AMERICAN EXPRESS CO
For the period ended Mar 31, 2025. Filed Apr 18, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 18, 2025
AXP$320.99-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-18.
0000004962-24-000068
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)Current report: 10-Q
Period ended 2025-03-31; filed 2025-04-18.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 306 previous paragraphs and 315 current paragraphs.
158 unchanged; 97 reworded; 56 added; 49 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 22 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (56)
Current report
(c)Total loans reflects Card Member loans and Other loans.
Current report
While our results in the first quarter were strong, we recognize the uncertainty of the macroeconomic environment and we cannot predict what impacts the current uncertainty or any developments will have on the economy and our customers. We believe our differentiated business model, which includes our global premium customer base, spend- and fee-centric revenue mix and operating expense leverage, is resilient and positions us well to navigate a range of economic environments. We continue to manage the company for the long term, focusing on backing our customers and colleagues, exercising disciplined expense management and strategically investing in our business.
Current report
Beginning in the first quarter of 2025, we made a presentation change to our Consolidated Statements of Income to consolidate Processed revenue within Service fees and other revenue and renamed Processed revenue to Network partnership revenue. Prior period amounts have been recast to conform to the current period presentation; there was no impact to Total non-interest revenues. Refer to Note 12 to the “Consolidated Financial Statements” for additional information.
Current report
Interest expense decreased, primarily driven by lower interest rates paid on customer deposits, partially offset by growth in customer deposits and long-term debt.
Current report
Card Member loans provision for credit losses decreased, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Our reserves for the current period reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end. The reserve build in the prior period was primarily driven by an increase in loans outstanding and slightly higher delinquencies.
Current report
Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs and a higher reserve release in the current period. The reserve releases in both the current and prior periods were primarily driven by decreases in receivables outstanding.
Current report
Other provision for credit losses increased, primarily due to a higher reserve build in the current period and higher net write-offs. The reserve builds in both the current and prior periods primarily reflect increases in other loans outstanding as we continue to grow our Personal Loans and Business Line of Credit offerings.
Current report
Card Member rewards expense increased, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $488 million, and cobrand rewards expense of $116 million. The increase in Membership Rewards expense was primarily driven by a benefit in the prior year from enhancements to the models that estimate future redemptions of Membership Reward points by U.S. Card Members, as well as higher billed business and an increase in redemption costs reflecting a shift in the mix of Card Member redemptions. The increase in cobrand rewards expense was primarily driven by higher billed business.
Current report
Business development expense increased, primarily due to increased partner payments driven by higher network volumes and higher client incentives.
Current report
Marketing expense was relatively flat, reflecting consistent levels of spending on customer acquisition and other growth initiatives.
Current report
Other expenses increased, primarily driven by higher professional service costs, losses on Amex Ventures investments and higher data processing costs, partially offset by higher net foreign exchange-related gains.
Current report
The effective tax rate was 22.4 percent and 22.5 percent for the three months ended March 31, 2025 and 2024, respectively.
Current report
(d)For purposes of the calculation of net interest yield on Card Member loans, average loans includes loans held for sale (HFS) as we continue to recognize interest income on these loans until they are sold.
Current report
Non-interest revenues increased across all revenue categories, primarily driven by higher Net card fees and Discount revenue.
Current report
Net card fees increased 21 percent, primarily driven by growth in our premium card portfolios.
Current report
Service fees and other revenue increased 11 percent, primarily driven by a discrete revenue adjustment in the current period related to certain cash advance fees from prior years, partially offset by lower revenue from the sale of reward points.
Current report
Interest expense increased, primarily driven by a higher cost of funds due to segment net asset growth, largely offset by lower interest rates.
Current report
Card Member loans provision for credit losses decreased, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Our reserves for the current period reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end. The reserve build in the prior period was primarily driven by slightly higher delinquencies.
Current report
Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs. The reserve releases in both the current and prior periods were primarily driven by decreases in receivables outstanding.
Current report
Other provision for credit losses increased, primarily due to a higher reserve build in the current period and higher net write-offs. The reserve builds in both the current and prior periods primarily reflect increases in other loans outstanding as we continue to grow our Personal Loans offerings.
Current report
Total expenses increased across all expense categories, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.
Current report
Card Member rewards expense increased, primarily driven by the above-mentioned benefit from enhancements to the U.S. URR models made in the prior year, as well as higher billed business and an increase in redemption costs reflecting a shift in the mix of Card Member redemptions.
Current report
Business development expense increased, primarily due to increased partner payments driven by higher billed business.
Current report
Marketing expense increased, reflecting higher levels of spending on customer acquisitions and other growth initiatives.
