American Express(AXP) - 2025 Q3 - Quarterly Results

Consolidated Statements of Income This section details the company's financial performance, including revenues, credit losses, expenses, and net income Total Revenues Net of Interest Expense The company achieved $18,426 million in total revenues net of interest expense in Q3 2025, an 11% YOY increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :-------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Non-Interest Income | | | | | | | | Discount Revenue | 9,413 | 8,780 | 7 | 27,517 | 26,015 | 6 | | Net Card Fees | 2,551 | 2,170 | 18 | 7,364 | 6,204 | 19 | | Service Fees and Other Income | 1,976 | 1,680 | 18 | 5,526 | 5,046 | 10 | | Total Non-Interest Income | 13,940 | 12,630 | 10 | 40,407 | 37,265 | 8 | | Interest Income | | | | | | | | Interest on Loans | 5,970 | 5,442 | 10 | 17,170 | 15,592 | 10 | | Interest and Dividends on Investment Securities | 15 | 18 | (17) | 46 | 68 | (32) | | Bank Deposits and Other | 632 | 689 | (8) | 1,800 | 2,058 | (13) | | Total Interest Income | 6,617 | 6,149 | 8 | 19,016 | 17,718 | 7 | | Interest Expense | | | | | | | | Deposits | 1,371 | 1,446 | (5) | 4,082 | 4,298 | (5) | | Long-Term Debt and Other | 760 | 697 | 9 | 2,092 | 1,915 | 9 | | Total Interest Expense | 2,131 | 2,143 | (1) | 6,174 | 6,213 | (1) | | Net Interest Income | 4,486 | 4,006 | 12 | 12,842 | 11,505 | 12 | | Total Revenues Net of Interest Expense | 18,426 | 16,636 | 11 | 53,249 | 48,770 | 9 | Provisions for Credit Losses Total provisions for credit losses in Q3 2025 were $1,287 million, a 5% year-over-year decrease | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Card Member Receivables | 190 | 170 | 12 | 562 | 592 | (5) | | Card Member Loans | 1,030 | 1,114 | (8) | 3,025 | 3,098 | (2) | | Other | 67 | 72 | (7) | 255 | 203 | 26 | | Total Provisions for Credit Losses | 1,287 | 1,356 | (5) | 3,842 | 3,893 | (1) | Expenses Total expenses for Q3 2025 were $13,314 million, an increase of 10% year-over-year | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Card Member Rewards | 4,608 | 4,168 | 11 | 13,604 | 12,169 | 12 | | Business Development | 1,611 | 1,430 | 13 | 4,729 | 4,249 | 11 | | Card Member Services | 1,477 | 1,179 | 25 | 4,106 | 3,504 | 17 | | Marketing | 1,599 | 1,470 | 9 | 4,640 | 4,426 | 5 | | Salaries and Employee Benefits | 2,239 | 2,049 | 9 | 6,511 | 6,096 | 7 | | Professional Services | 623 | 579 | 8 | 1,755 | 1,576 | 11 | | Data Processing and Equipment | 751 | 725 | 4 | 2,176 | 2,083 | 4 | | Other, Net | 406 | 476 | (15) | 1,181 | 635 | 86 | | Total Expenses | 13,314 | 12,076 | 10 | 38,702 | 34,738 | 11 | Net Income and EPS Net income for Q3 2025 was $2,902 million, up 16% year-over-year, with diluted EPS at $4.14, up 19% | Metric | Q3'25 | Q3'24 | YOY % change | YTD'25 | YTD'24 | YOY % change | | :----------------------------------- | :------ | :------ | :----------- | :------- | :------- | :----------- | | Net Income (million USD) | $2,902 | $2,507 | 16 | $8,371 | $7,959 | 5 | | Net Income Attributable to Common Shareholders (million USD) | $2,868 | $2,474 | 16 | $8,272 | $7,856 | 5 | | Diluted EPS (USD) | $4.14 | $3.49 | 19 | $11.85 | $10.97 | 8 | | Average Common Shares Outstanding (million) | 693 | 709 | (2) | 698 | 716 | (3) | | Cash Dividends Per Share (USD) | $0.82 | $0.70 | 17 | $2.46 | $2.10 | 17 | | Effective Tax Rate | 24.1% | 21.8% | | 21.8% | 21.5% | | Consolidated Balance Sheets and Related Statistical Information This section presents the company's financial position, including assets, liabilities, and equity, along with key financial ratios Assets Total assets reached $297,550 million at the end of Q3 2025, a 10% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | | :----------------------- | :--------------- | :--------------- | :----------- | | Cash and Cash Equivalents | $54,706 | $47,918 | 14 | | Card Member Receivables, Net of Allowances | 60,823 | 58,886 | 3 | | Card Member Loans, Net of Allowances | 138,946 | 128,960 | 8 | | Card