10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the Transition Period from ____ to ____

Commission file number 1-7657

AMERICAN EXPRESS COMPANY

(Exact name of registrant as specified in its charter)

New York	13-4922250
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
200 Vesey Street, New York, New York	10285
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code                                          (212) 640-2000

None

Former name, former address and former fiscal year, if changed since last report.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares (par value $0.20 per share)	AXP	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ      No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes þ      No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐      No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at July 19, 2021
Common Shares (par value $0.20 per share)	794,433,076	Shares

AMERICAN EXPRESS COMPANY

FORM 10-Q

INDEX

Part I.	Financial Information		Page No.
	Item 1.	Financial Statements
		Consolidated Statements of Income – Three Months Ended June 30, 2021 and 2020	37
		Consolidated Statements of Income – Six Months Ended June 30, 2021 and 2020	38
		Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2021 and 2020	39
		Consolidated Balance Sheets – June 30, 2021 and December 31, 2020	40
		Consolidated Statements of Cash Flows – Six Months Ended June 30, 2021 and 2020	41
		Consolidated Statements of Shareholders' Equity – Three and Six Months Ended June 30, 2021 and 2020	42
		Notes to Consolidated Financial Statements	44
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)	1
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	71
	Item 4.	Controls and Procedures	71
Part II.	Other Information
	Item 1.	Legal Proceedings	72
	Item 1A.	Risk Factors	72
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73
	Item 6.	Exhibits	74
Signatures			75

Throughout this report the terms “American Express,” “we,” “our” or “us,” refer to American Express Company and its subsidiaries on a consolidated basis, unless stated or the context implies otherwise. The use of the term “partner” or “partnering” in this report does not mean or imply a formal legal partnership, and is not meant in any way to alter the terms of American Express’ relationship with any third parties. Refer to the “MD&A― Glossary of Selected Terminology” for the definitions of other key terms used in this report.

PART I. FINANCIAL INFORMATION

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

Business Introduction

We are a globally integrated payments company that provides our customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are credit and charge card products, along with travel and lifestyle related services, offered to consumers and businesses around the world. Our range of products and services includes:

•Credit card, charge card and other payment and financing products

•Merchant acquisition and processing, servicing and settlement, and point-of-sale marketing and information products and services for merchants

•Network services

•Other fee services, including fraud prevention services and the design and operation of customer loyalty programs

•Expense management products and services

•Travel and lifestyle services

Our various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party vendors and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. Business travel-related services are offered through our non-consolidated joint venture, American Express Global Business Travel (the GBT JV).

We compete in the global payments industry with card networks, issuers and acquirers, paper-based transactions (e.g., cash and checks), bank transfer models (e.g., wire transfers and Automated Clearing House (ACH)), as well as evolving and growing alternative payment and financing providers. As the payments industry continues to evolve, we face increasing competition from non-traditional players that leverage new technologies, business models and customer relationships to create payment or financing solutions.

The following types of revenue are generated from our various products and services:

•Discount revenue, our largest revenue source, primarily represents the amount we earn on transactions occurring at merchants that have entered into a card acceptance agreement with us, or a Global Network Services (GNS) partner or other third-party merchant acquirer, for facilitating transactions between the merchants and Card Members;

•Interest on loans, principally represents interest income earned on outstanding balances;

•Net card fees, represent revenue earned from annual card membership fees, which vary based on the type of card and the number of cards for each account;

•Other fees and commissions, primarily represent Card Member delinquency fees, foreign currency conversion fees charged to Card Members, loyalty coalition-related fees, service fees earned from merchants, travel commissions and fees, and Membership Rewards program fees; and

•Other revenue, primarily represents revenues arising from contracts with partners of our GNS business (including commissions and signing fees less issuer rate payments), cross-border Card Member spending, ancillary merchant-related fees, earnings (losses) from equity method investments (including the GBT JV), insurance premiums earned from Card Members, and prepaid card and Travelers Cheque-related revenue.

1

Refer to the “Glossary of Selected Terminology” for the definitions of certain key terms and related information appearing within this Form 10-Q.

Effective for the first quarter of 2021, we changed the way we describe our volume metrics. Throughout this Report:

•Where we previously used the term “billed business” to describe our total volumes, we now use the term “network volumes.”

•Where we previously used the term “proprietary billed business” to describe transaction volumes from cards and other payment products issued by American Express, we now use the term “billed business.”

•Where we previously used the term “GNS billed business” to describe transaction volumes from cards issued by GNS partners and joint ventures, we now use the term “processed volumes” and have now included in this category transactions associated with certain alternative payment solutions that were not previously reported in our volume metrics.

•Where we previously used the term “Non-T&E-related volume” to describe spend in merchant categories other than T&E-related merchant categories, we now use the term “Goods & Services (G&S)-related volume.”

We believe that these changes provide better differentiation and descriptors for the volumes that run across the American Express network. Prior period amounts have been recast to conform with current period presentation.

Forward-Looking Statements and Non-GAAP Measures

Certain of the statements in this Form 10-Q are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the “Cautionary Note Regarding Forward-Looking Statements” section. We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included within this Form 10-Q constitutes non-GAAP financial measures. Our calculations of non-GAAP financial measures may differ from the calculations of similarly titled measures by other companies.

Bank Holding Company

American Express is a bank holding company under the Bank Holding Company Act of 1956 and The Board of Governors of the Federal Reserve System (the Federal Reserve) is our primary federal regulator. As such, we are subject to the Federal Reserve’s regulations, policies and minimum capital standards.

2

Business Environment

Our results for the second quarter reflect an acceleration of the improvement in our core business over the last several quarters as well as continued strong credit performance. We believe the steps we have taken to manage the company through the pandemic and our strategy of investing to rebuild our growth momentum are helping us make sustainable progress towards our longer-term financial objectives. The pace of improvement towards pre-pandemic network volumes that started during the second half of last year has continued, with overall spending volumes exceeding pre-pandemic levels in June. At the same time, certain international countries around the globe continue to face challenges with renewed lockdowns and travel restrictions and there remains uncertainty relating to the ongoing spread and severity of the virus. To the extent that the pandemic continues to have negative impacts on economies, our results will be affected.

The Company experienced significant adverse impacts during the prior year due to the COVID-19 pandemic and the resulting containment measures implemented by local and national authorities. Year-over-year comparisons for the three month period reflect the peak of the pandemic impact on our business in 2020, with less of an impact for the six month period due to the pre-pandemic results for the first two months in the prior year.

Worldwide network volumes for the second quarter increased 50 percent year-over-year (46 percent on an FX-adjusted basis1) and were down 1 percent (2 percent on an FX-adjusted basis1) from pre-pandemic levels. While U.S. network volumes increased 53 percent versus the prior year and exceeded pre-pandemic levels, international network volumes grew 42 percent (32 percent on an FX-adjusted basis1). International volumes are recovering more slowly due to the slower pace of travel and entertainment (T&E) spending recovery from the pandemic in certain international countries, combined with the historical greater reliance on T&E spending outside the U.S. Billed business, which represented 85 percent of our total network volumes in the second quarter of 2021 and drives most of our financial results, increased 53 percent (51 percent on an FX-adjusted basis1) and continued to show different recovery trends for G&S and T&E spend. G&S spend, which accounts for the majority of our billed business, increased 34 percent year-over-year and continued to strengthen, resulting in 16 percent growth versus pre-pandemic levels. This growth was primarily driven by ongoing strong performance in consumer online and card-not-present spending even as offline spending recovered to pre-pandemic levels, as well as continued strong growth in B2B spending on goods and services by small and mid-sized enterprise customers. T&E spend more than tripled versus the prior year, with a significant acceleration in year-over-year growth compared to the first quarter, primarily driven by U.S. consumer Card Members and small and mid-sized enterprise customers; however, T&E spending remained well below the pre-pandemic levels.

Total revenues net of interest expense were up 33 percent year-over-year and we had double digit growth in all of our revenue lines with the exception of Net interest income, which currently represents only 18 percent of our revenues. Discount revenue, our largest revenue line, increased 58 percent year-over-year, driven primarily by growth in Card Member spending and an increase in the average discount rate from higher levels of T&E spend in the U.S. Other fees and commissions and Other revenues significantly increased year-over-year, primarily driven by higher travel-related revenues. Net card fees grew 13 percent year over year, as we continued to ramp up new card acquisitions and Card Member retention remained high. Net interest income declined by 4 percent year-over-year, due to a decrease in net interest yield on average Card Member loans driven by higher paydown rates on revolving loan balances caused in part by the continued liquidity and financial strength in our customer base.

Card Member loans increased 8 percent, which was lower than the growth in billed business, also due to the higher paydown rates. We expect recovery in loan balances and Net interest income to continue to lag the improvement in spend volumes. Provisions for credit losses decreased and resulted in a net benefit, primarily due to a reserve release in the current year versus a reserve build in the prior year and lower net write-offs. We do not expect to see a material increase in write off rates in the remainder of this year. The reserve release in the current quarter was driven by strong credit performance and a somewhat improved macroeconomic outlook, which was partially offset by an increase in the outstanding balance of loans and receivables. Our improved credit performance was driven by our strong risk management practices and the current record levels of government stimulus and the broad availability of forbearance programs that are beginning to taper off.

The total balance of loans and receivables in our financial relief programs (FRP) saw a significant reduction as compared to the prior quarter and the prior year; however, they remain higher than pre-pandemic levels. The majority of FRP balances are in twelve-month programs and the decrease this quarter reflects Card Members, who had enrolled at the height of the pandemic, now graduating from these programs. The credit performance of these balances post-FRP remains uncertain.

1 The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared).

3

Card Member rewards, Card Member services and business development expenses are generally correlated to volumes or are variable based on usage, and increased year-over-year due to growth in spend and higher usage of travel-related benefits. During the quarter, we remained focused on controlling operating expenses, while increasing marketing investments to continue building growth momentum. We continued to increase new card acquisitions and the additional value on several of our premium products is helping to drive increased Card Member engagement and retention rates. We expect marketing investments to be elevated for the remainder of the year.

Our capital position remains strong, with capital ratios that are well above our targets and regulatory requirements. We are focused on getting back to our Common Equity Tier 1 (CET 1) risk-based capital ratio target range of 10 to 11 percent over the next several quarters by returning excess capital to our shareholders through share repurchases and dividend payments.

We are increasingly optimistic that the strength in our core business through the first half of the year will continue, particularly in the U.S., although we recognize challenges still exist and the pace of recovery remains uneven in different regions of the world. We remain committed to executing our investment strategy for growing our business over the long term.

See “Certain Legislative, Regulatory and Other Developments” and "Cautionary Note Regarding Forward-Looking Statements" for information on legislative and regulatory changes, additional impacts of the COVID-19 pandemic and other matters that could have a material adverse effect on our results of operations and financial condition.

4

Results of Operations

The discussions in both the “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three and six months ended June 30, 2021 compared to the same periods in the prior year, as presented in the accompanying tables. These discussions should be read in conjunction with the discussion under “Business Environment,” which contains further information on the COVID-19 pandemic and the related impacts on our results.

Consolidated Results of Operations

Table 1: Summary of Financial Performance

	Three Months Ended June 30,						Change 2021 vs. 2020			Six Months Ended June 30,						Change 2021 vs. 2020
(Millions, except percentages and per share amounts)	2021			2020						2021			2020
Total revenues net of interest expense	$	10,243		$	7,675		$	2,568	33%	$	19,307		$	17,985		$	1,322	7%
Provisions for credit losses	(606)			1,555			(2,161)		#	(1,281)			4,176			(5,457)		#
Expenses	7,909			5,498			2,411		44	14,655			12,735			1,920		15
Pretax income	2,940			622			2,318		#	5,933			1,074			4,859		#
Income tax provision	660			365			295		81	1,418			450			968		#
Net income	2,280			257			2,023		#	4,515			624			3,891		#
Earnings per common share — diluted (a)	$	2.80		$	0.29		$	2.51	#	$	5.54		$	0.71		$	4.83	#
Return on average equity (b)	30.5		%	18.1		%				30.5		%	18.1		%
Effective tax rate	22.4		%	58.7		%				23.9		%	41.9		%
# Denotes a variance of 100 percent or more

(a)Represents net income, less (i) earnings allocated to participating share awards of $16 million and $2 million for the three months ended June 30, 2021 and 2020, respectively, and $31 million and $4 million for the six months ended June 30, 2021 and 2020, respectively, and (ii) dividends on preferred shares of $15 million and $17 million for the three months ended June 30, 2021 and 2020, respectively, and $29 million and $49 million for the six months ended June 30, 2021 and 2020, respectively.

(b)Return on average equity (ROE) is calculated for the relevant periods by dividing the (i) preceding twelve months of net income ($7.0 billion and $4.1 billion for June 30, 2021 and 2020, respectively) by (ii) one-year monthly average of total shareholders’ equity ($23.1 billion and $22.5 billion for June 30, 2021 and 2020, respectively).

5

Table 2: Total Revenues Net of Interest Expense Summary

	Three Months Ended June 30,				Change 2021 vs. 2020				Six Months Ended June 30,				Change 2021 vs. 2020
(Millions, except percentages)	2021		2020						2021		2020
Discount revenue	$	6,327	$	4,015	$	2,312	58	%	$	11,569	$	9,853	$	1,716	17	%
Net card fees (a)	1,286		1,141		145		13		2,539		2,251		288		13
Other fees and commissions	560		449		111		25		1,080		1,169		(89)		(8)
Other	252		186		66		35		471		498		(27)		(5)
Total non-interest revenues	8,425		5,791		2,634		45		15,659		13,771		1,888		14
Total interest income	2,140		2,426		(286)		(12)		4,332		5,472		(1,140)		(21)
Total interest expense	322		542		(220)		(41)		684		1,258		(574)		(46)
Net interest income	1,818		1,884		(66)		(4)		3,648		4,214		(566)		(13)
Total revenues net of interest expense	$	10,243	$	7,675	$	2,568	33	%	$	19,307	$	17,985	$	1,322	7	%

(a)Effective April 1, 2021, we prospectively changed the recognition of certain costs paid to a third party previously recognized in Net card fees. Refer to Note 1 to the “Consolidated Financial Statements” for further details.

Total Revenues Net of Interest Expense

Discount revenue increased for both the three and six month periods, primarily due to increases in worldwide network volumes of 50 percent (46 percent on an FX-adjusted basis2) and 18 percent (15 percent on an FX-adjusted basis2), respectively.

See Tables 5, 6 and 7 for more details on network volume performance.

The average discount rate was 2.30 percent and 2.23 percent for the three months ended June 30, 2021 and 2020, respectively. This increase was primarily due to growth in T&E volumes. The average discount rate was 2.28 percent and 2.30 percent for the six months ended June 30, 2021 and 2020, respectively. This decrease was primarily due to the pre-pandemic results for the first two months in the prior year, which included higher T&E volumes.

Net card fees increased for both the three and six month periods, primarily driven by our premium card product portfolios. Net card fees, which are recognized over a twelve month period, are slower to react to economic shifts, such as those arising from the impacts of the COVID-19 pandemic.

Other fees and commissions increased for the three month period and decreased for the six month period. The increase in the three month period was primarily due to higher revenues related to our consumer travel business, higher foreign exchange conversion revenue related to cross-border Card Member spending and higher loyalty coalition-related fees, partially offset by a decline in late fees due to lower delinquencies. The decrease in the six month period was primarily driven by a decline in late fees due to lower delinquencies, partially offset by increased revenues from our alternative payment solutions.

Other revenues increased for the three month period and decreased for the six month period. The increase in the three month period was primarily driven by a lower net loss from the GBT JV and an increase in travel insurance revenue. The decrease in the six month period was primarily due to a higher net loss from the GBT JV and lower revenue earned on cross-border Card Member spending.

Interest income decreased for both the three and six month periods, due to a decline in the interest yield on average Card Member loans driven by higher paydown rates on revolving loan balances.

Interest expense decreased for both the three and six month periods, primarily driven by lower interest rates paid on deposits and a reduction in outstanding debt.

2 Refer to footnote 1 on page 3 for details regarding foreign currency adjusted information.

6

Table 3: Provisions for Credit Losses Summary

	Three Months Ended June 30,				Change 2021 vs. 2020			Six Months Ended June 30,				Change 2021 vs. 2020
(Millions, except percentages)	2021		2020					2021		2020
Card Member receivables
Net write-offs	$	4	$	299	$	(295)	(99)%	$	57	$	557	$	(500)	(90)%
Reserve (release) build (a)	(129)		56		(185)		#	(192)		395		(587)		#
Total	(125)		355		(480)		#	(135)		952		(1,087)		#
Card Member loans
Net write-offs	243		602		(359)		(60)	547		1,227		(680)		(55)
Reserve (release) build (a)	(639)		367		(1,006)		#	(1,516)		1,618		(3,134)		#
Total	(396)		969		(1,365)		#	(969)		2,845		(3,814)		#
Other
Net write-offs - Other loans (b)	5		24		(19)		(79)	19		53		(34)		(64)
Net write-offs - Other receivables (c)	8		2		6		#	16		8		8		#
Reserve (release) build - Other loans (a)(b)	(70)		182		(252)		#	(166)		251		(417)		#
Reserve (release) build - Other receivables (a)(c)	(28)		23		(51)		#	(46)		67		(113)		#
Total	(85)		231		(316)		#	(177)		379		(556)		#
Total provisions for credit losses	$	(606)	$	1,555	$	(2,161)	#	$	(1,281)	$	4,176	$	(5,457)	#

# Denotes a variance of 100 percent or more

(a)Refer to the “Glossary of Selected Terminology” for a definition of reserve (release) build.

(b)Relates to Other loans of $2.2 billion and $2.9 billion, less reserves of $72 million and $238 million, as of June 30, 2021 and December 31, 2020, respectively; and $4.6 billion and $4.8 billion, less reserves of $423 million and $152 million, as of June 30, 2020 and December 31, 2019, respectively.

(c)Relates to Other receivables included in Other assets on the Consolidated Balance Sheets of $2.9 billion and $3.0 billion, less reserves of $39 million, and $85 million, as of June 30, 2021 and December 31, 2020, respectively; and $2.8 billion and $3.1 billion, less reserves of $94 million and $27 million, as of June 30, 2020 and December 31, 2019, respectively.

Provisions for Credit Losses

Card Member loans and receivables provisions for credit losses decreased for both the three and six month periods and resulted in a net benefit 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 driven by lower delinquencies, improved portfolio quality and improving macroeconomic outlooks, all of which were partially offset by an increase in the outstanding balance of loans and receivables. The significant reserve builds in the prior periods were due to the deterioration of the global macroeconomic outlook, as a result of the COVID-19 pandemic, partially offset by decreases in the outstanding balances of loans and receivables.

Other provision for credit losses decreased for both the three and six month periods, primarily driven by reserve releases in the current periods versus reserve builds in the prior periods, due to improved credit performance and lower balances on non-card loans. The reserve builds in the prior periods were due to the previously mentioned deterioration of the global macroeconomic outlook.

Refer to Note 3 to the “Consolidated Financial Statements” for the range of key variables in the macroeconomic scenarios utilized for the computation of our reserves for credit losses.

7

Table 4: Expenses Summary

	Three Months Ended June 30,				Change 2021 vs. 2020				Six Months Ended June 30,				Change 2021 vs. 2020
(Millions, except percentages)	2021		2020						2021		2020
Marketing and business development	$	2,219	$	1,362	$	857	63	%	$	3,985	$	3,067	$	918	30	%
Card Member rewards	2,712		1,349		1,363		#		4,955		3,741		1,214		32
Card Member services	432		208		224		#		749		664		85		13
Total marketing, business development, and Card Member rewards and services	5,363		2,919		2,444		84		9,689		7,472		2,217		30
Salaries and employee benefits	1,539		1,349		190		14		3,089		2,744		345		13
Other, net	1,007		1,230		(223)		(18)		1,877		2,519		(642)		(25)
Total expenses	$	7,909	$	5,498	$	2,411	44	%	$	14,655	$	12,735	$	1,920	15	%

Expenses

Marketing and business development expense increased for both the three and six month periods, primarily due to increases in marketing investments to continue building growth momentum and higher partner payments driven by higher spending volumes. The increase in the six month period was partially offset by lower corporate client incentives.

Card Member rewards expense increased for both the three and six month periods, primarily driven by increases in Membership Rewards and cash back rewards expenses of $1.0 billion and $965 million and co-brand rewards expense of $335 million and $248 million, for the three and six month periods, respectively, all of which were primarily driven by higher billed business. In addition, higher travel-related spend in the current year and the prior year shift in redemptions to non-travel-related options contributed to an increase in the Membership Rewards expense for both current periods.

The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 96 percent (rounded up) at both June 30, 2021 and 2020.

Card Member services expense increased for both the three and six month periods, primarily due to higher usage of travel-related benefits.

Salaries and employee benefits expense increased for both the three and six month periods, primarily driven by higher incentive compensation. The increase in the six month period was also driven by higher deferred compensation expenses.

Other expenses decreased for both the three and six month periods, primarily driven by higher net unrealized gains in the current year related to our Amex Ventures equity investments and a net reserve release in the current year versus a reserve build in the prior year associated with merchant exposure for Card Member purchases, partially offset by the Company's partial repayment of an insurance claim that was recognized in the prior year associated with insured losses from a corporate client bankruptcy.

8

Income Taxes

The effective tax rate was 22.4 percent and 58.7 percent for the three months ended June 30, 2021 and 2020, respectively, and 23.9 percent and 41.9 percent for the six months ended June 30, 2021 and 2020, respectively. The decrease for both periods primarily reflected the impact of discrete tax charges and lower pretax income in the prior year.

Table 5: Selected Card-Related Statistical Information

	As of or for the Three Months Ended June 30,						Change 2021 vs. 2020		As of or for the Six Months Ended June 30,						Change 2021 vs. 2020
	2021			2020					2021			2020
Network volumes: (billions)
U.S.	$	222.6		$	145.1		53	%	$	408.9		$	338.5		21	%
Outside the U.S.	93.5			65.9			42		176.5			157.9			12
Total	$	316.1		$	211.0		50		$	585.4		$	496.4		18
Billed business	$	267.8		$	174.7		53		$	493.3		$	417.3		18
Processed volumes	48.3			36.3			33		92.1			79.1			16
Total	$	316.1		$	211.0		50		$	585.4		$	496.4		18
Cards-in-force: (millions)
U.S.	54.8			54.4			1		54.8			54.4			1
Outside the U.S.	60.2			58.5			3		60.2			58.5			3
Total	115.0			112.9			2		115.0			112.9			2
Proprietary	69.6			69.3			—		69.6			69.3			—
GNS	45.4			43.6			4		45.4			43.6			4
Total	115.0			112.9			2		115.0			112.9			2
Basic cards-in-force: (millions)
U.S.	43.0			42.7			1		43.0			42.7			1
Outside the U.S.	51.2			49.1			4		51.2			49.1			4
Total	94.2			91.8			3		94.2			91.8			3
Average proprietary basic Card Member spending: (dollars)
U.S.	$	5,607		$	3,697		52		$	10,331		$	8,629		20
Outside the U.S.	3,686			2,272			62		6,854			5,788			18
Worldwide Average	$	5,051		$	3,270		54		$	9,322		$	7,776		20
Average discount rate	2.30		%	2.23		%			2.28		%	2.30		%
Average fee per card (dollars)(a)	$	74		$	65		14	%	$	73		$	64		14	%

(a)Average fee per card is computed based on proprietary Net card fees divided by average proprietary total cards-in-force.

9

Table 6: Network Volumes-Related Statistical Information

	Three Months Ended June 30, 2021
	Year over Year Percentage Increase (Decrease)		Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a)
Worldwide
Network volumes	50	%	46	%
Total billed business	53		51
Consumer billed business	62		58
Commercial billed business	45		43
Processed volumes	33		26
U.S.
Network volumes	53
Total billed business	53
Consumer billed business	63
Commercial billed business	44
Outside the U.S.
Network volumes	42		32
Total billed business	55		43
Consumer billed business	59		46
Commercial billed business	49		38
Asia Pacific network volumes	28		20
Latin America & Canada network volumes	55		45
Europe, the Middle East & Africa network volumes	66		51
Merchant Industry Metrics
Worldwide billed business
T&E-related (18% of worldwide billed business)	#		#
G&S-related (82% of worldwide billed business)	34		31
Airline-related (3% of worldwide billed business)	#		#
U.S. billed business
T&E-related (19% of U.S. billed business)	#
G&S-related (81% of U.S. billed business)	33
Airline-related (3% of U.S. billed business)	#

# Denotes a variance of 100 percent or more

(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared).

10

Table 7: Network Volumes-Related Statistical Information

	Six Months Ended June 30, 2021
	Year over Year Percentage Increase (Decrease)		Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a)
Worldwide
Network volumes	18	%	15	%
Total billed business	18		16
Consumer billed business	24		21
Commercial billed business	13		11
Processed volumes	16		11
U.S.
Network volumes	21
Total billed business	20
Consumer billed business	26
Commercial billed business	14
Outside the U.S.
Network Volumes	12		4
Total billed business	13		5
Consumer billed business	17		9
Commercial billed business	6		(2)
Asia Pacific network volumes	13		5
Latin America & Canada network volumes	9		7
Europe, the Middle East & Africa network volumes	12		2
Merchant Industry Metrics
Worldwide billed business
T&E-related (16% of worldwide billed business)	9		7
G&S-related (84% of worldwide billed business)	20		18
Airline-related (3% of worldwide billed business)	(18)		(20)	%
U.S. billed business
T&E-related (17% of U.S. billed business)	20
G&S-related (83% of U.S. billed business)	20
Airline-related (3% of U.S. billed business)	(2)	%

(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared).

11

Table 8: Selected Credit-Related Statistical Information

	As of or for the Three Months Ended June 30,						Change 2021 vs. 2020		As of or for the Six Months Ended June 30,						Change 2021 vs. 2020
(Millions, except percentages and where indicated)	2021			2020					2021			2020
Worldwide Card Member loans:
Card Member loans: (billions)
U.S.	$	66.2		$	62.0		7	%	$	66.2		$	62.0		7	%
Outside the U.S.	9.4			8.1			16		9.4			8.1			16
Total	$	75.6		$	70.1		8		$	75.6		$	70.1		8
Credit loss reserves:
Beginning balance	$	4,467		$	5,236		(15)		$	5,344		$	4,027		33
Provisions - principal, interest and fees	(396)			969			#		(969)			2,845			#
Net write-offs — principal less recoveries	(185)			(499)			(63)		(426)			(1,017)			(58)
Net write-offs — interest and fees less recoveries	(58)			(103)			(44)		(121)			(210)			(42)
Other (a)	$	7		$	25		(72)		7			(17)			#
Ending balance	$	3,835		$	5,628		(32)		$	3,835		$	5,628		(32)
% of loans	5.1		%	8.0		%			5.1		%	8.0		%
% of past due	782		%	493		%			782		%	493		%
Average loans (billions)	$	72.8		$	72.1		1		$	72.0		$	77.8		(7)
Net write-off rate — principal only (b)	1.0		%	2.8		%			1.2		%	2.6		%
Net write-off rate — principal, interest and fees (b)	1.3			3.3					1.5			3.2
30+ days past due as a % of total	0.6		%	1.6		%			0.6		%	1.6		%
Worldwide Card Member receivables:
Card Member receivables: (billions)
U.S.	$	33.9		$	26.9		26		$	33.9		$	26.9		26
Outside the U.S.	13.7			10.7			28		13.7			$	10.7		28
Total	$	47.6		$	37.6		27		$	47.6		$	37.6		27
Credit loss reserves:
Beginning balance	$	202		$	459		(56)		$	267		$	126		#
Provisions - principal and fees	(125)			355			#		(135)			952			#
Net write-offs - principal and fees less recoveries (c)	(4)			(299)			(99)		(57)			(557)			(90)
Other (a)	—			4			#		(2)			(2)			—
Ending balance	$	73		$	519		(86)	%	$	73		$	519		(86)	%
% of receivables	0.2		%	1.4		%			0.2		%	1.4		%
Net write-off rate — principal and fees (b)(c)(d)	—		%	3.1		%			0.3		%	2.4		%

# Denotes a variance of 100 percent or more

(a)Other includes foreign currency translation adjustments.

