Item 1. FINANCIAL STATEMENTS

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended June 30 (Millions, except per share amounts)						2026						2025
Revenues
Non-interest revenues
Discount revenue						$	10,163					$	9,361
Net card fees						2,862						2,480
Service fees and other revenue						1,963						1,828
Total non-interest revenues						14,988						13,669
Interest income
Interest on Card balances and Other loans						6,119						5,648
Interest and dividends on investment securities						36						17
Deposits with banks and other						452						599
Total interest income						6,607						6,264
Interest expense
Deposits						1,276						1,374
Long-term debt and other						682						703
Total interest expense						1,958						2,077
Net interest income						4,649						4,187
Total revenues net of interest expense						19,637						17,856
Provisions for credit losses
Card balances						1,017						1,320
Other						67						85
Total provisions for credit losses						1,084						1,405
Total revenues net of interest expense after provisions for credit losses						18,553						16,451
Expenses
Card Member rewards						5,051						4,618
Business development						1,755						1,589
Card Member services						1,949						1,301
Marketing						1,650						1,555
Salaries and employee benefits						2,344						2,152
Other, net						1,733						1,686
Total expenses						14,482						12,901
Pretax income						4,071						3,550
Income tax provision						961						665
Net income						$	3,110					$	2,885
Earnings per Common Share (Note 13)(a)
Basic						$	4.54					$	4.08
Diluted						$	4.53					$	4.08
Average common shares outstanding for earnings per common share:
Basic						678						698
Diluted						679						699

(a)Reflects net income less (i) earnings allocated to participating share awards of $20 million and $18 million for the three months ended June 30, 2026 and 2025, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2026 and 2025.

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Six Months Ended June 30 (Millions, except per share amounts)						2026						2025
Revenues
Non-interest revenues
Discount revenue						$	19,675					$	18,104
Net card fees						5,614						4,813
Service fees and other revenue						3,914						3,550
Total non-interest revenues						29,203						26,467
Interest income
Interest on Card balances and Other loans						12,256						11,200
Interest and dividends on investment securities						52						31
Deposits with banks and other						964						1,168
Total interest income						13,272						12,399
Interest expense
Deposits						2,563						2,711
Long-term debt and other						1,368						1,332
Total interest expense						3,931						4,043
Net interest income						9,341						8,356
Total revenues net of interest expense						38,544						34,823
Provisions for credit losses
Card balances						2,204						2,367
Other						132						188
Total provisions for credit losses						2,336						2,555
Total revenues net of interest expense after provisions for credit losses						36,208						32,268
Expenses
Card Member rewards						9,942						8,996
Business development						3,346						3,118
Card Member services						3,924						2,629
Marketing						3,130						3,041
Salaries and employee benefits						4,826						4,272
Other, net						3,191						3,332
Total expenses						28,359						25,388
Pretax income						7,849						6,880
Income tax provision						1,767						1,411
Net income						$	6,082					$	5,469
Earnings per Common Share (Note 13)(a)
Basic						$	8.83					$	7.73
Diluted						$	8.81					$	7.71
Average common shares outstanding for earnings per common share:
Basic						681						700
Diluted						682						701

(a)Represents net income less (i) earnings allocated to participating share awards of $39 million and $36 million for the six months ended June 30, 2026 and 2025, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2026 and 2025.

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

						Three Months Ended June 30,												Six Months Ended June 30,
(Millions)						2026						2025						2026						2025
Net income						$	3,110					$	2,885					$	6,082					$	5,469
Other comprehensive income (loss):
Net unrealized debt securities gains (losses), net of tax						(11)						—						(18)						3
Foreign currency translation adjustments, net of hedges and tax						(37)						115						(59)						132
Net unrealized pension and other postretirement benefits, net of tax						4						3						(1)						12
Other comprehensive income (loss)						(44)						118						(78)						147
Comprehensive income						$	3,066					$	3,003					$	6,004					$	5,616

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions, except share data)						June 30, 2026						December 31, 2025
Assets
Cash and cash equivalents
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2026, $4; 2025, nil)						$	3,453					$	3,559
Interest-bearing deposits in other banks						41,469						43,491
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2026, $73; 2025, $84)						321						742
Total cash and cash equivalents (includes restricted cash: 2026, $165; 2025, $169)						45,243						47,792
Card balances (includes gross amounts available to settle obligations of consolidated variable interest entities: 2026, $32,167; 2025, $33,378), less reserves for credit losses: 2026, $5,866; 2025, $6,089						212,188						207,774
Card balances held for sale						1,752						2,457
Other loans, less reserves for credit losses: 2026, $312; 2025, $323						11,115						10,605
Investment securities						4,073						1,043
Premises and equipment, less accumulated depreciation and amortization: 2026, $12,858; 2025, $12,039						7,689						6,118
Other assets, less reserves for credit losses: 2026, $121; 2025, $86						26,143						24,263
Total assets						$	308,203					$	300,052
Liabilities and Shareholders’ Equity
Liabilities
Customer deposits						$	156,973					$	152,488
Accounts payable						15,441						14,700
Short-term borrowings						2,032						1,371
Long-term debt (includes debt issued by consolidated variable interest entities: 2026, $11,779; 2025, $13,022)						57,017						56,387
Other liabilities						42,460						41,632
Total liabilities						$	273,923					$	266,578
Contingencies (Note 7)
Shareholders’ Equity
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of June 30, 2026 and December 31, 2025						—						—
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 675 million shares as of June 30, 2026 and 686 million shares as of December 31, 2025						135						138
Additional paid-in capital						11,121						11,126
Retained earnings						26,379						25,487
Accumulated other comprehensive income (loss)						(3,355)						(3,277)
Total shareholders’ equity						34,280						33,474
Total liabilities and shareholders’ equity						$	308,203					$	300,052

