AMERICAN EXPRESS CO
For the period ended Jun 30, 2025. Filed Jul 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.
Jun 30, 2025 · Filed Jul 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 2025-03-31; filed 2025-04-18.
0000004962-25-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)Current report: 10-Q
Period ended 2025-06-30; filed 2025-07-18.
0000004962-25-000083
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 315 previous paragraphs and 314 current paragraphs.
199 unchanged; 83 reworded; 32 added; 32 removed; 1 previous and 0 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 (32)
Current report
Card Member loans provision for credit losses increased for the three month period, primarily due to a higher reserve build in the current period and higher net write-offs. Card Member loans provision for credit losses increased for the six month period, primarily due to higher net write-offs, partially offset by a lower reserve build in the current period. The reserve builds in the current periods were primarily driven by increases in loans outstanding and deterioration in the macroeconomic outlook used in our reserve models, partially offset by the release of a reserve upon the previously-mentioned reclassification of a small business cobrand portfolio to Card Member loans HFS. The reserve builds in the prior periods were primarily driven by increases in loans outstanding, partially offset, for the three month period, by lower delinquencies.
Current report
Card Member receivables provision for credit losses remained flat for the three month period, due to a higher reserve build in the current period offset by lower net write-offs. Card Member receivables provision for credit losses decreased for the six month period, primarily due to lower net write-offs, partially offset by a reserve build in the current period. The reserve builds in the current periods were primarily driven by increases in receivables outstanding and deterioration in the macroeconomic outlook. The reserve build in the prior three month period was primarily driven by an increase in receivables outstanding for U.S. consumer and U.S. small business customers.
Current report
Other provision for credit losses increased for both the three and six month periods, primarily due to higher net write-offs and higher net reserve builds in the current periods. The net reserve builds in the current periods were primarily driven by increases in other loans outstanding. The reserve builds in the prior periods were primarily driven by a reserve related to amounts due from a merchant in bankruptcy, as well as increases in other loans outstanding.
Current report
Marketing expense increased for both the three and six month periods, primarily due to higher levels of spending on customer acquisition and other growth initiatives.
Current report
Salaries and employee benefits expense increased for both the three and six month periods, primarily driven by higher compensation costs.
Current report
Other expenses increased for both the three and six month periods, primarily driven by the gain recognized in the prior year on the sale of Accertify and higher professional services expenses in the current year.
Current report
The effective tax rate was 18.7 percent and 20.4 percent for the three months ended June 30, 2025 and 2024, respectively, and 20.5 percent and 21.4 percent for the six months ended June 30, 2025 and 2024, respectively. The lower effective tax rates for the three and six month periods primarily reflected discrete tax benefits in the current periods relating to the resolution of certain prior-year tax items.
Current report
Card Member loans provision for credit losses increased for the three month period, primarily due to a higher reserve build in the current period, partially offset by lower net write-offs. Card Member loans provision for credit losses increased for the six month period, primarily due to higher net write-offs, partially offset by a lower reserve build in the current period. The reserve builds in the current periods were primarily driven by deterioration in the macroeconomic outlook, partially offset by lower delinquencies. An increase in loans outstanding also drove the reserve build in the current three month period. The reserve builds in the prior periods were primarily driven by increases in loans outstanding, partially offset by lower delinquencies.
Current report
Card Member receivables provision for credit losses decreased for both the three and six month periods, primarily due to lower net write-offs, partially offset by higher reserve builds in the current periods. The reserve build in the current three month period was primarily driven by an increase in receivables outstanding. The reserve build in the current six month period was primarily driven by higher delinquencies. The reserve build in the prior three month period was primarily driven by an increase in receivables outstanding.
Current report
Other provision for credit losses increased for both the three and six month periods, primarily due to higher reserve builds in the current periods and higher net write-offs. The reserve builds in the current periods were primarily driven by increases in other loans outstanding.