(b)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(c)The current periods include a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year in the Global Commercial Services (GCS) segment.

(d)Refer to Tables 11 and 14 for Net write-off rate - principal only and 30+ days past due metrics for Global Consumer Services Group (GCSG) and Global Small Business Services (GSBS) receivables, respectively. A net write-off rate based on principal losses only for Global Corporate Payments (GCP), which reflects global, large and middle market corporate accounts, is not available due to system constraints.

12

Table 9: Net Interest Yield on Average Card Member Loans

	Three Months Ended June 30,						Six Months Ended June 30,
(Millions, except percentages and where indicated)	2021			2020			2021			2020
Net interest income	$	1,818		$	1,884		$	3,648		$	4,214
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)	195			350			431			745
Interest income not attributable to our Card Member loan portfolio (b)	(93)			(156)			(189)			(420)
Adjusted net interest income (c)	$	1,920		$	2,078		$	3,890		$	4,539
Average Card Member loans (billions)	$	72.8		$	72.1		$	72.0		$	77.8
Net interest income divided by average Card Member loans (c)	10.0		%	10.5		%	10.1		%	10.8		%
Net interest yield on average Card Member loans (c)	10.6		%	11.6		%	10.9		%	11.7		%

(a)Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.

(b)Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.

(c)Adjusted net interest income and net interest yield on average Card Member loans are non-GAAP measures. Refer to “Glossary of Selected Terminology” for the definitions of these terms. We believe adjusted net interest income is useful to investors because it represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio. Net interest yield on average Card Member loans reflects adjusted net interest income divided by average Card Member loans, computed on an annualized basis. Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans.

13

Business Segment Results of Operations

As a result of organizational changes announced during the second quarter of 2021, our loyalty coalition businesses results, which were previously reported within the Global Merchant and Network Services (GMNS) segment, are now reported within the GCSG segment. Prior period segment results have been revised to conform with current period presentation.

Global Consumer Services Group

Table 10: GCSG Selected Income Statement Data

	Three Months Ended June 30,				Change			Six Months Ended June 30,				Change
(Millions, except percentages)	2021		2020		2021 vs. 2020			2021		2020		2021 vs. 2020
Revenues
Non-interest revenues	$	4,464	$	3,024	$	1,440	48%	$	8,283	$	7,030	$	1,253	18%
Interest income	1,749		1,971		(222)		(11)	3,557		4,382		(825)		(19)
Interest expense	174		272		(98)		(36)	362		600		(238)		(40)
Net interest income	1,575		1,699		(124)		(7)	3,195		3,782		(587)		(16)
Total revenues net of  interest expense	6,039		4,723		1,316		28	11,478		10,812		666		6
Provisions for credit losses	(342)		887		(1,229)		#	(846)		2,696		(3,542)		#
Total revenues net of interest expense after provisions for credit losses	6,381		3,836		2,545		66	12,324		8,116		4,208		52
Expenses
Marketing, business development, and Card Member rewards and services	3,327		1,757		1,570		89	5,954		4,495		1,459		32
Salaries and employee benefits and other operating expenses	1,172		1,236		(64)		(5)	2,333		2,519		(186)		(7)
Total expenses	4,499		2,993		1,506		50%	8,287		7,014		1,273		18%
Pretax segment income	$	1,882	$	843	$	1,039	#	$	4,037	$	1,102	$	2,935	#

# Denotes a variance of 100 percent or more

GCSG primarily issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel and lifestyle services and non-card financing products, and manages certain international joint ventures, our partnership agreements in China and our loyalty coalition businesses operated in certain countries.

Non-interest revenues increased for both the three and six month periods, primarily driven by higher Discount revenue and higher Net card fees, partially offset in the six month period by lower Other fees and commissions.

Discount revenue increased 69 percent and 24 percent for the three and six month periods, respectively, reflecting an increase in consumer billed business of 62 percent and 24 percent for the three and six month periods, respectively, primarily due to growth in T&E volumes.

See Tables 5, 6, 7 and 11 for more details on volume metrics.

Net card fees increased 13 percent and 14 percent for the three and six month periods, respectively, primarily driven by year-over-year increases in the average fee per card of our premium card products.

Other fees and commissions increased 26 percent for the three month period and decreased 4 percent for the six month period. The increase in the three month period was primarily due to higher revenues related to our consumer travel business, higher loyalty coalition-related fees and higher foreign exchange conversion revenue related to increased cross-border Card Member spending, partially offset by a decline in late fees due to lower delinquencies. The decrease in the six month period was primarily driven by a decline in late fees due to lower delinquencies, partially offset by higher loyalty coalition-related fees.

Net interest income decreased for both the three and six month periods, primarily driven by lower revolving Card Member loan balances.

14

Provisions for credit losses decreased for both the three and six month periods and resulted in a net benefit 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 driven by lower delinquencies, improved portfolio quality and improving macroeconomic outlooks, all of which were partially offset by an increase in the outstanding balance of loans and receivables. The significant reserve builds in the prior periods were due to the deterioration of the global macroeconomic outlook, as a result of the COVID-19 pandemic, partially offset by decreases in the outstanding balances of loans and receivables.

Marketing, business development, and Card Member rewards and services expenses increased for both the three and six month periods. The increase in Card Member rewards expense was primarily driven by higher billed business as well as higher travel-related spend and a shift in the prior year in redemptions to non-travel-related options. The increase in Marketing and business development expense was primarily due to increases in marketing investments to continue building growth momentum as well as higher spending volumes. The increase in Card Member services expense was primarily due to higher usage of travel-related benefits.

15

Table 11: GCSG Selected Statistical Information

	As of or for the Three Months Ended June 30,						Change 2021 vs. 2020		As of or for the Six Months Ended June 30,						Change 2021 vs. 2020
(Millions, except percentages and where indicated)	2021			2020					2021			2020
Billed business: (billions)
U.S.	$	110.8		$	68.1		63	%	$	199.8		$	159.0		26	%
Outside the U.S.	35.8			22.5			59		66.1			56.2			18
Total	$	146.6		$	90.6		62		$	265.9		$	215.2		24
Proprietary cards-in-force:
U.S.	38.1			37.5			2		38.1			37.5			2
Outside the U.S.	16.7			17.2			(3)		16.7			17.2			(3)
Total	54.8			54.7			—		54.8			54.7			—
Proprietary basic cards-in-force:
U.S.	26.9			26.6			1		26.9			26.6			1
Outside the U.S.	11.6			11.9			(3)		11.6			11.9			(3)
Total	38.5			38.5			—		38.5			38.5			—
Average proprietary basic Card Member spending: (dollars)
U.S.	$	4,138		$	2,548		62		$	7,474		$	5,922		26
Outside the U.S.	$	3,087		$	1,871		65		$	5,704		$	4,656		23
Average	$	3,821		$	2,338		63		$	6,939		$	5,529		26
Total segment assets (billions)	$	89.7		$	81.0		11		$	89.7		$	81.0		11
Card Member loans:
Total loans (billions)
U.S.	$	51.8		$	50.3		3		$	51.8		$	50.3		3
Outside the U.S.	8.8			7.6			16		8.8			7.6			16
Total	$	60.6		$	57.9		5		$	60.6		$	57.9		5
Average loans (billions)
U.S.	$	49.9		$	51.7		(3)		$	49.6		$	55.4		(10)
Outside the U.S.	8.4			7.6			11		8.4			8.9			(6)
Total	$	58.3		$	59.3		(2)	%	$	58.0		$	64.3		(10)	%
U.S.
Net write-off rate - principal only (a)	0.9		%	2.8		%			1.1		%	2.7		%
Net write-off rate - principal, interest and fees (a)	1.2			3.3					1.4			3.2
30+ days past due as a % of total	0.6			1.5					0.6			1.5
Outside the U.S.
Net write-off rate - principal only (a)	2.2			3.7					2.3			3.2
Net write-off rate - principal, interest and fees (a)	2.9			4.6					3.0			4.0
30+ days past due as a % of total	1.1			2.3					1.1			2.3
Total
Net write-off rate – principal only (a)	1.1			2.9					1.3			2.7
Net write-off rate – principal, interest and fees (a)	1.5			3.5					1.7			3.3
30+ days past due as a % of total	0.7		%	1.6		%			0.7		%	1.6		%

16

	As of or for the Three Months Ended June 30,						Change 2021 vs. 2020		As of or for the Six Months Ended June 30,						Change 2021 vs. 2020
(Millions, except percentages and where indicated)	2021			2020					2021			2020
Card Member receivables: (billions)
U.S.	$	12.9		$	9.5		36	%	$	12.9		$	9.5		36	%
Outside the U.S.	7.0			5.5			27		7.0			5.5			27
Total receivables	$	19.9		$	15.0		33	%	$	19.9		$	15.0		33	%
U.S.
Net write-off rate – principal only (a)	—		%	2.1		%			—		%	1.9		%
Net write-off rate – principal and fees (a)	—			2.3					—			2.0
30+ days past due as a % of total	0.3			1.2					0.3			1.2
Outside the U.S.
Net write-off rate – principal only (a)	1.0			3.5					1.1			2.9
Net write-off rate – principal and fees (a)	1.1			3.7					1.2			3.1
30+ days past due as a % of total	0.7			1.6					0.7			1.6
Total
Net write-off rate – principal only (a)	0.3			2.6					0.4			2.2
Net write-off rate – principal and fees (a)	0.4			2.8					0.5			2.4
30+ days past due as a % of total	0.4		%	1.3		%			0.4		%	1.3		%

(a)Refer to Table 8 footnote (b).

17

Table 12: GCSG Net Interest Yield on Average Card Member Loans

	Three Months Ended June 30,						Six Months Ended June 30,
(Millions, except percentages and where indicated)	2021			2020			2021			2020
U.S.
Net interest income	$	1,392		$	1,462		$	2,813		$	3,262
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)	44			97			103			143
Interest income not attributable to our Card Member loan portfolio (b)	(22)			(54)			(46)			(114)
Adjusted net interest income (c)	$	1,414		$	1,505		$	2,870		$	3,291
Average Card Member loans (billions)	$	49.9		$	51.7		$	49.6		$	55.5
Net interest income divided by average Card Member loans (c)	11.2		%	11.3		%	11.3		%	11.8		%
Net interest yield on average Card Member loans (c)	11.4		%	11.7		%	11.7		%	11.9		%
Outside the U.S.
Net interest income	$	183		$	237		$	382		$	520
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)	26			18			52			34
Interest income not attributable to our Card Member loan portfolio (b)	(2)			(2)			(4)			(6)
Adjusted net interest income (c)	$	207		$	253		$	430		$	548
Average Card Member loans (billions)	$	8.4		$	7.6		$	8.4		$	8.9
Net interest income divided by average Card Member loans (c)	8.7		%	12.5		%	9.1		%	11.7		%
Net interest yield on average Card Member loans (c)	9.9		%	13.3		%	10.3		%	12.4		%
Total
Net interest income	$	1,575		$	1,699		$	3,195		$	3,782
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)	70			115			155			177
Interest income not attributable to our Card Member loan portfolio (b)	(24)			(56)			(50)			(120)
Adjusted net interest income (c)	$	1,621		$	1,758		$	3,300		$	3,839
Average Card Member loans (billions)	$	58.3		$	59.3		$	58.0		$	64.3
Net interest income divided by average Card Member loans (c)	10.8		%	11.5		%	11.0		%	11.8		%
Net interest yield on average Card Member loans (c)	11.1		%	11.9		%	11.5		%	12.0		%

(a)Refer to Table 9 footnote (a).

(b)Refer to Table 9 footnote (b).

(c)Refer to Table 9 footnote (c).

18

Global Commercial Services

Table 13: GCS Selected Income Statement Data

	Three Months Ended June 30,				Change 2021 vs. 2020				Six Months Ended June 30,				Change 2021 vs. 2020
(Millions, except percentages)	2021		2020						2021		2020
Revenues
Non-interest revenues	$	2,815	$	2,014	$	801	40	%	$	5,247	$	4,802	$	445	9	%
Interest income	345		402		(57)		(14)		681		901		(220)		(24)
Interest expense	111		154		(43)		(28)		227		354		(127)		(36)
Net interest income	234		248		(14)		(6)		454		547		(93)		(17)
Total revenues net of interest expense	3,049		2,262		787		35		5,701		5,349		352		7
Provisions for credit losses	(235)		645		(880)		#		(397)		1,407		(1,804)		#
Total revenues net of interest expense after provisions for credit losses	3,284		1,617		1,667		#		6,098		3,942		2,156		55
Expenses
Marketing, business development, and Card Member rewards and services	1,630		924		706		76		3,016		2,432		584		24
Salaries and employee benefits and other operating expenses	815		715		100		14		1,578		1,513		65		4
Total expenses	2,445		1,639		806		49		4,594		3,945		649		16
Pretax segment income	$	839	$	(22)	$	861	#		$	1,504	$	(3)	$	1,507	#

# Denotes a variance of 100 percent or more

GCS primarily issues a wide range of proprietary corporate and small business cards globally. GCS also provides payment, expense management and commercial financing products.

Non-interest revenues increased for both the three and six month periods, primarily driven by higher Discount revenue and higher Net card fees.

Discount revenue increased 46 percent and 11 percent for the three and six month periods, respectively, reflecting an increase in commercial billed business of 45 percent and 13 percent for the three and six month periods, respectively.

See Tables 5, 6, 7 and 14 for more details on volume metrics.

Net card fees increased 11 percent and 10 percent for the three and six month periods, respectively, driven by year-over-year increases in the average fee per card of our premium card products.

Net interest income decreased for both the three and six month periods, primarily driven by lower revolving Card Member loan balances.

Card Member loans and receivables provisions for credit losses decreased for both the three and six month periods and resulted in a net benefit 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 driven by lower delinquencies, improved portfolio quality and improving macroeconomic outlooks, all of which were partially offset by an increase in the outstanding balance of loans and receivables. The current periods also included a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year. The significant reserve builds in the prior periods were due to the deterioration of the global macroeconomic outlook as a result of the COVID-19 pandemic, partially offset by decreases in the outstanding balances of loans and receivables.

Other provision for credit losses decreased for both the three and six month periods, primarily driven by reserve releases in the current periods versus reserve builds in the prior periods, due to improved credit performance and lower balances on non-card loans. The reserve builds in the prior periods were due to the previously mentioned deterioration of the global macroeconomic outlook.

19

Marketing, business development, and Card Member rewards and services expenses increased for both the three and six month periods. The increase in Card Member rewards expense was primarily driven by higher billed business as well as higher travel-related spend and a shift in the prior year in redemptions to non-travel-related options. The increase in Marketing and business development expense was primarily due to increases in marketing investments to continue building growth momentum as well as higher spending volumes. The increase in the six month period also included a partial offset driven by a decrease in corporate client incentives.

Salaries and employee benefits and other operating expenses increased for both the three and six month periods, primarily due to the Company's partial repayment of an insurance claim that was recognized in the prior year associated with insured losses from the previously mentioned corporate client bankruptcy.

20

Table 14: GCS Selected Statistical Information

	As of or for the Three Months Ended June 30,						Change 2021 vs 2020		As of or for the Six Months Ended June 30,						Change 2021 vs 2020
(Millions, except percentages and where indicated)	2021			2020					2021			2020
Billed business (billions)	$	119.9		$	82.8		45	%	$	223.9		$	198.9		13	%
Proprietary cards-in-force	14.8			14.6			1		14.8			14.6			1
Average Card Member spending (dollars)	$	8,180		$	5,645		45		$	15,338		$	13,495		14
Total segment assets (billions)	$	46.4		$	38.3		21		$	46.4		$	38.3		21
GSBS Card Member loans:
Total loans (billions)	$	15.0		$	12.1		24		$	15.0		$	12.1		24
Average loans (billions)	$	14.4		$	12.8		13		$	13.9		$	13.4		4
Net write-off rate - principal only (a)	0.6		%	2.3		%			0.8		%	2.1		%
Net write-off rate - principal, interest and fees (a)	0.7		%	2.6		%			1.0		%	2.4		%
30+ days past due as a % of total	0.4		%	1.6		%			0.4		%	1.6		%
Calculation of Net Interest Yield on Average Card Member Loans:
Net interest income	$	234		$	248				$	454		$	547
Exclude:
Interest expense not attributable to our Card Member loan portfolio (b)	87			119					180			264
Interest income not attributable to our Card Member loan portfolio (c)	(22)			(47)					(44)			(111)
Adjusted net interest income (d)	$	299		$	320				$	590		$	700
Average Card Member loans (billions)	$	14.5		$	12.8				$	14.0		$	13.5
Net interest income divided by average Card Member loans (d)	6.5		%	7.8		%			6.5		%	8.1		%
Net interest yield on average Card Member loans (d)	8.3		%	10.0		%			8.5		%	10.5		%
Card Member receivables:
Total receivables (billions)	$	27.7		$	22.6		23		$	27.7		22.6			23
Net write-off rate - principal and fees (a)(e)(f)	(0.2)		%	3.3		%			0.1		%	2.4		%
GCP Card Member receivables:
Total receivables (billions)	$	11.7		$	9.4		24		$	11.7		$	9.4		24
90+ days past billing as a % of total (e)	0.3		%	2.5		%			0.3		%	2.5		%
Net write-off rate - principal and fees (a)(e)(f)	(0.9)		%	4.0		%			(0.3)		%	2.2		%
GSBS Card Member receivables:
Total receivables (billions)	$	15.9		$	13.2		20	%	$	15.9		$	13.2		20	%
Net write-off rate - principal only (a)	0.2		%	2.5		%			0.3		%	2.4		%
Net write-off rate - principal and fees (a)	0.3		%	2.8		%			0.4		%	2.6		%
30+ days past due as a % of total	0.5		%	2.1		%			0.5		%	2.1		%

(a)Refer to Table 8 footnote (b).

(b)Refer to Table 9 footnote (a).

(c)Refer to Table 9 footnote (b).

(d)Refer to Table 9 footnote (c).

(e)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. GCP delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.

(f)Refer to Table 8 footnote (c).

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Global Merchant and Network Services

Table 15: GMNS Selected Income Statement and Other Data

	Three Months Ended June 30,				Change 2021 vs. 2020				Six Months Ended June 30,				Change 2021 vs. 2020
(Millions, except percentages and where indicated)	2021		2020						2021		2020
Revenues
Non-interest revenues	$	1,204	$	827	$	377	46	%	$	2,265	$	2,060	$	205	10	%
Interest income	4		4		—		—		8		10		(2)		(20)
Interest expense	(20)		(6)		(14)		#		(37)		(42)		5		(12)
Net interest income	24		10		14		#		45		52		(7)		(13)
Total revenues net of interest expense	1,228		837		391		47		2,310		2,112		198		9
Provisions for credit losses	(27)		24		(51)		#		(37)		72		(109)		#
Total revenues net of interest expense after provisions for credit losses	1,255		813		442		54		2,347		2,040		307		15
Expenses
Marketing, business development, and Card Member rewards and services	373		214		159		74		673		503		170		34
Salaries and employee benefits and other operating expenses	355		411		(56)		(14)		762		824		(62)		(8)
Total expenses	728		625		103		16		1,435		1,327		108		8
Pretax segment income	527		188		339		#		912		713		199		28
Total segment assets (billions)	$	14.2	$	11.3			26	%	$	14.2	$	11.3			26	%

# Denotes a variance of 100 percent or more

GMNS operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network.

Non-interest revenues increased for both the three and six month periods, primarily driven by higher Discount revenue due to increases in worldwide network volumes.

The average discount rate increased for the three month period, primarily due to growth in T&E volumes and decreased for the six month period, primarily due to the pre-pandemic results for the first two months in the prior year, which included higher T&E volumes.

For a detailed discussion on network volumes and the average discount rate, please refer to the “Consolidated Results of Operations.”

GMNS receives an interest expense credit relating to internal transfer pricing due to its merchant payables. Net interest income increased for the three month period primarily due to a higher interest expense credit, driven by an increase in average merchant payables related to year-over-year billed business growth. Net interest income decreased for the six month period, primarily due to a lower interest expense credit related to lower average merchant payables in the current period as compared to the prior period.

Marketing, business development, and Card Member rewards and services expenses increased for both the three and six month periods, primarily driven by higher Marketing and business development expense, as a result of increased spend on initiatives to support merchant engagement and increased network issuer expense, reflecting higher processed volumes from certain GNS partners.

Salaries and employee benefits and other operating expenses decreased for both the three and six month periods, primarily driven by a net reserve release in the current year versus a reserve build in the prior year associated with merchant exposure for Card Member purchases.

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Corporate & Other

Corporate functions and certain other businesses are included in Corporate & Other.

Corporate & Other pretax loss was $308 million for the three months ended June 30, 2021, compared to $387 million for the same period in the prior year, and $520 million for the six months ended June 30, 2021, compared to $738 million for the same period in the prior year. The decreases in the pretax loss were primarily driven by higher net unrealized gains in the current year related to our Amex Ventures equity investments, partially offset by higher incentive compensation.

CONSOLIDATED CAPITAL RESOURCES AND LIQUIDITY

Our balance sheet management objectives are to maintain:

•A solid and flexible equity capital profile;

•A broad, deep and diverse set of funding sources to finance our assets and meet operating requirements; and

•Liquidity programs that enable us to continuously meet expected future financing obligations and business requirements for at least a twelve month period in the event we are unable to continue to raise new funds under our traditional funding programs during a substantial weakening in economic conditions.

We are monitoring the changing macroeconomic environment and managing our balance sheet to reflect evolving circumstances.

Capital

We believe capital allocated to growing businesses with a return on risk-adjusted equity in excess of our costs will generate shareholder value. Our objective is to retain sufficient levels of capital generated through net income and other sources, such as the exercise of stock options by employees, to maintain a strong balance sheet, provide flexibility to support future business growth, and distribute excess capital to shareholders through dividends and share repurchases. See “Dividends and Share Repurchases” below.

We seek to maintain capital levels and ratios in excess of the minimum regulatory requirements, specifically within a 10 to 11 percent target range for American Express' Common Equity Tier 1 (CET1) risk-based capital ratio.

We maintain certain flexibility to shift capital across our businesses as appropriate. For example, we may infuse additional capital into subsidiaries to maintain capital at targeted levels in consideration of debt ratings and regulatory requirements. These infused amounts can affect our capital and liquidity positions at the American Express parent company level.

We report our capital ratios using the Basel III capital definitions and the Basel III standardized approach for calculating risk-weighted assets.

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The following table presents our regulatory risk-based capital and leverage ratios and those of our U.S. bank subsidiary, American Express National Bank (AENB), as of June 30, 2021.

Table 16: Regulatory Risk-Based Capital and Leverage Ratios

	Effective Minimum (a)		Ratios as of June 30, 2021
Risk-Based Capital
Common Equity Tier 1	7.0	%
American Express Company			14.2	%
American Express National Bank			14.1
Tier 1	8.5
American Express Company			15.3
American Express National Bank			14.1
Total	10.5
American Express Company			16.8
American Express National Bank			16.2
Tier 1 Leverage	4.0	%
American Express Company			12.2
American Express National Bank			10.2	%

(a)Represents Basel III minimum requirements and applicable regulatory buffers as defined by the federal banking regulators, which includes the stress capital buffer (SCB) for American Express Company and the capital conservation buffer for AENB.

The following table presents American Express Company's regulatory risk-based capital and risk-weighted assets, which are calculated in accordance with standard regulatory guidance as described below:

Table 17: Regulatory Risk-Based Capital Components and Risk Weighted Assets

American Express Company ($ in Billions)	June 30, 2021
Risk-Based Capital
Common Equity Tier 1	$	21.0
Tier 1 Capital	22.6
Tier 2 Capital	2.2
Total Capital	24.8
Risk-Weighted Assets	147.5
Average Total Assets to calculate the Tier 1 Leverage Ratio	$	185.6

The following are definitions for our regulatory risk-based capital ratios and leverage ratio, which are calculated as per standard regulatory guidance:

Risk-Weighted Assets — Assets are weighted for risk according to a formula used by the Federal Reserve to conform to capital adequacy guidelines. On- and off-balance sheet items are weighted for risk, with off-balance sheet items converted to balance sheet equivalents, using risk conversion factors, before being allocated a risk-adjusted weight. Off-balance sheet exposures comprise a minimal part of the total risk-weighted assets.

Common Equity Tier 1 Risk-Based Capital Ratio — Calculated as CET1, divided by risk-weighted assets. CET1 is common shareholders’ equity, adjusted for ineligible goodwill and intangible assets and certain deferred tax assets. CET1 is also adjusted for the Current Expected Credit Loss (CECL) final rules, as described below.

Tier 1 Risk-Based Capital Ratio — Calculated as Tier 1 capital divided by risk-weighted assets. Tier 1 capital is the sum of CET1, preferred shares and third-party non-controlling interests in consolidated subsidiaries, adjusted for capital held by insurance subsidiaries. The minimum requirement for the Tier 1 risk-based capital ratio is 1.5 percent higher than the minimum for the CET1 risk-based capital ratio. We have $1.6 billion of preferred shares outstanding to help address a portion of the Tier 1 capital requirements in excess of common equity requirements.

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Total Risk-Based Capital Ratio — Calculated as the sum of Tier 1 capital and Tier 2 capital, divided by risk-weighted assets. Tier 2 capital is the sum of the reserve for loan and receivable credit losses adjusted for the CECL final rules (limited to 1.25 percent of risk-weighted assets) and $360 million of eligible subordinated notes, adjusted for capital held by insurance subsidiaries. The $360 million of eligible subordinated notes reflect a 40 percent, or $240 million, reduction of Tier 2 capital credit for the $600 million subordinated debt issued in December 2014.

Tier 1 Leverage Ratio — Calculated by dividing Tier 1 capital by our average total consolidated assets for the most recent quarter.

We elected to delay the impact of the adoption of the CECL methodology on regulatory capital for two years followed by a three-year phase-in period pursuant to rules issued by federal banking regulators (the CECL final rules). As of June 30, 2021, our reported regulatory capital excluded the $0.9 billion impact to retained earnings upon the adoption of the CECL methodology and 25 percent of the $0.3 billion decrease in reserves for credit losses from January 1, 2020 to June 30, 2021. We will begin phasing in the cumulative amount that is not recognized in regulatory capital at 25 percent per year beginning January 1, 2022.