Member Loans Held for Sale | 2,424 | - | - | | Investment Securities | 1,374 | 1,268 | 8 | | Other | 39,277 | 33,947 | 16 | | Total Assets | $297,550 | $270,979 | 10 | Liabilities and Shareholders' Equity Total liabilities were $265,133 million at the end of Q3 2025, a 10% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | | :------------------- | :--------------- | :--------------- | :----------- | | Customer Deposits | $149,883 | $135,438 | 11 | | Short-Term Borrowings | 1,446 | 1,457 | (1) | | Long-Term Debt | 57,787 | 53,546 | 8 | | Other | 56,017 | 50,831 | 10 | | Total Liabilities | 265,133 | 241,272 | 10 | | Shareholders' Equity | 32,417 | 29,707 | 9 | | Total Liabilities and Shareholders' Equity | $297,550 | $270,979 | 10 | Related Statistical Information Net interest yield was 8.2% in Q3 2025, with return on average equity at 35.9% | Metric | Q3'25 | Q3'24 | YOY % change | YTD'25 | YTD'24 | | :----------------------- | :---- | :---- | :----------- | :------- | :------- | | Net Interest Yield (C) | 8.2 % | 8.0 % | | 8.1 % | 7.9 % | | Return on Average Equity (D) | 35.9 % | 33.9 % | | 35.4 % | 36.6 % | | Return on Average Common Equity (D) | 37.3 % | 35.3 % | | | | | Book Value Per Share (USD) | $44.76 | $39.92 | 12 | | | Consolidated Capital This section details the company's capital structure, including shares outstanding and risk-based capital ratios Shares Outstanding Shares outstanding at the end of Q3 2025 were 689 million, a decrease primarily due to common stock repurchases | Metric | Q3'25 (million shares) | Q3'24 (million shares) | | :--------------------------- | :------------- | :------------- | | Beginning of Period | 696 | 712 | | Common Stock Repurchases | (7) | (8) | | Employee Benefit Plans and Other Net Impact | — | — | | End of Period Shares Outstanding | 689 | 704 | Risk-Based Capital Ratios - Basel III The company's Common Equity Tier 1 capital ratio was 10.5% in Q3 2025, with a Tier 1 capital ratio of 11.1% and a Total capital ratio of 13.1% | Metric | Q3'25 | Q3'24 | | :----------------------------------- | :---- | :---- | | Common Equity Tier 1 Capital / Risk-Weighted Assets (RWA) | 10.5 % | 10.7 % | | Tier 1 Capital | 11.1 % | 11.4 % | | Total Capital | 13.1 % | 13.4 % | | Tier 1 Leverage Ratio | 9.5 % | 9.8 % | | Supplementary Leverage Ratio (SLR) (E) | 8.1 % | | | Common Equity Tier 1 Capital (million USD) | $26,222 | $24,648 | | Risk-Weighted Assets (RWA) (million USD) | $250,642 | $229,855 | - The company became a Category III institution in Q3 2024, thus subject to minimum Supplementary Leverage Ratio requirements starting Q4 2024[21] Selected Card Related Statistical Information This section provides key metrics on card network activity, billed business, and card-in-force data Network Volumes and Billed Business Network volumes reached $479.2 billion in Q3 2025, a 9% year-over-year increase, with billed business at $421.0 billion, also up 9% | Metric | Q3'25 (billion USD) | Q3'24 (billion USD) | YOY % change | YTD'25 (billion USD) | YTD'24 (billion USD) | YOY % change | | :------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Network Volumes (G) | $479.2 | $441.0 | 9 | $1,390.8 | $1,300.8 | 7 | | Billed Business (H) | $421.0 | $387.3 | 9 | $1,224.7 | $1,142.5 | 7 | | Billed Business Category | Q3'25 YOY % change | YTD'25 YOY % change | | :--------------------- | :----------------- | :------------------ | | U.S. Consumer Services | 9 | 8 | | Commercial Services | 4 | 3 | | International Card Services | 14 | 13 | | Goods and Services Spend | 9 | 7 | | Travel and Entertainment Spend | 8 | 6 | Cards-in-Force and Spending Total cards-in-force reached 151.2 million at the end of Q3 2025, a 4% year-over-year increase | Metric | Q3'25 (million) | Q3'24 (million) | YOY % change | YTD'25 (million) | YTD'24 (million) | YOY % change | | :--------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Cards-in-Force (I) | 151.2 | 145.5 | 4 | 151.2 | 145.5 | 4 | | Proprietary Cards-in-Force | 86.0 | 