et al., in which plaintiffs allege that the anti-steering and non-discrimination provisions in our merchant agreements violate federal antitrust law and that the arbitration provision in our merchant agreements violates federal antitrust law to the extent it prevents antitrust challenges to our anti-steering and non-discrimination provisions. Plaintiffs seek, on behalf of themselves and a class of merchants that accept through the OptBlue Program, unspecified damages and an injunction prohibiting us from enforcing our anti-steering and non-discrimination provisions and prohibiting us from enforcing our arbitration provision to the extent the arbitration provision prevents antitrust challenges to our anti-steering and non-discrimination provisions.

On March 21, 2024, we were named as a defendant in a case filed in the United States District Court for the District of Rhode Island, captioned 5-Star General Store aka Bento LLC, et al. v. American Express Co., et al., in which plaintiffs allege that the anti-steering and non-discrimination provisions in our merchant agreements violate federal antitrust law and seek, on behalf of themselves and a class of merchants, an injunction prohibiting us from enforcing our anti-steering and non-discrimination provisions and a declaration that we have violated antitrust laws.

On January 29, 2019, we were named in a putative class action brought in the United States District Court for the Eastern District of New York, captioned Anthony Oliver, et al. v. American Express Company and American Express Travel Related Services Company Inc., in which the plaintiffs are holders of MasterCard, Visa and/or Discover credit and/or debit cards (but not American Express cards) and allege they paid higher prices as a result of the anti-steering and non-discrimination provisions in our merchant agreements in violation of federal antitrust law and the antitrust and consumer laws of various states. Plaintiffs seek unspecified damages and other forms of relief. The court dismissed plaintiffs’ federal antitrust claim, numerous state antitrust and consumer protection claims and their unjust enrichment claim. For the remaining state antitrust or consumer protection claims, the court certified classes for (i) holders of Visa and MasterCard debit cards in eight states and Washington, D.C.; and (ii) holders of Visa, MasterCard and Discover credit cards that do not offer rewards or charge an annual fee in two states and Washington, D.C. Trial is scheduled for July 2025.

On March 8, 2016, plaintiffs B&R Supermarket, Inc. d/b/a Milam’s Market and Grove Liquors LLC, on behalf of themselves and others, filed a suit, captioned B&R Supermarket, Inc. d/b/a Milam’s Market, et al. v. Visa Inc., et al., for violations of the Sherman Antitrust Act, the Clayton Antitrust Act, California’s Cartwright Act and unjust enrichment in the United States District Court for the Northern District of California, against American Express Company, other credit and charge card networks, other issuing banks and EMVCo, LLC. Plaintiffs allege that the defendants, through EMVCo, conspired to shift liability for fraudulent, faulty and otherwise rejected consumer credit card transactions from themselves to merchants after the implementation of EMV chip payment terminals. Plaintiffs seek damages and injunctive relief. On May 4, 2017, the California court transferred the case to the United States District Court for the Eastern District of New York. On August 28, 2020, the court granted plaintiffs’ motion for class certification. On August 14, 2024, the court granted our motion to compel arbitration as to class members who are subject to our merchant agreements, but did not stay the claims pending arbitration. On November 15, 2024, we appealed to the Second Circuit requesting a stay of all claims against us that are subject to arbitration. On March 31, 2025, we reached an agreement in principle with the class representatives to settle this action, which is subject to negotiation of a complete stipulation of settlement and court approval.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In 2006, Mawarid Investments Limited filed a request for confidential arbitration under the 1998 London Court of International Arbitration Rules in connection with certain claims arising under a shareholders agreement between Mawarid and American Express Travel Related Services Company, Inc. relating to a joint venture between the parties, Amex (Middle East) BSC(c) (AEME). In 2008, the tribunal rendered a partial award, including a direction that an audit should take place to verify whether acquirer discount revenue related to transactions occurring with airlines located in the Middle East region had been properly allocated to AEME since its inception in 1992. In September 2021, the tribunal rendered a further partial award regarding the location of transactions through non-physical channels. In May 2022, the tribunal further clarified the 2021 partial award and the discount rate that should apply to transactions through non-physical channels. In December 2024, the tribunal rendered a further partial award providing further clarifications on the allocation of revenue. A final award is expected in 2025.