As a Category IV firm, we were not subject to the Federal Reserve's supervisory stress tests in 2021. We were required to submit to the Federal Reserve our annual capital plan, which we did in April 2021.

On June 24, 2021, the Federal Reserve confirmed our SCB of 2.5 percent and resulting CET1 capital ratio requirement of 7 percent, which remain unchanged from the levels announced in August 2020.

Failure to maintain minimum regulatory capital levels at American Express or AENB could affect our status as a financial holding company and cause the regulatory agencies with oversight of American Express or AENB to take actions that could limit our business operations.

Dividends and Share Repurchases

We return capital to common shareholders through dividends and share repurchases. The share repurchases reduce common shares outstanding and generally more than offset the issuance of new shares as part of employee compensation plans.

During the three and six months ended June 30, 2021, we returned $1.3 billion and $2.0 billion, respectively, to our shareholders in the form of common stock dividends of $0.4 billion and $0.7 billion, respectively, and share repurchases of $0.9 billion and $1.3 billion, respectively. We repurchased 5.7 million in common shares at an average price of $159.54 in the second quarter of 2021.

In addition, during the three and six months ended June 30, 2021, we paid $15 million and $29 million, respectively, in dividends on non-cumulative perpetual preferred shares outstanding.

For the second quarter of 2021, the Federal Reserve allowed bank holding companies participating in the Comprehensive Capital Analysis and Review, like us, to pay common stock dividends and repurchase common stock provided (a) the dividends and repurchases, in the aggregate, did not exceed the average of a firm’s net income for the four preceding calendar quarters and (b) the firm did not increase the amount of its common stock dividends beyond the level paid in the second quarter of 2020. The Federal Reserve also permitted stock repurchases equal to the amount of share issuances related to expensed employee compensation.

On June 24, 2021, the Federal Reserve announced that capital distribution restrictions would be lifted beginning on July 1, 2021. Going forward, our capital distributions will be governed by the SCB framework and be based on managing our CET1 risk-based capital ratio within a 10 to 11 percent target range. Given the Federal Reserve’s latest guidance, we plan to increase the level of share repurchases to migrate our CET1 ratio back to our target range over the next several quarters. We may conduct share repurchases through a variety of methods, including open market purchases, 10b5-1 plans, privately negotiated transactions (including employee benefit plans) or other purchases, including block trades, accelerated share repurchase programs or any combination of such methods as market conditions warrant and at prices we deem appropriate.

Our decisions on capital distributions depend on various factors, including: our capital levels and regulatory capital requirements; regulatory guidance or restrictions, actual and forecasted business results; economic and market conditions; revisions to, or revocation of, the Federal Reserve’s authorization of our capital plan; and the supervisory stress test process.

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Funding Strategy

Our principal funding objective is to maintain broad and well-diversified funding sources to allow us to meet our maturing obligations, cost-effectively finance asset growth in our global businesses as well as to maintain a strong liquidity profile.

We meet our funding needs through a variety of sources, including direct and third-party distributed deposits and debt instruments, such as senior unsecured debt, asset securitizations, borrowings through secured borrowing facilities and a committed bank credit facility. We seek to diversify our funding sources by maintaining scale and relevance in unsecured debt, asset securitizations and deposits. Our direct retail deposits have become a larger proportion of our funding over time and we expect that will continue.

Summary of Consolidated Debt

We had the following consolidated debt and customer deposits outstanding as of June 30, 2021 and December 31, 2020:

Table 18: Summary of Consolidated Debt and Customer Deposits

(Billions)	June 30, 2021		December 31, 2020
Short-term borrowings	$	1.9	$	1.9
Long-term debt	37.4		43.0
Total debt	39.3		44.9
Customer deposits	84.9		86.9
Total debt and customer deposits	$	124.2	$	131.8

We may redeem from time to time certain debt securities prior to the original contractual maturity dates in accordance with the optional redemption provisions of those debt securities.

Our equity capital and funding strategies are designed, among other things, to maintain appropriate and stable unsecured debt ratings from the major credit rating agencies: Moody’s Investor Services (Moody’s), Standard & Poor’s (S&P) and Fitch Ratings (Fitch). Such ratings help support our access to cost-effective unsecured funding as part of our overall funding strategy. Our asset securitization activities are rated separately.

Table 19: Unsecured Debt Ratings

Credit Agency	American Express Entity	Short-Term Ratings	Long-Term Ratings	Outlook
Fitch	All rated entities	F1	A	Stable
Moody’s	American Express Travel Related Services Company, Inc.	N/A	A2	Negative
Moody's	American Express Credit Corporation	Prime-1	A2	Negative
Moody's	American Express National Bank	Prime-1	A3	Negative
Moody's	American Express Company	N/A	A3	Negative
S&P	American Express Travel Related Services Company, Inc.	N/A	A-	Stable
S&P	American Express Credit Corporation and American Express National Bank	A-2	A-	Stable
S&P	American Express Company	A-2	BBB+	Stable

These ratings are not a recommendation to buy or hold any of our securities and they may be revised or revoked at any time at the sole discretion of the rating organization.

Downgrades in the ratings of our unsecured debt or asset securitization program securities could result in higher funding costs, as well as higher fees related to borrowings under our unused credit facilities. Declines in credit ratings could also reduce our borrowing capacity in the unsecured debt and asset securitization capital markets. We believe our funding mix, including the proportion of U.S. retail deposits insured by the Federal Deposit Insurance Corporation (FDIC) to total funding, should reduce the impact that credit rating downgrades would have on our funding capacity and costs.

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Liquidity Management

Our liquidity objective is to maintain access to a diverse set of on- and off-balance sheet liquidity sources. We seek to maintain liquidity sources in amounts sufficient to meet our expected future financial obligations and business requirements for liquidity for a period of at least twelve months in the event we are unable to raise new funds under our regular funding programs during a substantial weakening in economic conditions.

Our liquidity management strategy includes a number of elements, including, but not limited to:

•Maintaining diversified funding sources (refer to the “Funding Strategy” section for more details);

•Maintaining unencumbered liquid assets and off-balance sheet liquidity sources;

•Projecting cash inflows and outflows under a variety of economic and market scenarios; and

•Establishing clear objectives for liquidity risk management, including compliance with regulatory requirements.

The amount and type of liquidity resources we maintain can vary over time, based upon the results of stress scenarios required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as additional stress scenarios required under our liquidity risk policy.

We believe that we currently maintain sufficient liquidity to meet all internal and regulatory liquidity requirements. As of June 30, 2021, we had $43.2 billion in Cash and cash equivalents and Investment securities (which are substantially comprised of U.S. Government Treasury obligations). The decrease of $11.4 billion from $54.6 billion as of December 31, 2020 was primarily driven by the increase in the balances of our Card Member loans and receivables, debt maturities, and the reduction in our retail deposits.

The investment income we receive on liquidity resources is less than the interest expense on the sources of funding for these balances. The net interest costs to maintain these resources have been substantial. The level of future net interest costs depends on the amount of liquidity resources we maintain and the difference between our cost of funding these amounts and their investment yields.

Securitized Borrowing Capacity

As of June 30, 2021, we maintained our committed, revolving, secured borrowing facility, with a maturity date of July 15, 2022, which gives us the right to sell up to $3.0 billion face amount of eligible AAA notes from the American Express Issuance Trust II (the Charge Trust). As the balance of Card Member receivables in the Charge Trust fluctuates over time in line with business volumes, our capacity to draw on the Charge Trust facility may be reduced when volumes decline. On July 15, 2021, we extended the Charge Trust's $3.0 billion facility by two years to mature on July 15, 2024. We also maintained our committed, revolving, secured borrowing facility, with a maturity date of September 15, 2022, which gives us the right to sell up to $2.0 billion face amount of eligible AAA certificates from the American Express Credit Account Master Trust (the Lending Trust). Both facilities are used in the ordinary course of business to fund working capital needs, as well as to further enhance our contingent funding resources. As of June 30, 2021, no amounts were drawn on the Charge Trust facility or the Lending Trust facility.

Federal Reserve Discount Window

As an insured depository institution, AENB may borrow from the Federal Reserve Bank of San Francisco, subject to the amount of qualifying collateral that it may pledge. The Federal Reserve has indicated that both credit and charge card receivables are a form of qualifying collateral for secured borrowings made through the discount window. Whether specific assets will be considered qualifying collateral and the amount that may be borrowed against the collateral remain at the discretion of the Federal Reserve.

As of June 30, 2021, we had approximately $70.5 billion in U.S. credit card loans and charge card receivables that could be sold over time through our securitization trusts or pledged in return for secured borrowings to provide further liquidity, subject in each case to applicable market conditions and eligibility criteria.

Committed Bank Credit Facility

In addition to the secured borrowing facilities described above, we maintained a committed syndicated bank credit facility as of June 30, 2021 of $3.5 billion, with a maturity date of October 15, 2022. As of June 30, 2021, no amounts were drawn on this facility.

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Unused Credit Outstanding and Certain Contractual Obligations

As of June 30, 2021, we had approximately $321 billion of unused credit available to Card Members as part of established lending product agreements. Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Our charge card products generally have no pre-set spending limit and therefore are not reflected in unused credit available to Card Members.

We provide Card Member protection that covers losses associated with purchased goods and services. See Note 7 to the Consolidated Financial Statements for further information.

Cash Flows

The following table summarizes our cash flow activity, followed by a discussion of the major drivers impacting operating, investing and financing cash flows for the six months ended June 30:

Table 20: Cash Flows

(Billions)	2021		2020
Total cash provided by (used in):
Operating activities	$	5.5	$	(0.1)
Investing activities	2.0		22.2
Financing activities	(9.5)		(4.8)
Effect of foreign currency exchange rates on cash and cash equivalents	(0.2)		0.4
Net (decrease) increase in cash and cash equivalents	$	(2.2)	$	17.7

Cash Flows from Operating Activities

Our cash flows from operating activities primarily include net income adjusted for (i) non-cash items included in net income, such as provisions for credit losses, depreciation and amortization, deferred taxes and stock-based compensation and (ii) changes in the balances of operating assets and liabilities, which can vary significantly in the normal course of business due to the amount and timing of payments.

In 2021, the net cash provided by operating activities was primarily driven by cash generated from net income for the period and higher net operating liabilities, primarily resulting from an increase in Membership Rewards liability related to growth in billed business.

In 2020, the net cash used in operating activities was primarily driven by the significant decline in spending volumes triggered by the sharp contraction in the global economy caused by the accelerating spread of COVID-19, resulting in lower accounts payable to merchants and other liabilities, partially offset by cash generated from net income for the period.

Cash Flows from Investing Activities

Our cash flows from investing activities primarily include changes in Card Member loans and receivables, as well as changes in our available-for-sale investment securities portfolio.

In 2021, the net cash provided by investing activities was primarily driven by net maturities of our investment securities, partially offset by higher Card Member loan and receivable balances, resulting from higher Card Member spending.

In 2020, the net cash provided by investing activities was primarily driven by a decline in Card Member loan and receivable balances, partially offset by net purchases of investment securities. The decline in Card Member loan and receivable balances was due to the ongoing pay down of outstanding balances by Card Members combined with significant declines in spending that occurred due to the COVID-19 pandemic.

Cash Flows from Financing Activities

Our cash flows from financing activities primarily include changes in customer deposits, long-term debt and short-term borrowings, as well as dividend payments and share repurchases.

In 2021, the net cash used in financing activities was primarily driven by net debt repayments and decreases in customer deposits combined with payments made for share repurchases and dividends.

In 2020, the net cash used in financing activities was primarily driven by net debt repayments and payments made for share repurchases and dividends, partially offset by growth in customer deposits.

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OTHER MATTERS

Certain Legislative, Regulatory and Other Developments

Supervision & Regulation

We are subject to extensive government regulation and supervision in jurisdictions around the world, and the costs of compliance are substantial. The financial services industry is subject to rigorous scrutiny, high regulatory expectations, a range of regulations, and a stringent and unpredictable enforcement environment.

Governmental authorities have focused, and we believe will continue to focus, considerable attention on reviewing compliance by financial services firms with laws and regulations, and as a result, we continually work to evolve and improve our risk management framework, governance structures, practices and procedures. Reviews by us and by governmental authorities to assess compliance with laws and regulations, as well as our own internal reviews to assess compliance with internal policies, including error or misconduct by employees or third parties or control failures, have resulted in, and are likely to continue to result in, changes to our products, practices and procedures, restitution to our customers and increased costs related to regulatory oversight, supervision and examination. We have also been subject to regulatory actions and may continue to be the subject of such actions, including governmental inquiries, investigations, enforcement proceedings and the imposition of fines or civil money penalties, in the event of noncompliance or alleged noncompliance with laws or regulations. External publicity concerning investigations, including those that are narrow in scope, can increase their scope and scale and lead to further regulatory inquiries.

For example, as previously disclosed, beginning in May 2020 we began responding to a regulatory review led by the Office of the Comptroller of the Currency and the Department of Justice Civil Division regarding historical sales practices relating to certain small business card sales. We also conducted an internal review of certain sales from 2015 and 2016 and have taken appropriate disciplinary and remedial actions, including voluntarily providing remediation to certain current and former customers. Information regarding our investigation has been provided to our other regulators, including the Federal Reserve. In January 2021, we received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York regarding the sales practices for small business cards and a Civil Investigative Demand from the Consumer Financial Protection Bureau (CFPB) seeking information on sales practices related to consumers. We are cooperating with all of these inquiries and continue to review and enhance our controls related to our sales practices generally. We do not believe this matter will have a material adverse impact on our business or results of operations.

Please see the “Supervision and Regulation” and “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2020 (the 2020 Form 10-K) for further information.

Consumer Financial Products Regulation

In the United States, our marketing, sale and servicing of consumer financial products and our compliance with certain federal consumer financial laws are supervised and examined by the CFPB, which has broad rulemaking and enforcement authority over providers of credit, savings and payment services and products and authority to prevent “unfair, deceptive or abusive” acts or practices. In addition, a number of U.S. states have significant consumer credit protection, disclosure and other laws (in certain cases more stringent than U.S. federal laws). U.S. federal law also regulates abusive debt collection practices, which along with bankruptcy and debtor relief laws, can affect our ability to collect amounts owed to us or subject us to regulatory scrutiny. Other jurisdictions around the world are increasingly focusing on consumer financial protection.

For more information on consumer financial products regulation, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2020 Form 10-K.

Payments Regulation

Legislators and regulators in various countries in which we operate have focused on the operation of card networks, including through enforcement actions, legislation and regulations to change certain practices or pricing of card issuers, merchant acquirers and payment networks, and, in some cases, to establish broad and ongoing regulatory oversight regimes for payment systems.

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The European Union, Australia and other jurisdictions have focused on interchange fees (that is, the fee paid by the bankcard merchant acquirer to the card issuer in payment networks like Visa and Mastercard), as well as the rules, contract terms and practices governing merchant card acceptance. Regulation and other governmental actions relating to pricing or practices could affect all networks directly or indirectly, as well as adversely impact consumers and merchants. Among other things, regulation of bankcard fees has negatively impacted, and may continue to negatively impact, the discount revenue we earn, including as a result of downward pressure on our discount rate from decreases in competitor pricing in connection with caps on interchange fees. In some cases, regulations also extend to certain aspects of our business, such as network and cobrand arrangements or the terms of card acceptance for merchants. There is uncertainty as to when or how interchange fee caps and other provisions of the EU and U.K. payments legislation might apply when we work with cobrand partners and agents in the EU and the U.K. Given differing interpretations by regulators and participants in cobrand arrangements, we are subject to regulatory action, penalties and the possibility we will not be able to maintain our existing cobrand and agent relationships in the EU or the U.K.

Broad regulatory oversight over payment systems can also include, in some cases, requirements for international card networks to localize aspects of their operations, such as processing infrastructure and data storage, which could increase our costs and diminish the value of our closed loop. The development and enforcement of payment system regulatory regimes generally continue to grow and may adversely affect our ability to compete effectively and maintain and extend our global network. On April 23, 2021, the Reserve Bank of India imposed restrictions on the ability of American Express Banking Corp. to onboard certain customers in India from May 1, 2021 until it complies with rules to store payment system data locally in India. This order does not impact existing customers. We are working towards complying with the regulation.

For more information on payments regulation, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2020 Form 10-K.

Surcharging

In various countries, such as certain Member States in the EU and Australia, merchants are permitted by law to surcharge card purchases. In addition, the laws of a number of states in the United States that prohibit surcharging have been overturned and certain states have passed or are considering laws to permit surcharging by merchants. Surcharging is an adverse customer experience and could have a material adverse effect on us if it becomes widespread, particularly where it only or disproportionately impacts credit card usage, our Card Members and our business. In addition, other steering practices that are permitted by regulation in some countries could also have a material adverse effect on us if they become widespread.

For more information on the potential impacts of surcharging and other actions that could impair the Card Member experience, please see the “Risk Factors” section of the 2020 Form 10-K.

Antitrust Litigation

The U.S. Department of Justice and certain states’ attorneys general brought an action against us in 2010 alleging that the provisions in our card acceptance agreements with merchants that prohibit merchants from engaging in various actions to discriminate against our card products violate the U.S. antitrust laws. On June 25, 2018, the Supreme Court found in favor of American Express in that case. We continue to vigorously defend similar antitrust claims initiated by merchants. See Note 7 to the "Consolidated Financial Statements" for descriptions of the cases. It is possible that actions impairing the Card Member experience, or the resolution of one or any combination of these merchant claims for damages, could have a material adverse effect on our business. For more information on the potential impacts of an adverse decision in the merchant litigations on our business, please see the “Risk Factors” section of the 2020 Form 10-K.

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Privacy, Data Protection, Data Governance, Information and Cyber Security

Regulatory and legislative activity in the areas of privacy, data protection, data governance and information and cyber security continues to increase worldwide. We have established, and continue to maintain, policies and a governance framework to comply with applicable laws, meet evolving customer and industry expectations and support and enable business innovation and growth. Global financial institutions like us, as well as our customers, colleagues, regulators, vendors and other third parties, have experienced a significant increase in information and cyber security risk in recent years and will likely continue to be the target of increasingly sophisticated cyber attacks, including computer viruses, malicious or destructive code, ransomware, social engineering attacks (including phishing, impersonation and identity takeover attempts), corporate espionage, hacking, website defacement, denial-of-service attacks and other attacks and similar disruptions from the misconfiguration or unauthorized use of or access to computer systems. For more information on privacy, data protection and information and cyber security regulation and the potential impacts of a major information or cyber security incident on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2020 Form 10-K.

Anti-Money Laundering

We are subject to significant supervision and regulation, and an increasingly stringent enforcement environment, with respect to compliance with anti-money laundering (AML) laws and regulations. In the United States, the majority of AML requirements are derived from the Currency and Foreign Transactions Reporting Act and the accompanying regulations issued by the U.S. Department of the Treasury (collectively referred to as the Bank Secrecy Act), as amended by the USA PATRIOT Act of 2001. The Anti-Money Laundering Act of 2020 (the AMLA), enacted in January 2021, amended the Bank Secrecy Act and is intended to comprehensively reform and modernize U.S. AML laws. Many of the statutory provisions in the AMLA will require additional rulemakings, reports and other measures, the effects of which are not known at this time. In Europe, AML requirements are largely the result of countries transposing the 5th and 6th EU Anti-Money Laundering Directives (and preceding EU Anti-Money Laundering Directives) into local laws and regulations. Numerous other countries have also enacted or proposed new or enhanced AML legislation and regulations.

Among other things, these laws and regulations require us to establish AML programs that meet certain standards, including, in some instances, expanded reporting, particularly in the area of suspicious transactions, and enhanced information gathering and recordkeeping requirements. Our AML programs have become the subject of heightened scrutiny in some countries. Any errors, failures or delays in complying with federal, state or foreign AML and counter-terrorist financing laws or perceived deficiencies in our AML programs could result in significant criminal and civil lawsuits, penalties and forfeiture of significant assets, loss of licenses or restrictions on business activities, or other enforcement actions. For more information on AML regulation, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2020 Form 10-K.

Recently Issued and Adopted Accounting Standards

Refer to the Recently Adopted Accounting Standards section of Note 1 to the “Consolidated Financial Statements.”

Glossary of Selected Terminology

Adjusted net interest income — A non-GAAP measure that represents net interest income attributable to our Card Member loans (which includes, on a GAAP basis, interest that is deemed uncollectible), excluding the impact of interest expense and interest income not attributable to our Card Member loans.

Airline-related volume — Represents spend at airlines as a merchant.

Asset securitizations — Asset securitization involves the transfer and sale of loans or receivables to a special-purpose entity created for the securitization activity, typically a trust. The trust, in turn, issues securities, commonly referred to as asset-backed securities that are secured by the transferred loans and receivables. The trust uses the proceeds from the sale of such securities to pay the purchase price for the transferred loans or receivables. The securitized loans and receivables of our Lending Trust and Charge Trust (collectively, the Trusts) are reported as assets and the securities issued by the Trusts are reported as liabilities on our Consolidated Balance Sheets.

Average discount rate — This calculation is generally designed to reflect the average pricing at all merchants accepting American Express cards and represents the percentage of network volumes retained by us from spend at merchants we acquire, or from merchants acquired by third parties on our behalf, net of amounts retained by such third parties. The average discount rate, together with network volumes, drive our discount revenue.

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Billed business — Represents transaction volumes (including cash advances) on cards and other payment products issued by American Express. Billed business is reported as inside the United States or outside the United States based on the location of the issuer.

Capital ratios — Represents the minimum standards established by regulatory agencies as a measure to determine whether the regulated entity has sufficient capital to absorb on- and off-balance sheet losses beyond current loss accrual estimates. Refer to the Capital section under “Consolidated Capital Resources and Liquidity” for further related definitions under Basel III.

Card Member — The individual holder of an issued American Express-branded card.

Card Member loans — Represents the outstanding amount due from Card Members for charges made on their American Express credit cards, as well as any interest charges and card-related fees. Card Member loans also include revolving balances on certain American Express charge card products.

Card Member receivables — Represents the outstanding amount due from Card Members for charges made on their American Express charge cards, as well as any card-related fees, other than revolving balances on certain American Express charge cards with Pay Over Time features. Such revolving balances are included within Card Member loans.

Cards-in-force — Represents the number of cards that are issued and outstanding by American Express (proprietary cards-in-force) and cards issued and outstanding under network partnership agreements with banks and other institutions, including joint ventures (GNS cards-in-force), except for GNS retail cobrand cards that had no out-of-store spending activity during the prior twelve months. Basic cards-in-force excludes supplemental cards issued on consumer accounts. Cards-in-force is useful in understanding the size of our Card Member base.

Charge cards — Represents cards that generally carry no pre-set spending limits and are primarily designed as a method of payment and not as a means of financing purchases. Charge Card Members generally must pay the full amount billed each month. No finance charges are assessed on charge cards. Each charge card transaction is authorized based on its likely economics reflecting a Card Member’s most recent credit information and spend patterns. Some charge cards have additional Pay Over Time feature(s) that allow revolving of certain charges.

Cobrand cards — Cards issued under cobrand agreements with selected commercial partners. Pursuant to the cobrand agreements, we make payments to our cobrand partners, which can be significant, based primarily on the amount of Card Member spending and corresponding rewards earned on such spending and, under certain arrangements, on the number of accounts acquired and retained. The partner is then liable for providing rewards to the Card Member under the cobrand partner’s own loyalty program.

Credit cards — Represents cards that have a range of revolving payment terms, grace periods, and rate and fee structures.

Discount revenue — Primarily represents the amount earned on transactions occurring at merchants that have entered into a card acceptance agreement with us, a GNS partner or other third-party merchant acquirer, for facilitating transactions between the merchants and Card Members.

Goods and Services (G&S)-related volume — Includes spend in merchant categories other than T&E-related merchant categories.

Interest expense — Includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on our long-term financing and short-term borrowings, (e.g., commercial paper, federal funds purchased, bank overdrafts and other short-term borrowings), as well as the realized impact of derivatives hedging interest rate risk on our long-term debt.

Interest income — Includes (i) interest on loans, (ii) interest and dividends on investment securities and (iii) interest income on deposits with banks and other.

Interest on loans — Assessed using the average daily balance method for Card Member loans. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding in accordance with the terms of the applicable account agreement until the outstanding balance is paid or written off.

Interest and dividends on investment securities — Primarily relates to our performing fixed-income securities. Interest income is recognized using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so a constant rate of return is recognized on the outstanding balance of the related investment security throughout its term. Amounts are recognized until securities are in default or when it is likely that future interest payments will not be made as scheduled.

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Interest income on deposits with banks and other — Primarily relates to the placement of cash in excess of near-term funding requirements in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts.

Loyalty coalitions — Programs that enable consumers to earn rewards points and use them to save on purchases from a variety of participating merchants through multi-category rewards platforms. Merchants in these programs generally fund the consumer offers and are responsible to us for the cost of rewards points; we earn revenue from operating the loyalty platform and by providing marketing support.

Net card fees — Represents the card membership fees earned during the period recognized as revenue over the covered card membership period (typically one year), net of the provision for projected refunds for Card Membership cancellation and deferred acquisition costs.

Net interest yield on average Card Member loans — A non-GAAP measure that is computed by dividing adjusted net interest income by average Card Member loans, computed on an annualized basis. Reserves and net write-offs related to uncollectible interest are recorded through provision for credit losses and are thus not included in the net interest yield calculation.

Net write-off rate — principal only — Represents the amount of proprietary consumer or small business Card Member loans or receivables written off, consisting of principal (resulting from authorized transactions), less recoveries, as a percentage of the average loan or receivable balance during the period.

Net write-off rate — principal, interest and fees — Includes, in the calculation of the net write-off rate, amounts for interest and fees in addition to principal for Card Member loans, and fees in addition to principal for Card Member receivables.

Network volumes — Represents the total of billed business and processed volumes. Network volumes are reported as United States or outside the United States based on the location of the issuer.

Operating expenses — Represents salaries and employee benefits, professional services, data processing and equipment, and other expenses.

Processed volumes — Represents transaction volumes (including cash advances) on cards issued under network partnership agreements with banks and other institutions, including joint ventures, as well as alternative payment solutions facilitated by American Express. Processed volume is reported as United States or outside the United States based on the location of the issuer.

Reserve build (release) — Represents the portion of the provisions for credit losses for the period related to increasing or decreasing reserves for credit losses as a result of, among other things, changes in volumes, macroeconomic outlook, portfolio composition and credit quality of portfolios. Reserve build represents the amount by which the provision for credit losses exceeds net write-offs, while reserve release represents the amount by which net write-offs exceed the provision for credit losses.

Return on average equity — Calculated by dividing the preceding twelve months of net income by one-year monthly average total shareholders’ equity.