82.9 | 4 | 86.0 | 82.9 | 4 | | Proprietary Basic Cards-in-Force | 66.2 | 63.7 | 4 | 66.2 | 63.7 | 4 | | Average Spend Per Proprietary Basic Card Member (USD) | $6,387 | $6,110 | 5 | $18,751 | $18,224 | 3 | | Average Fee Per Card (USD) (J) | $119 | $105 | 13 | $116 | $101 | 15 | | Proprietary New Card Acquisitions (million) (K) | 3.2 | 3.3 | | 9.6 | 10.0 | | Selected Credit Related Statistical Information This section provides detailed credit performance metrics for card member loans, receivables, and other loan categories Card Member Loans and Receivables Total card member loans increased by 8% year-over-year to $144,814 million in Q3 2025 | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Card Member Loans | | | | | | | | Total Card Member Loans | $144,814 | $134,548 | 8 | $144,814 | $134,548 | 8 | | Provisions for Credit Losses (End of Period) | $5,868 | $5,588 | 5 | $5,868 | $5,588 | 5 | | Provisions as a % of Card Member Loans | 4.1 % | 4.2 % | | 4.1 % | 4.2 % | | | Net Write-off Rate (Principal, Interest and Fees) | 2.6 % | 2.6 % | | 2.7 % | 2.7 % | | | 30+ Days Past Due as a % of Total | 1.4 % | 1.4 % | | 1.4 % | 1.4 % | | | Card Member Receivables | | | | | | | | Total Card Member Receivables | $61,023 | $59,042 | 3 | $61,023 | $59,042 | 3 | | Provisions for Credit Losses (End of Period) | $200 | $156 | 28 | $200 | $156 | 28 | | Provisions as a % of Card Member Receivables | 0.3 % | 0.3 % | | 0.3 % | 0.3 % | | | Net Write-off Rate (Principal and Fees) | 1.2 % | 1.3 % | | 1.2 % | 1.4 % | | | 30+ Days Past Due as a % of Total | 1.0 % | 0.9 % | | 1.0 % | 0.9 % | | Other Loans and Receivables Total other loans increased by 24% year-over-year to $10,518 million in Q3 2025, with provisions for credit losses up 86% | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Other Loans | | | | | | | | Total Other Loans | $10,518 | $8,460 | 24 | $10,518 | $8,460 | 24 | | Provisions for Credit Losses (End of Period) | $287 | $154 | 86 | $287 | $154 | 86 | | Provisions as a % of Other Loans | 2.7 % | 1.8 % | | 2.7 % | 1.8 % | | | Other Receivables | | | | | | | | Total Other Receivables | $4,019 | $3,800 | 6 | $4,019 | $3,800 | 6 | | Provisions for Credit Losses (End of Period) | $20 | $49 | (59) | $20 | $49 | (59) | | Provisions as a % of Other Receivables | 0.5 % | 1.3 % | | 0.5 % | 1.3 % | | Selected Income Statement Information by Segment This section provides a breakdown of income statement performance across the company's key business segments U.S. Consumer Services (USCS) The U.S. Consumer Services segment reported $1,852 million in pre-tax income for Q3 2025, a 12% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $8,856 | $7,944 | 11 | $25,658 | $23,175 | 11 | | Total Provisions for Credit Losses | 734 | 812 | (10) | 2,194 | 2,245 | (2) | | Total Expenses | 6,270 | 5,473 | 15 | 18,204 | 16,098 | 13 | | Pre-Tax Segment Income | $1,852 | $1,659 | 12 | $5,260 | $4,832 | 9 | | Billed Business (billion USD) | $177.5 | $162.3 | 9 | $518.3 | $480.8 | 8 | | Proprietary Cards-in-Force (million) | 47.8 | 45.7 | 5 | 47.8 | 45.7 | 5 | | Total Card Member Loans (million USD) | $94,142 | $86,752 | 9 | $94,142 | $86,752 | 9 | | Card Member Loans Net Write-off Rate (Principal, Interest and Fees) | 2.4 % | 2.6 % | | 2.7 % | 2.8 % | | | Card Member Receivables Net Write-off Rate (Principal and Fees) | 0.9 % | 1.2 % | | 0.8 % | 1.3 % | | Commercial Services (CS) The Commercial Services segment reported $1,090 million in pre-tax income for Q3 2025, a 20% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $4,281 | $3,998 | 7 | $12,528 | $11,737 | 7 | | Total Provisions for Credit Losses | 332 | 374 | (11) | 1,021 | 1,078 | (5) | | Total Expenses | 2,859 | 2,716 | 5 | 8,676 | 7,968 | 9 | | Pre-Tax Segment Income | $1,090 | $908 | 20 | $2,831 | $2,691 | 5 | | Billed Business (billion USD) | $136.3 | $131.0 | 4 | $401.0 | $390.4 | 3 | | Proprietary Cards-in-Force (million) | 15.4 | 15.5 | (1) | 15.4 | 15.5 | (1) | | Total Card Member Loans (million