Current report
Non-interest revenues increased, primarily driven by higher Discount revenue and Net card fees.
Current report
Net card fees increased 13 percent, primarily driven by growth in our premium card portfolios.
Current report
Service fees and other revenue decreased 6 percent, primarily driven by lower travel commissions and fees from our Amex Travel business.
Current report
Interest expense increased, primarily driven by a higher cost of funds due to segment net asset growth, partially offset by lower interest rates.
Current report
Card Member loans provision for credit losses decreased, primarily due to a lower reserve build in the current period, partially offset by higher net write-offs. The reserve build in the current period was primarily driven by an increase in loans outstanding. The reserve build in the prior period was primarily driven by higher delinquencies and an increase in loans outstanding.
Current report
Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs and a higher reserve release in the current period. The reserve releases in both the current and prior periods reflected the quality of our receivables portfolio.
Current report
Other provision for credit losses increased, primarily due to a higher reserve build in the current period and higher net write-offs. The reserve builds in both the current and prior periods primarily reflect increases in other loans outstanding as we continue to grow our Business Line of Credit offerings.
Current report
Total expenses increased, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.
Current report
Card Member rewards expense increased, primarily driven by the above-mentioned benefit from enhancements to the U.S. URR models made in the prior year, as well as higher redemption costs reflecting a shift in the mix of Card Member redemptions.
Current report
Business development expense increased, primarily due to higher client incentives and increased partner payments driven by higher billed business.
Current report
Marketing expense increased, reflecting higher levels of spending on customer acquisitions and other growth initiatives.
Current report
Salaries and employee benefits and other expenses increased, primarily due to higher compensation costs and an increase in allocated service costs.
Current report
(e)Refer to Table 8 footnote (d).
Current report
Non-interest revenues increased across all revenue categories, primarily driven by higher Discount revenue and Net card fees.
Current report
Interest expense was relatively flat, reflecting a stable cost of funds due to lower interest rates, largely offset by segment net asset growth.
Current report
Card Member loans provision for credit losses increased, primarily due to a reserve build in the current period, versus a reserve release in the prior period, partially offset by lower net write-offs. The reserve build in the current period was primarily driven by an increase in loans outstanding and higher delinquencies. The reserve release in the prior period was driven by the performance of portfolios in certain international markets.
Showing the first 40 of 56 passages. Open the source sections for the rest.
Removed paragraphs (49)
Previous report
We became a Category III bank holding company in the third quarter of 2024 as a result of our total consolidated assets exceeding $250 billion, calculated based on a daily average of total consolidated assets for the four quarters ended June 30, 2024, and thus are subject to heightened capital, liquidity and prudential requirements, which in some cases phase in over applicable transition periods. See “Certain Legislative, Regulatory and Other Developments” for further information.
Previous report
Our performance continues to give us confidence in our business model and while we recognize the uncertainty of the geopolitical and macroeconomic environment and the evolving regulatory and competitive landscape, we remain committed to executing on our strategy to deliver sustainable and profitable long-term growth.
Previous report
Processed revenue decreased for both the three and nine month periods, and was relatively flat for both periods on an FX-adjusted basis.1 See Tables 5 and 6 for more details on processed volume performance.
Previous report
Interest expense increased for both the three and nine month periods, primarily driven by growth in customer deposits and long-term debt as well as higher interest rates.
Previous report
Card Member loans provision for credit losses increased for both the three and nine month periods, primarily due to higher net write-offs, partially offset by lower reserve builds in the current periods. The reserve builds in the current periods were primarily driven by increases in loans outstanding. The reserve builds in the prior periods were primarily driven by increases in loans outstanding and higher delinquencies.
Previous report
Card Member receivables provision for credit losses decreased for both the three and nine month periods, primarily due to lower net write-offs, partially offset by lower reserve releases in the current periods. The reserve releases in the current periods were primarily driven by decreases in receivables outstanding. The reserve releases in the prior periods were primarily driven by lower delinquencies.
Previous report
Other provision for credit losses increased for both the three and nine month periods, primarily due to higher net write-offs and, for the three month period, a higher reserve build in the current period. The reserve builds in the current periods were primarily driven by increases in non-card loans outstanding and, for the nine month period, a reserve related to amounts due from a merchant in bankruptcy. The reserve builds in the prior periods were primarily driven by increases in non-card loans outstanding.
Previous report
Card Member rewards expense increased for both the three and nine month periods, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $261 million and $281 million, and cobrand rewards expense of $112 million and $371 million for the three and nine month periods, respectively, all of which were primarily driven by higher billed business. The increase in Membership Rewards expense in the three month period was also driven by an increase in the Ultimate Redemption Rate (URR), partially offset in the nine month period by lower redemption costs.