Current report
Total expenses increased for both the three and six month periods, primarily driven by higher Card Member rewards, Salaries and employee benefits and other, and Card Member services expenses.
Current report
Business development expense increased for both the three and six month periods, primarily due to increased partner payments driven by higher billed business.
Current report
Marketing expense increased for both the three and six month periods, primarily due to higher levels of spending on customer acquisitions and other growth initiatives.
Current report
Net card fees increased 12 percent for both the three and six month periods, primarily driven by growth in our premium card portfolios.
Current report
Card Member loans provision for credit losses increased for both the three and six 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 and deterioration in the macroeconomic outlook, partially offset by the release of a reserve upon the previously-mentioned reclassification of a small business cobrand portfolio to Card Member loans HFS. The reserve builds in the prior periods were primarily driven by increases in loans outstanding, partially offset for the prior three month period by lower delinquencies.
Current report
Card Member receivables provision for credit losses decreased for both the three and six month periods, primarily due to reserve releases in the current periods, versus reserve builds in the prior periods, and lower net write-offs. The reserve releases in the current periods were primarily driven by lower delinquencies. The reserve build in the prior three month period was primarily driven by an increase in receivables outstanding for U.S. small business customers.
Current report
Other provision for credit losses increased for both the three and six month periods, primarily due to higher reserve builds in the current periods and higher net write-offs. The reserve builds in the current periods were primarily driven by increases in other loans outstanding.
Current report
Total expenses increased for both the three and six month periods, primarily driven by higher Card Member rewards, Salaries and employee benefits and other, and Business development expenses.
Current report
Card Member services expense increased for both the three and six month periods, primarily due to growth in premium card accounts, contributing to a higher usage of business services benefits.
Current report
Marketing expense increased for both the three and six month periods, primarily due to higher levels of spending on customer acquisitions and other growth initiatives.
Current report
Salaries and employee benefits and other expenses increased for both the three and six month periods, primarily due to increases in compensation costs, litigation-related expenses and allocated service costs.
Current report
Card Member loans provision for credit losses decreased for the three month period, primarily driven by a reserve release in the current period, versus a reserve build in the prior period, partially offset by higher net write-offs. Card Member loans provision for credit losses increased for the six month period, primarily driven by higher net write-offs, partially offset by a lower reserve build in the current period. The reserve release in the current three month period was primarily driven by lower delinquencies. The reserve build in the current six month period was primarily driven by an increase in loans outstanding. The reserve builds in the prior periods were primarily driven by increases in loans outstanding, partially offset by lower delinquencies.
Current report
Card Member receivables provision for credit losses increased for the three month period, primarily driven by a reserve build in the current period, versus a reserve release in the prior period, and higher net write-offs. Card Member receivables provision for credit losses increased for the six month period, primarily driven by 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 three month period was primarily driven by an increase in receivables outstanding. The reserve build in the current six month period was primarily driven by higher delinquencies and an increase in receivables outstanding. The reserve releases in the prior periods were primarily driven by lower delinquencies.
Current report
Card Member rewards expense increased for both the three and six month periods, primarily driven by higher billed business.
Current report
Business development expense increased for both the three and six month periods, primarily due to increased partner payments driven by higher billed business.
Current report
Non-interest revenues increased for both the three and six month periods, due to higher Discount revenue and Service fees and other revenue.
Current report
Total expenses increased for both the three and six month periods, primarily driven by higher Salaries and employee benefits and other expenses.
Current report
Business development expense increased for both the three and six month periods, primarily due to increased partner payments driven by higher volumes.
Current report
Salaries and employee benefits and other expenses increased for both the three and six month periods, primarily driven by the gain in the prior year recognized on the sale of Accertify included in the Other, net component of operating expenses.
Current report
(b)Euro Interbank Offered Rate (EURIBOR).
Current report
In 2024, the net cash used in investing activities was primarily driven by higher loans outstanding, partially offset by net maturities of investment securities and net proceeds received from the sale of Accertify.