T&E-related volume — Represents spend on travel and entertainment, which primarily includes airline, cruise, lodging and dining merchant categories.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address our current expectations regarding business and financial performance, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “estimate,” “predict,” “potential,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:

•our ability to continue building growth momentum and improve our financial performance, which will depend in part on spending volumes and therefore on economies continuing to re-open, vaccination rates increasing, travel restrictions lifting, consumers continuing to spend online and the general public feeling comfortable traveling, shopping and dining out again; credit performance and reserve levels; identifying attractive investment opportunities, including retention and acquisition efforts; our ability to control operating expenses; the effective tax rate remaining consistent with current levels; and our ability to continue our share repurchase program; any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs;

•our ability to grow volumes, revenues and EPS, which could be impacted by, among other things, uncertainty regarding the continued spread of COVID-19 (including new variants) and the availability, distribution and use of effective treatments and vaccines; a further deterioration in global economic and business conditions; consumer and business spending not growing in line with expectations, including G&S spending not continuing to grow and T&E spending not rebounding to around 80 percent of 2019 levels by the end of 2021; an inability or unwillingness of Card Members to pay amounts owed to us; insufficient government support and relief programs to address the ongoing impact of the pandemic; prolonged measures to contain the spread of COVID-19 (including travel restrictions) or premature easing of such containment measures, both of which could further exacerbate the effects on business activity and our Card Members, partners and merchants; health concerns associated with the pandemic continuing to affect consumer behavior, spending levels and preferences, and travel patterns and demand even after government restrictions are lifted and economies re-open; our inability to effectively manage risk in an uncertain environment; market volatility, changes in capital and credit market conditions and the availability and cost of capital; issues impacting brand perceptions and our reputation; the amount and efficacy of investments in share, scale and relevance; an inability of business partners to meet their obligations to us and our customers due to slowdowns or disruptions in their businesses, bankruptcy or liquidation, or otherwise; the impact of any future contingencies, including, but not limited to, restructurings, impairments, changes in reserves, legal costs, the imposition of fines or civil money penalties and increases in Card Member reimbursements; and the impact of regulation and litigation, which could affect the profitability of our business activities, limit our ability to pursue business opportunities, require changes to business practices or alter our relationships with partners, merchants and Card Members;

•future credit performance, the level of future write-off rates and the amount and timing of future credit reserve builds and releases, which will depend in part on changes in consumer behavior that affect loan and receivable balances (such as paydown and revolve rates) and delinquency rates; macroeconomic factors such as unemployment rates, gross domestic product (GDP) and the volume of bankruptcies; the performance of accounts as they graduate and exit from financial relief programs; collections capabilities and recoveries of previously written-off loans and receivables; the enrollment in, and effectiveness of, hardship programs and troubled debt restructurings; continued government support for the economy; and governmental actions that provide forms of relief with respect to certain loans and fees, such as limiting debt collections efforts and encouraging or requiring extensions, modifications or forbearance;

•net interest income and the growth rate of loans outstanding being higher or lower than current expectations, which will depend on the behavior of Card Members and their actual spending, borrowing and paydown patterns; government stimulus, liquidity and financial strength in our customer base and the availability of forbearance programs; our ability to effectively manage risk and enhance Card Member value propositions; changes in interest rates and our cost of funds; credit actions, including line size and other adjustments to credit availability; and the effectiveness of our strategies to capture a greater share of existing Card Members’ spending and borrowings, reduce Card Member attrition and attract new customers;

•the actual amount we spend on marketing in the future, which will be based in part on continued changes in macroeconomic conditions and business performance; management’s identification and assessment of attractive investment opportunities and the receptivity of Card Members and prospective customers to advertising and

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customer acquisition initiatives; the pace at which we wind down our value injections efforts; our ability to balance expense control and investments in the business; and management’s ability to realize efficiencies and optimize investment spending;

•the actual amount to be spent on Card Member rewards and services and business development, and the relationship of these variable customer engagement costs to revenues, which could be impacted by continued changes in macroeconomic conditions and Card Member behavior as it relates to their spending patterns (including the level of spend in bonus categories) and the redemption of rewards and offers (including travel redemptions); the costs related to reward point redemptions; Card Members’ interest in the value propositions we offer; further enhancements to product benefits to make them attractive to Card Members, potentially in a manner that is not cost-effective; and new and renegotiated contractual obligations with business partners;

•our ability to control our operating expenses and the actual amount we spend on operating expenses in the future, which could be impacted by, among other things, management’s decision to increase or decrease spending in such areas as technology, business and product development, sales force, premium servicing and digital capabilities depending on overall business performance; our ability to innovate efficient channels of customer interactions, such as chat supported by artificial intelligence; restructuring activity; fraud costs; information security or compliance expenses or consulting, legal and other professional services fees, including as a result of litigation or internal and regulatory reviews; the level of M&A activity and related expenses; the payment of civil money penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; impairments of goodwill or other assets; the impact of changes in foreign currency exchange rates on costs; and higher-than-expected inflation;

•net card fees not performing consistent with current expectations, which could be impacted by, among other things, the further deterioration in macroeconomic conditions impacting the ability and desire of Card Members to pay card fees; higher Card Member attrition rates; Card Members continuing to be attracted to our premium card products and the pace of Card Member acquisition activity; and our inability to address competitive pressures and implement our strategies and business initiatives, including introducing new and enhanced benefits and services that are designed for the current environment;

•the average discount rate not performing consistent with current expectations, including as a result of further changes in the mix of spending by location and industry (including the level of T&E spending), merchant negotiations (including merchant incentives, concessions and volume-related pricing discounts), competition, pricing regulation (including regulation of competitors’ interchange rates) and other factors;

•our tax rate not remaining consistent with current levels, which could be impacted by, among other things, further changes in tax laws and regulation, our geographic mix of income, unfavorable tax audits and other unanticipated tax items;

•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure that may materially impact the prices charged to merchants that accept American Express cards, our ability to maintain the Platinum card franchise’s leadership in the premium space, competition for new and existing cobrand relationships, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;

•changes affecting our plans regarding the return of capital to shareholders, including the level of share repurchases over the next several quarters, which will depend on factors such as capital levels and regulatory capital ratios; changes in the stress testing and capital planning process and new guidance from the Federal Reserve; our results of operations and financial condition; our credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;

•our ability to increase Card Member acquisition activities, provide additional value to Card Members and refresh our premium products, which will be impacted in part by competition, brand perceptions and reputation, and our ability to develop and market value propositions that appeal to Card Members and new customers and offer attractive services and rewards programs, which will depend in part on ongoing investments in Card Member acquisition efforts, addressing changing customer behaviors, new product innovation and development, and enrollment processes, including through digital channels, and infrastructure to support new products, services and benefits;

•our ability to grow commercial payments, including through cash flow and supplier payment solutions, which will depend in part on competition, the willingness and ability of companies to use such solutions for procurement and other business expenditures, our ability to offer attractive value propositions to potential customers, our ability to enhance and expand our payment and lending solutions, and our ability to integrate Kabbage's digital capabilities and continue the rollout of the Kabbage platform to our small business customers;

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•our ability to innovate and strengthen our global network, which will depend in part on our ability to update our systems and platforms, the amount we invests in the network and our ability to make funds available for such investments, and technological developments, including capabilities that allow greater digital integration;

•the possibility that we will not execute on our plans to expand merchant coverage and improve perceptions of coverage, which will depend in part on the success of the company, OptBlue merchant acquirers and GNS partners in signing merchants to accept American Express, which could be impacted by our value propositions offered to merchants and merchant acquirers for card acceptance, as well as the awareness and willingness of Card Members to use American Express cards at merchants and whether Card Members experience welcome acceptance for American Express cards;

•our ability to introduce new and expanded digital capabilities, which will depend on our success in evolving our products and processes for the digital environment, developing new features in the Amex app and enhancing our digital channels, building partnerships and executing programs with other companies, effectively utilizing artificial intelligence to address servicing and other customer needs, and supporting the use of our products as a means of payment through online and mobile channels, all of which will be impacted by investment levels, new product innovation and development and infrastructure to support new products, services and benefits;

•our ability to execute on our plans in China, which could be affected by regulation and local business practices; the success of business partners in continuing to acquire merchants and attract local customers on the network; macro-economic conditions; and competitors with more scale in the market and more established relationships with key industry participants;

•a failure in or breach of our operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt our operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;

•changes in capital and credit market conditions, which may significantly affect our ability to meet our liquidity needs and expectations regarding capital ratios; our access to capital and funding costs; the valuation of our assets; and our credit ratings or those of our subsidiaries;

•our deposit rates increasing faster or slower than current expectations and changes affecting our ability to grow retail direct deposits, including due to market demand, changes in benchmark interest rates, competition or regulatory restrictions on our ability to obtain deposit funding or offer competitive interest rates, which could affect our net interest yield and ability to fund our businesses;

•our funding plan being implemented in a manner inconsistent with current expectations, which will depend on various factors such as future business growth, the impact of global economic, political and other events on market capacity, demand for securities we offer, regulatory changes, ability to securitize and sell loans and receivables and the performance of loans and receivables previously sold in securitization transactions;

•legal and regulatory developments, which could affect the profitability of our business activities; limit our ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or alter our relationships with Card Members, partners, merchants and other third parties, including our ability to continue certain cobrand relationships in the EU and U.K.; exert further pressure on the average discount rate and GNS business; result in increased costs related to regulatory oversight, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or civil money penalties; materially affect capital or liquidity requirements, results of operations or ability to pay dividends; or result in harm to the American Express brand;

•changes in the financial condition and creditworthiness of our business partners, such as bankruptcies, restructurings or consolidations, including of cobrand partners and merchants that represent a significant portion of our business, such as the airline industry, or partners in GNS or financial institutions that we rely on for routine funding and liquidity, which could materially affect our financial condition or results of operations; and

•factors beyond our control such as continued waves of COVID-19 cases, whether and when populations achieve herd immunity, severe weather conditions, natural disasters, power loss, disruptions in telecommunications, terrorism and other catastrophic events, any of which could significantly affect demand for and spending on American Express cards, delinquency rates, loan and receivable balances and other aspects of our business and results of operations or disrupt our global network systems and ability to process transactions.

A further description of these uncertainties and other risks can be found in the 2020 Form 10-K, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 and other reports filed with the Securities and Exchange Commission.

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ITEM 1. FINANCIAL STATEMENTS

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended June 30 (Millions, except per share amounts)	2021		2020
Revenues
Non-interest revenues
Discount revenue	$	6,327	$	4,015
Net card fees	1,286		1,141
Other fees and commissions	560		449
Other	252		186
Total non-interest revenues	8,425		5,791
Interest income
Interest on loans	2,094		2,368
Interest and dividends on investment securities	24		27
Deposits with banks and other	22		31
Total interest income	2,140		2,426
Interest expense
Deposits	113		260
Long-term debt and other	209		282
Total interest expense	322		542
Net interest income	1,818		1,884
Total revenues net of interest expense	10,243		7,675
Provisions for credit losses
Card Member receivables	(125)		355
Card Member loans	(396)		969
Other	(85)		231
Total provisions for credit losses	(606)		1,555
Total revenues net of interest expense after provisions for credit losses	10,849		6,120
Expenses
Marketing and business development	2,219		1,362
Card Member rewards	2,712		1,349
Card Member services	432		208
Salaries and employee benefits	1,539		1,349
Other, net	1,007		1,230
Total expenses	7,909		5,498
Pretax income	2,940		622
Income tax provision	660		365
Net income	$	2,280	$	257
Earnings per Common Share (Note 14)(a)
Basic	$	2.81	$	0.29
Diluted	$	2.80	$	0.29
Average common shares outstanding for earnings per common share:
Basic	801		804
Diluted	802		805

(a)Represents net income less (i) earnings allocated to participating share awards of $16 million and $2 million for the three months ended June 30, 2021 and 2020, respectively, and (ii) dividends on preferred shares of $15 million and $17 million for the three months ended June 30, 2021 and 2020, respectively.

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Six Months Ended June 30 (Millions, except per share amounts)	2021		2020
Revenues
Non-interest revenues
Discount revenue	$	11,569	$	9,853
Net card fees	2,539		2,251
Other fees and commissions	1,080		1,169
Other	471		498
Total non-interest revenues	15,659		13,771
Interest income
Interest on loans	4,238		5,277
Interest and dividends on investment securities	48		65
Deposits with banks and other	46		130
Total interest income	4,332		5,472
Interest expense
Deposits	247		586
Long-term debt and other	437		672
Total interest expense	684		1,258
Net interest income	3,648		4,214
Total revenues net of interest expense	19,307		17,985
Provisions for credit losses
Card Member receivables	(135)		952
Card Member loans	(969)		2,845
Other	(177)		379
Total provisions for credit losses	(1,281)		4,176
Total revenues net of interest expense after provisions for credit losses	20,588		13,809
Expenses
Marketing and business development	3,985		3,067
Card Member rewards	4,955		3,741
Card Member services	749		664
Salaries and employee benefits	3,089		2,744
Other, net	1,877		2,519
Total expenses	14,655		12,735
Pretax income	5,933		1,074
Income tax provision	1,418		450
Net income	$	4,515	$	624
Earnings per Common Share (Note 14)(a)
Basic	$	5.55	$	0.71
Diluted	$	5.54	$	0.71
Average common shares outstanding for earnings per common share:
Basic	802		806
Diluted	803		807

(a)Represents net income less (i) earnings allocated to participating share awards of $31 million and $4 million for the six months ended June 30, 2021 and 2020, respectively, and (ii) dividends on preferred shares of $29 million and $49 million for the six months ended June 30, 2021 and 2020, respectively.

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Net income	$	2,280	$	257	$	4,515	$	624
Other comprehensive income (loss):
Net unrealized debt securities (losses) gains, net of tax	(11)		(5)		(23)		52
Foreign currency translation adjustments, net of tax	19		123		2		(199)
Net unrealized pension and other postretirement benefits, net of tax	9		(33)		35		(27)
Other comprehensive income (loss)	17		85		14		(174)
Comprehensive income	$	2,297	$	342	$	4,529	$	450

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions, except share data)	June 30, 2021		December 31, 2020
Assets
Cash and cash equivalents
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2021, $14; 2020, nil)	$	2,671	$	2,984
Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2021, $46; 2020, $92)	26,702		29,824
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2021, $1,379; 2020, $47)	1,423		157
Total cash and cash equivalents	30,796		32,965
Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2021, $4,787; 2020, $4,296), less reserves for credit losses: 2021, $73; 2020, $267	47,512		43,434
Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2021, $25,149; 2020, $25,908), less reserves for credit losses: 2021, $3,835; 2020, $5,344	71,775		68,029
Other loans, less reserves for credit losses: 2021, $72; 2020, $238	2,154		2,614
Investment securities	12,443		21,631
Premises and equipment, less accumulated depreciation and amortization: 2021, $8,084; 2020, $7,540	4,891		5,015
Other assets, less reserves for credit losses: 2021, $39; 2020, $85	17,402		17,679
Total assets	$	186,973	$	191,367
Liabilities and Shareholders’ Equity
Liabilities
Customer deposits	$	84,905	$	86,875
Accounts payable	9,708		9,444
Short-term borrowings	1,864		1,878
Long-term debt (includes debt issued by consolidated variable interest entities: 2021, $11,866; 2020, $12,760)	37,363		42,952
Other liabilities	27,594		27,234
Total liabilities	$	161,434	$	168,383
Contingencies (Note 7)
Shareholders’ Equity
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of June 30, 2021 and December 31, 2020	—		—
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 798 million shares as of June 30, 2021 and 805 million shares as of December 31, 2020	160		161
Additional paid-in capital	11,858		11,881
Retained earnings	16,402		13,837
Accumulated other comprehensive income (loss)
Net unrealized debt securities gains, net of tax of: 2021, $14; 2020, $20	42		65
Foreign currency translation adjustments, net of tax of: 2021, $(411); 2020, $(381)	(2,227)		(2,229)
Net unrealized pension and other postretirement benefits, net of tax of: 2021, $(223); 2020, $(236)	(696)		(731)
Total accumulated other comprehensive income (loss)	(2,881)		(2,895)
Total shareholders’ equity	25,539		22,984
Total liabilities and shareholders’ equity	$	186,973	$	191,367

See Notes to Consolidated Financial Statements.

40

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended June 30 (Millions)	2021		2020
Cash Flows from Operating Activities
Net income	$	4,515	$	624
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provisions for credit losses	(1,281)		4,176
Depreciation and amortization	834		711
Deferred taxes and other	(294)		335
Stock-based compensation	183		109
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other assets	282		(792)
Accounts payable & other liabilities	1,226		(5,252)
Net cash provided by (used in) operating activities	5,465		(89)
Cash Flows from Investing Activities
Sale of investment securities	37		36
Maturities and redemptions of investment securities	9,684		4,573
Purchase of investments	(824)		(16,132)
Net (increase) decrease in Card Member loans and receivables, and other loans	(6,280)		34,356
Purchase of premises and equipment, net of sales: 2021, $40; 2020, nil	(609)		(689)
Other investing activities	1		2
Net cash provided by investing activities	2,009		22,146
Cash Flows from Financing Activities
Net (decrease) increase in customer deposits	(1,966)		11,519
Net increase (decrease) in short-term borrowings	17		(4,859)
Proceeds from long-term debt	18		—
Payments of long-term debt	(5,409)		(9,699)
Issuance of American Express common shares	45		33
Repurchase of American Express common shares and other	(1,397)		(1,025)
Dividends paid	(724)		(749)
Net cash used in financing activities	(9,416)		(4,780)
Effect of foreign currency exchange rates on cash and cash equivalents	(227)		380
Net (decrease) increase in cash and cash equivalents	(2,169)		17,657
Cash and cash equivalents at beginning of period	32,965		24,446
Cash and cash equivalents at end of period	$	30,796	$	42,103

Supplemental cash flow information
Cash and cash equivalents reconciliation	Jun-21		Dec-20		Jun-20		Dec-19
Cash and cash equivalents per Consolidated Balance Sheets	$	30,796	$	32,965	$	42,103	$	24,446
Restricted balances included in Cash and cash equivalents	1,841		606		606		514
Total cash and cash equivalents excluding restricted balances	$	28,955	$	32,359	$	41,497	$	23,932

See Notes to Consolidated Financial Statements.

41

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

Three months ended June 30, 2021 (Millions, except per share amounts)	Total		Preferred Shares		Common Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
Balances as of March 31, 2021	$	24,449	$	—	$	161	$	11,878	$	(2,898)	$	15,308
Net income	2,280		—		—		—		—		2,280
Other comprehensive income	17		—		—		—		17		—
Repurchase of common shares	(908)		—		(1)		(85)		—		(822)
Other changes, primarily employee plans	62		—		—		65		—		(3)
Cash dividends declared preferred Series B, $12.08 per share	(7)		—		—		—		—		(7)
Cash dividends declared preferred Series C, $10.43 per share	(8)		—		—		—		—		(8)
Cash dividends declared common, $0.43 per share	(346)		—		—		—		—		(346)
Balances as of June 30, 2021	$	25,539	$	—	$	160	$	11,858	$	(2,881)	$	16,402

Six months ended June 30, 2021 (Millions, except per share amounts)	Total		Preferred Shares		Common Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
Balances as of December 31, 2020	$	22,984	$	—	$	161	$	11,881	$	(2,895)	$	13,837
Net income	4,515		—		—		—		—		4,515
Other comprehensive income	14		—		—		—		14		—
Repurchase of common shares	(1,346)		—		(2)		(134)		—		(1,210)
Other changes, primarily employee plans	94		—		1		111		—		(18)
Cash dividends declared preferred Series B, $24.51 per share	(14)		—		—		—		—		(14)
Cash dividends declared preferred Series C, $20.73 per share	(15)		—		—		—		—		(15)
Cash dividends declared common, $0.86 per share	(693)		—		—		—		—		(693)
Balances as of June 30, 2021	$	25,539	$	—	$	160	$	11,858	$	(2,881)	$	16,402

See Notes to Consolidated Financial Statements.

42

AMERICAN EXPRESS COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

Three months ended June 30, 2020 (Millions, except per share amounts)	Total		Preferred Shares		Common Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
Balances as of March 31, 2020	$	21,006	$	—	$	161	$	11,680	$	(2,996)	$	12,161
Net income	257		—		—		—		—		257
Other comprehensive income	85		—		—		—		85		—
Other changes, primarily employee plans	79		—		—		80		—		(1)
Cash dividends declared preferred Series B, $12.37 per share	(9)		—		—		—		—		(9)
Cash dividends declared preferred Series C, $10.29 per share	(8)		—		—		—		—		(8)
Cash dividends declared common, $0.43 per share	(348)		—		—		—		—		(348)
Balances as of June 30, 2020	$	21,062	$	—	$	161	$	11,760	$	(2,911)	$	12,052

Six months ended June 30, 2020 (Millions, except per share amounts)	Total		Preferred Shares		Common Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
Balances as of December 31, 2019	$	23,071	$	—	$	163	$	11,774	$	(2,737)	$	13,871
Cumulative effect of change in accounting principle - Reserve for Credit Losses(a)	(882)		—		—		—		—		(882)
Net income	624		—		—		—		—		624
Other comprehensive loss	(174)		—		—		—		(174)		—
Repurchase of common shares	(875)		—		(2)		(105)		—		(768)
Other changes, primarily employee plans	43		—		—		91		—		(48)
Cash dividends declared preferred Series B, $26.46 per share	(20)		—		—		—		—		(20)
Cash dividends declared preferred Series C, $34.79 per share	(29)		—		—		—		—		(29)
Cash dividends declared common, $0.86 per share	(696)		—		—		—		—		(696)
Balances as of June 30, 2020	$	21,062	$	—	$	161	$	11,760	$	(2,911)	$	12,052

(a)Represents $1,170 million, net of tax of $288 million, related to the impact as of January 1, 2020 of adopting the current expected credit loss methodology for the recognition of credit losses on certain financial instruments.

See Notes to Consolidated Financial Statements.

43

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The Company

We are a globally integrated payments company that provides our customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are credit and charge card products, along with travel and lifestyle related services, offered to consumers and businesses around the world. Business travel-related services are offered through our non-consolidated joint venture, American Express Global Business Travel. Our various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party vendors and business partners, direct mail, telephone, in-house sales teams, and direct response advertising.

The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. If not materially different, certain note disclosures included therein have been omitted from these Consolidated Financial Statements.

The interim Consolidated Financial Statements included in this report have not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim Consolidated Financial Statements, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year.

The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ.

Effective April 1, 2021, we prospectively changed the recognition of certain costs paid to a third party previously recognized over the twelve month card membership period in Net card fees in the Consolidated Statements of Income; such costs are now recorded as incurred in Marketing and business development expense. This change is not material to the Consolidated Financial Statements.

Recently Adopted Accounting Standards

Effective January 1, 2021, we elected to change our accounting for investments in qualified affordable housing projects from the equity method of accounting to the proportional amortization method (PAM) in accordance with the accounting guidance. PAM results in the amortization of the initial cost of the investment in proportion to the related tax credits, and recognition of the net investment performance in the statement of income as a component of Income tax provision, while the equity method reflected losses related to the investments as a component of Other, net expenses. As a result, we believe PAM is preferable as it better reflects the economics of our tax credit investments. Since the impact of this change is immaterial to our prior and current period financial statements, we implemented PAM on a prospective basis which resulted in a one-time charge to Income tax provision of $55 million in the first quarter of 2021, reflecting the cumulative impact of the difference in the timing of expense recognition between the equity method and PAM.

44

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Loans and Card Member Receivables

Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables. We also extend credit to consumer and commercial customers through non-card financing products, resulting in Other loans.

Card Member loans by segment and Other loans as of June 30, 2021 and December 31, 2020 consisted of:

(Millions)	2021		2020
Global Consumer Services Group (a)	$	60,561	$	60,084
Global Commercial Services	15,049		13,289
Card Member loans	75,610		73,373
Less: Reserves for credit losses	3,835		5,344
Card Member loans, net	$	71,775	$	68,029
Other loans, net (b)	$	2,154	$	2,614

(a)Includes approximately $25.1 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of June 30, 2021 and December 31, 2020, respectively.

(b)Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.2 billion and $0.6 billion of gross PPP loans outstanding as of June 30, 2021 and December 31, 2020, respectively. Other loans are presented net of reserves for credit losses of $72 million and $238 million as of June 30, 2021 and December 31, 2020, respectively.

Card Member receivables by segment as of June 30, 2021 and December 31, 2020 consisted of:

(Millions)	2021		2020
Global Consumer Services Group	$	19,932	$	18,685
Global Commercial Services (a)	27,653		25,016
Card Member receivables	47,585		43,701
Less: Reserves for credit losses	73		267
Card Member receivables, net	$	47,512	$	43,434

(a)Includes $4.8 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of June 30, 2021 and December 31, 2020, respectively.

45

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Card Member Loans and Receivables Aging

Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of June 30, 2021 and December 31, 2020:

2021 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	60,138	$	119	$	86	$	218	$	60,561
Global Commercial Services
Global Small Business Services	14,927		22		14		31		14,994
Global Corporate Payments (a)	(b)		(b)		(b)		—		55
Card Member Receivables:
Global Consumer Services Group	19,844		34		16		38		19,932
Global Commercial Services
Global Small Business Services	$	15,853	$	32	$	14	$	30	$	15,929
Global Corporate Payments (a)	(b)		(b)		(b)		$	32	$	11,724

2020 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	59,442	$	177	$	148	$	317	$	60,084
Global Commercial Services
Global Small Business Services	13,132		27		20		47		13,226
Global Corporate Payments (a)	(b)		(b)		(b)		—		63
Card Member Receivables:
Global Consumer Services Group	18,570		33		26		56		18,685
Global Commercial Services
Global Small Business Services	$	14,023	$	37	$	21	$	38	$	14,119
Global Corporate Payments (a)	(b)		(b)		(b)		$	60	$	10,897

(a)Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. Delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).

(b)Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

46

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Credit Quality Indicators for Card Member Loans and Receivables

The following tables present the key credit quality indicators as of or for the six months ended June 30:

	2021						2020
	Net Write-Off Rate						Net Write-Off Rate
	Principal Only(a)		Principal, Interest & Fees(a)		30+ Days Past Due as a % of Total		Principal Only(a)		Principal, Interest & Fees(a)		30+ Days Past Due as a % of Total
Card Member Loans:
Global Consumer Services Group	1.3	%	1.7	%	0.7	%	2.7	%	3.3	%	1.6	%
Global Small Business Services	0.8	%	1.0	%	0.4	%	2.1	%	2.4	%	1.6	%
Card Member Receivables:
Global Consumer Services Group	0.4	%	0.5	%	0.4	%	2.2	%	2.4	%	1.3	%
Global Small Business Services	0.3	%	0.4	%	0.5	%	2.4	%	2.6	%	2.1	%
Global Corporate Payments(d)	(b)		(0.3)	%	(c)		(b)		2.2	%	(c)

(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(b)Net write-off rate based on principal losses only is not available due to system constraints.

(c)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total was 0.3% and 2.5% as of June 30, 2021 and 2020, respectively.

(d)The net write-off rate for the current year includes a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year.

Refer to Note 3 for additional indicators, including external environmental qualitative factors, management considers in its evaluation process for reserves for credit losses.

47

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Impaired Loans and Receivables

Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) non-accrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs).

In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.”