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended June 30 (Millions)						2026						2025
Cash Flows from Operating Activities
Net income						$	6,082					$	5,469
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for credit losses						2,336						2,555
Depreciation and amortization						956						860
Stock-based compensation						358						285
Deferred taxes						71						(385)
Other items (a)						(937)						61
Originations of Card balances held for sale						(67)						—
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other assets						(1,836)						(1,152)
Accounts payable & other liabilities						2,212						1,435
Net cash provided by operating activities						9,175						9,128
Cash Flows from Investing Activities
Sale of investments						24						1
Maturities and redemptions of investments						536						587
Purchase of investments						(3,855)						(769)
Net increase in Card balances and Other loans, including Card balances held for sale						(5,983)						(4,483)
Purchase of premises and equipment, net of sales: 2026, $1; 2025, nil (b)						(2,047)						(1,049)
Acquisitions, net of cash acquired						(524)						(633)
Net cash used in investing activities						(11,849)						(6,346)
Cash Flows from Financing Activities
Net increase in customer deposits						4,404						9,943
Net increase in short-term borrowings						481						21
Proceeds from long-term debt (b)						6,116						15,896
Payments of long-term debt						(5,471)						(7,895)
Issuance of American Express common shares						7						22
Repurchase of American Express common shares and other						(4,215)						(2,564)
Dividends paid						(1,248)						(1,102)
Net cash provided by financing activities						74						14,321
Effect of foreign currency exchange rates on cash and cash equivalents						51						194
Net (decrease) increase in cash and cash equivalents						(2,549)						17,297
Cash and cash equivalents at beginning of period						47,792						40,640
Cash and cash equivalents at end of period						$	45,243					$	57,937

(a)Primarily includes gains/losses on fair value hedges, foreign currency transactions, tax credits and Amex Ventures investments and movements in equity method investments.

(b)Excludes an increase of $370 million related to non-cash activity for a finance lease. Refer to Note 1 for additional information.

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

Three months ended June 30, 2026 (Millions, except per share amounts)						Total						Preferred Shares						Common Shares						Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Retained Earnings
Balances as of March 31, 2026						$	33,995					$	—					$	137					$	11,081					$	(3,311)					$	26,088
Net income						3,110						—						—						—						—						3,110
Other comprehensive income (loss)						(44)						—						—						—						(44)						—
Repurchase of common shares						(2,241)						—						(2)						(81)						—						(2,158)
Other changes						120						—						—						121						—						(1)
Cash dividends declared preferred Series D, $9,072.22 per share						(15)						—						—						—						—						(15)
Cash dividends declared common, $0.95 per share						(645)						—						—						—						—						(645)
Balances as of June 30, 2026						$	34,280					$	—					$	135					$	11,121					$	(3,355)					$	26,379
Six months ended June 30, 2026 (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, 2025						$	33,474					$	—					$	138					$	11,126					$	(3,277)					$	25,487
Net income						6,082						—						—						—						—						6,082
Other comprehensive income (loss)						(78)						—						—						—						(78)						—
Repurchase of common shares						(3,905)						—						(3)						(167)						—						(3,735)
Other changes						33						—						—						162						—						(129)
Cash dividends declared preferred Series D, $17,947.22 per share						(29)						—						—						—						—						(29)
Cash dividends declared common, $1.90 per share						(1,297)						—						—						—						—						(1,297)
Balances as of June 30, 2026						$	34,280					$	—					$	135					$	11,121					$	(3,355)					$	26,379

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

Three months ended June 30, 2025 (Millions, except per share amounts)						Total						Preferred Shares						Common Shares						Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Retained Earnings
Balances as of March 31, 2025						$	31,202					$	—					$	140					$	11,037					$	(3,366)					$	23,391
Net income						2,885						—						—						—						—						2,885
Other comprehensive income (loss)						118						—						—						—						118						—
Repurchase of common shares						(1,396)						—						—						(78)						—						(1,318)
Other changes						93						—						—						93						—						—
Cash dividends declared preferred Series D, $9,072.22 per share						(15)						—						—						—						—						(15)
Cash dividends declared common, $0.82 per share						(576)						—						—						—						—						(576)
Balances as of June 30, 2025						$	32,311					$	—					$	140					$	11,052					$	(3,248)					$	24,367
Six months ended June 30, 2025 (Millions, except per share amounts)						Total						Preferred Shares						Common Shares						Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Retained Earnings
Balances as of December 31, 2024						$	30,264					$	—					$	141					$	11,370					$	(3,395)					$	22,148
Net income						5,469						—						—						—						—						5,469
Other comprehensive income (loss)						147						—						—						—						147						—
Repurchase of common shares						(2,074)						—						(1)						(114)						—						(1,959)
Other changes						(314)						—						—						(204)						—						(110)
Cash dividends declared preferred Series D, $17,947.22 per share						(29)						—						—						—						—						(29)
Cash dividends declared common, $1.64 per share						(1,152)						—						—						—						—						(1,152)
Balances as of June 30, 2025						$	32,311					$	—					$	140					$	11,052					$	(3,248)					$	24,367

See Notes to Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The Company

We are 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. 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.

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, 2025 (the 2025 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.

Beginning in the first quarter of 2026, 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. Prior period amounts 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. This presentation change has no impact on the recognition or measurement of outstanding Card balances and associated reserves for credit losses.

Business Events

On February 25, 2026, we announced plans to build a new approximately 1.95 million square foot headquarters at 200 Greenwich Street (2 World Trade Center site) in New York City. In connection with the project, we entered into a commitment of up to $2.8 billion for the cost of construction. When the building goes into service, capitalized construction costs will be depreciated over the estimated useful life of the premises. We also recognized a finance lease liability of $370 million, which represents the present value of contractual fixed lease payments over the term of a land lease, and a corresponding increase to the right-of-use finance lease asset.

On January 12, 2026, we completed the acquisition of our partner’s interest in our Switzerland joint venture (Swisscard AECS GmbH). Upon acquisition, we recognized within our International Card Services (ICS) segment $272 million of intangible assets, which will be amortized over an estimated weighted average useful life of approximately eight years, $136 million of Goodwill and a gain for the remeasurement of our existing ownership interest. The allocation of the purchase consideration for the acquisition is preliminary as certain estimates related to the valuation of assets and liabilities are subject to finalization.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Recently Issued Accounting Standards

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; however, it is not expected to have a material impact to our Consolidated Financial Statements.