Previous report
Business development expense increased for both the three and nine month periods, primarily due to increased partner payments driven by higher network volumes, partially offset by lower client incentives. The increase in the nine month period was also partially offset by a prior-year charge related to revenue allocated to a joint venture partner.
Previous report
Other expenses increased for the three month period and decreased for the nine month period. The increase in the three month period was primarily driven by an increase in legal reserves and higher professional service costs, partially offset by foreign exchange-related gains and the release of a reserve associated with a merchant exposure for Card Member purchases. The decrease in the nine month period was also driven by the gain recognized on the sale of Accertify and net gains on Amex Ventures investments.
Previous report
The effective tax rate was 21.8 percent and 20.9 percent for the three months ended September 30, 2024 and 2023, respectively, and 21.5 percent and 19.5 percent for the nine months ended September 30, 2024 and 2023, respectively. The higher effective tax rates for the three and nine month periods primarily reflected discrete tax benefits in the prior periods.
Previous report
Net card fees increased 19 percent and 17 percent for the three and nine month periods, respectively, primarily driven by growth in our premium card portfolios.
Previous report
Service fees and other revenue decreased 4 percent for the three month period and increased 6 percent for the nine month period. The decrease in the three month period was primarily driven by lower travel commissions and fees from our consumer travel business. The increase in the nine month period was primarily driven by revenue from the sale of reward points and higher delinquency fees.
Previous report
Card Member loans provision for credit losses increased for both the three and nine month periods, primarily due to higher net write-offs, partially offset by lower reserve builds in the current periods. The reserve builds in the current periods were primarily driven by increases in loans outstanding. The reserve builds in the prior periods were primarily driven by increases in loans outstanding and higher delinquencies.
Previous report
Card Member receivables provision for credit losses decreased for the three month period, primarily due to a reserve release in the current period, versus a reserve build in the prior period, and lower net-write offs. Card Member receivables provision for credit losses for the current nine month period remained consistent with the prior period, with net write-offs and a reserve release in the current period largely in line with the prior period. The reserve releases in the current periods were primarily driven by decreases in receivables outstanding and, for the nine month period, lower delinquencies. The reserve build in the prior three month period was primarily driven by higher delinquencies. The reserve release in the prior nine month period was primarily driven by lower delinquencies.
Previous report
Total expenses increased for both the three and nine month periods. The increase in the three month period was primarily driven by higher Card Member rewards, Marketing and Card Member services expenses. The increase in the nine month period was primarily driven by higher Card Member services, Card Member rewards and Business development expenses.
Previous report
Card Member rewards expense increased for both the three and nine month periods, primarily driven by higher billed business. The increase in the three month period was also driven by an increase in the Membership Rewards URR, partially offset in the nine month period by lower redemption costs.
Previous report
Business development expense increased for both the three and nine month periods, primarily due to increased partner payments driven by higher billed business.
Previous report
Net card fees increased 12 percent for both the three and nine month periods, primarily driven by growth in our premium card portfolios.
Previous report
Service fees and other revenue decreased 13 percent and 5 percent for the three and nine month periods, respectively, primarily driven by lower travel commissions and fees.
Previous report
Card Member loans provision for credit losses increased for both the three and nine month periods, primarily due to higher net write-offs, partially offset by lower reserve builds in the current periods. The reserve builds in the current periods were primarily driven by increases in loans outstanding. The reserve builds in the prior periods were primarily driven by increases in loans outstanding and higher delinquencies.
Previous report
Card Member receivables provision for credit losses for the current three month period remained relatively flat to the prior period, as lower net write-offs in the current period were largely offset by a reserve release in the prior period. Card Member receivables provision for credit losses decreased for the nine month period, primarily due to lower net write-offs, partially offset by a reserve release in the prior period. The reserve releases in the prior periods were driven by lower delinquencies and decreases in receivables outstanding.
Previous report
Total expenses increased for both the three and nine month periods. The increase in the three month period was primarily driven by Card Member rewards and Marketing expenses. The increase in the nine month period was primarily driven by Marketing and Card Member services expenses, partially offset by a decrease in Business development expense.
Previous report
Card Member rewards expense increased for the three month period and was relatively flat for the nine month period, primarily driven by higher billed business and an increase in the Membership Rewards URR, offset in the nine month period by a benefit from enhancements to the U.S. Membership Rewards URR model and lower redemption costs.
Previous report
Business development expense decreased for both the three and nine month periods, primarily due to lower client incentives, partially offset by increased partner payments due to higher billed business.