The following tables provide additional information with respect to our impaired loans and receivables as of June 30, 2021 and December 31, 2020:

	As of June 30, 2021
					Accounts Classified as a TDR (c)
2021 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group	$	136	$	88	$	1,057	$	729	$	2,010	$	655
Global Commercial Services	15		16		256		263		550		229
Card Member Receivables:
Global Consumer Services Group	—		—		154		86		240		52
Global Commercial Services	—		—		282		220		502		86
Other Loans(f)	1		1		140		5		147		13
Total	$	152	$	105	$	1,889	$	1,303	$	3,449	$	1,035

	As of December 31, 2020
					Accounts Classified as a TDR (c)
2020 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group	$	203	$	146	$	1,586	$	248	$	2,183	$	782
Global Commercial Services	21		29		478		67		595		285
Card Member Receivables:
Global Consumer Services Group	—		—		240		34		274		60
Global Commercial Services	—		—		534		75		609		139
Other Loans (f)	2		1		248		6		257		80
Total	$	226	$	176	$	3,086	$	430	$	3,918	$	1,346

(a)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR.

(b)Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs.

(c)Accounts classified as a TDR include $29 million and $32 million that are over 90 days past due and accruing interest as of June 30, 2021 and December 31, 2020, respectively, and $11 million that are non-accruals as of both June 30, 2021 and December 31, 2020.

(d)In Program TDRs include accounts that are currently enrolled in a modification program.

(e)Out of Program TDRs include $1,140 million and $316 million of accounts that have successfully completed a modification program and $163 million and $114 million of accounts that were not in compliance with the terms of the modification programs as of June 30, 2021 and December 31, 2020, respectively.

(f)Other loans primarily represent consumer and commercial non-card financing products.

48

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Loans and Receivables Modified as TDRs

The following tables provide additional information with respect to loans and receivables that entered a financial relief program and were modified as TDRs during the three and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30, 2021					Six Months Ended June 30, 2021
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extensions (# of Months)	Number of Accounts (thousands)	Outstanding Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	23	$	172	13	(b)	61	$	459	13	(b)
Card Member Receivables	4	83		(c)	18	11	200		(c)	18
Other Loans(d)	1	2		3	18	2	$	10	3	15
Total	28	$	257			74	$	669

	Three Months Ended June 30, 2020					Six Months Ended June 30, 2020
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extensions (# of Months)	Number of Accounts (thousands)	Outstanding Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	116	$	1,103	14	(b)	140	$	1,298	14	(b)
Card Member Receivables	22	744		(c)	18	25	818		(c)	19
Other Loans(d)	5	$	154	4	15	5	$	154	4	15
Total	143	$	2,001			170	$	2,270

(a)Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance.

(b)For Card Member loans, there have been no payment term extensions.

(c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.

(d)Other loans primarily represent consumer and commercial non-card financing products.

49

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.

	Three Months Ended June 30, 2021			Six Months Ended June 30, 2021
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)		Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	9	$	69	16	$	116
Card Member Receivables	3	19		4	38
Other Loans (b)	1	3		2	8
Total	13	$	91	22	$	162

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)		Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	3	$	24	7	$	52
Card Member Receivables	1	9		2	18
Other Loans (b)	1	1		1	$	1
Total	5	$	34	10	$	71

(a)The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables.

(b)Other loans primarily represent consumer and commercial non-card financing products.

50

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Reserves for Credit Losses

Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The CECL methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses.

We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD), and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates.

•PD models are used to estimate the likelihood an account will be written-off.

•EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors.

•Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions.

We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses.

Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios and applies judgment to weight them in order to reflect the uncertainty surrounding these scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models.

We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions.

Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually using a discounted cash flow model.

Loans and receivable balances are written off when we consider amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due for pay in full or revolving loans and 120 days past due for term loans. Loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification.

51

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses:

	U.S. Unemployment Rate		U.S. GDP Growth (Contraction) (a)
	June 30, 2021	December 31, 2020	June 30, 2021	December 31, 2020
Second quarter of 2021	6%	8% - 10%	11%	4% - (4)%
Fourth quarter of 2021	4% - 8%	7% - 11%	7% - (3)%	6% - (2)%
Fourth quarter of 2022	4% - 9%	6% - 12%	2%	4% - 3%
Fourth quarter of 2023	3% - 7%	4% -10%	3% - 2%	5% - 3%

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

Changes in Card Member Loans Reserve for Credit Losses

Card Member loans reserve for credit losses decreased for the three and six months ended June 30, 2021, driven by lower delinquencies, improved portfolio quality and improving macroeconomic outlooks, all of which were partially offset by an increase in the outstanding balance of loans.

Card Member loans reserve for credit losses increased for the three and six months ended June 30, 2020, driven by the deterioration of the global macroeconomic outlook, as a result of the COVID-19 pandemic, partially offset by a decline in the outstanding balance of loans.

The following table presents changes in the Card Member loans reserve for credit losses for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Beginning Balance	$	4,467	$	5,236	$	5,344	$	4,027
Provisions (a)	(396)		969		(969)		2,845
Net write-offs (b)
Principal	(185)		(499)		(426)		(1,017)
Interest and fees	(58)		(103)		(121)		(210)
Other (c)	7		25		7		(17)
Ending Balance	$	3,835	$	5,628	$	3,835	$	5,628

(a)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(b)Principal write-offs are presented less recoveries of $172 million and $134 million for the three months ended June 30, 2021 and 2020, respectively, and $340 million and $279 million for the six months ended June 30, 2021 and 2020, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(43) million and $(32) million for the three months June 30, 2021 and 2020, respectively, and $(88) million and $(63) million for the six months ended June 30, 2021 and 2020, respectively.

(c)Primarily includes foreign currency translation adjustments of $7 million and $25 million for the three months ended June 30, 2021 and 2020, respectively, and $6 million and $(17) million for the six months ended June 30, 2021 and 2020, respectively.

52

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Changes in Card Member Receivables Reserve for Credit Losses

Card Member receivables reserve for credit losses decreased for the three and six months ended June 30, 2021, driven by lower delinquencies, improved portfolio quality and improving macroeconomic outlooks, all of which were partially offset by an increase in the outstanding balance of receivables.

Card Member receivables reserve for credit losses increased for the three and six months ended June 30, 2020, driven by the deterioration of the global macroeconomic outlook, as a result of the COVID-19 pandemic, partially offset by a decline in the outstanding balance of receivables.

The following table presents changes in the Card Member receivables reserve for credit losses for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Beginning Balance	$	202	$	459	$	267	$	126
Provisions (a)	(125)		355		(135)		952
Net write-offs (b)	(4)		(299)		(57)		(557)
Other (c)	—		4		(2)		(2)
Ending Balance	$	73	$	519	$	73	$	519

(a)Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(b)Net write-offs are presented less recoveries of $127 million and $88 million for the three months ended June 30, 2021 and 2020, respectively, and $224 million and $180 million for the six months ended June 30, 2021 and 2020, respectively. Amounts include net (write-offs) recoveries from TDRs of $(16) million and $(9) million for the three months ended June 30, 2021 and 2020, respectively, and $(36) million and $(16) million for the six months ended June 30, 2021 and 2020, respectively.

(c)Primarily includes foreign currency translation adjustments of nil and $4 million for the three months ended June 30, 2021 and 2020, respectively, and $(1) million for both the six months ended June 30, 2021 and 2020.

53

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

4. Investment Securities

Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. Unrealized losses attributable to credit deterioration are recorded in the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. We had accrued interest on our available-for-sale debt securities totaling $21 million and $26 million as of June 30, 2021 and December 31, 2020, respectively, presented as Other assets on the Consolidated Balance Sheets.

Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense.

Realized gains and losses are recognized upon disposition of the securities using the specific identification method.

The following is a summary of investment securities as of June 30, 2021 and December 31, 2020:

	2021								2020
Description of Securities (Millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
State and municipal obligations	$	133	$	6	$	(1)	$	138	$	172	$	7	$	—	$	179
U.S. Government agency obligations	6		—		—		6		7		—		—		7
U.S. Government treasury obligations	11,397		49		—		11,446		20,655		76		—		20,731
Mortgage-backed securities (a)	22		2		—		24		28		2		—		30
Foreign government bonds and obligations	741		—		—		741		581		—		—		581
Other (b)	37		—		—		37		22		—		—		22
Equity securities (c)	52		1		(2)		51		56		27		(2)		81
Total	$	12,388	$	58	$	(3)	$	12,443	$	21,521	$	112	$	(2)	$	21,631

(a)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

(b)Represents investments in Corporate debt securities and debt securities issued by Community Development Financial Institutions.

(c)Equity securities comprise investments in common stock, exchange-traded funds and mutual funds.

54

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020.

	2021
	Less than 12 months				12 months or more
Description of Securities (Millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
State and municipal obligations	$	26	$	(1)	$	—	$	—
Total	$	26	$	(1)	$	—	$	—

The following table summarizes the gross unrealized losses by ratio of fair value to amortized cost as of June 30, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020.

	Less than 12 months					12 months or more					Total
Ratio of Fair Value to Amortized Cost (Dollars in millions)	Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses
2021:
90%–100%	6	$	26	$	(1)	—	$	—	$	—	6	$	26	$	(1)
Less than 90%	—	—		—		—	—		—		—	—		—
Total as of June 30, 2021	6	$	26	$	(1)	—	$	—	$	—	6	$	26	$	(1)

Contractual maturities for investment securities with stated maturities as of June 30, 2021 were as follows:

(Millions)	Cost		Estimated Fair Value
Due within 1 year	$	11,001	$	11,014
Due after 1 year but within 5 years	1,201		1,235
Due after 5 years but within 10 years	35		42
Due after 10 years	99		101
Total	$	12,336	$	12,392

The expected payments on state and municipal obligations, U.S. government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.

55

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

5. Asset Securitizations

We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors.

The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. As of June 30, 2021 and December 31, 2020, our ownership of variable interests was $13.5 billion and $13.4 billion, respectively, for the Lending Trust and $4.8 billion and $4.3 billion, respectively, for the Charge Trust. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts and therefore consolidate the Trusts.

Restricted cash and cash equivalents held by the Lending Trust and Charge Trust was $1.4 billion and nil, respectively, as of June 30, 2021 and $47 million and nil, respectively, as of December 31, 2020. These amounts relate to collections of Card Member loans and receivables to be used by the Trusts to fund future expenses and obligations, including interest on debt securities, credit losses and upcoming debt maturities.

Under the respective terms of the Lending Trust and the Charge Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve funds, or, in a worst-case scenario, early amortization of debt securities. During the six months ended June 30, 2021 and the year ended December 31, 2020, no such triggering events occurred.

56

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6. Customer Deposits

As of June 30, 2021 and December 31, 2020, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:

(Millions)	2021		2020
U.S.:
Interest-bearing	$	83,823	$	85,583
Non-interest-bearing (includes Card Member credit balances of: 2021, $442; 2020, $576)	466		599
Non-U.S.:
Interest-bearing	19		19
Non-interest-bearing (includes Card Member credit balances of: 2021, $593; 2020, $671)	597		674
Total customer deposits	$	84,905	$	86,875

Customer deposits by deposit type as of June 30, 2021 and December 31, 2020 were as follows:

(Millions)	2021		2020
U.S. retail deposits:
Savings accounts – Direct	$	65,472	$	63,512
Certificates of deposit:
Direct	1,963		2,440
Third-party (brokered)	3,757		5,561
Sweep accounts – Third-party (brokered)	12,631		14,070
Other deposits:
U.S. non-interest bearing deposits	24		23
Non-U.S. deposits	23		22
Card Member credit balances ― U.S. and non-U.S.	1,035		1,247
Total customer deposits	$	84,905	$	86,875

The scheduled maturities of certificates of deposit as of June 30, 2021 were as follows:

(Millions)	U.S.		Non-U.S.		Total
2021	$	1,432	$	4	$	1,436
2022	3,104		4		3,108
2023	682		—		682
2024	283		—		283
2025	210		—		210
After 5 years	9		—		9
Total	$	5,720	$	8	$	5,728

As of June 30, 2021 and December 31, 2020, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows:

(Millions)	2021		2020
U.S.	$	745	$	930
Non-U.S.	1		1
Total	$	746	$	931

57

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

7. Contingencies

In the ordinary course of business, we and our subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, regulatory proceedings, information gathering requests, subpoenas, inquiries and matters relating to compliance with laws and regulations (collectively, legal proceedings).

Based on our current knowledge, and taking into consideration our litigation-related liabilities, we do not believe we are a party to, nor are any of our properties the subject of, any legal proceeding that would have a material adverse effect on our consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described below.

A putative merchant class action in the Eastern District of New York, consolidated in 2011 and collectively captioned In re: American Express Anti-Steering Rules Antitrust Litigation (II), alleged that provisions in our merchant agreements prohibiting merchants from differentially surcharging our cards or steering a customer to use another network’s card or another type of general-purpose card (“anti-steering” and “non-discrimination” contractual provisions) violate U.S. antitrust laws. On January 15, 2020, our motion to compel arbitration of claims brought by merchants who accept American Express and to dismiss claims of merchants who do not was granted. Plaintiffs have appealed part of this decision.

On February 25, 2020, we were named as a defendant in a case filed in the Superior Court of California, Los Angeles County, captioned Laurelwood Cleaners LLC v. American Express Co., et al., in which the plaintiff seeks a public injunction prohibiting American Express from enforcing its anti-steering and non-discrimination provisions and from requiring merchants “to offer the service of Amex-card acceptance for free.” The case has been stayed pending the outcome of arbitration proceedings.

On January 29, 2019, we were named in a putative class action brought in the United States District Court for the Eastern District of New York, captioned Anthony Oliver, et al. v. American Express Company and American Express Travel Related Services Company Inc., in which the plaintiffs are holders of MasterCard, Visa and/or Discover credit cards (but not American Express cards) and allege they paid higher prices as a result of our anti-steering and non-discrimination provisions in violation of federal antitrust law and the antitrust and consumer laws of various states. Plaintiffs seek unspecified damages and other forms of relief. The court dismissed plaintiffs’ federal antitrust claim, numerous state antitrust and consumer protection claims and their unjust enrichment claim. The remaining claims in plaintiffs’ complaint arise under the antitrust laws of 11 states and the consumer protection laws of six states.

In July 2004, we were named as a defendant in another putative class action filed in the Southern District of New York and subsequently transferred to the Eastern District of New York, captioned The Marcus Corporation v. American Express Co., et al., in which the plaintiffs allege an unlawful antitrust tying arrangement between certain of our charge cards and credit cards in violation of various state and federal laws. The plaintiffs in this action seek injunctive relief and an unspecified amount of damages.

On March 8, 2016, plaintiffs B&R Supermarket, Inc. d/b/a Milam’s Market and Grove Liquors LLC, on behalf of themselves and others, filed a suit, captioned B&R Supermarket, Inc. d/b/a Milam’s Market, et al. v. Visa Inc., et al., for violations of the Sherman Antitrust Act, the Clayton Antitrust Act, California’s Cartwright Act and unjust enrichment in the United States District Court for the Northern District of California, against American Express Company, other credit and charge card networks, other issuing banks and EMVCo, LLC. Plaintiffs allege that the defendants, through EMVCo, conspired to shift liability for fraudulent, faulty and otherwise rejected consumer credit card transactions from themselves to merchants after the implementation of EMV chip payment terminals. Plaintiffs seek damages and injunctive relief. An amended complaint was filed on July 15, 2016. On September 30, 2016, the court denied our motion to dismiss as to claims brought by merchants who do not accept American Express cards, and on May 4, 2017, the California court transferred the case to the United States District Court for the Eastern District of New York. On August 28, 2020, the court granted plaintiffs' motion for class certification.

58

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We are being challenged in a number of countries regarding our application of value-added taxes (VAT) to certain of our international transactions, which are in various stages of audit, or are being contested in legal actions. While we believe we have complied with all applicable tax laws, rules and regulations in the relevant jurisdictions, the tax authorities may determine that we owe additional VAT. In certain jurisdictions where we are contesting the assessments, we were required to pay the VAT assessments prior to contesting.

Our legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members to governmental proceedings. These legal proceedings involve various lines of business and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against us specify the damages sought, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficiently such that we are able to estimate an amount of loss or a range of possible loss.

We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable.

For those disclosed material legal proceedings where a loss is reasonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies, or where there is no such accrual, and for which we are able to estimate a range of possible loss, the current estimated range is zero to $210 million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business and results of operations.

In addition, we face exposure associated with Card Member purchases, including with respect to the following:

•Return Protection — refunds the price of qualifying purchases made with eligible cards, where the merchant will not accept the return, for up to 90 days from the date of purchase; and

•Merchant Protection — protects Card Members primarily against non-delivery of purchases, usually in the event of the bankruptcy or liquidation of a merchant. When this occurs, the Card Member may dispute the transaction for which we will generally credit the Card Member’s account. If we are unable to collect the amount from the merchant, we may bear the loss for the amount credited to the Card Member. The largest component of the exposure relates to Card Member transactions associated with travel-related merchants, primarily through business arrangements where we have remitted payment to such merchants for a Card Member travel purchase that has not yet been used or “flown.”

We have an accrual of $33 million related to these exposures as of June 30, 2021. To date, we have not experienced significant losses related to these exposures; however, our historical experience may not be representative in the current environment given the economic and financial disruptions caused by the COVID-19 pandemic and resulting containment measures. A reasonably possible loss related to these exposures in excess of the recorded accrual cannot be quantified as the Card Member purchases that may include or result in claims are not sufficiently estimable, although we believe our risk of loss has increased as a result of the COVID-19 pandemic.

59

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

8. Derivatives and Hedging Activities

We use derivative financial instruments to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates and foreign exchange rates, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of our market risk management. We do not transact in derivatives for trading purposes.

A majority of our derivative assets and liabilities as of June 30, 2021 and December 31, 2020 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets.

In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate the agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of June 30, 2021, these derivatives were not in a material net liability position. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of June 30, 2021 and December 31, 2020, no credit risk adjustment to the derivative portfolio was required.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of June 30, 2021 and December 31, 2020:

	Other Assets Fair Value				Other Liabilities Fair Value
(Millions)	2021		2020		2021		2020
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)	$	352	$	500	$	—	$	—
Net investment hedges - Foreign exchange contracts	76		24		129		474
Total derivatives designated as hedging instruments	428		524		129		474
Derivatives not designated as hedging instruments:
Foreign exchange contracts	153		105		65		228
Total derivatives, gross	581		629		194		702
Derivative asset and derivative liability netting (b)	(97)		(98)		(97)		(98)
Cash collateral netting (c)	(352)		(500)		—		(16)
Total derivatives, net	$	132	$	31	$	97	$	588

(a)For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.

(b)Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

(c)Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.

We posted $23 million and $34 million as of June 30, 2021 and December 31, 2020, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances.

60

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Fair Value Hedges

We are exposed to interest rate risk associated with our fixed-rate debt obligations. At the time of issuance, certain fixed-rate long-term debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rate. We had $12.9 billion and $15.8 billion of fixed-rate debt obligations designated in fair value hedging relationships as of June 30, 2021 and December 31, 2020, respectively.

The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three and six months ended June 30:

	Gains (losses)
	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Fixed-rate long-term debt	$	55	$	4	$	198	$	(593)
Derivatives designated as hedging instruments	(54)		(10)		(199)		601
Total	$	1	$	(6)	$	(1)	$	8

The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $13.2 billion and $16.4 billion as of June 30, 2021 and December 31, 2020, respectively, including the cumulative amount of fair value hedging adjustments of $424 million and $622 million for the respective periods.

We recognized net decreases of $63 million and $81 million in Interest expense on Long-term debt for the three months ended June 30, 2021 and 2020, respectively, and net decreases of $136 million and $102 million for the six months ended June 30, 2021 and 2020, respectively, primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges.

Net Investment Hedges

We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We had notional amounts of approximately $10.8 billion and $10.5 billion of foreign currency derivatives designated as net investment hedges as of June 30, 2021 and December 31, 2020, respectively. The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, were losses of $108 million and $339 million for the three months ended June 30, 2021 and 2020, respectively, and a loss of $102 million and a gain of $393 million for the six months ended June 30, 2021 and 2020, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, were not significant for any of the three and six months ended June 30, 2021 and 2020.

Derivatives Not Designated as Hedges

The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. We had notional amounts of approximately $14.4 billion as of both June 30, 2021 and December 31, 2020. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in net losses of $9 million and $2 million for the three months ended June 30, 2021 and 2020, respectively, and a net loss of $14 million and a net gain of $18 million for the six months ended June 30, 2021 and 2020, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income.

61

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9. Fair Values

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of June 30, 2021 and December 31, 2020:

	2021								2020
(Millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Investment securities: (a)
Equity securities	$	51	$	50	$	1	$	—	$	81	$	80	$	1	$	—
Debt securities (b)	12,392		—		12,372		20		21,550		—		21,550		—
Derivatives, gross (a)	581		—		581		—		629		—		629		—
Total Assets	13,024		50		12,954		20		22,260		80		22,180		—
Liabilities:
Derivatives, gross (a)	194		—		194		—		702		—		702		—
Total Liabilities	$	194	$	—	$	194	$	—	$	702	$	—	$	702	$	—

(a)Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis.

(b)Level 3 fair value amount represents investments in debt securities issued by Community Development Financial Institutions.

62

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of June 30, 2021 and December 31, 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of June 30, 2021 and December 31, 2020, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.

	Carrying Value		Corresponding Fair Value Amount
2021 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	31	$	31	$	28	$	3	$	—
Other financial assets (b)	50		50		—		50		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	74		78		—		—		78
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101		101		—		101		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	6		6		—		6		—
Long-term debt (c)	$	37	$	39	$	—	$	39	$	—

	Carrying Value		Corresponding Fair Value Amount
2020 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	33	$	33	$	31	$	2	$	—
Other financial assets (b)	46		46		—		46		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	71		75		—		—		75
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101		101		—		101		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	8		8		—		8		—
Long-term debt (c)	$	43	$	45	$	—	$	45	$	—

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

(b)Balances include Card Member receivables (including fair values of Card Member receivables of $4.8 billion and $4.2 billion held by a consolidated VIE as of June 30, 2021 and December 31, 2020, respectively), other receivables and other miscellaneous assets.

(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $25.2 billion and $25.8 billion as of June 30, 2021 and December 31, 2020, respectively, and the fair values of Long-term debt were $12.0 billion and $13.0 billion as of June 30, 2021 and December 31, 2020, respectively.

(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.

63

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Nonrecurring Fair Value Measurements

We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. During the six months ended June 30, 2021 and the year ended December 31, 2020, we did not have any material assets that were measured at fair value due to impairment.

We estimate the Level 3 fair value of equity investments without readily determinable fair values based on price changes as of the date of new similar equity financing transactions completed by the companies in our portfolio. The carrying value of equity investments without readily determinable fair values totaled $1.2 billion and $530 million as of June 30, 2021 and December 31, 2020, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded net unrealized gains of $248 million and $7 million for the three months ended June 30, 2021 and 2020, and $625 million and $22 million for the six months ended June 30, 2021 and 2020, respectively. Unrealized losses including any impairments were not significant for any of the three and six months ended June 30, 2021 and 2020. Beginning in January 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $977 million and $347 million as of June 30, 2021 and December 31, 2020, respectively.

In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both June 30, 2021 and December 31, 2020.

64

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

10. Guarantees

The maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by us in the ordinary course of business were $1 billion and $26 million, respectively, as of June 30, 2021, and $1 billion and $24 million, respectively, as of December 31, 2020, all of which were primarily related to our real estate and business dispositions.

To date, we have not experienced any significant losses related to guarantees or indemnifications. Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated.

11. Changes in Accumulated Other Comprehensive Income (Loss)

AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three and six months ended June 30, 2021 and 2020 were as follows:

Three Months Ended June 30, 2021 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of March 31, 2021	$	53	$	(2,246)	$	(705)	$	(2,898)
Net unrealized losses	(11)		—		—		(11)
Net translation on investments in foreign operations	—		127		—		127
Net hedges of investments in foreign operations	—		(108)		—		(108)
Pension and other postretirement benefits	—		—		9		9
Net change in accumulated other comprehensive income (loss)	(11)		19		9		17
Balances as of June 30, 2021	$	42	$	(2,227)	$	(696)	$	(2,881)

Six Months Ended June 30, 2021 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive  Income (Loss)
Balances as of December 31, 2020	$	65	$	(2,229)	$	(731)	$	(2,895)
Net unrealized losses	(23)		—		—		(23)
Net translation on investments in foreign operations	—		104		—		104
Net hedges of investments in foreign operations	—		(102)		—		(102)
Pension and other postretirement benefits	—		—		35		35
Net change in accumulated other comprehensive income (loss)	(23)		2		35		14
Balances as of June 30, 2021	$	42	$	(2,227)	$	(696)	$	(2,881)

65

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Three Months Ended June 30, 2020 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of March 31, 2020	$	90	$	(2,511)	$	(575)	$	(2,996)
Net unrealized losses	(5)		—		—		(5)
Decrease due to amounts reclassified into earnings	—		(3)		—		(3)
Net translation on investments in foreign operations	—		465		—		465
Net hedges of investments in foreign operations	—		(339)		—		(339)
Pension and other postretirement benefits	—		—		(33)		(33)
Net change in accumulated other comprehensive income (loss)	(5)		123		(33)		85
Balances as of June 30, 2020	$	85	$	(2,388)	$	(608)	$	(2,911)

Six Months Ended June 30, 2020 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of December 31, 2019	$	33	$	(2,189)	$	(581)	$	(2,737)
Net unrealized gains	52		—		—		52
Decrease due to amounts reclassified into earnings	—		(3)		—		(3)
Net translation on investments in foreign operations	—		(589)		—		(589)
Net hedges of investments in foreign operations	—		393		—		393
Pension and other postretirement benefits	—		—		(27)		(27)
Net change in accumulated other comprehensive income (loss)	52		(199)		(27)		(174)
Balances as of June 30, 2020	$	85	$	(2,388)	$	(608)	$	(2,911)

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

	Tax expense (benefit)
	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Net unrealized (losses) gains on debt securities	$	(3)	$	(2)	$	(6)	$	16
Net translation on investments in foreign operations	(3)		(6)		5		24
Net hedges of investments in foreign operations	(35)		(106)		(35)		124
Pension and other postretirement benefits	2		(1)		13		11
Total tax impact	$	(39)	$	(115)	$	(23)	$	175

Reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, were not significant for any of the three and six months ended June 30, 2021 and 2020.

66

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

12. Other Fees and Commissions and Other Expenses

The following is a detail of Other fees and commissions for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Fees charged to Card Members:
Delinquency fees	$	146	$	196	$	294	$	456
Foreign currency conversion fee revenue	109		57		205		250
Other customer fees:
Loyalty coalition-related fees	121		90		245		198
Travel commissions and fees	57		5		90		65
Service fees and other (a)	127		101		246		200
Total Other fees and commissions	$	560	$	449	$	1,080	$	1,169

(a)Other includes Membership Rewards program fees that are not related to contracts with customers.

Revenue expected to be recognized in future periods related to contracts that have an original expected duration of one year or less and contracts with variable consideration (e.g. discount revenue) are not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is not material.

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

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Data processing and equipment (a)	$	577	$	564	$	1,159	$	1,113
Professional services	458		406		861		845
Net unrealized gains on Amex Ventures equity investments (b)	(248)		(7)		(625)		(22)
Other (c)	220		267		482		583
Total Other expenses	$	1,007	$	1,230	$	1,877	$	2,519

(a)Effective for the first quarter of 2021, we changed the expense category name from Occupancy and equipment to Data processing and equipment to better reflect the nature and components of the expense.