In September 2025, the Financial Accounting Standards Board issued updated guidance on accounting for internal-use software, effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments modernize guidance to consider different methods of software development, updating the requirements for capitalization of software costs. We are currently assessing the updated guidance; however, it is not expected to have a material impact to our Consolidated Financial Statements.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Card Balances and Other Loans

Our card products that we offer to consumer, small business and corporate customers result in the generation of Card balances. 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 balances and Other loans as of June 30, 2026 and December 31, 2025 consisted of:

Table 2.1: Card Balances and Other Loans

(Millions)						2026						2025
Consumer (a)						$	144,974					$	144,324
Small Business						56,172						53,632
Corporate (a)						16,908						15,907
Card balances						218,054						213,863
Less: Reserves for credit losses						5,866						6,089
Card balances, net						$	212,188					$	207,774
Other loans, net (b)						$	11,115					$	10,605

(a)Includes approximately $32.2 billion and $33.4 billion of gross Card balances available to settle obligations of a consolidated variable interest entity (VIE) as of June 30, 2026 and December 31, 2025, respectively.

(b)Other loans are presented net of reserves for credit losses of $312 million and $323 million as of June 30, 2026 and December 31, 2025, respectively.

Card Balances 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 table presents the aging of Card balances as of June 30, 2026 and December 31, 2025:

Table 2.2: Card Balances Aging

(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 (a)						Non-Accruals(b)
2026
Consumer						$	143,348					$	480					$	355					$	791					$	144,974					$	436					$	390
Small Business						55,442						229						160						340						56,172						136						165
Corporate (c)						(d)						(d)						(d)						66						16,908						—						—
2025
Consumer						142,552						529						392						851						144,324						434						471
Small Business						$	52,870					$	255					$	168					340						53,632						130						177
Corporate (c)						(d)						(d)						(d)						$	75					$	15,907					$	—					$	—

(a)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.

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

(c)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 balances are classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (d).

(d)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.

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 six months ended June 30, 2026, and as of or for the twelve months ended December 31, 2025:

Table 2.3: Other Loans Aging and Gross Write-Offs by Origination Year

2026 (Millions)						2026						2025						2024						2023						2022						Prior						Revolving Loans (a)						Total
Current						$	3,391					$	3,652					$	1,335					$	226					$	26					$	54					$	2,684					$	11,369
30-59 Days Past Due						1						7						4						1						—						1						7						21
60-89 Days Past Due						1						6						4						1						—						—						7						20
90+ Days Past Due (b)						—						5						4						1						—						1						6						18
Total (c)						$	3,394					$	3,670					$	1,348					$	230					$	26					$	55					$	2,704					$	11,428
Gross Write-Offs						$	1					$	39					$	36					$	12					$	1					$	—					$	51					$	141
2025 (Millions)						2025						2024						2023						2022						2021						Prior						Revolving Loans (a)						Total
Current						$	5,532					$	2,172					$	494					$	45					$	6					$	54					$	2,564					$	10,867
30-59 Days Past Due						6						7						2						—						—						1						8						25
60-89 Days Past Due						4						5						2						—						—						—						8						19
90+ Days Past Due (b)						3						5						2						—						—						1						6						17
Total (c)						$	5,545					$	2,188					$	500					$	46					$	6					$	56					$	2,587					$	10,928
Gross Write-Offs						$	15					$	77					$	47					$	13					$	1					$	—					$	88					$	242

(a)Revolving loans consist primarily of lines of credit offered to small business customers. Revolving loans include $5 million of term loans that were converted from revolving loans.

(b)Over 90 days past due includes $7 million as of both June 30, 2026 and December 31, 2025, 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 $18 million and $16 million as of June 30, 2026 and December 31, 2025, respectively. Non-accruals for consumer installment loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.

Credit Quality Indicators for Card Balances and Other Loans

The following table presents the key credit quality indicators as of or for the six months ended June 30, 2026 and 2025:

Table 2.4: Credit Quality Indicators for Card Balances and Other Loans

						2026																		2025
			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 balances:
Consumer						1.9		%				2.3		%				1.1		%				2.0		%				2.4		%				1.2		%
Small Business						2.3		%				2.6		%				1.3		%				2.3		%				2.6		%				1.4		%
Corporate						(b)						0.6		%				(c)						(b)						0.5		%				(c)
Other loans						2.1		%				2.2		%				0.5		%				2.1		%				2.2		%				0.6		%

(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 Card balances, 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 percent of total was 0.4 percent as of both June 30, 2026 and 2025.

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)

Card Balances and Other Loans Restructurings for Borrowers Experiencing Financial Difficulty

We evaluate all Card balances and Other loans 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 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 customers and recover our existing investments.

We offer several types of modification programs to customers experiencing financial difficulty, with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief.

Such modifications primarily include (i) temporary interest rate reductions (reducing interest rates to as low as zero percent, in which case the balance 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 June 30, 2026 and 2025, we had $40 million and $38 million, respectively, of unused credit available to customers with Card balances modified during each of the respective six month periods. In accordance with the modification agreement with the customer, Card balances and Other loans 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.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables provide information relating to Card balances and Other loans modifications for borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 and 2025:

Table 2.5: Card Balances and Other Loans Modifications for Borrowers Experiencing Financial Difficulty

						Three Months Ended June 30,
						2026																								2025
						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 balances
Consumer						$	545					0.5		%				18.1		%				(b)						$	520					0.5		%				18.3		%				(b)
Small Business						229						0.6		%				18.1		%				(b)						205						0.6		%				17.7		%				(b)
Corporate						—						—						—						(b)						—						—						—						(b)
Term Extension
Card balances
Consumer						80						0.3		%				(b)						30						69						0.3		%				(b)						31
Small Business						106						0.5		%				(b)						30						114						0.6		%				(b)						30
Corporate						12						0.1		%				(b)						10						12						0.1		%				(b)						10
Other loans						12						0.1		%				—						18						9						0.1		%				—						17
Interest Rate Reduction and Term Extension
Other loans						21						0.2		%				3.8		%				21						17						0.2		%				3.3		%				21
Total						$	1,005																							$	946
						Six Months Ended June 30,
						2026																								2025
						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 balances
Consumer						$	1,088					0.9		%				18.1		%				(b)						$	1,005					0.9		%				18.3		%				(b)
Small Business						472						1.3		%				18.1		%				(b)						409						1.2		%				17.7		%				(b)
Corporate						—						—						—						(b)						—						—						—						(b)
Term Extension
Card balances
Consumer						135						0.5		%				(b)						31						130						0.5		%				(b)						31
Small Business						220						1.1		%				(b)						31						225						1.2		%				(b)						30
Corporate						18						0.1		%				(b)						10						16						0.1		%				(b)						10
Other Loans						23						0.2		%				—						18						20						0.2		%				—						17
Interest Rate Reduction and Term Extension
Other Loans						41						0.4		%				3.8		%				21						32						0.3		%				3.2		%				21
Total						$	1,998																							$	1,837

(a)Represents the outstanding balances as of June 30, 2026 and 2025, respectively, of all modifications undertaken in the current and preceding three and six months for balances that remain in modification programs as of, or that defaulted on or before, June 30, 2026 and 2025, respectively. The outstanding balances include principal, fees, and, where applicable, accrued interest. Modifications did not reduce the principal balance.