Previous report
Salaries and employee benefits and other expenses increased for the three month period and were relatively flat for the nine month period. The increase in the three month period was primarily driven by an increase in allocated service costs and higher compensation costs.
Previous report
Provisions for credit losses for both the three and nine month periods remained relatively flat to the prior year periods, as increases in Card Member loans provision for credit losses were offset by decreases in Card Member receivables provision for credit losses.
Previous report
Total expenses increased for both the three and nine month periods, primarily driven by higher Card Member rewards and Card Member services expenses.
Previous report
Card Member rewards expense increased for both the three and nine month periods, primarily driven by higher billed business, partially offset by lower redemption costs.
Previous report
Business development expense increased for the three month period and decreased for the nine month period. Both periods reflect increases in partner payments driven by higher billed business, which was partially offset in the three month period by lower client incentives and more than offset in the nine month period by a prior-year charge related to revenue allocated to a joint venture partner.
Previous report
Salaries and employee benefits and other expenses were relatively flat for both the three and nine month periods. Both periods reflect increases in allocated service costs, non-income tax reserves and higher data processing costs, offset by a one-time fee from a partner. The nine month period was also offset by a decrease in compensation costs.
Previous report
Processed revenue decreased 1 percent and 4 percent for the three and nine month periods, respectively, and increased 3 percent and 2 percent, respectively, on an FX-adjusted basis.3
Previous report
Other provision for credit losses increased for both the three and nine month periods, primarily due to higher reserve builds in the current periods driven by a reserve related to amounts due from a merchant in bankruptcy.
Previous report
Total expenses decreased for both the three and nine month periods. The decrease in the three month period was primarily driven by lower Business development expense, partially offset by higher Marketing expense. The decrease in the nine month period was primarily driven by lower Operating expenses.
Previous report
Salaries and employee benefits and other expenses decreased for both the three and nine month periods. The decrease in the three month period was primarily driven by the release of a reserve associated with a merchant exposure for Card Member purchases. The decrease in the nine month period was primarily driven by the gain recognized on the sale of Accertify included in the Other, net component of operating expenses. The decreases in both periods were partially offset by increases in allocated service costs and higher compensation costs.
Previous report
On July 27, 2023, the U.S. federal bank regulatory agencies issued a notice of proposed rulemaking that would significantly revise U.S. regulatory capital requirements for large banking organizations, including American Express Company and American Express National Bank (AENB). See the “Supervision and Regulation ― Capital and Liquidity Regulation” section of our Annual Report on Form 10-K for the year ended December 31, 2023 (the 2023 Form 10-K) for more information.
Previous report
We elected to delay the recognition of $0.7 billion of reduction in regulatory capital from the adoption of the CECL methodology for two years, followed by a three-year phase-in period at 25 percent once per year beginning January 1, 2022, pursuant to rules issued by federal banking regulators (the CECL final rules). As of January 1, 2024, we have phased in 75 percent of such amount.
Previous report
We participated in the Federal Reserve’s supervisory stress tests in 2024. We submitted our annual capital plan to the Federal Reserve in April 2024. On August 28, 2024, the Federal Reserve confirmed our SCB of 2.5 percent, which resulted in a minimum CET1 ratio of 7 percent, effective from October 1, 2024 to September 30, 2025.
Previous report
As discussed above, we became a Category III firm in the third quarter of 2024 and thus are subject to a CET1 countercyclical capital buffer requirement (if enacted by the Federal Reserve) and a minimum supplementary leverage ratio, among other requirements, subject to applicable transition periods. See the “Supervision and Regulation — Capital and Liquidity Regulation” section of the 2023 Form 10-K for more information.
Previous report
On August 29, 2023, the U.S. federal bank regulatory agencies issued a notice of proposed rulemaking that, if adopted as proposed, would require covered bank holding companies such as American Express Company to issue and maintain minimum amounts of eligible external long-term debt and certain insured depository institutions such as AENB to issue and maintain minimum amounts of eligible internal long-term debt. See the “Supervision and Regulation ― Capital and Liquidity Regulation” section of the 2023 Form 10-K for more information.
Showing the first 40 of 49 passages. Open the source sections for the rest.
Reworded paragraphs (97)
Previous wording
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. We are a leader in providing credit and charge cards to consumers, small businesses, mid-sized companies and large corporations around the world. Our range of products and services includes:
Current wording
American Express is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses that offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world.
Previous wording
•Merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services for merchants
Current wording
•Merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services
Previous wording
•Other fee services, such as the design and operation of customer loyalty programs
Current wording
•Other services, such as the design and operation of customer loyalty programs
Previous wording
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, direct mail, telephone, in-house sales teams, and direct response advertising.
Current wording
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.