(b)Represents net unrealized gains on equity investments without a readily determinable fair value.

(c)Other expense primarily includes general operating expenses, communication expenses, non-income taxes, Card Member and merchant-related fraud losses, foreign currency-related gains and losses and litigation expenses.

67

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

13. Income Taxes

The effective tax rate was 22.4 percent and 58.7 percent for the three months ended June 30, 2021 and 2020, respectively, and 23.9 percent and 41.9 percent for the six months ended June 30, 2021 and 2020, respectively. The decrease in both periods primarily reflected the impact of discrete tax charges and lower pretax income in the prior year.

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

We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next twelve months by as much as $133 million, principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $133 million of unrecognized tax benefits, approximately $105 million relates to amounts that, if recognized, would impact the effective tax rate in a future period.

68

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

14. Earnings Per Common Share (EPS)

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

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions, except per share amounts)	2021		2020		2021		2020
Numerator:
Basic and diluted:
Net income	$	2,280	$	257	$	4,515	$	624
Preferred dividends	(15)		(17)		(29)		(49)
Net income available to common shareholders	$	2,265	$	240	$	4,486	$	575
Earnings allocated to participating share awards (a)	(16)		(2)		(31)		(4)
Net income attributable to common shareholders	$	2,249	$	238	$	4,455	$	571
Denominator: (a)
Basic: Weighted-average common stock	801		804		802		806
Add: Weighted-average stock options (b)	1		1		1		1
Diluted	802		805		803		807
Basic EPS	$	2.81	$	0.29	$	5.55	$	0.71
Diluted EPS	$	2.80	$	0.29	$	5.54	$	0.71

(a)Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.

(b)The dilutive effect of unexercised stock options excludes from the computation of EPS 0.01 million and 1.51 million of options for the three months ended June 30, 2021 and 2020, respectively, and 0.21 million and 0.59 million of options for the six months ended June 30, 2021 and 2020, respectively, because inclusion of the options would have been anti-dilutive.

69

AMERICAN EXPRESS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

15. Reportable Operating Segments

As a result of organizational changes announced during the second quarter of 2021, our loyalty coalition businesses results, which were previously reported within the Global Merchant and Network Services (GMNS) segment, are now reported within the GCSG segment. Prior period segment results have been revised to conform with current period presentation.

The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three and six months ended June 30:

Three Months Ended June 30, 2021 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	4,464	$	2,815	$	1,204	$	(58)	$	8,425
Revenue from contracts with customers (b)	3,223		2,411		1,135		(7)		6,762
Interest income	1,749		345		4		42		2,140
Interest expense	174		111		(20)		57		322
Total revenues net of interest expense	6,039		3,049		1,228		(73)		10,243
Pretax segment income (loss)	$	1,882	$	839	$	527	$	(308)	$	2,940
Total assets (billions)	$	90	$	46	$	14	$	37	$	187

Six Months Ended June 30, 2021 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	8,283	$	5,247	$	2,265	$	(136)	$	15,659
Revenue from contracts with customers (b)	5,837		4,463		2,129		(13)		12,416
Interest income	3,557		681		8		86		4,332
Interest expense	362		227		(37)		132		684
Total revenues net of interest expense	11,478		5,701		2,310		(182)		19,307
Pretax segment income (loss)	$	4,037	$	1,504	$	912	$	(520)	$	5,933
Total assets (billions)	$	90	$	46	$	14	$	37	$	187

Three Months Ended June 30, 2020 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	3,024	$	2,014	$	827	$	(74)	$	5,791
Revenue from contracts with customers (b)	1,927		1,652		784		(6)		4,357
Interest income	1,971		402		4		49		2,426
Interest expense	272		154		(6)		122		542
Total revenues net of interest expense	4,723		2,262		837		(147)		7,675
Pretax segment income (loss)	$	843	$	(22)	$	188	$	(387)	$	622
Total assets (billions)	$	81	$	38	$	11	$	59	$	189

Six Months Ended June 30, 2020 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	7,030	$	4,802	$	2,060	$	(121)	$	13,771
Revenue from contracts with customers (b)	4,729		4,024		1,916		(16)		10,653
Interest income	4,382		901		10		179		5,472
Interest expense	600		354		(42)		346		1,258
Total revenues net of interest expense	10,812		5,349		2,112		(288)		17,985
Pretax segment income (loss)	$	1,102	$	(3)	$	713	$	(738)	$	1,074
Total assets (billions)	$	81	$	38	$	11	$	59	$	189

(a)Corporate & Other includes adjustments and eliminations for intersegment activity.

(b)Includes discount revenue, certain other fees and commissions and other revenues from customers.

70

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Our market risk exposures include (i) interest rate risk due to changes in the relationship between the interest rates on our assets (such as loans, receivables and investment securities) and the interest rates on our liabilities (such as debt and deposits); and (ii) foreign exchange risk related to transactions, funding, investments and earnings in currencies other than the U.S. dollar. There were no material changes in these market risks since December 31, 2020.

ITEM 4. CONTROLS AND PROCEDURES

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective and designed to ensure that the information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

71

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For information that updates the disclosures set forth under Part I, Item 3. “Legal Proceedings” in our 2020 Form 10-K, refer to Note 7 to the “Consolidated Financial Statements” in this Form 10-Q.

ITEM 1A. RISK FACTORS

For a discussion of our risk factors, see Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020 (the 2020 Form 10-K). The risks and uncertainties that we face are not limited to those set forth in the 2020 Form 10-K. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business and the trading price of our securities, particularly in light of the fast-changing nature of the COVID-19 pandemic, containment and stimulus measures, continued outbreaks, and the related impacts to economic and operating conditions.

72

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c)   ISSUER PURCHASES OF SECURITIES

The table below sets forth the information with respect to purchases of our common stock made by or on behalf of us during the three months ended June 30, 2021.

	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c)	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
April 1-30, 2021
Repurchase program(a)	—	—	—	98,839,536
Employee transactions(b)	—	—	N/A	N/A
May 1-31, 2021
Repurchase program(a)	3,219,599	$155.57	3,219,599	95,619,937
Employee transactions(b)	53,021	$154.54	N/A	N/A
June 1-30, 2021
Repurchase program(a)	2,471,835	$164,71	2,471,835	93,148,102
Employee transactions(b)	3,160	$154.99	N/A	N/A
Total
Repurchase program(a)	5,691,434	$159.54	5,691,434	93,148,102
Employee transactions(b)	56,181	$154.56	N/A	N/A

(a)On September 23, 2019, the Board of Directors authorized the repurchase of up to 120 million common shares from time to time, subject to market conditions and in accordance with our capital plans. This authorization replaced the prior repurchase authorization and does not have an expiration date. See “MD&A – Consolidated Capital Resources and Liquidity” for additional information regarding share repurchases.

(b)Includes: (i) shares surrendered by holders of employee stock options who exercised options (granted under our incentive compensation plans) in satisfaction of the exercise price and/or tax withholding obligation of such holders and (ii) restricted shares withheld (under the terms of grants under our incentive compensation plans) to offset tax withholding obligations that occur upon vesting and release of restricted shares. Our incentive compensation plans provide that the value of the shares delivered or attested to, or withheld, be based on the price of our common stock on the date the relevant transaction occurs.

(c)Share purchases under publicly announced programs are made pursuant to open market purchases, 10b5-1 plans, privately negotiated transactions (including employee benefit plans) or other purchases, including block trades, accelerated share repurchase programs or any combination of such methods as market conditions warrant and at prices we deem appropriate.

73

ITEM 6. EXHIBITS

The following exhibits are filed as part of this Quarterly Report:

Exhibit	Description
31.1	Certification of Stephen J. Squeri pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2	Certification of Jeffrey C. Campbell pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32.1	Certification of Stephen J. Squeri pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Jeffrey C. Campbell pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

74

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AMERICAN EXPRESS COMPANY
	(Registrant)
Date: July 23, 2021	By	/s/ Jeffrey C. Campbell
		Jeffrey C. Campbell Chief Financial Officer
Date: July 23, 2021	By	/s/ Jessica Lieberman Quinn
		Jessica Lieberman Quinn Executive Vice President and Corporate Controller (Principal Accounting Officer)

75

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Stephen J. Squeri, certify that:

1.I have reviewed this quarterly report on Form 10-Q of American Express Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 23, 2021
	/s/ Stephen J. Squeri
	Stephen J. Squeri Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Jeffrey C. Campbell, certify that:

1.I have reviewed this quarterly report on Form 10-Q of American Express Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 23, 2021
	/s/ Jeffrey C.  Campbell
	Jeffrey C. Campbell Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of American Express Company (the “Company”) for the quarterly period ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Stephen J. Squeri, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Stephen J. Squeri

Name: Stephen J. Squeri
Title: Chief Executive Officer

Date: July 23, 2021

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of American Express Company (the “Company”) for the quarterly period ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jeffrey C. Campbell, as Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jeffrey C. Campbell

Name: Jeffrey C. Campbell
Title: Chief Financial Officer

Date: July 23, 2021

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.2 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 19, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	1-7657
Entity Registrant Name	AMERICAN EXPRESS COMPANY
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-4922250
Entity Address, Address Line One	200 Vesey Street
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10285
City Area Code	212
Local Phone Number	640-2000
Title of 12(b) Security	Common shares (par value $0.20 per share)
Trading Symbol	AXP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		794,433,076
Entity Central Index Key	0000004962
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2021		Jun. 30, 2020		Jun. 30, 2021		Jun. 30, 2020
Non-interest revenues
Non-interest revenues	$ 8,425		$ 5,791		$ 15,659		$ 13,771
Interest income
Interest on loans	2,094		2,368		4,238		5,277
Interest and dividends on investment securities	24		27		48		65
Deposits with banks and other	22		31		46		130
Total interest income	2,140		2,426		4,332		5,472
Interest expense
Deposits	113		260		247		586
Long-term debt and other	209		282		437		672
Total interest expense	322		542		684		1,258
Net interest income	1,818		1,884		3,648		4,214
Total revenues net of interest expense	10,243		7,675		19,307		17,985
Provisions for credit losses
Provisions	(606)		1,555		(1,281)		4,176
Total revenues net of interest expense after provisions for credit losses	10,849		6,120		20,588		13,809
Expenses
Marketing and business development	2,219		1,362		3,985		3,067
Card Member rewards	2,712		1,349		4,955		3,741
Card Member services	432		208		749		664
Salaries and employee benefits	1,539		1,349		3,089		2,744
Other, net	1,007		1,230		1,877		2,519
Total expenses	7,909		5,498		14,655		12,735
Pretax income	2,940		622		5,933		1,074
Income tax provision	660		365		1,418		450
Net income	$ 2,280		$ 257		$ 4,515		$ 624
Earnings per Common Share
Basic (in dollars per share)	$ 2.81	[1]	$ 0.29	[1]	$ 5.55	[2]	$ 0.71	[2]
Diluted (in dollars per share)	$ 2.80	[1]	$ 0.29	[1]	$ 5.54	[2]	$ 0.71	[2]
Average common shares outstanding for earnings per common share:
Basic (in shares)	801		804		802		806
Diluted (in shares)	802		805		803		807
Card Member Receivables
Provisions for credit losses
Provisions	$ (125)		$ 355		$ (135)		$ 952
Card Member Loans
Provisions for credit losses
Provisions	(396)		969		(969)		2,845
Other Loans
Provisions for credit losses
Provisions	(85)		231		(177)		379
Discount revenue
Non-interest revenues
Non-interest revenues	6,327		4,015		11,569		9,853
Net card fees
Non-interest revenues
Non-interest revenues	1,286		1,141		2,539		2,251
Other fees and commissions
Non-interest revenues
Non-interest revenues	560		449		1,080		1,169
Other
Non-interest revenues
Non-interest revenues	$ 252		$ 186		$ 471		$ 498

[1] Represents net income less (i) earnings allocated to participating share awards of $16 million and $2 million for the three months ended June 30, 2021 and 2020, respectively, and (ii) dividends on preferred shares of $15 million and $17 million for the three months ended June 30, 2021 and 2020, respectively.

[2] Represents net income less (i) earnings allocated to participating share awards of $31 million and $4 million for the six months ended June 30, 2021 and 2020, respectively, and (ii) dividends on preferred shares of $29 million and $49 million for the six months ended June 30, 2021 and 2020, respectively.

XML

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Earnings allocated to participating share awards	$ 16	$ 2	$ 31	$ 4
Dividends on preferred shares	$ 15	$ 17	$ 29	$ 49

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 2,280	$ 257	$ 4,515	$ 624
Other comprehensive income (loss):
Net unrealized debt securities (losses) gains, net of tax	(11)	(5)	(23)	52
Foreign currency translation adjustments, net of tax	19	123	2	(199)
Net unrealized pension and other postretirement benefits, net of tax	9	(33)	35	(27)
Other comprehensive income (loss)	17	85	14	(174)
Comprehensive income	$ 2,297	$ 342	$ 4,529	$ 450

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Cash and cash equivalents
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2021, $14; 2020, nil)	$ 2,671	$ 2,984
Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2021, $46; 2020, $92)	26,702	29,824
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2021, $1,379; 2020, $47)	1,423	157
Total cash and cash equivalents	30,796	32,965
Investment securities	12,443	21,631
Premises and equipment, less accumulated depreciation and amortization: 2021, $8,084; 2020, $7,540	4,891	5,015
Other assets, less reserves for credit losses: 2021, $39; 2020, $85	17,402	17,679
Total assets	186,973	191,367
Liabilities
Customer deposits	84,905	86,875
Accounts payable	9,708	9,444
Short-term borrowings	1,864	1,878
Long-term debt (includes debt issued by consolidated variable interest entities: 2021, $11,866; 2020, $12,760)	37,363	42,952
Other liabilities	27,594	27,234
Total liabilities	161,434	168,383
Contingencies (Note 7)
Shareholders’ Equity
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of June 30, 2021 and December 31, 2020	0	0
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 798 million shares as of June 30, 2021 and 805 million shares as of December 31, 2020	160	161
Additional paid-in capital	11,858	11,881
Retained earnings	16,402	13,837
Accumulated other comprehensive income (loss)
Net unrealized debt securities gains (losses), net of tax	42	65
Foreign currency translation adjustments, net of tax	(2,227)	(2,229)
Net unrealized pension and other postretirement benefits, net of tax	(696)	(731)
Total accumulated other comprehensive income (loss)	(2,881)	(2,895)
Total shareholders’ equity	25,539	22,984
Total liabilities and shareholders’ equity	186,973	191,367
Restricted cash and cash equivalents	1,841	606
Variable Interest Entity, Primary Beneficiary
Liabilities
Long-term debt (includes debt issued by consolidated variable interest entities: 2021, $11,866; 2020, $12,760)	11,866	12,760
Accumulated other comprehensive income (loss)
Restricted cash and cash equivalents	1,379	47
Card Member Receivables
Cash and cash equivalents
Financing receivables, net	47,512	43,434
Card Member Loans
Cash and cash equivalents
Financing receivables, net	71,775	68,029
Other Loans
Cash and cash equivalents
Financing receivables, net	$ 2,154	$ 2,614

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Cash and cash equivalents
Securities purchased under resale agreements	$ 46	$ 92
Restricted cash and cash equivalents	1,841	606
Accumulated depreciation and amortization	8,084	7,540
Other assets, reserves for credit losses	39	85
Liabilities
Long-term debt	$ 37,363	$ 42,952
Shareholders’ Equity
Preferred shares, par value (in dollars per share)	$ 1.667	$ 1.667
Preferred shares, authorized	20,000,000	20,000,000
Preferred shares, issued	1,600	1,600
Preferred shares, outstanding	1,600	1,600
Common shares, par value (in dollars per share)	$ 0.20	$ 0.20
Common shares, authorized	3,600,000,000	3,600,000,000
Common shares, issued	798,000,000	805,000,000
Common shares, outstanding	798,000,000	805,000,000
Accumulated other comprehensive income (loss)
Net unrealized debt securities, tax	$ 14	$ 20
Foreign currency translation adjustments, tax	(411)	(381)
Net unrealized pension and other postretirement benefits, tax	(223)	(236)
Card Member Receivables
Cash and cash equivalents
Financing receivables, gross	47,585	43,701
Allowance for credit losses	73	267
Card Member Loans
Cash and cash equivalents
Financing receivables, gross	75,610	73,373
Allowance for credit losses	3,835	5,344
Other Loans
Cash and cash equivalents
Allowance for credit losses	72	238
Variable Interest Entity, Primary Beneficiary
Cash and cash equivalents
Restricted cash	14	0
Restricted cash and cash equivalents	1,379	47
Liabilities
Long-term debt	11,866	12,760
Variable Interest Entity, Primary Beneficiary | Card Member Receivables
Cash and cash equivalents
Financing receivables, gross	4,787	4,296
Variable Interest Entity, Primary Beneficiary | Card Member Loans
Cash and cash equivalents
Financing receivables, gross	$ 25,149	$ 25,908

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities
Net income	$ 4,515	$ 624
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provisions for credit losses	(1,281)	4,176
Depreciation and amortization	834	711
Deferred taxes and other	(294)	335
Stock-based compensation	183	109
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other assets	282	(792)
Accounts payable & other liabilities	1,226	(5,252)
Net cash provided by (used in) operating activities	5,465	(89)
Cash Flows from Investing Activities
Sale of investment securities	37	36
Maturities and redemptions of investment securities	9,684	4,573
Purchase of investments	(824)	(16,132)
Net (increase) decrease in Card Member loans and receivables, and other loans	(6,280)	34,356
Purchase of premises and equipment, net of sales: 2021, $40; 2020, nil	(609)	(689)
Other investing activities	1	2
Net cash provided by investing activities	2,009	22,146
Cash Flows from Financing Activities
Net (decrease) increase in customer deposits	(1,966)	11,519
Net increase (decrease) in short-term borrowings	17	(4,859)
Proceeds from long-term debt	18	0
Payments of long-term debt	(5,409)	(9,699)
Issuance of American Express common shares	45	33
Repurchase of American Express common shares and other	(1,397)	(1,025)
Dividends paid	(724)	(749)
Net cash used in financing activities	(9,416)	(4,780)
Effect of foreign currency exchange rates on cash and cash equivalents	(227)	380
Net (decrease) increase in cash and cash equivalents	(2,169)	17,657
Cash and cash equivalents at beginning of period	32,965	24,446
Cash and cash equivalents at end of period	$ 30,796	$ 42,103

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Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Statement of Cash Flows [Abstract]
Sales of premises and equipment	$ 40	$ 0
Cash and cash equivalents reconciliation
Total cash and cash equivalents	30,796	42,103	$ 32,965	$ 24,446
Restricted balances included in Cash and cash equivalents	1,841	606	606	514
Total cash and cash equivalents excluding restricted balances	$ 28,955	$ 41,497	$ 32,359	$ 23,932

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	[1]	Preferred Shares	Common Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Series B Preferred Stock	Series B Preferred Stock Retained Earnings	Series C Preferred Stock	Series C Preferred Stock Retained Earnings
Beginning Balance at Dec. 31, 2019	$ 23,071	$ (882)		$ 0	$ 163	$ 11,774	$ (2,737)	$ 13,871
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	624							624
Other comprehensive income (loss)	(174)						(174)	0
Repurchase of common shares	(875)				(2)	(105)		(768)
Other changes, primarily employee plans	43					91		(48)
Cash dividends declared preferred									$ (20)	$ (20)	$ (29)	$ (29)
Cash dividends declared common	(696)							(696)
Ending Balance at Jun. 30, 2020	$ 21,062			0	161	11,760	(2,911)	12,052
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Beginning Balance at Mar. 31, 2020	$ 21,006			0	161	11,680	(2,996)	12,161
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	257							257
Other comprehensive income (loss)	85						85	0
Other changes, primarily employee plans	79					80		(1)
Cash dividends declared preferred									(9)	(9)	(8)	(8)
Cash dividends declared common	(348)							(348)
Ending Balance at Jun. 30, 2020	21,062			0	161	11,760	(2,911)	12,052
Beginning Balance at Dec. 31, 2020	22,984			0	161	11,881	(2,895)	13,837
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,515							4,515
Other comprehensive income (loss)	14						14	0
Repurchase of common shares	(1,346)				(2)	(134)		(1,210)
Other changes, primarily employee plans	94				1	111		(18)
Cash dividends declared preferred									(14)	(14)	(15)	(15)
Cash dividends declared common	(693)							(693)
Ending Balance at Jun. 30, 2021	25,539			0	160	11,858	(2,881)	16,402
Beginning Balance at Mar. 31, 2021	24,449			0	161	11,878	(2,898)	15,308
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,280							2,280
Other comprehensive income (loss)	17						17	0
Repurchase of common shares	(908)				(1)	(85)		(822)
Other changes, primarily employee plans	62					65		(3)
Cash dividends declared preferred									$ (7)	$ (7)	$ (8)	$ (8)
Cash dividends declared common	(346)							(346)
Ending Balance at Jun. 30, 2021	$ 25,539			$ 0	$ 160	$ 11,858	$ (2,881)	$ 16,402

[1] Represents $1,170 million, net of tax of $288 million, related to the impact as of January 1, 2020 of adopting the current expected credit loss methodology for the recognition of credit losses on certain financial instruments.

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Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2019
Cash dividends declared
Common stock, dividend per share (in dollars per share)	$ 0.43	$ 0.43	$ 0.86	$ 0.86
Cumulative Effect, Period of Adoption, Adjustment
Cash dividends declared
Impact of new accounting guidance, net of tax					$ 1,170
Impact of new accounting guidance, tax					$ 288
Series B Preferred Stock
Cash dividends declared
Preferred stock, dividend per share (in dollars per share)	12.08	12.37	24.51	26.46
Series C Preferred Stock
Cash dividends declared
Preferred stock, dividend per share (in dollars per share)	$ 10.43	$ 10.29	$ 20.73	$ 34.79

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Basis of Presentation

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The Company

We are a globally integrated payments company that provides our customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are credit and charge card products, along with travel and lifestyle related services, offered to consumers and businesses around the world. Business travel-related services are offered through our non-consolidated joint venture, American Express Global Business Travel. Our various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party vendors and business partners, direct mail, telephone, in-house sales teams, and direct response advertising.

The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. If not materially different, certain note disclosures included therein have been omitted from these Consolidated Financial Statements.

The interim Consolidated Financial Statements included in this report have not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim Consolidated Financial Statements, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year.

The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ.

Effective April 1, 2021, we prospectively changed the recognition of certain costs paid to a third party previously recognized over the twelve month card membership period in Net card fees in the Consolidated Statements of Income; such costs are now recorded as incurred in Marketing and business development expense. This change is not material to the Consolidated Financial Statements.

Recently Adopted Accounting Standards

Effective January 1, 2021, we elected to change our accounting for investments in qualified affordable housing projects from the equity method of accounting to the proportional amortization method (PAM) in accordance with the accounting guidance. PAM results in the amortization of the initial cost of the investment in proportion to the related tax credits, and recognition of the net investment performance in the statement of income as a component of Income tax provision, while the equity method reflected losses related to the investments as a component of Other, net expenses. As a result, we believe PAM is preferable as it better reflects the economics of our tax credit investments. Since the impact of this change is immaterial to our prior and current period financial statements, we implemented PAM on a prospective basis which resulted in a one-time charge to Income tax provision of $55 million in the first quarter of 2021, reflecting the cumulative impact of the difference in the timing of expense recognition between the equity method and PAM.

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Loans and Card Member Receivables

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Loans and Card Member Receivables

Loans and Card Member Receivables

Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables. We also extend credit to consumer and commercial customers through non-card financing products, resulting in Other loans.

Card Member loans by segment and Other loans as of June 30, 2021 and December 31, 2020 consisted of:

(Millions)	2021		2020
Global Consumer Services Group (a)	$	60,561	$	60,084
Global Commercial Services	15,049		13,289
Card Member loans	75,610		73,373
Less: Reserves for credit losses	3,835		5,344
Card Member loans, net	$	71,775	$	68,029
Other loans, net (b)	$	2,154	$	2,614

(a)Includes approximately $25.1 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of June 30, 2021 and December 31, 2020, respectively.

(b)Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.2 billion and $0.6 billion of gross PPP loans outstanding as of June 30, 2021 and December 31, 2020, respectively. Other loans are presented net of reserves for credit losses of $72 million and $238 million as of June 30, 2021 and December 31, 2020, respectively.

Card Member receivables by segment as of June 30, 2021 and December 31, 2020 consisted of:

(Millions)	2021		2020
Global Consumer Services Group	$	19,932	$	18,685
Global Commercial Services (a)	27,653		25,016
Card Member receivables	47,585		43,701
Less: Reserves for credit losses	73		267
Card Member receivables, net	$	47,512	$	43,434

(a)Includes $4.8 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of June 30, 2021 and December 31, 2020, respectively.

Card Member Loans and Receivables Aging

Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of June 30, 2021 and December 31, 2020:

2021 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	60,138	$	119	$	86	$	218	$	60,561
Global Commercial Services
Global Small Business Services	14,927		22		14		31		14,994
Global Corporate Payments (a)	(b)		(b)		(b)		—		55
Card Member Receivables:
Global Consumer Services Group	19,844		34		16		38		19,932
Global Commercial Services
Global Small Business Services	$	15,853	$	32	$	14	$	30	$	15,929
Global Corporate Payments (a)	(b)		(b)		(b)		$	32	$	11,724

2020 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	59,442	$	177	$	148	$	317	$	60,084
Global Commercial Services
Global Small Business Services	13,132		27		20		47		13,226
Global Corporate Payments (a)	(b)		(b)		(b)		—		63
Card Member Receivables:
Global Consumer Services Group	18,570		33		26		56		18,685
Global Commercial Services
Global Small Business Services	$	14,023	$	37	$	21	$	38	$	14,119
Global Corporate Payments (a)	(b)		(b)		(b)		$	60	$	10,897

(a)Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. Delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).

(b)Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

Credit Quality Indicators for Card Member Loans and Receivables

The following tables present the key credit quality indicators as of or for the six months ended June 30:

	2021						2020
	Net Write-Off Rate						Net Write-Off Rate
	Principal Only(a)		Principal, Interest & Fees(a)		30+ Days Past Due as a % of Total		Principal Only(a)		Principal, Interest & Fees(a)		30+ Days Past Due as a % of Total
Card Member Loans:
Global Consumer Services Group	1.3	%	1.7	%	0.7	%	2.7	%	3.3	%	1.6	%
Global Small Business Services	0.8	%	1.0	%	0.4	%	2.1	%	2.4	%	1.6	%
Card Member Receivables:
Global Consumer Services Group	0.4	%	0.5	%	0.4	%	2.2	%	2.4	%	1.3	%
Global Small Business Services	0.3	%	0.4	%	0.5	%	2.4	%	2.6	%	2.1	%
Global Corporate Payments(d)	(b)		(0.3)	%	(c)		(b)		2.2	%	(c)

(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(b)Net write-off rate based on principal losses only is not available due to system constraints.

(c)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total was 0.3% and 2.5% as of June 30, 2021 and 2020, respectively.

(d)The net write-off rate for the current year includes a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year.

