American Express(AXP) - 2025 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Analyzes American Express's financial condition and results for Q3 and YTD 2025, covering performance, capital, liquidity, and regulatory matters Business Introduction American Express is a global payments and premium lifestyle brand, offering diverse financial products and services, regulated as a bank holding company - American Express is a global payments and premium lifestyle brand, offering card-issuing, merchant-acquiring, and card network businesses worldwide[13] - The company offers a range of products including credit/charge cards, banking, merchant acquisition, network services, travel, and expense management[19] - American Express operates as a bank holding company, subject to extensive global government regulation and supervision by the Federal Reserve[18] - Starting Q3 2025, the company reports 'Net interest yield on average Total loans and Card Member receivables' (GAAP), replacing the prior non-GAAP metric[17] Summary of Financial Performance Delivered strong financial performance in Q3 and YTD 2025, with significant increases in revenues, net income, and diluted EPS, alongside robust billed business growth Selected Income Statement Data (Three Months Ended September 30, 2025 vs. 2024) | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Total revenues net of interest expense | $18,426 | $16,636 | $1,790 | 11% | | Provisions for credit losses | $1,287 | $1,356 | $(69) | (5)% | | Net income | $2,902 | $2,507 | $395 | 16% | | Earnings per common share — diluted | $4.14 | $3.49 | $0.65 | 19% | Selected Income Statement Data (Nine Months Ended September 30, 2025 vs. 2024) | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Total revenues net of interest expense | $53,249 | $48,770 | $4,479 | 9% | | Provisions for credit losses | $3,842 | $3,893 | $(51) | (1)% | | Net income | $8,371 | $7,959 | $412 | 5% | | Earnings per common share — diluted | $11.85 | $10.97 | $0.88 | 8% | Selected Balance Sheet and Common Share Data (As of September 30, 2025 vs. 2024) | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Cash and cash equivalents | $54,706 | $47,918 | $6,788 | 14% | | Total loans and Card Member receivables | $216,355 | $202,050 | $14,305 | 7% | | Customer deposits | $149,883 | $135,438 | $14,445 | 11% | | Long-term debt | $57,787 | $53,546 | $4,241 | 8% | | Cash dividends declared per common share (3 months) | $0.82 | $0.70 | $0.12 | 17% | | Cash dividends declared per common share (9 months) | $2.46 | $2.10 | $0.36 | 17% | Selected Metrics and Ratios (As of or for the Three Months Ended September 30, 2025 vs. 2024) | Metric | 2025 | 2024 | Change | | :-------------------------------- | :--- | :--- | :----- | | Network volumes (billions) | $479.2 | $441.0 | 9% | | Billed business (billions) | $421.0 | $387.3 | 9% | | Net interest yield | 8.2% | 8.0% | 0.2% | | Return on average equity | 35.9% | 33.9% | 2.0% | | Common Equity Tier 1 | 10.5% | 10.7% | (0.2)% | Selected Metrics and Ratios (As of or for the Nine Months Ended September 30, 2025 vs. 2024) | Metric | 2025 | 2024 | Change | | :-------------------------------- | :--- | :--- | :----- | | Network volumes (billions) | $1,390.8 | $1,300.8 | 7% | | Billed business (billions) | $1,224.7 | $1,142.5 | 7% | | Net interest yield | 8.1% | 7.9% | 0.2% | | Return on average equity | 35.4% | 36.6% | (1.2)% | | Common Equity Tier 1 | 10.5% | 10.7% | (0.2)% | Business Performance American Express achieved strong Q3 2025 results with record Card Member spending, 16% net income growth, 9% billed business growth, and significant capital returns - Net income for Q3 2025 was $2.9 billion, or $4.14 per share, increasing from $2.5 billion, or $3.49 per share, in Q3 2024[24] - Billed business growth accelerated to 9% year-over-year (8% FX-adjusted), driven by 9% growth in Goods & Services and an 8% rebound in Travel & Entertainment spend[25] - U.S. Consumer Services billed business grew 9%, Commercial Services grew 4%, and International Card Services billed business grew 14% (13% FX-adjusted)[25] - Total revenues net of interest expense increased 11% year-over-year, with Discount revenue up 7% and Net interest income up 12%[25] - Provisions for credit losses decreased due to a lower reserve build, despite higher net write-offs, with net write-off and delinquency rates remaining stable[25] - The company acquired 3.2 million proprietary new cards in Q3 2025 and returned $2.9 billion of capital to shareholders, maintaining its CET1 capital ratio within 10-11%[26][27] Results of Operations This section details the consolidated and segment-specific financial performance, highlighting revenue, credit loss provisions, and expense trends for the three and nine months ended September 30, 2025 - Beginning in Q1 2025, 'Processed revenue' was consolidated within 'Service fees and other revenue' and renamed 'Network partnership revenue', with prior periods recast and no impact to Total non-interest revenues[33] - Results for the nine months ended September 30, 2024, include a $531 million ($479 million after tax) gain from the sale of Accertify Inc., reported as a reduction to Other expense[32] Consolidated Results of Operations Consolidated results show strong revenue growth from billed business and premium cards, decreased credit loss provisions, and increased expenses due to strategic investments Total Revenues Net of Interest Expense Total revenues net of interest expense increased for both periods, driven by higher discount revenue, net card fees, service fees, and net interest income from loan growth and yield expansion Total Revenues Net of Interest Expense Summary (Millions) | Revenue Category | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | 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 revenue | $1,976 | $1,680 | 18% | $5,526 | $5,046 | 10% | | Total non-interest revenues | $13,940 | $12,630 | 10% | $40,407 | $37,265 | 8% | | 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% | - Service fees and other revenue increased due to a gain from an equity transaction by Global Business Travel Group, Inc., and higher foreign exchange-related and network partnership revenues[36] - Interest income increased due to growth in revolving loan balances, partially offset by lower interest rates[37] - Interest expense was relatively flat, reflecting lower interest rates on customer deposits, offset by growth in customer deposits and long-term debt[37] Provisions for Credit Losses Total provisions for credit losses decreased for both periods, primarily due to lower