Current report
Antitrust Litigation
Removed paragraphs (32)
Previous 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.
Previous 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.
Previous 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.
Previous report
Marketing expense was relatively flat, reflecting consistent levels of spending on customer acquisition and other growth initiatives.
Previous report
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 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.
Previous report
The effective tax rate was 22.4 percent and 22.5 percent for the three months ended March 31, 2025 and 2024, respectively.
Previous 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.
Previous 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.
Previous 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.
Previous report
Business development expense increased, primarily due to increased partner payments driven by higher billed business.
Previous report
Marketing expense increased, reflecting higher levels of spending on customer acquisitions and other growth initiatives.
Previous report
Net card fees increased 13 percent, primarily driven by growth in our premium card portfolios.
Previous 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.
Previous 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.
Previous 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.
Previous report
Total expenses increased, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.
Previous report
Marketing expense increased, reflecting higher levels of spending on customer acquisitions and other growth initiatives.
Previous report
Salaries and employee benefits and other expenses increased, primarily due to higher compensation costs and an increase in allocated service costs.
Previous 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.
Previous report
Card Member receivables provision for credit losses decreased, primarily due to lower net write-offs, partially offset by a higher reserve build in the current period. The reserve build in the current period was primarily driven by higher delinquencies.
Previous report
Total expenses increased, primarily driven by higher Card Member rewards, Business development and Salaries and employee benefits and other expenses, partially offset by lower Marketing expense.
Previous report
Card Member rewards expense increased, primarily driven by higher billed business.
Previous report
Business development expense increased, primarily due to increased partner payments driven by higher billed business.
Previous report
Non-interest revenues increased, primarily driven by higher Discount revenue, partially offset by lower Service fees and other revenue.
Previous report
Total expenses decreased, primarily driven by lower Salaries and employee benefits and other expenses, partially offset by higher Business development and Marketing expenses.
Previous report
Business development expense increased, primarily due to increased partner payments driven by higher volumes from certain network issuing partners.
Previous report
Salaries and employee benefits and other expenses decreased, primarily driven by Accertify costs included in the prior year and lower allocated service costs.
Previous report
Merchant Litigation
Previous report
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Securities Exchange Act of 1934, as amended (the Exchange Act), an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure is generally required even where the activities, transactions or dealings were conducted outside the United States by non-U.S. affiliates in compliance with applicable law and whether or not the activities are sanctionable under U.S. law.
Previous report
In connection with an ongoing internal review, we identified certain transactions and accounts that we disclosed pursuant Section 13(r) of the Exchange Act in the 2024 Form 10-K, and we voluntarily reported certain transactions and accounts, some of which related to Iran, to the U.S. Department of the Treasury’s Office of Foreign Assets Control. In the quarter ended March 31, 2025, we identified approximately 5 consumer accounts of individuals that may be, or may have been, employed by the Government of Iran. We believe the accounts were used only for personal expenses. We had negligible gross revenues and net profits attributable to these accounts. All of the accounts are closed and we do not intend to continue to engage in this activity.
Previous report
•our ability to achieve our climate-related goals, which depend in part on the amount and efficacy of our investments in emissions reduction projects, the ability of our partners to set and achieve sustainability targets, the success of our supply chain and sustainability initiatives, and colleague programs; customer preferences and behaviors; the cost and availability of renewable energy, carbon removal and carbon offset projects and energy attribute certificates; changes in our real estate, technology and colleague strategies or an inability to execute those strategies; and brand perceptions and reputation;
Reworded paragraphs (83)
Previous 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.
Current wording
American Express is a global payments and premium lifestyle brand powered by technology. Founded in 1850 and headquartered in New York, American Express’ card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world.
Previous 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.
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 changes in response to evolving technologies, business dynamics and competition for premium customers.
Previous 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.