We are being challenged in a number of countries regarding our application of value-added taxes (VAT) to certain of our international transactions, which are in various stages of audit, or are being contested in legal actions. While we believe we have complied with all applicable tax laws, rules and regulations in the relevant jurisdictions, the tax authorities may determine that we owe additional VAT. In certain jurisdictions where we are contesting the assessments, we were required to pay the VAT assessments prior to contesting.

Our legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members to governmental proceedings. These legal proceedings involve various lines of business and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against us specify the damages sought, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficiently such that we are able to estimate an amount of loss or a range of possible loss.

We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable.

For those disclosed legal proceedings where a loss is reasonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies, or where there is no such accrual, and for which we are able to estimate a range of possible loss, the current estimated range is zero to $190 million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business and results of operations.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

8. Derivatives and Hedging Activities

We use derivative financial instruments to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates and foreign exchange rates, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of our market risk management. We do not transact in derivatives for trading purposes.

A majority of our derivative assets and liabilities as of March 31, 2025 and December 31, 2024 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets.

In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate the relevant agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of March 31, 2025, these derivatives were not in a material net liability position. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of March 31, 2025 and December 31, 2024, no credit risk adjustment to the derivative portfolio was required.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31, 2025 and December 31, 2024:

Table 8.1: Fair Value of Derivative Assets and Liabilities


	Other Assets Fair Value				Other Liabilities Fair Value
(Millions)	2025		2024		2025		2024
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)	$	—	$	—	$	17	$	23
Net investment hedges - Foreign exchange contracts	38		340		205		18
Total derivatives designated as hedging instruments	38		340		222		41
Derivatives not designated as hedging instruments:
Foreign exchange contracts and other	171		666		308		90

Total derivatives, gross	209		1,006		530		131
Derivative asset and derivative liability netting (b)	(150)		(91)		(150)		(91)
Cash collateral netting (c)	—		(18)		(22)		(23)
Total derivatives, net	$	59	$	897	$	358	$	17

(a)For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.

(b)Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

(c)Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.

We posted $464 million and $368 million as of March 31, 2025 and December 31, 2024, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Fair Value Hedges

We are exposed to interest rate risk associated with our fixed-rate debt obligations. At the time of issuance, certain fixed-rate long-term debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rate. We had $23.1 billion and $18.9 billion of fixed-rate debt obligations designated in fair value hedging relationships as of March 31, 2025 and December 31, 2024, respectively.

The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three months ended March 31:

Table 8.2: Gains and Losses associated with Fair Value Hedges on Fixed-rate Long Term Debt


	Gains (losses)
	Three Months Ended March 31,
(Millions)	2025		2024
Fixed-rate long-term debt	$	(263)	$	133
Derivatives designated as hedging instruments	263		(134)
Total	$	—	$	(1)

The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $23.3 billion and $18.9 billion as of March 31, 2025 and December 31, 2024, respectively, including the cumulative amount of fair value hedging adjustments of $290 million and $27 million for the respective periods.

We recognized in Interest expense on Long-term debt net increases of $12 million and $63 million for the three months ended March 31, 2025 and 2024, respectively, primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges.

Net Investment Hedges

We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We had notional amounts of approximately $14.3 billion of foreign currency derivatives designated as net investment hedges as of both March 31, 2025 and December 31, 2024. The gain or loss on net investment hedges, net of taxes, recorded in Accumulated other comprehensive income (loss) (AOCI) as part of the cumulative translation adjustment, was a loss of $198 million and a gain of $86 million for the three months ended March 31, 2025 and 2024, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income were not significant for both the three months ended March 31, 2025 and 2024.

Derivatives Not Designated as Hedges

The changes in the fair value of derivatives that are not designated as hedges are primarily intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. We had notional amounts of approximately $30.5 billion and $28.8 billion as of March 31, 2025 and December 31, 2024, respectively. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in net gains of $15 million and $16 million for the three months ended March 31, 2025 and 2024, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income.