reserve builds for Card Member loans, partially offset by higher net write-offs Provisions for Credit Losses Summary (Millions) | Provision Category | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :---------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Card Member loans | $1,030 | $1,114 | (8)% | $3,025 | $3,098 | (2)% | | Card Member receivables | $190 | $170 | 12% | $562 | $592 | (5)% | | Other | $67 | $72 | (7)% | $255 | $203 | 26% | | Total provisions for credit losses | $1,287 | $1,356 | (5)% | $3,842 | $3,893 | (1)% | - Card Member loans provision decreased due to lower reserve builds, partially offset by higher net write-offs, with the nine-month period also impacted by macroeconomic outlook and a HFS reclassification[39] - Card Member receivables provision increased for three months due to a reserve build, but decreased for nine months due to lower net write-offs, partially offset by a reserve build[40] Expenses Total expenses increased for both periods, primarily driven by higher Card Member rewards, business development, and services, alongside increased marketing and salaries Expenses Summary (Millions) | Expense Category | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | 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% | | Other, net | $1,780 | $1,780 | 0% | $5,112 | $4,294 | 19% | | Total expenses | $13,314 | $12,076 | 10% | $38,702 | $34,738 | 11% | - Card Member rewards expense increased due to higher Membership Rewards, cash back rewards (driven by billed business and premium product spend), and cobrand rewards expense[43] - Card Member services expense increased due to higher usage of Card Member benefits, new U.S. Platinum benefits, and growth in premium card accounts[45] - Other expenses were flat for three months but increased for nine months, reflecting higher professional services and technology costs, offset by prior-year legal reserves and Accertify sale gain[47] Income Taxes Effective tax rate increased for both periods due to global minimum tax and California tax law changes, partially offset by increased discrete tax benefits for nine months Effective Tax Rate | Period | 2025 | 2024 | | :---------------- | :--- | :--- | | Three Months Ended September 30 | 24.1% | 21.8% | | Nine Months Ended September 30 | 21.8% | 21.5% | - The higher effective tax rate primarily reflected the implementation of the global minimum tax and a California tax law change[48] Business Segment Results of Operations Details financial performance for American Express's four operating segments (USCS, CS, ICS, GMNS) and Corporate & Other, analyzing revenue, credit provisions, and expenses for Q3 and YTD 2025 U.S. Consumer Services USCS reported an 11% revenue increase for both periods, driven by discount revenue and net card fees, with pretax income up 12% (3 months) and 9% (9 months), and decreased credit provisions USCS Selected Income Statement Data (Millions) | Metric | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Total revenues net of interest expense | $8,856 | $7,944 | 11% | $25,658 | $23,175 | 11% | | Provisions for credit losses | $734 | $812 | (10)% | $2,194 | $2,245 | (2)% | | Total expenses | $6,270 | $5,473 | 15% | $18,204 | $16,098 | 13% | | Pretax segment income | $1,852 | $1,659 | 12% | $5,260 | $4,832 | 9% | USCS Selected Statistical Information | Metric | 3 Months 2025 | 3 Months 2024 | Change (%) | 9 Months 2025 | 9 Months 2024 | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Billed business (billions) | $177.5 | $162.3 | 9% | $518.3 | $480.8 | 8% | | Proprietary cards-in-force (millions) | 47.8 | 45.7 | 5% | 47.8 | 45.7 | 5% | | Average proprietary basic Card Member spending (dollars) | $5,291 | $5,091 | 4% | $15,634 | $15,313 | 2% | | Total segment assets | $115,330 | $106,201 | 9% | $115,330 | $106,201 | 9% | - Non-interest revenues increased due to higher Discount revenue (driven by U.S. consumer billed business) and Net card fees (driven by growth in premium card portfolios)[54][55] - Total expenses increased primarily due to higher Card Member rewards, Card Member services (including new U.S. Platinum benefits and premium card account growth), and salaries and employee benefits[62][63][64][65] Commercial Services CS reported a 7% revenue increase for both periods, driven by discount revenue and net card fees, with pretax income up 20% (3 months) and 5% (9 months), and decreased credit provisions CS Selected Income Statement Data (Millions) | Metric | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Total revenues net of interest expense | $4,281 | $3,998 | 7% | $12,528 | $11,737 | 7% | | Provisions for credit losses | $332 | $374 | (11)% | $1,021 | $1,078 | (5)% | | Total expenses | $2,859 | $2,716 | 5% | $8,676 | $7,968 | 9% | | Pretax segment income | $1,090 | $908 | 20% | $2,831 | $2,691 | 5% | CS Selected Statistical Information | Metric | 3 Months 2025 | 3 Months 2024 | Change (%) | 9 Months 2025 | 9 Months 2024 | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Billed business (billions) | $136.3 | $131.0 | 4% | $401.0 | $390.4 | 3% | | Proprietary cards-in-force (millions) | 15.4 | 15.5 | (1)% | 15.4 | 15.5 | (1)% | | Average Card Member spending (dollars) | $8,833 | $8,474 | 4% | $25,996 | $25,319 | 3% | | Total segment assets | $64,305 | $59,716 | 8% | $64,305 | $59,716 | 8% | - Non-interest revenues increased due to higher Discount revenue (driven by commercial billed business) and Net card fees (driven by growth in premium card portfolios)[69][70] - Provisions for credit losses decreased primarily due to lower reserve builds, partially offset by higher net write-offs[72] - Total expenses increased due to higher Card Member rewards, Business development (client incentives and partner payments), and Salaries and employee benefits and other expenses[75][76][77][78] International Card Services ICS reported 14% revenue growth (3 months) and 12% (9 months), driven by discount revenue and net card fees, with pretax income down 3% (3 months) but up 29% (9 months), and increased credit provisions and expenses ICS Selected Income Statement Data (Millions) | Metric | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Total revenues net of interest expense | $3,336 | $2,936 | 14% | $9,504 | $8,471 | 12% | | Provisions for credit losses | $218 | $158 | 38% | $620 | $532 | 17% | | Total expenses | $2,677 | $2,323 | 15% | $7,597 | $6,942 | 9% | | Pretax segment income | $441 | $455 | (3)% | $1,287 | $997 | 29% | ICS Selected Statistical Information | Metric | 3 Months 2025 | 3 Months 2024 | Change (%) | 9 Months 2025 | 9 Months 2024 | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Billed business (billions) | $106.9 | $93.6 | 14% | $303.6 | $269.2 | 13% | | Proprietary cards-in-force (millions) | 22.8 | 21.7 | 5% | 22.8 | 21.7 | 5% | | Average proprietary basic Card Member spending (dollars) | $6,307 | $5,829 | 8% | $18,136 | $16,956 | 7% | | Total segment assets | $47,253 | $43,073 | 10% | $47,253 | $43,073 | 10% | - Non-interest revenues increased due to higher Discount revenue (reflecting increases in billed business) and Net card fees (driven by growth in premium card portfolios)[84][85] - Provisions for credit losses increased due to higher net write-offs and reserve builds[89][90] - Total expenses increased due to higher Card Member rewards (cobrand and Membership Rewards), Marketing (customer acquisition), and Salaries and employee benefits and other expenses[91][93] Global Merchant and Network Services GMNS reported 7% revenue growth (3 months) and 2% (9 months), driven by discount revenue and service fees, with pretax income up 5% (3 months) but down 13% (9 months), and increased expenses GMNS Selected Income Statement and Other Data (Millions) | Metric | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Total revenues net of interest expense | $1,972 | $1,847 | 7% | $5,720 | $5,590 | 2% | | Provisions for credit losses | $5 | $10 | (50)% | $8 | $36 | (78)% | | Total expenses | $927 | $846 | 10% | $2,628 | $2,009 | 31% | | Pretax segment income | $1,040 | $991 | 5% | $3,084 | $3,545 | (13)% | | Network volumes (billions) | $479.2 | $441.0 | 9% | $1,390.8 | $1,300.8 | 7% | | Total segment assets | $18,879 | $17,739 | 6% | $18,879 | $17,739 | 6% | - Non-interest revenues increased due to higher Discount revenue (driven by billed business, partially offset by lower average merchant discount rates) and Service fees and other revenue (network partnership and foreign exchange-related revenues)[98][99] - Net interest income increased for three months due to higher interest expense credit from increased average merchant payables, but decreased for nine months due to lower international interest rates[100] - Total expenses increased primarily due to higher Salaries and employee benefits and other expenses, reflecting a prior-year reserve release, increased legal reserves, and the prior-year gain on Accertify sale[103] Corporate & Other Corporate & Other reported a decreased pretax loss for both periods, driven by a prior-year increase in legal reserves and an equity transaction gain, partially offset by deferred compensation liabilities Corporate & Other Pretax Income (Loss) (Millions) | Period | 2025 (Millions) | 2024 (Millions) | Change (Millions) | | :---------------------------- | :----- | :----- | :---------------- | | Three Months Ended September 30 | $(598) | $(809) | $211 | | Nine Months Ended September 30 | $(1,757) | $(1,926) | $169 | - The decrease in pretax loss for both periods was primarily driven by a prior-year increase in legal reserves and a gain from an equity transaction by Global Business Travel Group, Inc., partially offset by increases in deferred compensation liabilities[106] Consolidated Capital Resources and Liquidity Maintains a strong capital, funding, and liquidity profile, exceeding regulatory minimums, with diversified funding and significant capital returns to shareholders Capital Aims to maintain a strong equity capital profile with CET1 ratios within 10-11%, exceeding regulatory minimums, using Basel III definitions and a 7% minimum CET1 ratio from a 2.5% SCB requirement - The company aims to maintain capital levels and ratios exceeding minimum regulatory requirements, targeting a 10% to 11% Common Equity Tier 1 (CET1) risk-based capital ratio[109] Regulatory Risk-Based Capital and Leverage Ratios (As of September 30, 2025) | Ratio | American Express Company | American Express National Bank | | :---------------------- | :----------------------- | :----------------------------- | | Common Equity Tier 1 | 10.5% | 11.0% | | Tier 1 | 11.1% | 11.0% | | Total | 13.1% | 13.1% | | Tier 1 Leverage | 9.5% | 8.5% | | Supplementary Leverage Ratio | 8.1% | 7.2% | - The Federal Reserve confirmed American Express Company's Stress Capital Buffer (SCB) requirement at 2.5%, resulting in a minimum CET1 ratio of 7% effective October 1, 2025, to September 30, 2026[119] Regulatory Risk-Based Capital Components and Risk-Weighted Assets (American Express Company, September 30, 2025, Millions) | Component | Amount (Millions) | | :------------------------------------------ | :----- | | Common Equity Tier 1 | $26,222 | | Tier 1 Capital | $27,848 | | Tier 2 Capital | $4,915 | | Total Capital | $32,763 | | Risk-Weighted Assets | $250,642 | | Average Total Assets to calculate the Tier 1 Leverage Ratio | $292,875 | | Total Leverage Exposure to calculate the Supplementary Leverage Ratio | $344,532 | Dividends and Share Repurchases Returns capital to common shareholders via dividends and share repurchases, returning $2.9 billion (3 months) and $6.1 billion (9 months) in 2025, representing 101% and 74% of net income respectively - During Q3 2025, American Express returned $2,906 million to shareholders, including $2,338 million in share repurchases and $567 million in common stock dividends[121] - For the nine months ended September 30, 2025, the company returned $6,131 million to shareholders, comprising $4,412 million in share repurchases and $1,719 million in common stock dividends[121] - These capital returns represent approximately 101% and 74% of net income available to common shareholders for the three and nine month periods, respectively[121] - The company repurchased 7.3 million common shares at an average price of $315.26 in Q3 2025[121] Funding Strategy Employs a diversified funding strategy using customer deposits, unsecured debt, and asset securitizations, issuing $19.5 billion in debt in YTD 2025, while maintaining stable unsecured debt ratings Summary of Customer Deposits and Consolidated Debt (Billions) | Category | September 30, 2025 (Billions) | December 31, 2024 (Billions) | | :-------------------------- | :----------------- | :------------------ | | Customer deposits | $149.9 | $139.4 | | Short-term borrowings | $1.4 | $1.4 | | Long-term debt | $57.8 | $49.7 | | Total customer deposits and debt | $209.1 | $190.5 | - American Express issued $19.5 billion of debt during the nine months ended September 30, 2025, including $13.1 billion of unsecured debt and $6.4 billion of asset-backed securities[128] Unsecured Debt Ratings (Long Term, Outlook Stable) | American Express Entity | Moody's | S&P | Fitch | | :------------------------------------------ | :------ | :-- | :---- | | American Express Company | A2 | A- | A | | American Express Travel Related Services Company, Inc. | A2 | A | A | | American Express National Bank | A3 | A | A | | American Express Credit Corporation | A2 | A | A | Deposit Programs AENB offers FDIC-insured direct deposit products as a primary funding source, with total deposits reaching $149.9 billion as of September 30, 2025, and average interest rates generally decreasing - As of September 30, 2025, total deposits were $149.9 billion, up from $139.4 billion at December 31, 2024[134] - The direct deposit program offered by AENB had approximately 3.8 million accounts as of September 30, 2025[133] Average Interest Rates Paid on Deposits (Three Months Ended September 30) | Deposit Type | 2025 Average Interest Rate | 2024 Average Interest Rate | | :-------------------------- | :------------------------- | :------------------------- | | Savings accounts | 3.5% | 4.2% | | Checking accounts | 1.2% | 1.4% | | Certificates of deposit: Direct | 3.9% | 4.3% | | Certificates of deposit: Third-party (brokered) | 4.4% | 4.2% | | Sweep accounts — Third-party (brokered) | 4.6% | 5.6% | | Total U.S. interest-bearing deposits | 3.7% | 4.3% | Liquidity Management Maintains robust liquidity to meet obligations for at least twelve months under adverse conditions, utilizing diverse on- and off-balance sheet sources, including cash, secured facilities, and significant borrowing capacity at the Federal Reserve - Cash and cash equivalents totaled $54.7 billion as of September 30, 2025, up from $40.6 billion at December 31, 2024[140] - The company maintained committed, revolving, secured borrowing facilities of $3.0 billion from the Charge Trust and $2.0 billion from the Lending Trust, with no amounts drawn as of September 30, 2025[141] - A committed syndicated bank credit facility of $6.0 billion was maintained, extended to mature on September 24, 2028, with no amount drawn as of September 30, 2025[142] - AENB had available borrowing capacity of $79.0 billion at the Federal Reserve's discount window as of September 30, 2025[144] - Unused credit available to customers was approximately $505 billion as of September 30, 2025[146] Cash Flows Net cash from operating activities significantly increased to $15.4 billion (YTD 2025), investing activities used $12.9 billion, and financing activities provided $11.4 billion, driven by deposits and debt issuances Cash Flow Activity (Billions) | Activity | 2025 (Billions) | 2024 (Billions) | | :---------------------------- | :--- | :--- | | Operating activities | $15.4 | $8.3 | | Investing activities | $(12.9) | $(12.2) | | Financing activities | $11.4 | $5.2 | | Net increase in cash and cash equivalents | $14.1 | $1.3 | - Net cash provided by operating activities in 2025 was driven by cash generated from net income and higher net operating liabilities, primarily due to higher book overdrafts[149] - Net cash used in investing activities in 2025 was primarily driven by higher loans outstanding and the acquisition of a business[151] - Net cash provided by financing activities in both periods was primarily driven by growth in customer deposits and net proceeds from long-term debt, partially offset by share repurchases and dividend payments[153] Other Matters Addresses legislative, regulatory, and other developments impacting American Express, including prudential standards, consumer finance, payments, surcharging, antitrust, privacy, AI, and cybersecurity risks, plus a glossary and forward-looking statements Certain Legislative, Regulatory and Other Developments Operates in a highly regulated global financial services industry, facing extensive government oversight, evolving regulations (prudential, consumer, payments, privacy, AML/CFT), and substantial compliance costs with potential significant impacts - American Express is subject to evolving and extensive global government regulation and supervision, incurring substantial costs for ongoing compliance[154] - The company became a Category III firm in Q3 2024, subjecting it to heightened capital, liquidity, and prudential requirements[157] - Payments regulation, including potential caps on interchange fees and restrictions on network operations, could negatively impact discount revenue and cobrand arrangements[161][162] - Increased merchant surcharging on American Express cards in certain jurisdictions could have a material adverse effect on the company[164] - Regulatory and legislative activity in privacy, data protection, artificial intelligence, and cybersecurity continues to increase, posing risks of sophisticated cyberattacks and new compliance obligations[167][168] - The company is subject to stringent anti-money laundering (AML), countering the financing of terrorism (CFT) laws, and economic sanctions, with non-compliance potentially leading to significant penalties[169][170][171] Glossary of Selected Terminology Provides definitions for key financial, operational, and regulatory terms used throughout the report to ensure clarity and consistent understanding of disclosures Cautionary Note Regarding Forward-Looking Statements Highlights that the report contains forward-looking statements subject to risks and uncertainties, including macroeconomic conditions, competitive pressures, regulatory changes, credit performance, and operational risks Quantitative and Qualitative Disclosures about Market Risk American Express is exposed to market risks from interest rate and foreign exchange fluctuations; a 10% U.S. dollar strengthening would impact pretax income by $207 million - American Express's market risk exposures include interest rate risk (from changes in rates on assets and liabilities) and foreign exchange risk (related to non-U.S. dollar transactions, funding, investments, and earnings in non-U.S. dollar currencies)[390] - There have been no material changes in market risk exposures associated with interest rates since December 31, 2024[390] - A hypothetical 10% strengthening of the U.S. dollar would result in an adverse impact of approximately $207 million on pretax income, net of hedges, for anticipated foreign currency earnings over the next twelve months[390] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of September 30, 2025, ensuring timely and accurate reporting, with no material changes to internal control over financial reporting - Management, with CEO and CFO participation, concluded that disclosure controls and procedures were effective as of September 30, 2025[392] - There have been no material changes