Current wording
(b)Represents net income, less (i) earnings allocated to participating share awards of $18 million and $23 million for the three months ended June 30, 2025 and 2024, respectively, and $36 million and $41 million for the six months ended June 30, 2025 and 2024, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2025 and 2024, and $29 million for both the six months ended June 30, 2025 and 2024.
Previous 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.
Current wording
Our strong results for the second quarter reflect the resilience of our premium customer base and the earnings power of our business model. We saw record Card Member spending in the quarter, high customer loyalty and engagement, strong demand for our premium products and excellent credit performance. Net income for the second quarter was $2.9 billion, or $4.08 per share, compared with net income of $3.0 billion, or $4.15 per share, a year ago, which included a $0.66 per share gain from the sale of Accertify Inc. (Accertify).
Previous 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
Current wording
Billed business grew 7 percent year-over-year, consistent with the prior quarter. G&S spend, which accounts for over 70 percent of our total billed business, grew 8 percent (7 percent on an FX-adjusted basis), at a similar pace to the prior quarter.1 T&E spend grew 6 percent (5 percent on an FX-adjusted basis), a modest deceleration from the prior quarter on an FX-adjusted basis, primarily reflecting softness in airline and lodging spend, while restaurant spend, our largest T&E spend category, continued to show strong growth.1 U.S. Consumer Services billed business grew 7 percent, 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 2 percent, reflecting continued modest growth from U.S. small and mid-sized enterprise (SME) Card Members. International Card Services billed business grew 15 percent (12 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 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.
Current wording
Total revenues net of interest expense increased 9 percent year-over-year on both a reported and FX-adjusted basis.1 Growth in billed business drove a 6 percent increase in Discount revenue, our largest revenue line. Net card fees increased 20 percent, reflecting high levels of new card acquisitions and Card Member retention, as well as our cycle of product refreshes. Growth in Net interest income increased 12 percent, primarily reflecting growth in balances and greater usage of lending features such as Pay Over Time.
Previous 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.
Current wording
Total Loans and Card Member receivables increased 7 percent year-over-year, in line with growth in billed business. Provisions for credit losses increased, primarily due to a higher reserve build compared to the prior year. Net write-off and delinquency rates remained stable and best-in-class, supported by our premium global customer base, our strong focus on risk management and disciplined growth strategy. During the quarter we reclassified $1.6 billion of Card Member loans related to the Amazon small business cobrand portfolio from held for investment to held for sale (HFS).
Previous 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.
Current wording
Card Member rewards, Card Member services and Business development expenses, which are generally driven by volumes and usage, collectively grew slightly faster than revenues as a result of the mix shift towards premium products and enhancements to our value propositions to drive Card Member engagement and acquire more Card Members. Marketing expense increased 5 percent year-over-year as we continued to invest to acquire high spending, high credit-quality customers. During the second quarter we acquired 3.1 million proprietary new cards. Operating expenses grew in line with revenue growth, after adjusting for the prior-year gain on the sale of Accertify, reflecting higher investments in enterprise risk management capabilities and technology to support business growth. We remain focused on driving marketing and operating expense efficiencies over time.
Previous 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.
Current wording
During the second quarter, we maintained our CET1 capital ratio within our target range of 10 to 11 percent and returned $2.0 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
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 wording
Also during the quarter, we announced major updates coming to our U.S. Consumer and Business Platinum Cards later this year. Our Membership-focused model and proven product refresh strategy give us confidence as we navigate the evolving competitive landscape. While we recognize the uncertainty of the geopolitical and macroeconomic environment, 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.
Previous 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.
Current wording
The discussions in both “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three and six months ended June 30, 2025 compared to the same periods in the prior year, as presented in the accompanying tables. Our results for the three and six months ended June 30, 2024 reflect the sale of Accertify, which closed on May 1, 2024, and resulted in a gain of $531 million ($479 million after tax; $0.66 per share), which was reported as a reduction to Other expense in the second quarter of 2024.
Previous 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.