USD) | $30,691 | $29,869 | 3 | $30,691 | $29,869 | 3 | | Card Member Loans Net Write-off Rate (Principal, Interest and Fees) | 3.1 % | 2.6 % | | 3.0 % | 2.7 % | | | Card Member Receivables Net Write-off Rate (Principal and Fees) | 1.1 % | 1.3 % | | 1.2 % | 1.4 % | | International Card Services (ICS) The International Card Services segment reported $441 million in pre-tax income for Q3 2025, a slight 3% year-over-year decrease | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $3,336 | $2,936 | 14 | $9,504 | $8,471 | 12 | | Total Provisions for Credit Losses | 218 | 158 | 38 | 620 | 532 | 17 | | Total Expenses | 2,677 | 2,323 | 15 | 7,597 | 6,942 | 9 | | Pre-Tax Segment Income | $441 | $455 | (3) | $1,287 | $997 | 29 | | Billed Business (billion USD) | $106.9 | $93.6 | 14 | $303.6 | $269.2 | 13 | | Proprietary Cards-in-Force (million) | 22.8 | 21.7 | 5 | 22.8 | 21.7 | 5 | | Total Card Member Loans (million USD) | $19,981 | $17,927 | 11 | $19,981 | $17,927 | 11 | | Card Member Loans Net Write-off Rate (Principal, Interest and Fees) | 2.5 % | 2.4 % | | 2.4 % | 2.5 % | | | Card Member Receivables Net Write-off Rate (Principal and Fees) | 1.5 % | 1.3 % | | 1.4 % | 1.5 % | | Global Merchant and Network Services (GMNS) The Global Merchant and Network Services segment reported $1,040 million in pre-tax income for Q3 2025, a 5% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $1,972 | $1,847 | 7 | $5,720 | $5,590 | 2 | | Total Provisions for Credit Losses | 5 | 10 | (50) | 8 | 36 | (78) | | Total Expenses | 927 | 846 | 10 | 2,628 | 2,009 | 31 | | Pre-Tax Segment Income | $1,040 | $991 | 5 | $3,084 | $3,545 | (13) | | Total Network Volumes (billion USD) | $479.2 | $441.0 | 9 | $1,390.8 | $1,300.8 | 7 | Corporate and Other The Corporate and Other segment reported a pre-tax loss of $598 million in Q3 2025, an improvement from the $809 million loss in the prior year | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | | :----------------------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $(19)$ | $(89)$ | 79 | | Total Provisions for Credit Losses | $(2)$ | $2$ | | | Total Expenses | 581 | 718 | (19) | | Pre-Tax Income (Loss) | $(598)$ | $(809)$ | 26 | Appendix I: Components of Return on Average Equity and Return on Average Common Equity This appendix provides the detailed components and calculations for the company's Return on Average Equity and Return on Average Common Equity ROE and ROCE Components Annualized net income for Q3 2025 was $11,608 million, resulting in a 35.9% return on average equity | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YTD'25 (million USD) | YTD'24 (million USD) | | :----------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Annualized Net Income | $11,608 | $10,028 | $11,162 | $10,612 | | Average Shareholders' Equity | $32,364 | $29,623 | $31,549 | $29,017 | | Return on Average Equity (D) | 35.9 % | 33.9 % | 35.4 % | 36.6 % | | Annualized Net Income Attributable to Common Shareholders | $11,468 | $9,895 | | | | Average Common Shareholders' Equity | $30,780 | $28,039 | | | | Return on Average Common Equity (D) | 37.3 % | 35.3 % | | | Appendix II: Footnote References This appendix provides detailed definitions and calculation methodologies for various financial metrics and accounting principles used in the report Footnote References This section details GAAP accounting principles, reclassifications, rounding notes, and definitions for key financial metrics - Financial statements adhere to U.S. Generally Accepted Accounting Principles (GAAP), with prior period amounts reclassified for current presentation[20] - Detailed definitions and calculation methodologies are provided for net income attributable to common shareholders, other assets/liabilities, net interest yield, return on average equity, supplementary leverage ratio, network volumes, billed business, cards-in-force, average fee per card, new card acquisitions, foreign exchange adjustment information, net write-off rates, and days past due[21]