(b)For qualifying Card Member accounts, we offer either interest rate reductions or payment term extensions.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables provide information with respect to modified Card balances and Other loans that defaulted during the three and six months ended June 30, 2026 and 2025, 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 2.6: Modified Card Balances and Other Loans that Defaulted within Twelve Months of Modification

						Three Months Ended June 30,
						2026																								2025
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 balances
Consumer						$	42					$	4					$	—					$	46					$	45					$	5					$	—					$	50
Small Business						22						9						—						31						21						9						—						30
Corporate						—						1						—						1						—						1						—						1
Other loans						—						—						2						2						—						—						2						2
Total						$	64					$	14					$	2					$	80					$	66					$	15					$	2					$	83
						Six Months Ended June 30,
						2026																								2025
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 balances
Consumer						$	58					$	5					$	—					$	63					$	62					$	6					$	—					$	68
Small Business						30						12						—						42						29						14						—						43
Corporate						—						1						—						1						—						1						—						1
Other Loans						—						—						2						2						—						—						2						2
Total						$	89					$	18					$	2					$	109					$	91					$	21					$	2					$	114

(a)Represents the outstanding balances as of June 30, 2026 and 2025, 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, where applicable, accrued interest.

The following tables provide information relating to the performance of Card balances and Other loans that were modified during the prior twelve months and that remain in modification programs as of, or that defaulted on or before, June 30, 2026 and 2025:

Table 2.7: Performance of Modified Card Balances and Other Loans

						As of June 30, 2026
Account Balances (Millions) (a)						Current						30-89 Days Past Due						90+ Days Past Due
Card balances
Consumer						$	1,971					$	111					$	47
Small Business						1,023						83						32
Corporate						17						3						1
Other loans						95						5						2
Total						$	3,105					$	201					$	82

						As of June 30, 2025
Account Balances (Millions) (a)						Current						30-89 Days Past Due						90+ Days Past Due
Card balances
Consumer						$	1,810					$	113					$	45
Small Business						939						84						32
Corporate						12						3						3
Other loans						78						5						2
Total						$	2,839					$	205					$	82

(a)The outstanding balances include principal, fees and where applicable, accrued interest.

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 portfolios of Card balances 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 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 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 balances 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. We also assess the need to establish a reserve for expected credit losses as it relates to our card network business, taking into account our historical loss experience and any collateral or other forms of credit enhancements from network participants. If our expected credit losses exceed our outstanding receivables from network participants, a portion of the reserve for credit losses is recorded within Other liabilities on our Consolidated Balance Sheets.

Card balances and Other loans 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 balances 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 June 30, 2026 and December 31, 2025, 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)
						June 30, 2026						December 31, 2025						June 30, 2026						December 31, 2025
Second quarter of 2026						4% - 6%						4% - 7%						5% - (3)%						3% - (3)%
Fourth quarter of 2026						4% - 8%						4% - 8%						3% - (4)%						3% - 0.5%
Fourth quarter of 2027						4% - 8%						4% - 8%						3% - 2%						2%
Fourth quarter of 2028						4% - 7%						4% - 6%						3% - 2%						4% - 2%

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

Changes in Card Balances Reserve for Credit Losses

Card balances reserve for credit losses decreased for both the three and six months ended June 30, 2026, primarily driven by lower delinquencies, partially offset by sequential increases in Card balances.

Card balances reserve for credit losses increased for both the three and six months ended June 30, 2025, primarily driven by sequential increases in Card balances and reflected the macroeconomic outlook, partially offset by the release of a reserve upon the reclassification of a small business cobrand portfolio to Card balances held for sale (HFS).

The following table presents changes in the Card balances reserve for credit losses for the three and six months ended June 30, 2026 and 2025:

Table 3.2: Changes in Card Balances Reserve for Credit Losses

						Three Months Ended June 30,												Six Months Ended June 30,
(Millions)						2026						2025						2026						2025
Beginning reserves						$	6,065					$	5,740					$	6,089					$	5,850
Provisions (a)						1,017						1,320						2,204						2,367
Net write-offs (b)						(1,207)						(1,122)						(2,420)						(2,287)
Other (c)						(9)						22						(8)						30
Ending reserves						$	5,866					$	5,960					$	5,866					$	5,960

(a)Provisions for principal, interest 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 $416 million and $316 million for the three months ended June 30, 2026 and 2025, respectively, and $768 million and $609 million for the six months ended June 30, 2026 and 2025, respectively.

(c)Primarily includes foreign currency translation adjustments.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Changes in Other Loans Reserve for Credit Losses

Other loans reserve for credit losses was relatively flat for both the three and six months ended June 30, 2026.

Other loans reserve for credit losses increased for both the three and six months ended June 30, 2025, primarily driven by sequential increases in Other loans.

The following table presents changes in the Other loans reserve for credit losses for the three and six months ended June 30, 2026 and 2025:

Table 3.3: Changes in Other Loans Reserve for Credit Losses

						Three Months Ended June 30,												Six Months Ended June 30,
(Millions)						2026						2025						2026						2025
Beginning reserves						$	314					$	244					$	323					$	194
Provisions (a)						62						78						111						183
Net write-offs (b)
Principal						(61)						(48)						(115)						(101)
Interest and fees						(3)						(3)						(6)						(5)
Other						—						1						—						1
Ending reserves						$	312					$	272					$	312					$	272

(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 $11 million and $8 million for the three months ended June 30, 2026 and 2025, respectively, and $20 million and $15 million for the six months ended June 30, 2026 and 2025, 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 $27 million and $3 million as of June 30, 2026 and December 31, 2025, respectively, 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 June 30, 2026 and December 31, 2025:

Table 4.1: Investment Securities

						2026																								2025
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						$	53					$	1					$	(7)					$	47					$	54					$	1					$	(7)					$	48
U.S. Government agency obligations						3						—						—						3						3						—						—						3
U.S. Government treasury obligations						3,120						—						(21)						3,099						138						1						—						138
Mortgage-backed securities (a)						9						—						—						9						10						—						—						9
Foreign government bonds and obligations						790						1						—						791						717						—						—						717
Other (b)						81						—						—						81						81						—						—						81
Equity securities (c)						53						—						(9)						45						54						—						(8)						46
Total						$	4,110					$	2					$	(38)					$	4,073					$	1,056					$	2					$	(16)					$	1,043

(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 June 30, 2026 and December 31, 2025:

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

						2026																								2025
						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						$	—					$	—					$	25					$	(7)					$	—					$	—					$	26					$	(7)
U.S. Government treasury obligations						2,533						(21)						—						—						—						—						—						—
Total						$	2,533					$	(21)					$	25					$	(7)					$	—					$	—					$	26					$	(7)

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.

Contractual maturities for AFS debt securities with stated maturities as of June 30, 2026 were as follows:

Table 4.3: Contractual Maturities of AFS Debt Securities

(Millions)						Cost						Estimated Fair Value
Due in 1 year or less						$	874					$	874
Due after 1 year through 5 years						3,133						3,113
Due after 5 years through 10 years						7						7
Due after 10 years						43						35
Total						$	4,056					$	4,029

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 balances 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 balances. 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 balances. 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 $14.9 billion as of both June 30, 2026 and December 31, 2025, and in the Charge Trust was $5.8 billion and $5.7 billion as of June 30, 2026 and December 31, 2025, 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 $78 million and $84 million as of June 30, 2026 and December 31, 2025, respectively, and by the Charge Trust was nil as of both June 30, 2026 and December 31, 2025. These amounts relate to collections of Card balances to be used by the Trusts to fund future expenses and obligations, including interest on debt securities, credit losses and upcoming debt maturities.

Under the respective terms of the Lending Trust and the Charge Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve funds, or, in a worst-case scenario, early amortization of debt securities. During the six months ended June 30, 2026 and the year ended December 31, 2025, no such triggering events occurred.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6. Customer Deposits

As of June 30, 2026 and December 31, 2025, 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)						2026						2025
U.S.:
Interest-bearing						$	155,845					$	151,425
Non-interest-bearing (includes Card Member credit balances of: 2026, $507; 2025, $556)						549						606
Non-U.S.:
Interest-bearing						18						18
Non-interest-bearing (includes Card Member credit balances of: 2026, $558; 2025, $436)						560						439
Total customer deposits						$	156,973					$	152,488

Customer deposits by deposit type as of June 30, 2026 and December 31, 2025 were as follows:

Table 6.2: Customer Deposits by Type

(Millions)						2026						2025
U.S. interest-bearing deposits:
Savings accounts						$	120,356					$	116,867
Checking accounts						3,498						2,965
Certificates of deposit:
Direct						8,411						5,979
Third-party (brokered)						9,287						9,919
Sweep accounts – Third-party (brokered)						14,293						15,696
Total U.S. interest-bearing deposits						$	155,845					$	151,425
Other deposits						64						71
Card Member credit balances						1,064						992
Total customer deposits						$	156,973					$	152,488

The scheduled maturities of certificates of deposit as of June 30, 2026 were as follows:

Table 6.3: Scheduled Maturities of Certificates of Deposit

(Millions)						2026						2027						2028						2029						2030						Thereafter						Total
Certificates of deposit (a)						$	3,683					$	8,577					$	2,891					$	672					$	1,880					$	8					$	17,711

(a)Includes $12 million of non-U.S. direct certificates of deposit as of June 30, 2026.

As of June 30, 2026 and December 31, 2025, certificates of deposit in denominations that met or exceeded the insured limit were $2.8 billion and $2.0 billion, respectively.

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. The court rejected our motion to compel the case to arbitration; we have appealed the decision to the Court of Appeals for the First Circuit.

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. The court rejected our motion to compel the case to arbitration; we have appealed the decision to the Court of Appeals for the First Circuit.

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 David Moskowitz, et al. (formerly Oliver) 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. After trial in August 2025, the jury returned a verdict finding in favor of us on all claims except an Illinois consumer law claim for the class of non-rewards credit card holders in Illinois for which the jury awarded $12.5 million in damages. We reached an agreement with the class representatives to settle all claims in this action, which was approved by the court on July 7, 2026.

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 Court of Appeals for the Second Circuit requesting a stay of all claims against us that are subject to arbitration. On March 31, 2025, we reached an agreement with the class representatives to settle this action, which was approved by the court on April 27, 2026.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

On October 16, 2025, KServicing Wind Down Corp., the post-bankruptcy wind-down estate of Kabbage, Inc. (Kabbage), filed an action against American Express Kabbage Inc. and American Express Travel Related Services Company, Inc., captioned KServicing Wind Down Corp, et al. v. American Express Kabbage Inc. (f/k/a Alpha Kabbage, Inc.) and American Express Travel Related Services Company, Inc., in the United States Bankruptcy Court for the District of Delaware, seeking to recover up to approximately $746 million. The complaint alleges that our acquisition of Kabbage’s lending platform and other specified assets and liabilities included a fraudulent transfer that left Kabbage insolvent due to Kabbage’s liabilities, including those owed to the Department of Justice and Small Business Administration arising from Kabbage’s participation in the Paycheck Protection Program. The complaint seeks to avoid the alleged fraudulent transfer and recover the value of that transfer from us. A separate complaint seeking to recover some or all of the same amount was also filed on October 16, 2025 against certain of Kabbage’s former directors, officers and shareholders, who have taken the position that we must indemnify them for any resulting liability (which we dispute).

On May 15, 2026, a putative class action, captioned Rivetti v. American Express Company, et al., was filed in the United States District Court for the Southern District of New York against us and certain fiduciaries of American Express Retirement Savings Plan (Plan) alleging violations of the Employee Retirement Income Security Act of 1974 (ERISA). The complaint alleges that the defendants violated certain ERISA obligations by: allowing the investment of Plan assets in certain funds that underperformed benchmarks and comparator funds; selecting and retaining an investment manager that also had business relationships with us; and breaching certain fiduciary obligations. The suit seeks, among other remedies, an unspecified amount of damages. We intend to vigorously defend against these claims.