in internal control over financial reporting during the fiscal quarter[393] Financial Statements Presents unaudited consolidated financial statements for American Express for periods ended September 30, 2025, and December 31, 2024, including income, comprehensive income, balance sheets, cash flows, and shareholders' equity, with detailed notes Consolidated Statements of Income – Three Months Ended September 30, 2025 and 2024 For Q3 2025, American Express reported net income of $2,902 million (up 16%), total revenues net of interest expense increased 11% to $18,426 million, and diluted EPS rose 19% to $4.14 Consolidated Statements of Income (Three Months Ended September 30, Millions, except per share amounts) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :------------------------------------------ | :--- | :--- | :--------- | | Total non-interest revenues | $13,940 | $12,630 | 10% | | Total interest income | $6,617 | $6,149 | 8% | | Total interest expense | $2,131 | $2,143 | (1)% | | Net interest income | $4,486 | $4,006 | 12% | | Total revenues net of interest expense | $18,426 | $16,636 | 11% | | Total provisions for credit losses | $1,287 | $1,356 | (5)% | | Total expenses | $13,314 | $12,076 | 10% | | Pretax income | $3,825 | $3,204 | 19% | | Income tax provision | $923 | $697 | 32% | | Net income | $2,902 | $2,507 | 16% | | Diluted Earnings per Common Share | $4.14 | $3.49 | 19% | Consolidated Statements of Income – Nine Months Ended September 30, 2025 and 2024 For YTD 2025, American Express reported net income of $8,371 million (up 5%), total revenues net of interest expense increased 9% to $53,249 million, and diluted EPS rose 8% to $11.85 Consolidated Statements of Income (Nine Months Ended September 30, Millions, except per share amounts) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :------------------------------------------ | :--- | :--- | :--------- | | Total non-interest revenues | $40,407 | $37,265 | 8% | | Total interest income | $19,016 | $17,718 | 7% | | Total interest expense | $6,174 | $6,213 | (1)% | | Net interest income | $12,842 | $11,505 | 12% | | Total revenues net of interest expense | $53,249 | $48,770 | 9% | | Total provisions for credit losses | $3,842 | $3,893 | (1)% | | Total expenses | $38,702 | $34,738 | 11% | | Pretax income | $10,705 | $10,139 | 6% | | Income tax provision | $2,334 | $2,180 | 7% | | Net income | $8,371 | $7,959 | 5% | | Diluted Earnings per Common Share | $11.85 | $10.97 | 8% | Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2025 and 2024 Comprehensive income for Q3 2025 was $2,901 million, slightly below net income; for YTD, it was $8,517 million, exceeding net income due to foreign currency translation adjustments Consolidated Statements of Comprehensive Income (Millions) | Metric | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | | :------------------------------------------ | :------------ | :------------ | :------------ | :------------ | | Net income | $2,902 | $2,507 | $8,371 | $7,959 | | Other comprehensive income (loss) | $(1) | $5 | $146 | $(123) | | Comprehensive income | $2,901 | $2,512 | $8,517 | $7,836 | Consolidated Balance Sheets – September 30, 2025 and December 31, 2024 As of September 30, 2025, total assets increased to $297,550 million, driven by cash and loans; total liabilities rose to $265,133 million from deposits and debt; shareholders' equity increased to $32,417 million Consolidated Balance Sheets (Millions) | Metric | September 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (%) | | :------------------------------------------ | :----------------- | :------------------ | :--------- | | Cash and cash equivalents | $54,706 | $40,640 | 35% | | Card Member receivables, less reserves | $60,823 | $59,240 | 3% | | Card Member loans, less reserves | $138,946 | $133,995 | 4% | | Other loans, less reserves | $10,231 | $9,038 | 13% | | Total assets | $297,550 | $271,461 | 9.6% | | Customer deposits | $149,883 | $139,413 | 7.5% | | Long-term debt | $57,787 | $49,715 | 16% | | Total liabilities | $265,133 | $241,197 | 9.9% | | Total shareholders' equity | $32,417 | $30,264 | 7.1% | Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2025 and 2024 For YTD 2025, net cash from operating activities significantly increased to $15,361 million; investing activities used $12,944 million; and financing activities provided $11,364 million, driven by deposits and debt issuances Consolidated Statements of Cash Flows (Nine Months Ended September 30, Millions) | Cash Flow Activity | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :---------------------------- | :--- | :--- | :---------------- | :--------- | | Net cash provided by operating activities | $15,361 | $8,272 | $7,089 | 86% | | Net cash used in investing activities | $(12,944) | $(12,157) | $(787) | 6.5% | | Net cash provided by financing activities | $11,364 | $5,206 | $6,158 | 118% | | Net increase in cash and cash equivalents | $14,066 | $1,322 | $12,744 | 964% | | Cash and cash equivalents at end of period | $54,706 | $47,918 | $6,788 | 14% | Consolidated Statements of Shareholders' Equity – Three and Nine Months Ended September 30, 2025 and 2024 Total shareholders' equity increased to $32,417 million as of September 30, 2025, driven by net income, partially offset by share repurchases and common stock dividends Consolidated Statements of Shareholders' Equity (Millions) | Metric | September 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | | :-------------------------- | :----------------- | :------------------ | :---------------- | | Total shareholders' equity | $32,417 | $30,264 | $2,153 | | Net income (9 months) | $8,371 | N/A | N/A | | Repurchase of common shares (9 months) | $(4,412) | N/A | N/A | | Cash dividends declared common (9 months) | $(1,719) | N/A | N/A | Notes to Consolidated Financial Statements Provides detailed disclosures supporting financial statements, covering accounting policies, business events, loans, credit loss reserves, investments, securitizations, deposits, contingencies, derivatives, fair value, guarantees, comprehensive income, revenue, expenses, income taxes, and EPS Note 1. Basis of Presentation Outlines the basis for interim financial statements, including GAAP, estimates, and reclassifications, detailing significant business events like HFS reclassification, Center ID Corp. acquisition, Accertify Inc. sale, and new accounting standards - Effective June 1, 2025, $1.6 billion of Card Member loans from the Amazon small business cobrand portfolio were reclassified to HFS, resulting in a $144 million release of credit