Our embedded derivative related to seller earnout shares granted to us upon the completion of a business combination in the second quarter of 2022 between our equity method investee, American Express Global Business Travel, and Apollo Strategic Growth Capital had a notional amount of $78 million as of both March 31, 2025 and December 31, 2024. The changes in the fair value of the embedded derivative resulted in losses of $17 million and $4 million for the three months ended March 31, 2025 and 2024, respectively, which were recognized in Service fees and other revenue in the Consolidated Statements of Income.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9. Fair Values

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of March 31, 2025 and December 31, 2024:

Table 9.1: Financial Assets and Financial Liabilities measured at Fair Value


	2025								2024
(Millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Investment securities: (a)
Equity securities	$	46	$	46	$	—	$	—	$	48	$	48	$	—	$	—
Debt securities	1,064		—		992		72		1,192		—		1,115		77
Derivatives, gross (a)(b)	209		—		195		14		1,006		—		975		31
Total Assets	1,319		46		1,187		86		2,246		48		2,090		108
Liabilities:
Derivatives, gross (a)	530		—		530		—		131		—		131		—
Total Liabilities	$	530	$	—	$	530	$	—	$	131	$	—	$	131	$	—

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

(b)Level 3 fair value reflects an embedded derivative. Management reviews and applies judgment to the valuation of the embedded derivative that is performed by an independent third party using a Monte Carlo simulation that models a range of probable future stock prices based on implied volatility in a risk neutral framework. Refer to Note 8 for additional information about this embedded derivative.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following tables summarize the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of March 31, 2025 and December 31, 2024. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of March 31, 2025 and December 31, 2024, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.

Table 9.2: Fair Value of Financial Assets and Financial Liabilities measured at Amortized Cost


	Carrying Value			Corresponding Fair Value Amount
2025 (Billions)			Total			Level 1			Level 2			Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	53		$	53		$	51		$	2		$	—
Other financial assets (b)	62			62			—			62			—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	143			149			—			—			149
Card Member loans HFS	1			1			—			—			1

Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	160			160			—			160			—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	14			14			—			14			—
Long-term debt (c)	$	51		$	52		$	—		$	52		$	—


	Carrying Value			Corresponding Fair Value Amount
2024 (Billions)			Total			Level 1			Level 2			Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	41		$	41		$	39		$	2		$	—
Other financial assets (b)	63			63			—			63			—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	143			149			—			—			149
Card Member loans HFS	1			1			—			—			1

Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	155			155			—			155			—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	12			12			—			12			—
Long-term debt (c)	$	50		$	50		$	—		$	50		$	—

(a)Level 2 fair value amounts reflect time deposits and short-term investments.

(b)Balances include Card Member receivables (including fair values of Card Member receivables of $4.2 billion and $3.9 billion held by a consolidated VIE as of March 31, 2025 and December 31, 2024, respectively), other receivables and other miscellaneous assets.

(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $26.7 billion and $28.3 billion as of March 31, 2025 and December 31, 2024, respectively, and the fair values of Long-term debt were $14.2 billion and $14.0 billion as of March 31, 2025 and December 31, 2024, respectively.

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

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Nonrecurring Fair Value Measurements

We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values.

We estimate the Level 3 fair value of equity investments without readily determinable fair values, which include investments in our Amex Ventures portfolio, based on price changes as of the date of new similar equity financing transactions completed by the companies in the portfolio. In addition, impairments on such investments are recorded to account for the difference between the estimated fair value and carrying value of an investment based on a qualitative assessment of impairment indicators such as business performance, general market conditions and the economic and regulatory environment. When an impairment triggering event occurs, the fair value measurement is generally derived by taking into account all available information, such as share prices of publicly traded peer companies, internal valuations performed by our investees, and other third-party fair value data. The fair value of impaired investments represents a Level 3 fair value measurement.

The carrying value of equity investments without readily determinable fair values totaled $0.9 billion as of both March 31, 2025 and December 31, 2024, of which investments representing nonrecurring Level 3 fair value measurement were nil and $1 million as of March 31, 2025 and December 31, 2024, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets.