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.

We have been engaging with regulators in relation to certain aspects of our anti-money laundering programs and as a result, we expect to be subject to enforcement action, which could include civil money penalties and lead to further regulatory inquiries. We are cooperating with ongoing reviews and have continued to make enhancements to our existing programs, policies and procedures and to identify and remediate deficiencies.

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 $260 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 June 30, 2026 and December 31, 2025 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 June 30, 2026, these derivatives were not in a material net liability position. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of June 30, 2026 and December 31, 2025, 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 June 30, 2026 and December 31, 2025:

Table 8.1: Fair Value of Derivative Assets and Liabilities

						Other Assets Fair Value												Other Liabilities Fair Value
(Millions)						2026						2025						2026						2025
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)						$	—					$	—					$	—					$	4
Net investment hedges - Foreign exchange contracts						287						26						52						699
Total derivatives designated as hedging instruments						287						26						52						702
Derivatives not designated as hedging instruments:
Foreign exchange contracts and other						545						148						120						418
Total derivatives, gross						832						174						172						1,120
Derivative asset and derivative liability netting (b)						(130)						(151)						(130)						(151)
Cash collateral netting (c)						(28)						(1)						—						(9)
Total derivatives, net						$	674					$	22					$	43					$	961

(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 $753 million and $756 million as of June 30, 2026 and December 31, 2025, 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 $39.2 billion and $36.7 billion of fixed-rate debt obligations designated in fair value hedging relationships as of June 30, 2026 and December 31, 2025, 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 and six months ended June 30, 2026 and 2025:

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

						Gains (losses)
						Three Months Ended June 30,												Six Months Ended June 30,
(Millions)						2026						2025						2026						2025
Fixed-rate long-term debt						$	370					$	(137)					$	592					$	(400)
Derivatives designated as hedging instruments						(370)						137						(592)						400
Total						$	—					$	—					$	—					$	—

The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $38.8 billion and $37.0 billion as of June 30, 2026 and December 31, 2025, respectively, including the cumulative fair value hedging adjustments of gains of $226 million and losses of $366 million for the respective periods.

We recognized in Interest expense on Long-term debt a decrease of $15 million and an increase of $29 million for the three months ended June 30, 2026 and 2025, respectively, and a decrease of $31 million and an increase of $41 million for the six months ended June 30, 2026 and 2025, respectively, primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges.

Net Investment Hedges

A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. We primarily designate foreign currency derivatives (typically foreign exchange forwards) and, in certain cases, foreign currency-denominated debt, as hedging instruments to reduce our exposure to changes in currency exchange rates on net investments in foreign subsidiaries with non-U.S. dollar functional currency.

We had notional amounts of approximately $17.6 billion and $16.3 billion designated as net investment hedges as of June 30, 2026 and December 31, 2025, respectively. The gain or loss on these net investment hedges, net of taxes, recorded in Accumulated other comprehensive income (loss) (AOCI) as part of the cumulative translation adjustment, was a gain of $47 million and a loss of $551 million for the three months ended June 30, 2026 and 2025, respectively, and a gain of $52 million and a loss of $749 million for the six months ended June 30, 2026 and 2025, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income were not significant for any of the three and six months ended June 30, 2026 and 2025.

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 $35.2 billion and $39.0 billion as of June 30, 2026 and December 31, 2025, respectively. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in net gains of $26 million and $4 million for the three months ended June 30, 2026 and 2025, respectively, and net gains of $42 million and $19 million for the six months ended June 30, 2026 and 2025, 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 (C Ordinary Shares of GBT JerseyCo Limited) had a notional amount of $78 million as of both June 30, 2026 and December 31, 2025. The changes in the fair value of the embedded derivative resulted in losses of $1 million and $7 million for the three months ended June 30, 2026 and 2025, respectively, and losses of $10 million and $24 million for the six months ended June 30, 2026 and 2025, 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 June 30, 2026 and December 31, 2025:

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

						2026																								2025
(Millions)						Total						Level 1						Level 2						Level 3						Total						Level 1						Level 2						Level 3
Assets:
Investment securities: (a)
Equity securities						$	45					$	45					$	—					$	—					$	46					$	46					$	—					$	—
Debt securities						4,029						—						3,948						81						997						—						916						81
Derivatives, gross (a)(b)						832						—						832						—						174						—						164						10
Total Assets						4,905						45						4,780						81						1,216						46						1,080						91
Liabilities:
Derivatives, gross (a)						172						—						172						—						1,120						—						1,120						—
Total Liabilities						$	172					$	—					$	172					$	—					$	1,120					$	—					$	1,120					$	—

(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 June 30, 2026 and December 31, 2025. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of June 30, 2026 and December 31, 2025, 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
2026 (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)						$	45					$	45					$	44					$	1					$	—
Other financial assets (b)						4						4						—						4						—
Financial assets carried at other than fair value
Card balances and Other loans, less reserves (c)						223						228						—						—						228
Card balances HFS						2						2						—						—						2
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value						170						170						—						170						—
Financial liabilities carried at other than fair value
Certificates of deposit (d)						18						18						—						18						—
Long-term debt (c)						$	57					$	58					$	—					$	58					$	—

						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)						$	48					$	48					$	46					$	2					$	—
Other financial assets (b)						4						4						—						4						—
Financial assets carried at other than fair value
Card balances and Other loans, less reserves (c)						218						224						—						—						224
Card balances HFS						2						2						—						—						2
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value						166						166						—						166						—
Financial liabilities carried at other than fair value
Certificates of deposit (d)						16						16						—						16						—
Long-term debt (c)						$	56					$	57					$	—					$	57					$	—

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

(b)Includes other receivables and other miscellaneous assets.

(c)Includes amounts held by consolidated VIEs for which the fair values of Card balances were $32.0 billion and $33.2 billion as of June 30, 2026 and December 31, 2025, respectively, and the fair values of Long-term debt were $11.9 billion and $13.3 billion as of June 30, 2026 and December 31, 2025, 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. Equity investments without readily determinable fair values, which include investments in our Amex Ventures portfolio, are measured at fair value in periods subsequent to their initial recognition if they are determined to be impaired or where there is an observable price change for an identical or similar investment of the same issuer.

We generally estimate the fair value of these investments based on the observed transaction price. 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 these investments represents a Level 3 fair value measurement.