loss reserves[232] - On April 16, 2025, American Express acquired Center ID Corp., an expense management software company, recognizing $590 million of Goodwill within the Commercial Services segment[233] - On May 1, 2024, the company sold Accertify Inc., a fraud prevention provider, resulting in a $531 million ($479 million after tax) gain reported as a reduction to Other expense[234] - Recently issued accounting guidance includes Disclosures for Income Taxes (effective after Dec 15, 2024), Disaggregation of Income Statement Expenses (effective after Dec 15, 2026), and accounting for internal-use software (effective after Dec 15, 2027)[235][236][237] Note 2. Loans and Card Member Receivables Details the composition and aging of Card Member loans, receivables, and Other loans, including information on loan and receivable modifications for borrowers experiencing financial difficulty Card Member and Other Loans (Millions) | Category | September 30, 2025 (Millions) | December 31, 2024 (Millions) | | :--------------- | :----------------- | :------------------ | | Consumer | $110,957 | $107,646 | | Small Business | $33,818 | $31,991 | | Corporate | $38 | $37 | | Card Member loans | $144,814 | $139,674 | | Other loans, net | $10,231 | $9,038 | Card Member Receivables (Millions) | Category | September 30, 2025 (Millions) | December 31, 2024 (Millions) | | :--------------- | :----------------- | :------------------ | | Consumer | $24,446 | $25,431 | | Small Business | $19,189 | $18,619 | | Corporate | $17,388 | $15,361 | | Card Member receivables | $61,023 | $59,411 | Credit Quality Indicators for Loans and Card Member Receivables (Nine Months Ended September 30, 2025) | Category | Net Write-Off Rate (Principal Only) | Net Write-Off Rate (Principal, Interest & Fees) | 30+ Days Past Due as a % of Total | | :---------------------- | :---------------------------------- | :-------------------------------------------- | :-------------------------------- | | Card Member Loans: Consumer | 2.1% | 2.6% | 1.4% | | Card Member Loans: Small Business | 2.5% | 2.9% | 1.5% | | Card Member Receivables: Consumer | 1.0% | 1.1% | 1.0% | | Card Member Receivables: Small Business | 1.8% | 2.0% | 1.1% | | Other Loans | 2.0% | 2.1% | 0.6% | - As of September 30, 2025, $1,035 million in loans and receivables remained in modification programs for borrowers experiencing financial difficulty, with weighted average interest rate reductions of 18.2% for Consumer and 17.7% for Small Business Card Member Loans[264] Note 3. Reserves for Credit Losses Details the CECL methodology for estimating lifetime expected credit losses, incorporating historical data and economic conditions, and presents changes in reserves for Card Member loans, receivables, and Other loans - The Current Expected Credit Loss (CECL) methodology estimates lifetime expected credit losses, incorporating historical loss experience and current/future economic conditions over an approximate three-year reasonable and supportable period[274] - Key models for estimating expected credit losses include Probability of Default (PD), Exposure at Default (EAD), and future recoveries[282] Changes in Card Member Loans Reserve for Credit Losses (Nine Months Ended September 30, Millions) | Metric | 2025 (Millions) | 2024 (Millions) | | :---------------------------- | :--- | :--- | | Beginning Balance | $5,679 | $5,118 | | Provisions | $3,025 | $3,098 | | Net write-offs (Principal, Interest & Fees) | $(2,861) | $(2,621) | | Ending Balance | $5,868 | $5,588 | Changes in Card Member Receivables Reserve for Credit Losses (Nine Months Ended September 30, Millions) | Metric | 2025 (Millions) | 2024 (Millions) | | :---------------------------- | :--- | :--- | | Beginning Balance | $171 | $174 | | Provisions | $562 | $592 | | Net write-offs (Principal & Fees) | $(536) | $(609) | | Ending Balance | $200 | $156 | Changes in Other Loans Reserve for Credit Losses (Nine Months Ended September 30, Millions) | Metric | 2025 (Millions) | 2024 (Millions) | | :---------------------------- | :--- | :--- | | Beginning Balance | $194 | $126 | | Provisions | $245 | $162 | | Net write-offs (Principal, Interest & Fees) | $(153) | $(134) | | Ending Balance | $287 | $154 | Note 4. Investment Securities Investment securities primarily consist of AFS debt and equity securities, carried at fair value; gross unrealized losses on AFS debt are due to increased benchmark interest rates, with no credit losses recognized Investment Securities Summary (Estimated Fair Value, Millions) | Description of Securities | September 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------- | :------------------ | | State and municipal obligations | $48 | $49 | | U.S. Government agency obligations | $3 | $4 | | U.S. Government treasury obligations | $278 | $287 | | Mortgage-backed securities | $9 | $10 | | Foreign government bonds and obligations | $908 | $765 | | Other (debt securities) | $81 | $77 | | Equity securities | $46 | $48 | | Total | $1,374 | $1,240 | - As of September 30, 2025, AFS debt securities with gross unrealized losses had an estimated fair value of $25 million and gross unrealized losses of $(7) million, primarily due to increased benchmark interest rates[300][302] Contractual Maturities of AFS Debt Securities (September 30, 2025, Millions) | Maturity Period | Cost (Millions) | Estimated Fair Value (Millions) | | :-------------------------- | :--- | :------------------- | | Due within 1 year | $1,139 | $1,139 | | Due after 1 year but within 5 years | $143 | $144 | | Due after 5 years but within 10 years | $7 | $7 | | Due after 10 years | $46 | $38 | | Total | $1,334 | $1,329 | Note 5. Asset Securitizations Securitizes Card Member loans and receivables through consolidated Lending and Charge Trusts (VIEs), acting as primary beneficiary; no triggering events for early amortization occurred during the reporting periods - American Express securitizes Card Member loans and receivables through the Lending Trust and Charge Trust, which are considered consolidated Variable Interest Entities (VIEs)[306][307] - The company is the primary beneficiary of these Trusts, holding all variable interests except for debt securities issued to third-party investors[307] - As of September 30, 2025, the company's ownership of variable interests was $12.5 billion in the Lending Trust and $6.7 billion in the Charge Trust[307] - No triggering events associated with the performance of the Trusts' assets occurred during the nine months ended September 30, 2025, or the year ended December 31, 2024[309] Note 6. Customer Deposits Customer