Previous wording
We compete in the global payments industry with card networks, issuers and acquirers, paper-based transactions (e.g., cash and checks), bank transfer models (e.g., wire transfers and Automated Clearing House (ACH)), as well as evolving and growing alternative mechanisms, systems and products that leverage new technologies, business models and customer relationships to create payment, financing or banking solutions. The payments industry continues to undergo dynamic changes in response to evolving technologies, consumer habits and merchant needs.
Current wording
We compete in the global payments industry with networks, issuers, acquirers and other payment service providers and methods of payment, including paper-based transactions (e.g., cash and checks) and electronic transfers (e.g., wire transfers and Automated Clearing House (ACH)), as well as evolving and growing alternative mechanisms, systems and products that leverage new technologies, business models and customer relationships to create payment, financing or banking solutions. The payments industry continues to undergo dynamic changes in response to evolving technologies, consumer habits and merchant needs.
Previous wording
(a)Represents net income, less (i) earnings allocated to participating share awards of $18 million and $19 million for the three months ended September 30, 2024 and 2023, respectively, and $59 million and $50 million for the nine months ended September 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million and $14 million for the three months ended September 30, 2024 and 2023, respectively, and $44 million and $43 million for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
(b)Represents net income, less (i) earnings allocated to participating share awards of $18 million for both the three months ended March 31, 2025 and 2024, and (ii) dividends on preferred shares of $14 million for both the three months ended March 31, 2025 and 2024.
Previous wording
(b)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP.
Current wording
(d)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP.
Previous wording
(c)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.
Current wording
(e)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.
Previous wording
(d)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints.
Current wording
(f)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints.
Previous wording
(e)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables.
Current wording
(g)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables.
Previous wording
(f)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders’ equity for the period.
Current wording
(h)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders’ equity for the period.
Previous wording
Our strong results for the third quarter reflect the momentum and earnings power of our business model and our continued investments for growth. We continued to see stable growth in billings, strong new card acquisitions and excellent credit performance. Net income for the quarter was $2.51 billion, or $3.49 per share, compared with net income of $2.45 billion, or $3.30 per share, a year ago.
Current wording
Our first quarter results reflect the continued strong performance of our premium customer base as demonstrated by Card Member spending, customer retention, demand for our premium products and credit performance. Net income for the first quarter was $2.6 billion, or $3.64 per share, compared with net income of $2.4 billion, or $3.33 per share, a year ago.
Previous wording
Billed business grew by 6 percent year-over-year, consistent with the past few quarters, with both G&S and T&E spend growth at 6 percent. U.S. Consumer Services billed business grew by 6 percent year-over-year, with continued strength in spending by Millennial and Gen-Z Card Members. Commercial Services billed business grew by 1 percent on a year-over-year basis, reflecting continued modest growth from U.S. small and mid-sized enterprise (SME) Card Members. International Card Services billed business grew by 13 percent year-over-year, driven by continued strong growth in spend across all regions and customer types outside the United States.
Current wording
Billed business continued to grow at a solid pace, increasing 6 percent year-over-year. Growth was impacted by the stronger U.S. dollar year-over-year, as well as one less day due to the leap year in 2024 which drove about a percentage point reduction on growth rates across segments and spend categories. Excluding these impacts, G&S spending grew at a faster pace than in 2024, and T&E spending growth was generally consistent with the levels seen through most of 2024. Within T&E, restaurants and lodging showed continued strong growth, while airline spend growth softened. U.S. Consumer Services billed business grew by 7 percent year-over-year, with continued strength in spending by Millennial and Gen-Z Card Members as our products continue to resonate with these cohorts. Commercial Services billed business grew by 2 percent on a year-over-year basis, reflecting continued modest growth from U.S. small and mid-sized enterprise (SME) Card Members. International Card Services billed business grew by 9 percent year-over-year (13 percent on an FX-adjusted basis), driven by continued strong growth in spend across all regions and customer types outside the United States.1
Previous wording
Total revenues net of interest expense increased 8 percent year-over-year. The growth in billed business drove a 4 percent increase in Discount revenue, our largest revenue line. Net card fee growth accelerated to 18 percent year-over-year, reflecting high levels of new card acquisition and Card Member retention, as well as our cycle of product refreshes. Net interest income increased 16 percent versus the prior year, primarily reflecting growth in our revolving loan balances, and has moderated over the past several quarters.
Current wording
Total revenues net of interest expense increased 7 percent year-over-year (8 percent on an FX-adjusted basis).1 Growth in billed business drove a 4 percent increase in Discount revenue, our largest revenue line. Net card fees increased 18 percent year-over-year, reflecting high levels of new card acquisitions and Card Member retention, as well as our cycle of product refreshes. Growth in Net interest income continued to moderate and increased 11 percent versus the prior year, primarily reflecting growth in revolving loan balances.