The carrying value of equity investments without readily determinable fair values totaled $1.4 billion and $1.1 billion as of June 30, 2026 and December 31, 2025, respectively, of which investments subject to nonrecurring Level 3 fair value measurement during the six months ended June 30, 2026 and the year ended December 31, 2025 totaled $0.8 billion and $0.5 billion, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets.

We recorded unrealized gains of $278 million and $91 million for the three months ended June 30, 2026 and 2025, respectively, and $300 million and $91 million for the six months ended June 30, 2026 and 2025, respectively. Unrealized losses were $3 million and nil for the three months ended June 30, 2026 and 2025, respectively, and $13 million and $38 million for the six months ended June 30, 2026 and 2025, respectively. Unrealized gains and losses are recorded in Other, net on the Consolidated Statements of Income. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains and losses for equity investments without readily determinable fair values totaled $1.5 billion and $0.5 billion as of June 30, 2026, respectively.

In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both June 30, 2026 and December 31, 2025.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

10. 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 and six months ended June 30, 2026 and 2025 were as follows:

Table 10.1: Changes in Accumulated Other Comprehensive Income (Loss)

(Millions), net of tax						Three Months Ended,
			June 30, 2026						Net Change						March 31, 2026						June 30, 2025						Net Change						March 31, 2025
Net unrealized gains (losses) on debt securities						$	(22)					$	(11)					$	(11)					$	(6)					$	—					$	(6)
Foreign currency translation adjustment gains (losses), net of hedges (a)						(2,842)						(37)						(2,805)						(2,792)						115						(2,907)
Net unrealized pension and other postretirement benefit gains (losses)						(491)						4						(495)						(450)						3						(453)
Accumulated other comprehensive income (loss)						$	(3,355)					$	(44)					$	(3,311)					$	(3,248)					$	118					$	(3,366)
(Millions), net of tax						Six Months Ended
			June 30, 2026						Net Change						December 31, 2025						June 30, 2025						Net Change						December 31, 2024
Net unrealized gains (losses) on debt securities						$	(22)					$	(18)					$	(4)					$	(6)					$	3					$	(9)
Foreign currency translation adjustment gains (losses), net of hedges (a)						(2,842)						(59)						(2,783)						(2,792)						132						(2,924)
Net unrealized pension and other postretirement benefit gains (losses)						(491)						(1)						(490)						(450)						12						(462)
Accumulated other comprehensive income (loss)						$	(3,355)					$	(78)					$	(3,277)					$	(3,248)					$	147					$	(3,395)

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

The following table shows the tax impact for the three and six months ended June 30, 2026 and 2025 for the changes in each component of AOCI presented above:

Table 10.2: Tax Impact for Changes in Accumulated Other Comprehensive Income (Loss)

						Tax expense (benefit)
						Three Months Ended June 30,												Six Months Ended June 30,
(Millions)						2026						2025						2026						2025
Net unrealized gains (losses) on debt securities						$	(3)					$	—					$	(4)					$	—
Foreign currency translation adjustment, net of hedges						9						(137)						—						(197)
Pension and other postretirement benefits						3						(6)						15						(7)
Total tax impact						$	9					$	(143)					$	11					$	(204)

Reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, for the three and six months ended June 30, 2026 and 2025 were not significant.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

11. Service Fees and Other Revenue and Other Expenses

The following is a detail of Service fees and other revenue for the three and six months ended June 30, 2026 and 2025:

Table 11.1: Components of Service Fees and Other Revenue

						Three Months Ended June 30,												Six Months Ended June 30,
(Millions)						2026						2025						2026						2025
Foreign currency-related revenue						$	486					$	435					$	966					$	817
Network partnership revenue						480						438						929						846
Loyalty coalition, merchant and other service fees						448						407						912						843
Delinquency fees						249						238						504						475
Travel commissions and fees						176						148						326						284
Other fees and revenues						124						162						277						285
Total Service fees and other revenue						$	1,963					$	1,828					$	3,914					$	3,550

The following is a detail of Other expenses for the three and six months ended June 30, 2026 and 2025:

Table 11.2: Components of Other Expense

						Three Months Ended June 30,												Six Months Ended June 30,
(Millions)						2026						2025						2026						2025
Data processing and equipment						$	817					$	720					$	1,584					$	1,425
Professional services						622						591						1,167						1,132
Other						294						375						440						775
Total Other expenses						$	1,733					$	1,686					$	3,191					$	3,332

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

12. Income Taxes

The effective tax rate was 23.6 percent and 18.7 percent for the three months ended June 30, 2026 and 2025, respectively, and 22.5 percent and 20.5 percent for the six months ended June 30, 2026 and 2025, respectively. The higher effective tax rates for the three and six month periods primarily reflected discrete tax benefits in the prior periods related to the resolution of certain prior-year tax items.

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

In December 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.

Tax Credit Investments

As of June 30, 2026 and 2025, we had $1,834 million and $1,697 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 and six months ended June 30, 2026 and 2025:

Table 12.1: Tax Credit Investments Expenses and Credits

						Three Months Ended June 30,												Six Months Ended June 30,
(Millions)						2026						2025						2026						2025
Proportional amortization recognized in tax provision						$	(65)					$	(58)					$	(131)					$	(115)
Income tax credits and Other income tax benefits (a) recognized in tax provision						87						73						163						139

(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 2025 Form 10-K for additional information on our tax credit investments for the year ended December 31, 2025.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

13. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS for the three and six months ended June 30, 2026 and 2025 were as follows:

Table 13.1: Computation of Basic and Diluted Earnings per Share

						Three Months Ended June 30,												Six Months Ended June 30,
(Millions, except per share amounts)						2026						2025						2026						2025
Numerator:
Basic and diluted:
Net income						$	3,110					$	2,885					$	6,082					$	5,469
Preferred dividends						(15)						(15)						(29)						(29)
Net income available to common shareholders						$	3,096					$	2,870					$	6,053					$	5,440
Earnings allocated to participating share awards (a)						(20)						(18)						(39)						(36)
Net income attributable to common shareholders						$	3,076					$	2,852					$	6,014					$	5,404
Denominator: (a)
Basic: Weighted-average common shares						678						698						681						700
Add: Weighted-average stock options (b)						1						1						1						1
Diluted						679						699						682						701
Basic EPS						$	4.54					$	4.08					$	8.83					$	7.73
Diluted EPS						$	4.53					$	4.08					$	8.81					$	7.71

(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 nil and 0.2 million of options for the three months ended June 30, 2026 and 2025, respectively, and nil and 0.1 million of options for the six months ended June 30, 2026 and 2025, respectively, because inclusion of the options would have been anti-dilutive.