deposits totaled $149.9 billion as of September 30, 2025, primarily U.S. interest-bearing deposits, with savings accounts as the largest component and CD maturities extending beyond five years Customer Deposits (Millions) | Category | September 30, 2025 (Millions) | December 31, 2024 (Millions) | | :------------------------------------------ | :----------------- | :------------------ | | U.S. Interest-bearing | $148,924 | $138,433 | | U.S. Non-interest-bearing | $521 | $566 | | Non-U.S. Interest-bearing | $18 | $17 | | Non-U.S. Non-interest-bearing | $420 | $397 | | Total customer deposits | $149,883 | $139,413 | Customer Deposits by Type (Millions, September 30, 2025) | Deposit Type | Amount (Millions) | | :-------------------------- | :----- | | Savings accounts | $113,998 | | Checking accounts | $2,755 | | Certificates of deposit: Direct | $5,169 | | Certificates of deposit: Third-party (brokered) | $11,437 | | Sweep accounts – Third-party (brokered) | $15,566 | | Other deposits | $88 | | Card Member credit balances | $871 | | Total U.S. interest-bearing deposits | $148,924 | Scheduled Maturities of Certificates of Deposit (September 30, 2025, Millions) | Year | Amount (Millions) | | :---------------- | :----- | | 2025 | $2,409 | | 2026 | $4,871 | | 2027 | $4,081 | | 2028 | $2,724 | | 2029 | $671 | | After 5 Years | $1,861 | | Total | $16,618 | Note 7. Contingencies Involved in various legal proceedings, including antitrust claims and VAT challenges; while current liabilities are adequate, the ultimate outcome is uncertain, with a possible loss range of zero to $300 million in excess of accruals - American Express is a defendant in several antitrust cases (e.g., Pizza Hazel, 5-Star General Store, David Moskowitz, B&R Supermarket) alleging violations related to merchant agreements and card network practices[319][320][321][322] - In the David Moskowitz case, a jury awarded $12.5 million in damages for an Illinois consumer law claim, while finding in favor of American Express on most other claims[321] - An agreement in principle was reached to settle the B&R Supermarket antitrust action, subject to court approval[322] - The estimated range of possible loss for disclosed legal proceedings, in excess of any recorded accruals, is zero to $300 million[328] Note 8. Derivatives and Hedging Activities Uses derivative financial instruments, primarily interest rate swaps and foreign exchange contracts, to manage market risks, including fair value hedges for fixed-rate debt, net investment hedges, and non-designated derivatives for foreign currency exposures Fair Value of Derivative Assets and Liabilities (Net, Millions) | Metric | September 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------- | :----------------- | :------------------ | | Total derivatives, net (Assets) | $177 | $897 | | Total derivatives, net (Liabilities) | $827 | $17 | - As of September 30, 2025, $35.9 billion of fixed-rate debt obligations were designated in fair value hedging relationships using interest rate swaps[338] - Notional amounts of approximately $15.8 billion were designated as net investment hedges as of September 30, 2025, to reduce exposure to changes in currency exchange rates on net investments in foreign subsidiaries[342] - Notional amounts of approximately $35.8 billion were held as derivatives not designated as hedges as of September 30, 2025, primarily to offset foreign exchange gains or losses of underlying foreign currency exposures[343] Note 9. Fair Values Provides fair value measurements for financial assets and liabilities, categorized by GAAP's fair value hierarchy (Level 1, 2, 3), including recurring measurements for investment securities and derivatives, and nonrecurring for equity investments (Amex Ventures portfolio) Financial Assets Measured at Fair Value (Millions, September 30, 2025) | Category | Total (Millions) | Level 1 (Millions) | Level 2 (Millions) | Level 3 (Millions) | | :-------------------- | :---- | :------ | :------ | :------ | | Equity securities | $46 | $46 | $0 | $0 | | Debt securities | $1,329 | $0 | $1,248 | $81 | | Derivatives, gross | $328 | $0 | $313 | $15 | | Total Assets | $1,702 | $46 | $1,560 | $96 | Financial Liabilities Measured at Fair Value (Millions, September 30, 2025) | Category | Total (Millions) | Level 1 (Millions) | Level 2 (Millions) | Level 3 (Millions) | | :-------------------- | :---- | :------ | :------ | :------ | | Derivatives, gross | $992 | $0 | $992 | $0 | | Total Liabilities | $992 | $0 | $992 | $0 | - The carrying value of equity investments without readily determinable fair values (Amex Ventures portfolio) totaled $1.0 billion as of September 30, 2025, up from $0.9 billion at December 31, 2024[358] - For the nine months ended September 30, 2025, unrealized gains of $91 million and unrealized losses of $40 million were recorded for equity investments without readily determinable fair values[359] Note 10. Guarantees Provides guarantees and indemnifications in the ordinary course of business, with maximum potential undiscounted future payments of $1 billion as of September 30, 2025, and related liabilities of $12 million - The maximum potential undiscounted future payments from guarantees and indemnifications was $1 billion as of September 30, 2025[363] - The related liability from guarantees and indemnifications was $12 million as of September 30, 2025[363] Note 11. Changes In Accumulated Other Comprehensive Income (Loss) AOCI changed by $146 million for YTD 2025, primarily due to foreign currency translation adjustments and net unrealized pension/postretirement benefit gains, partially offset by net unrealized losses on debt securities Changes in Accumulated Other Comprehensive Income (Loss) (Millions, net of tax) | Component | September 30, 2025 (Millions) | December 31, 2024 (Millions) | Net Change (9 Months) (Millions) | | :------------------------------------------ | :----------------- | :------------------ | :-------------------- | | Net Unrealized Gains (Losses) on Debt Securities | $(5) | $(9) | $4 | | Foreign Currency Translation Adjustment Gains (Losses), net of hedges | $(2,798) | $(2,924) | $126 | | Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) | $(446) | $(462) | $16 | | Accumulated Other Comprehensive Income (Loss) | $(3,249) | $(3,395) | $146 | Tax Impact for Changes in Accumulated Other Comprehensive Income (Loss) (Nine Months Ended September 30, Millions) | Component | 2025 (Millions) | | :------------------------------------------ | :--- | | Net unrealized gains on debt securities | $1 | | Foreign currency translation