Previous wording
Total loans and Card Member receivables increased 10 percent year-over-year, with growth continuing to moderate sequentially. Provisions for credit losses increased, primarily driven by higher net write-offs, partially offset by a lower net reserve build compared to last year. Net write-off and delinquency rates remained best-in-class, and relatively in line with prior quarters, supported by our premium global customer base, our strong focus on risk management and disciplined growth strategy.
Current wording
Total Loans and Card Member receivables increased 7 percent year-over-year with growth continuing to moderate sequentially. Net write-off and delinquency rates were stable year-over-year and remain best-in-class, supported by our premium global customer base, our strong focus on risk management and disciplined growth strategy. Provisions for credit losses decreased, driven by a modest reserve release, partially offset by higher net write-offs. Our Reserves for credit losses reflect the quality of our premium customer base and the assumptions about the macroeconomic outlook available to us as of quarter-end.
Previous wording
Card Member rewards, Card Member services and Business development expenses are generally correlated to volumes or are variable based on usage and collectively increased year-over-year primarily due to growth in billed business and premium card accounts, contributing to a higher usage of travel-related benefits. Marketing expense increased 19 percent year-over-year, as we continue to invest at an elevated level in acquiring high spending, high quality customers and other growth initiatives. During the quarter we acquired 3.3 million proprietary new cards. We continue to invest in and enhance our Membership Model of premium payment products, differentiated membership services and partnerships. Operating expenses grew at 5 percent year-over-year, a slower pace than revenue growth, reflecting continued operating expense discipline. These operating expense efficiencies demonstrate the earnings power of our core business that enables us to invest in growth initiatives at elevated levels. We remain focused on driving marketing and operating expense efficiencies over time.
Current wording
Card Member rewards, Card Member services and Business development expenses, which are generally driven by volumes and usage, collectively grew faster than revenues as we continue to enhance our value propositions, drive Card Member engagement and acquire more Card Members on premium products. In addition, expense growth in this quarter was elevated due to a discrete benefit in the prior year from enhancements to U.S. Membership Rewards redemption models. Marketing expense was relatively flat year-over-year as we continued to invest at comparable levels to acquire high spending, high credit-quality customers. During the first quarter we acquired 3.4 million proprietary new cards. Operating expenses grew at a slower pace than revenue, reflecting continued operating expense discipline. We remain focused on driving marketing and operating expense efficiencies over time.
Previous wording
During the third quarter, we maintained our capital ratios within our current target range of 10 to 11 percent and returned $2.4 billion of capital to our shareholders in the form of share repurchases and common stock dividends. We plan to continue to return to shareholders the excess capital we generate while managing our CET1 capital ratio within our target range and supporting balance sheet growth. Our robust capital, funding and liquidity positions provide us with significant flexibility to maintain a strong balance sheet.
Current wording
During the first quarter, we maintained our CET1 capital ratio within our target range of 10 to 11 percent and returned $1.3 billion of capital to our shareholders in the form of share repurchases and common stock dividends. We plan to continue to return to shareholders the excess capital we generate while managing our CET1 capital ratio within our target range and supporting balance sheet growth. Our robust capital, funding and liquidity positions provide us with significant flexibility to maintain a strong balance sheet.
Previous wording
See “Certain Legislative, Regulatory and Other Developments” and “Risk Factors” for information on certain matters that could have a material adverse effect on our results of operations and financial condition.
Current wording
See “Certain Legislative, Regulatory and Other Developments” for information on legislative and regulatory changes that could have a material adverse effect on our results of operations and financial condition and “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” for information on potential impacts of macroeconomic, geopolitical and competitive conditions and certain litigation and regulatory matters on our business.
Previous wording
The discussions in both “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three and nine months ended September 30, 2024 compared to the same periods in the prior year, as presented in the accompanying tables. Our results for the nine months ended September 30, 2024 reflect the sale of Accertify Inc. (Accertify), which closed on May 1, 2024, and resulted in a gain of $531 million ($479 million after tax; $0.66 per share).
Current wording
The discussions in both “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three months ended March 31, 2025 compared to the same period in the prior year, as presented in the accompanying tables.
Previous wording
Discount revenue increased for both the three and nine month periods, primarily driven by increases in billed business of 6 percent for both periods. See Tables 5 and 6 for more details on billed business performance.
Current wording
Discount revenue increased, primarily driven by an increase in billed business of 6 percent. See Tables 5 and 6 for more details on billed business performance.