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

14. 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 and six months ended June 30:

Table 14.1: Selected Financial Information by Segment

Three Months Ended June 30, 2026 (Millions)						USCS						CS						ICS						GMNS						Total Reportable Operating Segments						Corporate & Other (a)						Consolidated
Total non-interest revenues						$	6,229					$	3,591					$	3,261					$	1,919					$	15,000					$	(11)					$	14,988
Revenue from contracts with customers (b)						4,346						3,097						2,051						1,728						11,222						(10)						11,212
Interest income						4,052						1,343						733						8						6,136						471						6,607
Interest expense						757						432						375						(169)						1,395						564						1,958
Net interest income						3,295						912						358						178						4,743						(93)						4,649
Total revenues net of interest expense						9,524						4,503						3,619						2,096						19,742						(104)						19,637
Provisions for credit losses						498						353						223						10						1,084						—						1,084
Total revenues net of interest expense after provisions for credit losses						9,025						4,149						3,396						2,086						18,656						(104)						18,553
Expenses
Card Member rewards, business development and Card Member services (c)						4,745						1,994						1,683						328						8,750						5						8,755
Marketing						813						379						352						100						1,644						7						1,650
Salaries and employee benefits and other operating expenses						1,403						806						884						530						3,623						453						4,077
Total expenses						6,961						3,179						2,919						958						14,017						465						14,482
Pretax income (loss)						$	2,065					$	970					$	477					$	1,128					$	4,640					$	(569)					$	4,071
Total assets						$	123,404					$	65,567					$	52,291					$	19,401					$	260,663					$	47,540					$	308,203
Six Months Ended June 30, 2026 (Millions)						USCS						CS						ICS						GMNS						Total Reportable Operating Segments						Corporate & Other (a)						Consolidated
Total non-interest revenues						$	12,031					$	6,999					$	6,425					$	3,743					$	29,198					$	4					$	29,203
Revenue from contracts with customers (b)						8,334						6,028						4,028						3,359						21,749						(20)						21,729
Interest income						8,124						2,688						1,461						18						12,291						981						13,272
Interest expense						1,508						864						735						(339)						2,768						1,162						3,931
Net interest income						6,616						1,824						725						357						9,522						(181)						9,341
Total revenues net of interest expense						18,647						8,823						7,150						4,100						38,720						(177)						38,544
Provisions for credit losses						1,129						733						460						14						2,336						—						2,336
Total revenues net of interest expense after provisions for credit losses						17,518						8,091						6,690						4,086						36,385						(177)						36,208
Expenses
Card Member rewards, business development and Card Member services (c)						9,350						3,980						3,234						634						17,198						14						17,212
Marketing						1,577						690						684						165						3,116						14						3,130
Salaries and employee benefits and other operating expenses						2,770						1,635						1,514						1,044						6,963						1,055						8,017
Total expenses						13,697						6,305						5,432						1,843						27,277						1,083						28,359
Pretax income (loss)						$	3,821					$	1,786					$	1,258					$	2,243					$	9,108					$	(1,260)					$	7,849

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Three Months Ended June 30, 2025 (Millions)						USCS						CS						ICS						GMNS						Total Reportable Operating Segments						Corporate & Other (a)						Consolidated
Total non-interest revenues						$	5,540					$	3,422					$	2,947					$	1,758					$	13,667					$	2					$	13,669
Revenue from contracts with customers (b)						3,903						2,975						1,876						1,574						10,328						(7)						10,321
Interest income						3,795						1,240						620						10						5,665						599						6,264
Interest expense						782						450						335						(165)						1,402						675						2,077
Net interest income						3,013						790						285						175						4,263						(76)						4,187
Total revenues net of interest expense						8,553						4,212						3,232						1,933						17,930						(74)						17,856
Provisions for credit losses						829						360						210						5						1,404						1						1,405
Total revenues net of interest expense after provisions for credit losses						7,724						3,852						3,022						1,928						16,526						(75)						16,451
Expenses
Card Member rewards, business development and Card Member services (c)						3,967						1,790						1,452						288						7,497						11						7,508
Marketing						800						331						322						96						1,549						6						1,555
Salaries and employee benefits and other operating expenses						1,281						826						783						490						3,380						458						3,838
Total expenses						6,048						2,947						2,557						874						12,426						475						12,901
Pretax income (loss)						$	1,676					$	905					$	465					$	1,054					$	4,100					$	(550)					$	3,550
Total assets						$	113,876					$	62,152					$	46,500					$	18,324					$	240,852					$	54,704					$	295,556
Six Months Ended June 30, 2025 (Millions)						USCS						CS						ICS						GMNS						Total Reportable Operating Segments						Corporate & Other (a)						Consolidated
Total non-interest revenues						$	10,783					$	6,687					$	5,593					$	3,418					$	26,481					$	(14)					$	26,467
Revenue from contracts with customers (b)						7,537						5,803						3,564						3,059						19,963						(16)						19,947
Interest income						7,558						2,442						1,216						22						11,238						1,161						12,399
Interest expense						1,539						882						641						(308)						2,754						1,289						4,043
Net interest income						6,019						1,560						575						330						8,484						(128)						8,356
Total revenues net of interest expense						16,802						8,247						6,168						3,748						34,965						(142)						34,823
Provisions for credit losses						1,460						689						402						3						2,554						1						2,555
Total revenues net of interest expense after provisions for credit losses						15,342						7,558						5,766						3,745						32,411						(143)						32,268
Expenses
Card Member rewards, business development and Card Member services (c)						7,849						3,536						2,764						571						14,720						23						14,743
Marketing						1,565						668						622						172						3,027						14						3,041
Salaries and employee benefits and other operating expenses						2,520						1,613						1,534						958						6,625						979						7,604
Total expenses						11,934						5,817						4,920						1,701						24,372						1,016						25,388
Pretax income (loss)						$	3,408					$	1,741					$	846					$	2,044					$	8,039					$	(1,159)					$	6,880

(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.