We recorded no unrealized gains for both the three months ended March 31, 2025 and 2024. Unrealized losses were $39 million and nil for the three months ended March 31, 2025 and 2024, respectively. Unrealized gains and losses are recorded in Other, net on the Consolidated Statements of Income. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion as of both March 31, 2025 and December 31, 2024, and cumulative unrealized losses were $499 million and $460 million as of March 31, 2025 and December 31, 2024, respectively.

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

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

10. Guarantees

The maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by us in the ordinary course of business were $1 billion and $11 million, respectively, as of March 31, 2025 and $1 billion and $10 million, respectively, as of December 31, 2024, all of which were primarily related to our real estate arrangements and business dispositions.

To date, we have not experienced any significant losses related to guarantees or indemnifications. Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

11. Changes In Accumulated Other Comprehensive Income (Loss)

AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three months ended March 31, 2025 and 2024 were as follows:

Table 11.1: Changes in Accumulated Other Comprehensive Income (Loss)


(Millions), net of tax		Three Months Ended,
	March 31, 2025			Net Change			December 31, 2024			March 31, 2024			Net Change			December 31, 2023
Net Unrealized Gains (Losses) on Debt Securities		$	(6)		$	3		$	(9)		$	(13)		$	1		$	(14)
Foreign Currency Translation Adjustment Gains (Losses), net of hedges (a)		(2,907)			17			(2,924)			(2,658)			(87)			(2,571)
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		(453)			9			(462)			(484)			3			(487)
Accumulated Other Comprehensive Income (Loss)		$	(3,366)		$	29		$	(3,395)		$	(3,155)		$	(83)		$	(3,072)

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

The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above:

Table 11.2: Tax Impact for Changes in Accumulated Other Comprehensive Income (Loss)


	Tax expense (benefit)
	Three Months Ended March 31,
(Millions)	2025		2024
Net unrealized gains on debt securities	$	—	$	1
Foreign currency translation adjustment, net of hedges	(60)		49

Pension and other postretirement benefits	(1)		2
Total tax impact	$	(61)	$	52

Reclassifications out of AOCI into the Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 were not significant.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

12. Service Fees and Other Revenue and Other Expenses

The following is a detail of Service fees and other revenue for the three months ended March 31:

Table 12.1: Components of Service Fees and Other Revenue


	Three Months Ended March 31,
(Millions)	2025		2024
Loyalty coalition, merchant and other service fees (a)	$	436	$	442
Network partnership revenue(b)	408		386
Foreign currency-related revenue	382		358
Delinquency fees	237		234
Travel commissions and fees	136		167
Other fees and revenues	123		91
Total Service fees and other revenue (b)	$	1,722	$	1,678

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

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

The following is a detail of Other expenses for the three months ended March 31:

Table 12.2: Components of Other Expense


	Three Months Ended March 31,
(Millions)	2025		2024
Data processing and equipment	$	705	$	657
Professional services	541		455


Other	400		364
Total Other expenses	$	1,646	$	1,476

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

13. Income Taxes

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

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

In 2024, we received a Notice of Proposed Adjustment (Notice) from the IRS regarding transfer pricing between our U.S. and foreign subsidiaries for the 2017 and 2018 tax years currently under examination. The Notice proposes an increase to our U.S. taxable income that would result in an additional estimated U.S. federal income tax payment of approximately $185 million for 2017 and 2018, excluding interest and state income taxes, and asserts penalties of approximately $50 million for the same period. Although the Notice only applies to the 2017 and 2018 tax years currently under examination, the IRS may seek similar adjustments for subsequent tax years.

We strongly disagree with the IRS’s positions and plan to pursue all available remedies to vigorously contest the adjustments made by the IRS. We believe our income tax reserves are appropriate for all open tax years and that final resolution of this matter will not have a material impact on our results of operations. However, the ultimate outcome of this matter is uncertain, and if we are required to pay the IRS additional U.S. taxes, interest and/or potential penalties, our results of operations could be materially affected for the period in which the matter is resolved.

We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next twelve months by as much as $132 million, principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $132 million of unrecognized tax benefits, approximately $104 million relates to amounts that, if recognized, would impact the effective tax rate in a future period.