Current wording
Discount revenue increased for both the three and six month periods, primarily driven by increases in billed business of 7 percent and 6 percent, respectively. See Tables 5 and 6 for more details on billed business performance.
Previous 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.
Current wording
Net card fees increased for both the three and six 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.
Previous 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.
Current wording
Service fees and other revenue increased for both the three and six month periods, primarily driven by increases in foreign exchange-related revenues associated with Card Member cross-currency spending, network partnership revenues and loyalty coalition-related fees, partially offset by Accertify revenues included in the prior year. The increase in the three month period was also driven by higher income from equity method investments primarily related to the partial sale of a card portfolio by one of our joint ventures. The increase in the six month period was also driven by a discrete revenue adjustment in the current period related to certain cash advance fees from prior years.
Previous wording
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 wording
Interest expense was relatively flat for both the three and six month periods, primarily reflecting growth in customer deposits and long-term debt, offset by lower interest rates paid on customer deposits.
Previous wording
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 wording
Card Member rewards expense increased for both the three and six month periods, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $248 million and $735 million, and cobrand rewards expense of $143 million and $260 million for the three and six month periods, respectively, all of which were primarily driven by higher billed business and increases in redemption costs reflecting a shift in the mix of Card Member redemptions. The increase in Membership Rewards expense in the six month period was also 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 an increase in the Ultimate Redemption Rate (URR) in the current period.
Previous wording
The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 96 percent (rounded down) at both March 31, 2025 and 2024.
Current wording
The Membership Rewards URR for current program participants was 96 percent (rounded down) at both June 30, 2025 and 2024.
Previous wording
Business development expense increased, primarily due to increased partner payments driven by higher network volumes and higher client incentives.
Current wording
Business development expense increased for both the three and six month periods, primarily due to increased partner payments driven by higher network volumes and higher client incentives.
Previous wording
(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 wording
(d)For purposes of the calculation of net interest yield on Card Member loans, average loans includes loans HFS as we continue to recognize interest income on these loans until they are sold.
Previous wording
Non-interest revenues increased across all revenue categories, primarily driven by higher Net card fees and Discount revenue.
Current wording
Non-interest revenues increased across all revenue categories for both the three and six month periods, primarily driven by higher Net card fees and Discount revenue.
Previous 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.
Current wording
Discount revenue increased 7 percent and 6 percent for the three and six 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.
Previous wording
Net card fees increased 21 percent, primarily driven by growth in our premium card portfolios.
Current wording
Net card fees increased 21 percent for both the three and six month periods, primarily driven by growth in our premium card portfolios.
Previous wording
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 wording
Service fees and other revenue increased 8 percent and 10 percent for the three and six month periods, respectively. The increase in the three month period was primarily driven by higher dining platform revenues and cash advance fees. The increase in the six month period was primarily driven by a discrete revenue adjustment in the current period related to certain cash advance fees from prior years and higher dining platform revenues, partially offset by lower revenue from the sale of reward points.
Previous wording
Interest expense increased, primarily driven by a higher cost of funds due to segment net asset growth, largely offset by lower interest rates.
Current wording
Interest expense was relatively flat for both the three and six month periods, reflecting a higher cost of funds due to segment net asset growth, offset by lower interest rates.
Previous wording
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 wording
Card Member rewards expense increased for both the three and six month periods, primarily driven by higher billed business and increases in redemption costs reflecting a shift in the mix of Card Member redemptions. For the six month period, the increase in Membership Rewards expense was also driven by the above-mentioned benefit from enhancements to the U.S. URR models made in the prior year, as well as an increase in the URR in the current period.
Previous wording
Salaries and employee benefits and other expenses increased, primarily due to an increase in allocated service costs and higher compensation costs.
Current wording
Salaries and employee benefits and other expenses increased for both the three and six month periods, primarily due to increases in allocated service costs and higher compensation costs.
Previous wording
Non-interest revenues increased, primarily driven by higher Discount revenue and Net card fees.