Refer to Note 3 for additional indicators, including external environmental qualitative factors, management considers in its evaluation process for reserves for credit losses.

Impaired Loans and Receivables

Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) non-accrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs).

In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.”

The following tables provide additional information with respect to our impaired loans and receivables as of June 30, 2021 and December 31, 2020:

	As of June 30, 2021
					Accounts Classified as a TDR (c)
2021 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group	$	136	$	88	$	1,057	$	729	$	2,010	$	655
Global Commercial Services	15		16		256		263		550		229
Card Member Receivables:
Global Consumer Services Group	—		—		154		86		240		52
Global Commercial Services	—		—		282		220		502		86
Other Loans(f)	1		1		140		5		147		13
Total	$	152	$	105	$	1,889	$	1,303	$	3,449	$	1,035

	As of December 31, 2020
					Accounts Classified as a TDR (c)
2020 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group	$	203	$	146	$	1,586	$	248	$	2,183	$	782
Global Commercial Services	21		29		478		67		595		285
Card Member Receivables:
Global Consumer Services Group	—		—		240		34		274		60
Global Commercial Services	—		—		534		75		609		139
Other Loans (f)	2		1		248		6		257		80
Total	$	226	$	176	$	3,086	$	430	$	3,918	$	1,346

(a)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR.

(b)Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs.

(c)Accounts classified as a TDR include $29 million and $32 million that are over 90 days past due and accruing interest as of June 30, 2021 and December 31, 2020, respectively, and $11 million that are non-accruals as of both June 30, 2021 and December 31, 2020.

(d)In Program TDRs include accounts that are currently enrolled in a modification program.

(e)Out of Program TDRs include $1,140 million and $316 million of accounts that have successfully completed a modification program and $163 million and $114 million of accounts that were not in compliance with the terms of the modification programs as of June 30, 2021 and December 31, 2020, respectively.

(f)Other loans primarily represent consumer and commercial non-card financing products.

Loans and Receivables Modified as TDRs

The following tables provide additional information with respect to loans and receivables that entered a financial relief program and were modified as TDRs during the three and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30, 2021					Six Months Ended June 30, 2021
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extensions (# of Months)	Number of Accounts (thousands)	Outstanding Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	23	$	172	13	(b)	61	$	459	13	(b)
Card Member Receivables	4	83		(c)	18	11	200		(c)	18
Other Loans(d)	1	2		3	18	2	$	10	3	15
Total	28	$	257			74	$	669

	Three Months Ended June 30, 2020					Six Months Ended June 30, 2020
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extensions (# of Months)	Number of Accounts (thousands)	Outstanding Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	116	$	1,103	14	(b)	140	$	1,298	14	(b)
Card Member Receivables	22	744		(c)	18	25	818		(c)	19
Other Loans(d)	5	$	154	4	15	5	$	154	4	15
Total	143	$	2,001			170	$	2,270

(a)Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance.

(b)For Card Member loans, there have been no payment term extensions.

(c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.

(d)Other loans primarily represent consumer and commercial non-card financing products.

The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.

	Three Months Ended June 30, 2021			Six Months Ended June 30, 2021
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)		Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	9	$	69	16	$	116
Card Member Receivables	3	19		4	38
Other Loans (b)	1	3		2	8
Total	13	$	91	22	$	162

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)		Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	3	$	24	7	$	52
Card Member Receivables	1	9		2	18
Other Loans (b)	1	1		1	$	1
Total	5	$	34	10	$	71

(a)The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables.

(b)Other loans primarily represent consumer and commercial non-card financing products.

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Reserves for Credit Losses

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Reserve for Credit Losses

Reserves for Credit Losses

Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The CECL methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses.

We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD), and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates.

•PD models are used to estimate the likelihood an account will be written-off.

•EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors.

•Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions.

We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses.

Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios and applies judgment to weight them in order to reflect the uncertainty surrounding these scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models.

We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions.

Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually using a discounted cash flow model.

Loans and receivable balances are written off when we consider amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due for pay in full or revolving loans and 120 days past due for term loans. Loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification.

The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses:

	U.S. Unemployment Rate		U.S. GDP Growth (Contraction) (a)
	June 30, 2021	December 31, 2020	June 30, 2021	December 31, 2020
Second quarter of 2021	6%	8% - 10%	11%	4% - (4)%
Fourth quarter of 2021	4% - 8%	7% - 11%	7% - (3)%	6% - (2)%
Fourth quarter of 2022	4% - 9%	6% - 12%	2%	4% - 3%
Fourth quarter of 2023	3% - 7%	4% -10%	3% - 2%	5% - 3%

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

Changes in Card Member Loans Reserve for Credit Losses

Card Member loans reserve for credit losses decreased for the three and six months ended June 30, 2021, driven by lower delinquencies, improved portfolio quality and improving macroeconomic outlooks, all of which were partially offset by an increase in the outstanding balance of loans.

Card Member loans reserve for credit losses increased for the three and six months ended June 30, 2020, driven by the deterioration of the global macroeconomic outlook, as a result of the COVID-19 pandemic, partially offset by a decline in the outstanding balance of loans.

The following table presents changes in the Card Member loans reserve for credit losses for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Beginning Balance	$	4,467	$	5,236	$	5,344	$	4,027
Provisions (a)	(396)		969		(969)		2,845
Net write-offs (b)
Principal	(185)		(499)		(426)		(1,017)
Interest and fees	(58)		(103)		(121)		(210)
Other (c)	7		25		7		(17)
Ending Balance	$	3,835	$	5,628	$	3,835	$	5,628

(a)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(b)Principal write-offs are presented less recoveries of $172 million and $134 million for the three months ended June 30, 2021 and 2020, respectively, and $340 million and $279 million for the six months ended June 30, 2021 and 2020, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(43) million and $(32) million for the three months June 30, 2021 and 2020, respectively, and $(88) million and $(63) million for the six months ended June 30, 2021 and 2020, respectively.

(c)Primarily includes foreign currency translation adjustments of $7 million and $25 million for the three months ended June 30, 2021 and 2020, respectively, and $6 million and $(17) million for the six months ended June 30, 2021 and 2020, respectively.

Changes in Card Member Receivables Reserve for Credit Losses

Card Member receivables reserve for credit losses decreased for the three and six months ended June 30, 2021, driven by lower delinquencies, improved portfolio quality and improving macroeconomic outlooks, all of which were partially offset by an increase in the outstanding balance of receivables.

Card Member receivables reserve for credit losses increased for the three and six months ended June 30, 2020, driven by the deterioration of the global macroeconomic outlook, as a result of the COVID-19 pandemic, partially offset by a decline in the outstanding balance of receivables.

The following table presents changes in the Card Member receivables reserve for credit losses for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Beginning Balance	$	202	$	459	$	267	$	126
Provisions (a)	(125)		355		(135)		952
Net write-offs (b)	(4)		(299)		(57)		(557)
Other (c)	—		4		(2)		(2)
Ending Balance	$	73	$	519	$	73	$	519

(a)Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(b)Net write-offs are presented less recoveries of $127 million and $88 million for the three months ended June 30, 2021 and 2020, respectively, and $224 million and $180 million for the six months ended June 30, 2021 and 2020, respectively. Amounts include net (write-offs) recoveries from TDRs of $(16) million and $(9) million for the three months ended June 30, 2021 and 2020, respectively, and $(36) million and $(16) million for the six months ended June 30, 2021 and 2020, respectively.

(c)Primarily includes foreign currency translation adjustments of nil and $4 million for the three months ended June 30, 2021 and 2020, respectively, and $(1) million for both the six months ended June 30, 2021 and 2020.

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Investment Securities

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. Unrealized losses attributable to credit deterioration are recorded in the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. We had accrued interest on our available-for-sale debt securities totaling $21 million and $26 million as of June 30, 2021 and December 31, 2020, respectively, presented as Other assets on the Consolidated Balance Sheets.

Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense.

Realized gains and losses are recognized upon disposition of the securities using the specific identification method.

The following is a summary of investment securities as of June 30, 2021 and December 31, 2020:

	2021								2020
Description of Securities (Millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
State and municipal obligations	$	133	$	6	$	(1)	$	138	$	172	$	7	$	—	$	179
U.S. Government agency obligations	6		—		—		6		7		—		—		7
U.S. Government treasury obligations	11,397		49		—		11,446		20,655		76		—		20,731
Mortgage-backed securities (a)	22		2		—		24		28		2		—		30
Foreign government bonds and obligations	741		—		—		741		581		—		—		581
Other (b)	37		—		—		37		22		—		—		22
Equity securities (c)	52		1		(2)		51		56		27		(2)		81
Total	$	12,388	$	58	$	(3)	$	12,443	$	21,521	$	112	$	(2)	$	21,631

(a)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

(b)Represents investments in Corporate debt securities and debt securities issued by Community Development Financial Institutions.

(c)Equity securities comprise investments in common stock, exchange-traded funds and mutual funds.

The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020.

	2021
	Less than 12 months				12 months or more
Description of Securities (Millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
State and municipal obligations	$	26	$	(1)	$	—	$	—
Total	$	26	$	(1)	$	—	$	—

The following table summarizes the gross unrealized losses by ratio of fair value to amortized cost as of June 30, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020.

	Less than 12 months					12 months or more					Total
Ratio of Fair Value to Amortized Cost (Dollars in millions)	Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses
2021:
90%–100%	6	$	26	$	(1)	—	$	—	$	—	6	$	26	$	(1)
Less than 90%	—	—		—		—	—		—		—	—		—
Total as of June 30, 2021	6	$	26	$	(1)	—	$	—	$	—	6	$	26	$	(1)

Contractual maturities for investment securities with stated maturities as of June 30, 2021 were as follows:

(Millions)	Cost		Estimated Fair Value
Due within 1 year	$	11,001	$	11,014
Due after 1 year but within 5 years	1,201		1,235
Due after 5 years but within 10 years	35		42
Due after 10 years	99		101
Total	$	12,336	$	12,392

The expected payments on state and municipal obligations, U.S. government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.

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Asset Securitizations

6 Months Ended

Jun. 30, 2021

Asset Securitizations [Abstract]

Asset Securitizations

Asset Securitizations

We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors.

The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. As of June 30, 2021 and December 31, 2020, our ownership of variable interests was $13.5 billion and $13.4 billion, respectively, for the Lending Trust and $4.8 billion and $4.3 billion, respectively, for the Charge Trust. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts and therefore consolidate the Trusts.

Restricted cash and cash equivalents held by the Lending Trust and Charge Trust was $1.4 billion and nil, respectively, as of June 30, 2021 and $47 million and nil, respectively, as of December 31, 2020. These amounts relate to collections of Card Member loans and receivables to be used by the Trusts to fund future expenses and obligations, including interest on debt securities, credit losses and upcoming debt maturities.

Under the respective terms of the Lending Trust and the Charge Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve funds, or, in a worst-case scenario, early amortization of debt securities. During the six months ended June 30, 2021 and the year ended December 31, 2020, no such triggering events occurred.

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Customer Deposits

6 Months Ended

Jun. 30, 2021

Deposits [Abstract]

Customer Deposits

Customer Deposits

As of June 30, 2021 and December 31, 2020, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:

(Millions)	2021		2020
U.S.:
Interest-bearing	$	83,823	$	85,583
Non-interest-bearing (includes Card Member credit balances of: 2021, $442; 2020, $576)	466		599
Non-U.S.:
Interest-bearing	19		19
Non-interest-bearing (includes Card Member credit balances of: 2021, $593; 2020, $671)	597		674
Total customer deposits	$	84,905	$	86,875

Customer deposits by deposit type as of June 30, 2021 and December 31, 2020 were as follows:

(Millions)	2021		2020
U.S. retail deposits:
Savings accounts – Direct	$	65,472	$	63,512
Certificates of deposit:
Direct	1,963		2,440
Third-party (brokered)	3,757		5,561
Sweep accounts – Third-party (brokered)	12,631		14,070
Other deposits:
U.S. non-interest bearing deposits	24		23
Non-U.S. deposits	23		22
Card Member credit balances ― U.S. and non-U.S.	1,035		1,247
Total customer deposits	$	84,905	$	86,875

The scheduled maturities of certificates of deposit as of June 30, 2021 were as follows:

(Millions)	U.S.		Non-U.S.		Total
2021	$	1,432	$	4	$	1,436
2022	3,104		4		3,108
2023	682		—		682
2024	283		—		283
2025	210		—		210
After 5 years	9		—		9
Total	$	5,720	$	8	$	5,728

As of June 30, 2021 and December 31, 2020, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows:

(Millions)	2021		2020
U.S.	$	745	$	930
Non-U.S.	1		1
Total	$	746	$	931

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Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

In the ordinary course of business, we and our subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, regulatory proceedings, information gathering requests, subpoenas, inquiries and matters relating to compliance with laws and regulations (collectively, legal proceedings).

Based on our current knowledge, and taking into consideration our litigation-related liabilities, we do not believe we are a party to, nor are any of our properties the subject of, any legal proceeding that would have a material adverse effect on our consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described below.

A putative merchant class action in the Eastern District of New York, consolidated in 2011 and collectively captioned In re: American Express Anti-Steering Rules Antitrust Litigation (II), alleged that provisions in our merchant agreements prohibiting merchants from differentially surcharging our cards or steering a customer to use another network’s card or another type of general-purpose card (“anti-steering” and “non-discrimination” contractual provisions) violate U.S. antitrust laws. On January 15, 2020, our motion to compel arbitration of claims brought by merchants who accept American Express and to dismiss claims of merchants who do not was granted. Plaintiffs have appealed part of this decision.

On February 25, 2020, we were named as a defendant in a case filed in the Superior Court of California, Los Angeles County, captioned Laurelwood Cleaners LLC v. American Express Co., et al., in which the plaintiff seeks a public injunction prohibiting American Express from enforcing its anti-steering and non-discrimination provisions and from requiring merchants “to offer the service of Amex-card acceptance for free.” The case has been stayed pending the outcome of arbitration proceedings.

On January 29, 2019, we were named in a putative class action brought in the United States District Court for the Eastern District of New York, captioned Anthony Oliver, et al. v. American Express Company and American Express Travel Related Services Company Inc., in which the plaintiffs are holders of MasterCard, Visa and/or Discover credit cards (but not American Express cards) and allege they paid higher prices as a result of our anti-steering and non-discrimination provisions in violation of federal antitrust law and the antitrust and consumer laws of various states. Plaintiffs seek unspecified damages and other forms of relief. The court dismissed plaintiffs’ federal antitrust claim, numerous state antitrust and consumer protection claims and their unjust enrichment claim. The remaining claims in plaintiffs’ complaint arise under the antitrust laws of 11 states and the consumer protection laws of six states.

In July 2004, we were named as a defendant in another putative class action filed in the Southern District of New York and subsequently transferred to the Eastern District of New York, captioned The Marcus Corporation v. American Express Co., et al., in which the plaintiffs allege an unlawful antitrust tying arrangement between certain of our charge cards and credit cards in violation of various state and federal laws. The plaintiffs in this action seek injunctive relief and an unspecified amount of damages.

On March 8, 2016, plaintiffs B&R Supermarket, Inc. d/b/a Milam’s Market and Grove Liquors LLC, on behalf of themselves and others, filed a suit, captioned B&R Supermarket, Inc. d/b/a Milam’s Market, et al. v. Visa Inc., et al., for violations of the Sherman Antitrust Act, the Clayton Antitrust Act, California’s Cartwright Act and unjust enrichment in the United States District Court for the Northern District of California, against American Express Company, other credit and charge card networks, other issuing banks and EMVCo, LLC. Plaintiffs allege that the defendants, through EMVCo, conspired to shift liability for fraudulent, faulty and otherwise rejected consumer credit card transactions from themselves to merchants after the implementation of EMV chip payment terminals. Plaintiffs seek damages and injunctive relief. An amended complaint was filed on July 15, 2016. On September 30, 2016, the court denied our motion to dismiss as to claims brought by merchants who do not accept American Express cards, and on May 4, 2017, the California court transferred the case to the United States District Court for the Eastern District of New York. On August 28, 2020, the court granted plaintiffs' motion for class certification.

We are being challenged in a number of countries regarding our application of value-added taxes (VAT) to certain of our international transactions, which are in various stages of audit, or are being contested in legal actions. While we believe we have complied with all applicable tax laws, rules and regulations in the relevant jurisdictions, the tax authorities may determine that we owe additional VAT. In certain jurisdictions where we are contesting the assessments, we were required to pay the VAT assessments prior to contesting.

Our legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members to governmental proceedings. These legal proceedings involve various lines of business and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against us specify the damages sought, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficiently such that we are able to estimate an amount of loss or a range of possible loss.

We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable.

For those disclosed material legal proceedings where a loss is reasonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies, or where there is no such accrual, and for which we are able to estimate a range of possible loss, the current estimated range is zero to $210 million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business and results of operations.

In addition, we face exposure associated with Card Member purchases, including with respect to the following:

•Return Protection — refunds the price of qualifying purchases made with eligible cards, where the merchant will not accept the return, for up to 90 days from the date of purchase; and

•Merchant Protection — protects Card Members primarily against non-delivery of purchases, usually in the event of the bankruptcy or liquidation of a merchant. When this occurs, the Card Member may dispute the transaction for which we will generally credit the Card Member’s account. If we are unable to collect the amount from the merchant, we may bear the loss for the amount credited to the Card Member. The largest component of the exposure relates to Card Member transactions associated with travel-related merchants, primarily through business arrangements where we have remitted payment to such merchants for a Card Member travel purchase that has not yet been used or “flown.”

We have an accrual of $33 million related to these exposures as of June 30, 2021. To date, we have not experienced significant losses related to these exposures; however, our historical experience may not be representative in the current environment given the economic and financial disruptions caused by the COVID-19 pandemic and resulting containment measures. A reasonably possible loss related to these exposures in excess of the recorded accrual cannot be quantified as the Card Member purchases that may include or result in claims are not sufficiently estimable, although we believe our risk of loss has increased as a result of the COVID-19 pandemic.

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

We use derivative financial instruments to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates and foreign exchange rates, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of our market risk management. We do not transact in derivatives for trading purposes.

A majority of our derivative assets and liabilities as of June 30, 2021 and December 31, 2020 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets.

In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate the agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of June 30, 2021, these derivatives were not in a material net liability position. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of June 30, 2021 and December 31, 2020, no credit risk adjustment to the derivative portfolio was required.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of June 30, 2021 and December 31, 2020:

	Other Assets Fair Value				Other Liabilities Fair Value
(Millions)	2021		2020		2021		2020
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)	$	352	$	500	$	—	$	—
Net investment hedges - Foreign exchange contracts	76		24		129		474
Total derivatives designated as hedging instruments	428		524		129		474
Derivatives not designated as hedging instruments:
Foreign exchange contracts	153		105		65		228
Total derivatives, gross	581		629		194		702
Derivative asset and derivative liability netting (b)	(97)		(98)		(97)		(98)
Cash collateral netting (c)	(352)		(500)		—		(16)
Total derivatives, net	$	132	$	31	$	97	$	588

(a)For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.

(b)Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

(c)Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.

We posted $23 million and $34 million as of June 30, 2021 and December 31, 2020, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances.

Fair Value Hedges

We are exposed to interest rate risk associated with our fixed-rate debt obligations. At the time of issuance, certain fixed-rate long-term debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rate. We had $12.9 billion and $15.8 billion of fixed-rate debt obligations designated in fair value hedging relationships as of June 30, 2021 and December 31, 2020, respectively.

The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three and six months ended June 30:

	Gains (losses)
	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Fixed-rate long-term debt	$	55	$	4	$	198	$	(593)
Derivatives designated as hedging instruments	(54)		(10)		(199)		601
Total	$	1	$	(6)	$	(1)	$	8

The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $13.2 billion and $16.4 billion as of June 30, 2021 and December 31, 2020, respectively, including the cumulative amount of fair value hedging adjustments of $424 million and $622 million for the respective periods.

We recognized net decreases of $63 million and $81 million in Interest expense on Long-term debt for the three months ended June 30, 2021 and 2020, respectively, and net decreases of $136 million and $102 million for the six months ended June 30, 2021 and 2020, respectively, primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges.

Net Investment Hedges

We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We had notional amounts of approximately $10.8 billion and $10.5 billion of foreign currency derivatives designated as net investment hedges as of June 30, 2021 and December 31, 2020, respectively. The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, were losses of $108 million and $339 million for the three months ended June 30, 2021 and 2020, respectively, and a loss of $102 million and a gain of $393 million for the six months ended June 30, 2021 and 2020, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, were not significant for any of the three and six months ended June 30, 2021 and 2020.

Derivatives Not Designated as Hedges

The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. We had notional amounts of approximately $14.4 billion as of both June 30, 2021 and December 31, 2020. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in net losses of $9 million and $2 million for the three months ended June 30, 2021 and 2020, respectively, and a net loss of $14 million and a net gain of $18 million for the six months ended June 30, 2021 and 2020, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income.

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Fair Values

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Values

Fair Values

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of June 30, 2021 and December 31, 2020:

	2021								2020
(Millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Investment securities: (a)
Equity securities	$	51	$	50	$	1	$	—	$	81	$	80	$	1	$	—
Debt securities (b)	12,392		—		12,372		20		21,550		—		21,550		—
Derivatives, gross (a)	581		—		581		—		629		—		629		—
Total Assets	13,024		50		12,954		20		22,260		80		22,180		—
Liabilities:
Derivatives, gross (a)	194		—		194		—		702		—		702		—
Total Liabilities	$	194	$	—	$	194	$	—	$	702	$	—	$	702	$	—

(a)Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis.

(b)Level 3 fair value amount represents investments in debt securities issued by Community Development Financial Institutions.

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of June 30, 2021 and December 31, 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of June 30, 2021 and December 31, 2020, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.

	Carrying Value		Corresponding Fair Value Amount
2021 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	31	$	31	$	28	$	3	$	—
Other financial assets (b)	50		50		—		50		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	74		78		—		—		78
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101		101		—		101		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	6		6		—		6		—
Long-term debt (c)	$	37	$	39	$	—	$	39	$	—

	Carrying Value		Corresponding Fair Value Amount
2020 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	33	$	33	$	31	$	2	$	—
Other financial assets (b)	46		46		—		46		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	71		75		—		—		75
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101		101		—		101		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	8		8		—		8		—
Long-term debt (c)	$	43	$	45	$	—	$	45	$	—

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

(b)Balances include Card Member receivables (including fair values of Card Member receivables of $4.8 billion and $4.2 billion held by a consolidated VIE as of June 30, 2021 and December 31, 2020, respectively), other receivables and other miscellaneous assets.

(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $25.2 billion and $25.8 billion as of June 30, 2021 and December 31, 2020, respectively, and the fair values of Long-term debt were $12.0 billion and $13.0 billion as of June 30, 2021 and December 31, 2020, respectively.

(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.

Nonrecurring Fair Value Measurements

We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. During the six months ended June 30, 2021 and the year ended December 31, 2020, we did not have any material assets that were measured at fair value due to impairment.

We estimate the Level 3 fair value of equity investments without readily determinable fair values based on price changes as of the date of new similar equity financing transactions completed by the companies in our portfolio. The carrying value of equity investments without readily determinable fair values totaled $1.2 billion and $530 million as of June 30, 2021 and December 31, 2020, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded net unrealized gains of $248 million and $7 million for the three months ended June 30, 2021 and 2020, and $625 million and $22 million for the six months ended June 30, 2021 and 2020, respectively. Unrealized losses including any impairments were not significant for any of the three and six months ended June 30, 2021 and 2020. Beginning in January 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $977 million and $347 million as of June 30, 2021 and December 31, 2020, respectively.

In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both June 30, 2021 and December 31, 2020.

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Guarantees

6 Months Ended

Jun. 30, 2021

Guarantees [Abstract]

Guarantees

Guarantees

The maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by us in the ordinary course of business were $1 billion and $26 million, respectively, as of June 30, 2021, and $1 billion and $24 million, respectively, as of December 31, 2020, all of which were primarily related to our real estate and business dispositions.

To date, we have not experienced any significant losses related to guarantees or indemnifications. Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated.

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Changes in Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Changes In Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income (Loss)

AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three and six months ended June 30, 2021 and 2020 were as follows:

Three Months Ended June 30, 2021 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of March 31, 2021	$	53	$	(2,246)	$	(705)	$	(2,898)
Net unrealized losses	(11)		—		—		(11)
Net translation on investments in foreign operations	—		127		—		127
Net hedges of investments in foreign operations	—		(108)		—		(108)
Pension and other postretirement benefits	—		—		9		9
Net change in accumulated other comprehensive income (loss)	(11)		19		9		17
Balances as of June 30, 2021	$	42	$	(2,227)	$	(696)	$	(2,881)

Six Months Ended June 30, 2021 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive  Income (Loss)
Balances as of December 31, 2020	$	65	$	(2,229)	$	(731)	$	(2,895)
Net unrealized losses	(23)		—		—		(23)
Net translation on investments in foreign operations	—		104		—		104
Net hedges of investments in foreign operations	—		(102)		—		(102)
Pension and other postretirement benefits	—		—		35		35
Net change in accumulated other comprehensive income (loss)	(23)		2		35		14
Balances as of June 30, 2021	$	42	$	(2,227)	$	(696)	$	(2,881)

Three Months Ended June 30, 2020 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of March 31, 2020	$	90	$	(2,511)	$	(575)	$	(2,996)
Net unrealized losses	(5)		—		—		(5)
Decrease due to amounts reclassified into earnings	—		(3)		—		(3)
Net translation on investments in foreign operations	—		465		—		465
Net hedges of investments in foreign operations	—		(339)		—		(339)
Pension and other postretirement benefits	—		—		(33)		(33)
Net change in accumulated other comprehensive income (loss)	(5)		123		(33)		85
Balances as of June 30, 2020	$	85	$	(2,388)	$	(608)	$	(2,911)

Six Months Ended June 30, 2020 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of December 31, 2019	$	33	$	(2,189)	$	(581)	$	(2,737)
Net unrealized gains	52		—		—		52
Decrease due to amounts reclassified into earnings	—		(3)		—		(3)
Net translation on investments in foreign operations	—		(589)		—		(589)
Net hedges of investments in foreign operations	—		393		—		393
Pension and other postretirement benefits	—		—		(27)		(27)
Net change in accumulated other comprehensive income (loss)	52		(199)		(27)		(174)
Balances as of June 30, 2020	$	85	$	(2,388)	$	(608)	$	(2,911)

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

	Tax expense (benefit)
	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Net unrealized (losses) gains on debt securities	$	(3)	$	(2)	$	(6)	$	16
Net translation on investments in foreign operations	(3)		(6)		5		24
Net hedges of investments in foreign operations	(35)		(106)		(35)		124
Pension and other postretirement benefits	2		(1)		13		11
Total tax impact	$	(39)	$	(115)	$	(23)	$	175

Reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, were not significant for any of the three and six months ended June 30, 2021 and 2020.