Tax Credit Investments

As of March 31, 2025 and 2024, we had $1,699 million and $1,454 million in tax credit investments, respectively, included in Other assets on the Consolidated Balance Sheets, comprised of Low Income Housing Tax Credit investments and other qualifying investments. We account for such tax credit investments using the Proportional Amortization Method.

The following table presents tax credit investment expenses and associated income tax credits and other income tax benefits for the three months ended March 31:

Table 13.1: Tax Credit Investments Expenses and Credits


	Three Months Ended March 31,
(Millions)	2025		2024
Proportional amortization recognized in tax provision	$	57	$	47
Income tax credits and Other income tax benefits (a) recognized in tax provision	66		57

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

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

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

14. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS for the three months ended March 31 were as follows:

Table 14.1: Computation of Basic and Diluted Earnings per Share


	Three Months Ended March 31,
(Millions, except per share amounts)	2025		2024
Numerator:
Basic and diluted:
Net income	$	2,584	$	2,437
Preferred dividends	(14)		(14)

Net income available to common shareholders	$	2,570	$	2,423
Earnings allocated to participating share awards (a)	(18)		(18)
Net income attributable to common shareholders	$	2,552	$	2,405
Denominator:(a)
Basic: Weighted-average common stock	701		721
Add: Weighted-average stock options (b)	1		1
Diluted	702		722

Basic EPS	$	3.64	$	3.34
Diluted EPS	$	3.64	$	3.33

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

(b)The dilutive effect of unexercised stock options excludes from the computation of EPS 0.1 million of options for both the three months ended March 31, 2025 and 2024, because inclusion of the options would have been anti-dilutive.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

15. Reportable Operating Segments

The following tables present certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three months ended March 31:

Table 15.1: Selected Financial Information by Segment


Three Months Ended March 31, 2025 (Millions)	USCS		CS		ICS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	5,243	$	3,265	$	2,646	$	1,660	$	(16)	$	12,798
Revenue from contracts with customers (b)	3,634		2,828		1,688		1,485		(9)		9,626
Interest income	3,763		1,202		596		12		562		6,135
Interest expense	757		432		306		(143)		614		1,966
Net interest income	3,006		770		290		155		(52)		4,169
Total revenues net of interest expense	8,249		4,035		2,936		1,815		(68)		16,967
Provisions for credit losses	631		329		192		(2)		—		1,150
Total revenues net of interest expense after provisions for credit losses	7,618		3,706		2,744		1,817		(68)		15,817
Expenses
Card Member rewards, business development and Card Member services (c)	3,882		1,746		1,312		283		12		7,235
Marketing	765		337		300		76		8		1,486
Salaries and employee benefits and other operating expenses	1,239		787		751		468		521		3,766
Total expenses	5,886		2,870		2,363		827		541		12,487
Pretax income (loss)	$	1,732	$	836	$	381	$	990	$	(609)	$	3,330
Total assets	$	110,886	$	62,012	$	42,620	$	18,083	$	48,643	$	282,244


Three Months Ended March 31, 2024 (Millions)	USCS		CS		ICS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	4,766	$	3,194	$	2,437	$	1,655	$	(20)	$	12,032
Revenue from contracts with customers (b)	3,469		2,795		1,590		1,495		(10)		9,339
Interest income	3,481		1,005		583		17		689		5,775
Interest expense	748		414		307		(198)		735		2,006
Net interest income	2,733		591		276		215		(46)		3,769
Total revenues net of interest expense	7,499		3,785		2,713		1,870		(66)		15,801
Provisions for credit losses	727		355		182		6		(1)		1,269
Total revenues net of interest expense after provisions for credit losses	6,772		3,430		2,531		1,864		(65)		14,532
Expenses
Card Member rewards, business development and Card Member services (c)	3,356		1,493		1,203		279		6		6,337
Marketing	719		326		352		73		6		1,476
Salaries and employee benefits and other operating expenses	1,084		733		724		495		538		3,574
Total expenses	5,159		2,552		2,279		847		550		11,387
Pretax income (loss)	$	1,613	$	878	$	252	$	1,017	$	(615)	$	3,145
Total assets	$	104,297	$	58,143	$	41,472	$	24,885	$	40,464	$	269,261

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

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

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

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