Previous wording
Net card fees increased for both the three and nine month periods, primarily driven by growth in our premium card portfolios. See Table 5 for more details on proprietary new card acquisitions, proprietary cards-in-force and average fee per card.
Current wording
Net card fees increased, primarily driven by growth in our premium card portfolios. See Table 5 for more details on proprietary new card acquisitions, proprietary cards-in-force and average fee per card.
Previous wording
Service fees and other revenue was relatively flat for the three month period and increased for the nine month period, primarily driven by higher foreign exchange related revenues associated with Card Member cross-currency spending, higher merchant service fees and lower losses on equity method investments, partially offset by Accertify revenues included in the prior year and, in the three month period, lower travel commissions and fees from our consumer travel business.
Current wording
Service fees and other revenue increased, primarily driven by a discrete revenue adjustment in the current period related to certain cash advance fees from prior years, higher foreign exchange-related revenues associated with Card Member cross-currency spending and higher network partnership revenues, partially offset by Accertify revenues included in the prior year.
Previous wording
The Membership Rewards URR for current program participants was 96 percent (rounded down) at both September 30, 2024 and 2023.
Current wording
The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 96 percent (rounded down) at both March 31, 2025 and 2024.
Previous wording
Salaries and employee benefits expense was relatively flat for the three month period and increased for the nine month period. The increase in the nine month period was primarily driven by restructuring costs, higher incentive compensation and an increase in the value of deferred compensation liabilities.
Current wording
Salaries and employee benefits expense increased, primarily driven by higher compensation costs, largely offset by a decrease in the value of deferred compensation liabilities.
Previous wording
U.S. Consumer Services (USCS) issues a wide range of proprietary consumer cards and provides services to U.S. consumers, including travel and lifestyle services as well as banking and non-card financing products. USCS also manages our dining platform that provides digital tools for restaurants and reservation booking for diners.
Current wording
U.S. Consumer Services (USCS) issues a wide range of proprietary consumer cards and provides services to U.S. consumers, including travel and lifestyle services as well as banking and non-card financing products. USCS also manages our dining platform that provides digital tools for restaurants and reservation bookings for diners.
Previous wording
Discount revenue increased 5 percent and 6 percent for the three and nine month periods, respectively, primarily driven by increases in U.S. consumer billed business. See Tables 5, 6 and 10 for more details on billed business performance.
Current wording
Discount revenue increased 6 percent, primarily driven by an increase in U.S. consumer billed business. See Tables 5, 6 and 10 for more details on billed business performance.
Previous wording
Salaries and employee benefits and other expenses increased for both the three and nine month periods, primarily due to an increase in allocated service costs.
Current wording
Salaries and employee benefits and other expenses increased, primarily due to an increase in allocated service costs and higher compensation costs.
Previous wording
Discount revenue increased 1 percent for both the three and nine month periods, primarily driven by increases in commercial billed business. See Tables 5, 6 and 12 for more details on billed business performance.
Current wording
Discount revenue increased 2 percent, primarily driven by an increase in commercial billed business. See Tables 5, 6 and 12 for more details on billed business performance.
Previous wording
Interest income increased for both the three and nine month periods, primarily driven by growth in revolving loan balances.
Current wording
Interest income increased, primarily driven by growth in revolving loan balances.
Previous wording
(e)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. Corporate receivables delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.
Current wording
(f)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. Corporate receivables delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.
Previous wording
International Card Services (ICS) issues a wide range of proprietary consumer, small business and corporate cards outside the United States. ICS also provides services to our international customers, including travel and lifestyle services, and manages certain international joint ventures and our loyalty coalition businesses.
Current wording
International Card Services (ICS) issues a wide range of proprietary consumer, small business and corporate cards outside the United States. ICS also provides services to our international customers, including travel and lifestyle services, and manages certain international joint ventures and our loyalty coalition business.
Previous wording
Discount revenue increased 12 percent and 11 percent for the three and nine month periods, respectively, primarily reflecting increases in billed business. See Tables 5, 6 and 14 for more details on billed business performance.
Current wording
Discount revenue increased 7 percent (11 percent on an FX-adjusted basis), primarily reflecting an increase in billed business.2 See Tables 5, 6 and 14 for more details on billed business performance.
Previous wording
Net card fees increased 18 percent and 16 percent for the three and nine month periods, respectively (20 percent and 19 percent, respectively, on an FX-adjusted basis), primarily driven by growth in our premium card portfolios.2
Current wording
Net card fees increased 16 percent (21 percent on an FX-adjusted basis), primarily driven by growth in our premium card portfolios.2
Previous wording
Service fees and other revenue increased 4 percent and 1 percent for the three and nine month periods, respectively, primarily driven by higher foreign exchange related revenues associated with Card Member cross-currency spending and higher loyalty coalition-related fees, partially offset by lower delinquency fees. The increase in the nine month period was also partially offset by a benefit in the prior year related to a portion of the revenue allocated to a joint venture partner as described in Business development expense below.