adjustment, net of hedges | $(208) | | Pension and other postretirement benefits | $(4) | | Total tax impact | $(212) | Note 12. Service Fees and Other Revenue and Other Expenses Details Service fees and other revenue, which increased for both periods due to network partnership, foreign currency, and loyalty fees; Other expenses were flat for three months but increased for nine months, influenced by data processing, professional services, and prior-year Accertify gain Components of Service Fees and Other Revenue (Millions) | Component | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Network partnership revenue | $456 | $413 | 10% | $1,302 | $1,207 | 8% | | Foreign currency-related revenue | $447 | $401 | 11% | $1,264 | $1,140 | 11% | | Loyalty coalition, merchant and other service fees | $407 | $370 | 10% | $1,251 | $1,197 | 5% | | Delinquency fees | $245 | $236 | 4% | $720 | $705 | 2% | | Travel commissions and fees | $167 | $157 | 6% | $450 | $481 | (6)% | | Other fees and revenues | $254 | $103 | 147% | $539 | $316 | 71% | | Total Service fees and other revenue | $1,976 | $1,680 | 18% | $5,526 | $5,046 | 10% | Components of Other Expense (Millions) | Component | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Data processing and equipment | $751 | $725 | 4% | $2,176 | $2,083 | 4% | | Professional services | $623 | $579 | 8% | $1,755 | $1,576 | 11% | | Gain on sale of Accertify | $0 | $0 | N/A | $0 | $(531) | N/A | | Other | $406 | $476 | (15)% | $1,181 | $1,166 | 1% | | Total Other expenses | $1,780 | $1,780 | 0% | $5,112 | $4,294 | 19% | Note 13. Income Taxes Effective tax rate increased for both periods due to global minimum tax and California tax law changes; company disputes a proposed $185 million federal tax adjustment and $50 million in penalties, with unrecognized tax benefits potentially decreasing by $129 million Effective Tax Rate | Period | 2025 | 2024 | | :---------------- | :--- | :--- | | Three Months Ended September 30 | 24.1% | 21.8% | | Nine Months Ended September 30 | 21.8% | 21.5% | - The IRS proposed an estimated additional $185 million in federal income tax and approximately $50 million in penalties for 2017-2018, which American Express strongly disputes[376][377] - It is reasonably possible that unrecognized tax benefits could decrease by as much as $129 million within the next twelve months, with approximately $102 million impacting the effective tax rate[378] - Tax credit investments totaled $1,719 million as of September 30, 2025[379] Note 14. Earnings Per Common Share (EPS) Diluted EPS for Q3 2025 was $4.14 (up from $3.49), and for YTD was $11.85 (up from $10.97), reflecting net income available to common shareholders and weighted-average common stock Computation of Basic and Diluted Earnings per Share (Millions, except per share amounts) | Metric | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | Change (%) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | Change (%) | | :------------------------------------------ | :------------ | :------------ | :--------- | :------------ | :------------ | :--------- | | Net income available to common shareholders | $2,888 | $2,492 | 16% | $8,328 | $7,915 | 5% | | Net income attributable to common shareholders | $2,868 | $2,474 | 16% | $8,272 | $7,856 | 5% | | Basic EPS | $4.14 | $3.50 | 18% | $11.87 | $10.99 | 8% | | Diluted EPS | $4.14 | $3.49 | 19% | $11.85 | $10.97 | 8% | | Weighted-average common stock (Diluted) | 693 | 709 | (2)% | 698 | 716 | (2.5)% | Note 15. Reportable Operating Segments Provides selected financial information for American Express's four reportable operating segments (USCS, CS, ICS, GMNS) and Corporate & Other, detailing revenues, credit provisions, expenses, and pretax income (loss) for Q3 and YTD 2025 and 2024 - The note presents disaggregated financial information for USCS, CS, ICS, GMNS, and Corporate & Other, including total non-interest revenues, interest income/expense, net interest income, provisions for credit losses, and various expense categories[386][388] PART II. OTHER INFORMATION Legal Proceedings Refers to Note 7 of the Consolidated Financial Statements for updated disclosures regarding legal proceedings, including various antitrust claims and VAT challenges - For information that updates the disclosures on legal proceedings, refer to Note 7 to the "Consolidated Financial Statements" in this Form 10-Q[394] Risk Factors Refers to the 2024 Form 10-K for a comprehensive discussion of risk factors, emphasizing that listed risks are not exhaustive and additional unknown risks may adversely affect the business and stock price - For a discussion of risk factors, including those related to business, economic, and geopolitical conditions, refer to Part I, Item 1A. "Risk Factors" of the 2024 Form 10-K[395] - Additional risks and uncertainties not presently known or currently believed to be immaterial may also adversely affect the business and the trading price of securities[395] Unregistered Sales of Equity Securities and Use of Proceeds During Q3 2025, American Express repurchased 7.3 million common shares at an average price of $315.26; 60.8 million shares remain authorized under the March 2023 repurchase program Issuer Purchases of Common Stock (Three Months Ended September 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share (Dollars) | | :---------------- | :----------------------------- | :--------------------------- | | July 1-31, 2025 | 1,287,090 | $307.68 | | August 1-31, 2025 | 3,359,030 | $304.93 | | September 1-30, 2025 | 2,695,959 | $331.75 | | Total (Repurchase programs) | 7,342,079 | $315.26 | - As of September 30, 2025, 60,820,091 shares may yet be purchased under the publicly announced repurchase programs[397] - On March 8, 2023, the Board of Directors authorized the repurchase of up to 120 million common shares[399] Other Information Elizabeth Rutledge, CMO, entered a Rule 10b5-1 trading arrangement on July 25, 2025, for up to 50,000 shares; no other such arrangements were adopted or terminated by directors or officers in Q3 2025 - Elizabeth Rutledge, Chief Marketing Officer, entered into a Rule 10b5-1 trading arrangement on July 25, 2025, for up to 50,000 shares, expiring no later than April 29, 2026[401] - No other Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by any directors or officers during the three months ended September 30, 2025[402] Exhibits Lists exhibits filed as part of the Quarterly Report on Form 10-Q, including various certifications (e.g., Rule 13a-14(a) and 18 U.S.C. Section 1350) and XBRL-related documents Signatures The Quarterly Report o