Current wording
Non-interest revenues increased for both the three and six month periods, primarily driven by higher Discount revenue and Net card fees.
Previous 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.
Current wording
Discount revenue increased 2 percent for both the three and six month periods, primarily driven by increases in commercial billed business. See Tables 5, 6 and 12 for more details on billed business performance.
Previous wording
Service fees and other revenue decreased 6 percent, primarily driven by lower travel commissions and fees from our Amex Travel business.
Current wording
Service fees and other revenue was relatively flat for the three month period and decreased 3 percent for the six month period, primarily driven by lower travel commissions and fees from our Amex Travel business.
Previous wording
Interest income increased, primarily driven by growth in revolving loan balances.
Current wording
Interest income increased for both the three and six month periods, primarily driven by growth in revolving loan balances.
Previous wording
Interest expense increased, primarily driven by a higher cost of funds due to segment net asset growth, partially offset by lower interest rates.
Current wording
Interest expense increased for both the three and six month periods, primarily driven by a higher cost of funds due to segment net asset growth, partially offset by lower interest rates.
Previous wording
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 wording
Card Member rewards expense increased for both the three and six month periods, primarily driven by higher billed business and increases in redemption costs reflecting a shift in the mix of Card Member redemptions. For the six month period, the increase Membership Rewards expense was also driven by the above-mentioned benefit from enhancements to the U.S. URR models made in the prior year, as well as an increase in the URR in the current period.
Previous wording
Business development expense increased, primarily due to higher client incentives and increased partner payments driven by higher billed business.
Current wording
Business development expense increased for both the three and six month periods, primarily due to higher client incentives and increased partner payments driven by higher billed business.
Previous wording
Non-interest revenues increased across all revenue categories, primarily driven by higher Discount revenue and Net card fees.
Current wording
Non-interest revenues increased across all revenue categories for both the three and six month periods, primarily driven by higher Discount revenue and Net card fees.
Previous 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.
Current wording
Discount revenue increased 13 percent and 10 percent for the three and six month periods, respectively (10 percent and 11 percent, respectively, on an FX-adjusted basis), primarily reflecting increases in billed business.2 See Tables 5, 6 and 14 for more details on billed business performance.
Previous wording
Net card fees increased 16 percent (21 percent on an FX-adjusted basis), primarily driven by growth in our premium card portfolios.2
Current wording
Net card fees increased 23 percent and 19 percent for the three and six month periods, respectively (19 percent and 20 percent, respectively, on an FX-adjusted basis), primarily driven by growth in our premium card portfolios.2
Previous 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
Current wording
Service fees and other revenue increased 16 percent and 10 percent for the three and six month periods, respectively (12 percent and 11 percent, respectively, on an FX-adjusted basis), primarily driven by increases in foreign exchange related revenues associated with Card Member cross-currency spending, higher loyalty coalition-related fees and higher income from equity method investments primarily related to the partial sale of a card portfolio by one of our joint ventures.2
Previous wording
Interest expense was relatively flat, reflecting a stable cost of funds due to lower interest rates, largely offset by segment net asset growth.
Current wording
Interest expense increased for both the three and six month periods, primarily driven by segment net asset growth, partially offset by a lower cost of funds due to lower interest rates.
Previous wording
Total expenses increased across all expense categories, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.
Current wording
Total expenses increased for both the three and six month periods across all expense categories, primarily driven by higher Card Member rewards and Salaries and employee benefits and other expenses.
Previous wording
Marketing expense decreased, primarily due to management decisions regarding the timing of spend on customer acquisitions and engagement campaigns for the full year.
Current wording
Marketing expense increased for the three month period and decreased for the six month period, primarily due to management decisions regarding the timing of spend on customer acquisitions and engagement campaigns for the full year.
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Previous report — wording carried elsewhere
In 2025, the net cash provided by investing activities was primarily driven by lower Card Member receivables outstanding, partially offset by higher loans outstanding.