Current wording
Service fees and other revenue increased 5 percent (9 percent on an FX-adjusted basis), primarily driven by higher foreign exchange related revenues associated with Card Member cross-currency spending and higher loyalty coalition-related fees.2
Previous wording
Global Merchant and Network Services (GMNS) operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers (including our network partnership agreements in China), merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network.
Current wording
Global Merchant and Network Services (GMNS) operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network.
Previous wording
Non-interest revenues increased for both the three and nine month periods, primarily driven by higher Discount revenue, partially offset in the three month period by lower Service fees and other revenue and in the three and nine month periods by lower Processed revenue.
Current wording
Non-interest revenues increased, primarily driven by higher Discount revenue, partially offset by lower Service fees and other revenue.
Previous wording
Discount revenue increased 3 percent for both the three and nine month periods, primarily driven by increases in billed business, partially offset by lower average merchant discount rates. See Tables 5 and 6 for more details on billed business performance.
Current wording
Discount revenue increased 2 percent, primarily driven by an increase in billed business, partially offset by lower average merchant discount rates. See Tables 5 and 6 for more details on billed business performance.
Previous wording
Service fees and other revenue decreased 4 percent for the three month period and increased 4 percent for the nine month period. The decrease in the three month period was primarily driven by Accertify revenues included in the prior year, partially offset by foreign exchange related revenues associated with Card Member cross-currency spending. The increase in the nine month period was primarily driven by higher merchant service fees and foreign exchange related revenues associated with Card Member cross-currency spending, partially offset by Accertify revenues included in the prior year.
Current wording
Service fees and other revenue decreased, primarily driven by Accertify revenues included in the prior year, partially offset by increases in network partnership revenues and foreign exchange related revenues associated with Card Member cross-currency spending.
Previous wording
GMNS receives an interest expense credit relating to internal transfer pricing due to its merchant payables. Net interest income decreased for the three month period and increased for the nine month period. The decrease for the three month period was primarily due to lower interest expense credits, primarily driven by lower liabilities. The increase for the nine month period was primarily due to higher interest expense credits, primarily driven by increases in average merchant payables and higher interest rates.
Current wording
GMNS receives an interest expense credit relating to internal transfer pricing due to its merchant payables. Net interest income decreased, primarily due to a lower interest expense credit, largely driven by a decrease in interest rates in international markets and lower average merchant payables.
Previous wording
Business development expense decreased for both the three and nine month periods, primarily due to decreased partner payments driven by lower volumes from certain network issuing partners.
Current wording
Business development expense increased, primarily due to increased partner payments driven by higher volumes from certain network issuing partners.
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Our range of products and services includes:
Current report — wording carried from elsewhere
(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency conversion into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared). FX-adjusted Total revenues net of interest expense and Total loans and Card Member receivables are non-GAAP measures. We believe the presentation of information on a foreign currency adjusted basis is helpful to investors by making it easier to compare our performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.
Current report — wording carried from elsewhere
In addition to cash and other liquid assets and the secured borrowing facilities and committed bank credit facility described above, as an insured depository institution, AENB may borrow from the Federal Reserve Bank of San Francisco through the discount window against the U.S. credit card loans and charge card receivables that it pledged.
Current report — wording carried from elsewhere
Regulatory and legislative activity in the areas of privacy, data protection, data management, artificial intelligence, resiliency, information security and cybersecurity continues to increase worldwide. We have established, and continue to maintain, policies and a governance framework to comply with applicable laws and requirements, meet evolving customer and industry expectations and support and enable business innovation and growth; however, our policies and governance framework may be insufficient given the size and complexity of our business and heightened regulatory scrutiny. Regulators and legislators have heightened their focus on the use of artificial intelligence and machine learning through the application of existing laws and regulations as well as by adopting new laws and regulations, which are reshaping how we develop, deploy and manage artificial intelligence systems, including by imposing new obligations related to data use, recordkeeping, transparency and human oversight.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
3 Refer to footnote 1 on page 4 for details regarding foreign currency adjusted information.
Previous report — wording carried elsewhere
In 2023, the net cash provided by operating activities was primarily driven by cash generated from net income for the period and higher net operating liabilities, primarily resulting from higher accounts payable to merchants, partially offset by payments related to annual incentive compensation.