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Other Fees and Commissions and Other Expenses

6 Months Ended

Jun. 30, 2021

Other Fees and Commissions and Other Expenses [Abstract]

Other Fees and Commissions and Other Expenses

Other Fees and Commissions and Other Expenses

The following is a detail of Other fees and commissions for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Fees charged to Card Members:
Delinquency fees	$	146	$	196	$	294	$	456
Foreign currency conversion fee revenue	109		57		205		250
Other customer fees:
Loyalty coalition-related fees	121		90		245		198
Travel commissions and fees	57		5		90		65
Service fees and other (a)	127		101		246		200
Total Other fees and commissions	$	560	$	449	$	1,080	$	1,169

(a)Other includes Membership Rewards program fees that are not related to contracts with customers.

Revenue expected to be recognized in future periods related to contracts that have an original expected duration of one year or less and contracts with variable consideration (e.g. discount revenue) are not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is not material.

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

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Data processing and equipment (a)	$	577	$	564	$	1,159	$	1,113
Professional services	458		406		861		845
Net unrealized gains on Amex Ventures equity investments (b)	(248)		(7)		(625)		(22)
Other (c)	220		267		482		583
Total Other expenses	$	1,007	$	1,230	$	1,877	$	2,519

(a)Effective for the first quarter of 2021, we changed the expense category name from Occupancy and equipment to Data processing and equipment to better reflect the nature and components of the expense.

(b)Represents net unrealized gains on equity investments without a readily determinable fair value.

(c)Other expense primarily includes general operating expenses, communication expenses, non-income taxes, Card Member and merchant-related fraud losses, foreign currency-related gains and losses and litigation expenses.

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate was 22.4 percent and 58.7 percent for the three months ended June 30, 2021 and 2020, respectively, and 23.9 percent and 41.9 percent for the six months ended June 30, 2021 and 2020, respectively. The decrease in both periods primarily reflected the impact of discrete tax charges and lower pretax income in the prior year.

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

We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next twelve months by as much as $133 million, principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $133 million of unrecognized tax benefits, approximately $105 million relates to amounts that, if recognized, would impact the effective tax rate in a future period.

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Earnings Per Common Share (EPS)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share (EPS)

Earnings Per Common Share (EPS)

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

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions, except per share amounts)	2021		2020		2021		2020
Numerator:
Basic and diluted:
Net income	$	2,280	$	257	$	4,515	$	624
Preferred dividends	(15)		(17)		(29)		(49)
Net income available to common shareholders	$	2,265	$	240	$	4,486	$	575
Earnings allocated to participating share awards (a)	(16)		(2)		(31)		(4)
Net income attributable to common shareholders	$	2,249	$	238	$	4,455	$	571
Denominator: (a)
Basic: Weighted-average common stock	801		804		802		806
Add: Weighted-average stock options (b)	1		1		1		1
Diluted	802		805		803		807
Basic EPS	$	2.81	$	0.29	$	5.55	$	0.71
Diluted EPS	$	2.80	$	0.29	$	5.54	$	0.71

(a)Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.

(b)The dilutive effect of unexercised stock options excludes from the computation of EPS 0.01 million and 1.51 million of options for the three months ended June 30, 2021 and 2020, respectively, and 0.21 million and 0.59 million of options for the six months ended June 30, 2021 and 2020, respectively, because inclusion of the options would have been anti-dilutive.

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Reportable Operating Segments

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

As a result of organizational changes announced during the second quarter of 2021, our loyalty coalition businesses results, which were previously reported within the Global Merchant and Network Services (GMNS) segment, are now reported within the GCSG segment. Prior period segment results have been revised to conform with current period presentation.

The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three and six months ended June 30:

Three Months Ended June 30, 2021 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	4,464	$	2,815	$	1,204	$	(58)	$	8,425
Revenue from contracts with customers (b)	3,223		2,411		1,135		(7)		6,762
Interest income	1,749		345		4		42		2,140
Interest expense	174		111		(20)		57		322
Total revenues net of interest expense	6,039		3,049		1,228		(73)		10,243
Pretax segment income (loss)	$	1,882	$	839	$	527	$	(308)	$	2,940
Total assets (billions)	$	90	$	46	$	14	$	37	$	187

Six Months Ended June 30, 2021 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	8,283	$	5,247	$	2,265	$	(136)	$	15,659
Revenue from contracts with customers (b)	5,837		4,463		2,129		(13)		12,416
Interest income	3,557		681		8		86		4,332
Interest expense	362		227		(37)		132		684
Total revenues net of interest expense	11,478		5,701		2,310		(182)		19,307
Pretax segment income (loss)	$	4,037	$	1,504	$	912	$	(520)	$	5,933
Total assets (billions)	$	90	$	46	$	14	$	37	$	187

Three Months Ended June 30, 2020 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	3,024	$	2,014	$	827	$	(74)	$	5,791
Revenue from contracts with customers (b)	1,927		1,652		784		(6)		4,357
Interest income	1,971		402		4		49		2,426
Interest expense	272		154		(6)		122		542
Total revenues net of interest expense	4,723		2,262		837		(147)		7,675
Pretax segment income (loss)	$	843	$	(22)	$	188	$	(387)	$	622
Total assets (billions)	$	81	$	38	$	11	$	59	$	189

Six Months Ended June 30, 2020 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	7,030	$	4,802	$	2,060	$	(121)	$	13,771
Revenue from contracts with customers (b)	4,729		4,024		1,916		(16)		10,653
Interest income	4,382		901		10		179		5,472
Interest expense	600		354		(42)		346		1,258
Total revenues net of interest expense	10,812		5,349		2,112		(288)		17,985
Pretax segment income (loss)	$	1,102	$	(3)	$	713	$	(738)	$	1,074
Total assets (billions)	$	81	$	38	$	11	$	59	$	189

(a)Corporate & Other includes adjustments and eliminations for intersegment activity.

(b)Includes discount revenue, certain other fees and commissions and other revenues from customers.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ.

Effective April 1, 2021, we prospectively changed the recognition of certain costs paid to a third party previously recognized over the twelve month card membership period in Net card fees in the Consolidated Statements of Income; such costs are now recorded as incurred in Marketing and business development expense. This change is not material to the Consolidated Financial Statements.

Recently Adopted Accounting Standards

Effective January 1, 2021, we elected to change our accounting for investments in qualified affordable housing projects from the equity method of accounting to the proportional amortization method (PAM) in accordance with the accounting guidance. PAM results in the amortization of the initial cost of the investment in proportion to the related tax credits, and recognition of the net investment performance in the statement of income as a component of Income tax provision, while the equity method reflected losses related to the investments as a component of Other, net expenses. As a result, we believe PAM is preferable as it better reflects the economics of our tax credit investments. Since the impact of this change is immaterial to our prior and current period financial statements, we implemented PAM on a prospective basis which resulted in a one-time charge to Income tax provision of $55 million in the first quarter of 2021, reflecting the cumulative impact of the difference in the timing of expense recognition between the equity method and PAM.

Impaired Loans and Receivables

Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) non-accrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs).

In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.”

Reserves for Credit Losses

Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The CECL methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses.

We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD), and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates.

•PD models are used to estimate the likelihood an account will be written-off.

•EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors.

•Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions.

We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses.

Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios and applies judgment to weight them in order to reflect the uncertainty surrounding these scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models.

We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions.

Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually using a discounted cash flow model.

Loans and receivable balances are written off when we consider amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due for pay in full or revolving loans and 120 days past due for term loans. Loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification.

Investments

Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. Unrealized losses attributable to credit deterioration are recorded in the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense. Realized gains and losses are recognized upon disposition of the securities using the specific identification method.

Asset Securitizations

We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors.The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors.These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts and therefore consolidate the Trusts.

Contingencies

We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable.

For those disclosed material legal proceedings where a loss is reasonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies, or where there is no such accrual, and for which we are able to estimate a range of possible loss, the current estimated range is zero to $210 million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business and results of operations.

In addition, we face exposure associated with Card Member purchases, including with respect to the following:

•Return Protection — refunds the price of qualifying purchases made with eligible cards, where the merchant will not accept the return, for up to 90 days from the date of purchase; and

•Merchant Protection — protects Card Members primarily against non-delivery of purchases, usually in the event of the bankruptcy or liquidation of a merchant. When this occurs, the Card Member may dispute the transaction for which we will generally credit the Card Member’s account. If we are unable to collect the amount from the merchant, we may bear the loss for the amount credited to the Card Member. The largest component of the exposure relates to Card Member transactions associated with travel-related merchants, primarily through business arrangements where we have remitted payment to such merchants for a Card Member travel purchase that has not yet been used or “flown.”

Derivatives

A majority of our derivative assets and liabilities as of June 30, 2021 and December 31, 2020 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets.The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures.

Fair Values

We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. During the six months ended June 30, 2021 and the year ended December 31, 2020, we did not have any material assets that were measured at fair value due to impairment.

We estimate the Level 3 fair value of equity investments without readily determinable fair values based on price changes as of the date of new similar equity financing transactions completed by the companies in our portfolio. The carrying value of equity investments without readily determinable fair values totaled $1.2 billion and $530 million as of June 30, 2021 and December 31, 2020, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded net unrealized gains of $248 million and $7 million for the three months ended June 30, 2021 and 2020, and $625 million and $22 million for the six months ended June 30, 2021 and 2020, respectively. Unrealized losses including any impairments were not significant for any of the three and six months ended June 30, 2021 and 2020. Beginning in January 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $977 million and $347 million as of June 30, 2021 and December 31, 2020, respectively.

In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both June 30, 2021 and December 31, 2020.

Guarantees

Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated.

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Loans and Card Member Receivables (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Card Member receivables segment and other loans detail

Card Member loans by segment and Other loans as of June 30, 2021 and December 31, 2020 consisted of:

(Millions)	2021		2020
Global Consumer Services Group (a)	$	60,561	$	60,084
Global Commercial Services	15,049		13,289
Card Member loans	75,610		73,373
Less: Reserves for credit losses	3,835		5,344
Card Member loans, net	$	71,775	$	68,029
Other loans, net (b)	$	2,154	$	2,614

(a)Includes approximately $25.1 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of June 30, 2021 and December 31, 2020, respectively.

(b)Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.2 billion and $0.6 billion of gross PPP loans outstanding as of June 30, 2021 and December 31, 2020, respectively. Other loans are presented net of reserves for credit losses of $72 million and $238 million as of June 30, 2021 and December 31, 2020, respectively.

Card Member receivables by segment as of June 30, 2021 and December 31, 2020 consisted of:

(Millions)	2021		2020
Global Consumer Services Group	$	19,932	$	18,685
Global Commercial Services (a)	27,653		25,016
Card Member receivables	47,585		43,701
Less: Reserves for credit losses	73		267
Card Member receivables, net	$	47,512	$	43,434

(a)Includes $4.8 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of June 30, 2021 and December 31, 2020, respectively.

Aging of Card Member loans and receivables

The following table presents the aging of Card Member loans and receivables as of June 30, 2021 and December 31, 2020:

2021 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	60,138	$	119	$	86	$	218	$	60,561
Global Commercial Services
Global Small Business Services	14,927		22		14		31		14,994
Global Corporate Payments (a)	(b)		(b)		(b)		—		55
Card Member Receivables:
Global Consumer Services Group	19,844		34		16		38		19,932
Global Commercial Services
Global Small Business Services	$	15,853	$	32	$	14	$	30	$	15,929
Global Corporate Payments (a)	(b)		(b)		(b)		$	32	$	11,724

2020 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	59,442	$	177	$	148	$	317	$	60,084
Global Commercial Services
Global Small Business Services	13,132		27		20		47		13,226
Global Corporate Payments (a)	(b)		(b)		(b)		—		63
Card Member Receivables:
Global Consumer Services Group	18,570		33		26		56		18,685
Global Commercial Services
Global Small Business Services	$	14,023	$	37	$	21	$	38	$	14,119
Global Corporate Payments (a)	(b)		(b)		(b)		$	60	$	10,897

(a)Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. Delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).

(b)Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

Credit quality indicators for loans and receivables

The following tables present the key credit quality indicators as of or for the six months ended June 30:

	2021						2020
	Net Write-Off Rate						Net Write-Off Rate
	Principal Only(a)		Principal, Interest & Fees(a)		30+ Days Past Due as a % of Total		Principal Only(a)		Principal, Interest & Fees(a)		30+ Days Past Due as a % of Total
Card Member Loans:
Global Consumer Services Group	1.3	%	1.7	%	0.7	%	2.7	%	3.3	%	1.6	%
Global Small Business Services	0.8	%	1.0	%	0.4	%	2.1	%	2.4	%	1.6	%
Card Member Receivables:
Global Consumer Services Group	0.4	%	0.5	%	0.4	%	2.2	%	2.4	%	1.3	%
Global Small Business Services	0.3	%	0.4	%	0.5	%	2.4	%	2.6	%	2.1	%
Global Corporate Payments(d)	(b)		(0.3)	%	(c)		(b)		2.2	%	(c)

(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(b)Net write-off rate based on principal losses only is not available due to system constraints.

(c)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total was 0.3% and 2.5% as of June 30, 2021 and 2020, respectively.

(d)The net write-off rate for the current year includes a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year.

Impaired Card Member loans and receivables

The following tables provide additional information with respect to our impaired loans and receivables as of June 30, 2021 and December 31, 2020:

	As of June 30, 2021
					Accounts Classified as a TDR (c)
2021 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group	$	136	$	88	$	1,057	$	729	$	2,010	$	655
Global Commercial Services	15		16		256		263		550		229
Card Member Receivables:
Global Consumer Services Group	—		—		154		86		240		52
Global Commercial Services	—		—		282		220		502		86
Other Loans(f)	1		1		140		5		147		13
Total	$	152	$	105	$	1,889	$	1,303	$	3,449	$	1,035

	As of December 31, 2020
					Accounts Classified as a TDR (c)
2020 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group	$	203	$	146	$	1,586	$	248	$	2,183	$	782
Global Commercial Services	21		29		478		67		595		285
Card Member Receivables:
Global Consumer Services Group	—		—		240		34		274		60
Global Commercial Services	—		—		534		75		609		139
Other Loans (f)	2		1		248		6		257		80
Total	$	226	$	176	$	3,086	$	430	$	3,918	$	1,346

(a)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR.

(b)Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs.

(c)Accounts classified as a TDR include $29 million and $32 million that are over 90 days past due and accruing interest as of June 30, 2021 and December 31, 2020, respectively, and $11 million that are non-accruals as of both June 30, 2021 and December 31, 2020.

(d)In Program TDRs include accounts that are currently enrolled in a modification program.

(e)Out of Program TDRs include $1,140 million and $316 million of accounts that have successfully completed a modification program and $163 million and $114 million of accounts that were not in compliance with the terms of the modification programs as of June 30, 2021 and December 31, 2020, respectively.

(f)Other loans primarily represent consumer and commercial non-card financing products.

Troubled debt restructurings

The following tables provide additional information with respect to loans and receivables that entered a financial relief program and were modified as TDRs during the three and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30, 2021					Six Months Ended June 30, 2021
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extensions (# of Months)	Number of Accounts (thousands)	Outstanding Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	23	$	172	13	(b)	61	$	459	13	(b)
Card Member Receivables	4	83		(c)	18	11	200		(c)	18
Other Loans(d)	1	2		3	18	2	$	10	3	15
Total	28	$	257			74	$	669

	Three Months Ended June 30, 2020					Six Months Ended June 30, 2020
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extensions (# of Months)	Number of Accounts (thousands)	Outstanding Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	116	$	1,103	14	(b)	140	$	1,298	14	(b)
Card Member Receivables	22	744		(c)	18	25	818		(c)	19
Other Loans(d)	5	$	154	4	15	5	$	154	4	15
Total	143	$	2,001			170	$	2,270

(a)Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance.

(b)For Card Member loans, there have been no payment term extensions.

(c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.

(d)Other loans primarily represent consumer and commercial non-card financing products.

Troubled debt restructurings that subsequently defaulted

The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.

	Three Months Ended June 30, 2021			Six Months Ended June 30, 2021
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)		Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	9	$	69	16	$	116
Card Member Receivables	3	19		4	38
Other Loans (b)	1	3		2	8
Total	13	$	91	22	$	162

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)		Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	3	$	24	7	$	52
Card Member Receivables	1	9		2	18
Other Loans (b)	1	1		1	$	1
Total	5	$	34	10	$	71

(a)The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables.

(b)Other loans primarily represent consumer and commercial non-card financing products.

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Reserves for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Financing Receivable, Allowance for Credit Loss [Line Items]

Schedule of Key Variables in Macroeconomic Scenarios Utilized for Computation of Reserves for Credit Losses

The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses:

	U.S. Unemployment Rate		U.S. GDP Growth (Contraction) (a)
	June 30, 2021	December 31, 2020	June 30, 2021	December 31, 2020
Second quarter of 2021	6%	8% - 10%	11%	4% - (4)%
Fourth quarter of 2021	4% - 8%	7% - 11%	7% - (3)%	6% - (2)%
Fourth quarter of 2022	4% - 9%	6% - 12%	2%	4% - 3%
Fourth quarter of 2023	3% - 7%	4% -10%	3% - 2%	5% - 3%

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

Card Member Loans

Financing Receivable, Allowance for Credit Loss [Line Items]

Schedule of Changes in Card Member Loans and Receivables

The following table presents changes in the Card Member loans reserve for credit losses for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Beginning Balance	$	4,467	$	5,236	$	5,344	$	4,027
Provisions (a)	(396)		969		(969)		2,845
Net write-offs (b)
Principal	(185)		(499)		(426)		(1,017)
Interest and fees	(58)		(103)		(121)		(210)
Other (c)	7		25		7		(17)
Ending Balance	$	3,835	$	5,628	$	3,835	$	5,628

(a)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(b)Principal write-offs are presented less recoveries of $172 million and $134 million for the three months ended June 30, 2021 and 2020, respectively, and $340 million and $279 million for the six months ended June 30, 2021 and 2020, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(43) million and $(32) million for the three months June 30, 2021 and 2020, respectively, and $(88) million and $(63) million for the six months ended June 30, 2021 and 2020, respectively.

(c)Primarily includes foreign currency translation adjustments of $7 million and $25 million for the three months ended June 30, 2021 and 2020, respectively, and $6 million and $(17) million for the six months ended June 30, 2021 and 2020, respectively.

Card Member Receivables

Financing Receivable, Allowance for Credit Loss [Line Items]

Schedule of Changes in Card Member Loans and Receivables

The following table presents changes in the Card Member receivables reserve for credit losses for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Beginning Balance	$	202	$	459	$	267	$	126
Provisions (a)	(125)		355		(135)		952
Net write-offs (b)	(4)		(299)		(57)		(557)
Other (c)	—		4		(2)		(2)
Ending Balance	$	73	$	519	$	73	$	519

(a)Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(b)Net write-offs are presented less recoveries of $127 million and $88 million for the three months ended June 30, 2021 and 2020, respectively, and $224 million and $180 million for the six months ended June 30, 2021 and 2020, respectively. Amounts include net (write-offs) recoveries from TDRs of $(16) million and $(9) million for the three months ended June 30, 2021 and 2020, respectively, and $(36) million and $(16) million for the six months ended June 30, 2021 and 2020, respectively.

(c)Primarily includes foreign currency translation adjustments of nil and $4 million for the three months ended June 30, 2021 and 2020, respectively, and $(1) million for both the six months ended June 30, 2021 and 2020.

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of available for sale securities by type

The following is a summary of investment securities as of June 30, 2021 and December 31, 2020:

	2021								2020
Description of Securities (Millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
State and municipal obligations	$	133	$	6	$	(1)	$	138	$	172	$	7	$	—	$	179
U.S. Government agency obligations	6		—		—		6		7		—		—		7
U.S. Government treasury obligations	11,397		49		—		11,446		20,655		76		—		20,731
Mortgage-backed securities (a)	22		2		—		24		28		2		—		30
Foreign government bonds and obligations	741		—		—		741		581		—		—		581
Other (b)	37		—		—		37		22		—		—		22
Equity securities (c)	52		1		(2)		51		56		27		(2)		81
Total	$	12,388	$	58	$	(3)	$	12,443	$	21,521	$	112	$	(2)	$	21,631

(a)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

(b)Represents investments in Corporate debt securities and debt securities issued by Community Development Financial Institutions.

(c)Equity securities comprise investments in common stock, exchange-traded funds and mutual funds.

Available-for-sale securities, continuous unrealized loss position, fair value

The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020.

	2021
	Less than 12 months				12 months or more
Description of Securities (Millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
State and municipal obligations	$	26	$	(1)	$	—	$	—
Total	$	26	$	(1)	$	—	$	—

Available for sale securities ratio of fair value to amortized cost

The following table summarizes the gross unrealized losses by ratio of fair value to amortized cost as of June 30, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020.

	Less than 12 months					12 months or more					Total
Ratio of Fair Value to Amortized Cost (Dollars in millions)	Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses
2021:
90%–100%	6	$	26	$	(1)	—	$	—	$	—	6	$	26	$	(1)
Less than 90%	—	—		—		—	—		—		—	—		—
Total as of June 30, 2021	6	$	26	$	(1)	—	$	—	$	—	6	$	26	$	(1)

Contractual maturities of investment securities

Contractual maturities for investment securities with stated maturities as of June 30, 2021 were as follows:

(Millions)	Cost		Estimated Fair Value
Due within 1 year	$	11,001	$	11,014
Due after 1 year but within 5 years	1,201		1,235
Due after 5 years but within 10 years	35		42
Due after 10 years	99		101
Total	$	12,336	$	12,392

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Customer Deposits (Tables)

6 Months Ended

Jun. 30, 2021

Deposits [Abstract]

Deposits by component alternative

As of June 30, 2021 and December 31, 2020, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:

(Millions)	2021		2020
U.S.:
Interest-bearing	$	83,823	$	85,583
Non-interest-bearing (includes Card Member credit balances of: 2021, $442; 2020, $576)	466		599
Non-U.S.:
Interest-bearing	19		19
Non-interest-bearing (includes Card Member credit balances of: 2021, $593; 2020, $671)	597		674
Total customer deposits	$	84,905	$	86,875

Deposits by type

Customer deposits by deposit type as of June 30, 2021 and December 31, 2020 were as follows:

(Millions)	2021		2020
U.S. retail deposits:
Savings accounts – Direct	$	65,472	$	63,512
Certificates of deposit:
Direct	1,963		2,440
Third-party (brokered)	3,757		5,561
Sweep accounts – Third-party (brokered)	12,631		14,070
Other deposits:
U.S. non-interest bearing deposits	24		23
Non-U.S. deposits	23		22
Card Member credit balances ― U.S. and non-U.S.	1,035		1,247
Total customer deposits	$	84,905	$	86,875

Time deposits by maturity

The scheduled maturities of certificates of deposit as of June 30, 2021 were as follows:

(Millions)	U.S.		Non-U.S.		Total
2021	$	1,432	$	4	$	1,436
2022	3,104		4		3,108
2023	682		—		682
2024	283		—		283
2025	210		—		210
After 5 years	9		—		9
Total	$	5,720	$	8	$	5,728

Time deposits $250,000 or more

As of June 30, 2021 and December 31, 2020, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows:

(Millions)	2021		2020
U.S.	$	745	$	930
Non-U.S.	1		1
Total	$	746	$	931

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of June 30, 2021 and December 31, 2020:

	Other Assets Fair Value				Other Liabilities Fair Value
(Millions)	2021		2020		2021		2020
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)	$	352	$	500	$	—	$	—
Net investment hedges - Foreign exchange contracts	76		24		129		474
Total derivatives designated as hedging instruments	428		524		129		474
Derivatives not designated as hedging instruments:
Foreign exchange contracts	153		105		65		228
Total derivatives, gross	581		629		194		702
Derivative asset and derivative liability netting (b)	(97)		(98)		(97)		(98)
Cash collateral netting (c)	(352)		(500)		—		(16)
Total derivatives, net	$	132	$	31	$	97	$	588

(a)For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.

(b)Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

(c)Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.

Effect of fair value hedges on results of operations

The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three and six months ended June 30:

	Gains (losses)
	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Fixed-rate long-term debt	$	55	$	4	$	198	$	(593)
Derivatives designated as hedging instruments	(54)		(10)		(199)		601
Total	$	1	$	(6)	$	(1)	$	8

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Fair Values (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair value assets and liabilities measured on recurring basis

The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of June 30, 2021 and December 31, 2020:

	2021								2020
(Millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Investment securities: (a)
Equity securities	$	51	$	50	$	1	$	—	$	81	$	80	$	1	$	—
Debt securities (b)	12,392		—		12,372		20		21,550		—		21,550		—
Derivatives, gross (a)	581		—		581		—		629		—		629		—
Total Assets	13,024		50		12,954		20		22,260		80		22,180		—
Liabilities:
Derivatives, gross (a)	194		—		194		—		702		—		702		—
Total Liabilities	$	194	$	—	$	194	$	—	$	702	$	—	$	702	$	—

(a)Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis.

(b)Level 3 fair value amount represents investments in debt securities issued by Community Development Financial Institutions.

Estimated fair value of financial assets and financial liabilities

The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of June 30, 2021 and December 31, 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of June 30, 2021 and December 31, 2020, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.

	Carrying Value		Corresponding Fair Value Amount
2021 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	31	$	31	$	28	$	3	$	—
Other financial assets (b)	50		50		—		50		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	74		78		—		—		78
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101		101		—		101		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	6		6		—		6		—
Long-term debt (c)	$	37	$	39	$	—	$	39	$	—

	Carrying Value		Corresponding Fair Value Amount
2020 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	33	$	33	$	31	$	2	$	—
Other financial assets (b)	46		46		—		46		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	71		75		—		—		75
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101		101		—		101		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	8		8		—		8		—
Long-term debt (c)	$	43	$	45	$	—	$	45	$	—

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

(b)Balances include Card Member receivables (including fair values of Card Member receivables of $4.8 billion and $4.2 billion held by a consolidated VIE as of June 30, 2021 and December 31, 2020, respectively), other receivables and other miscellaneous assets.

(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $25.2 billion and $25.8 billion as of June 30, 2021 and December 31, 2020, respectively, and the fair values of Long-term debt were $12.0 billion and $13.0 billion as of June 30, 2021 and December 31, 2020, respectively.

(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.

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Changes in Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Components of comprehensive income (loss), net of tax

Changes in each component for the three and six months ended June 30, 2021 and 2020 were as follows:

Three Months Ended June 30, 2021 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of March 31, 2021	$	53	$	(2,246)	$	(705)	$	(2,898)
Net unrealized losses	(11)		—		—		(11)
Net translation on investments in foreign operations	—		127		—		127
Net hedges of investments in foreign operations	—		(108)		—		(108)
Pension and other postretirement benefits	—		—		9		9
Net change in accumulated other comprehensive income (loss)	(11)		19		9		17
Balances as of June 30, 2021	$	42	$	(2,227)	$	(696)	$	(2,881)

Six Months Ended June 30, 2021 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive  Income (Loss)
Balances as of December 31, 2020	$	65	$	(2,229)	$	(731)	$	(2,895)
Net unrealized losses	(23)		—		—		(23)
Net translation on investments in foreign operations	—		104		—		104
Net hedges of investments in foreign operations	—		(102)		—		(102)
Pension and other postretirement benefits	—		—		35		35
Net change in accumulated other comprehensive income (loss)	(23)		2		35		14
Balances as of June 30, 2021	$	42	$	(2,227)	$	(696)	$	(2,881)

Three Months Ended June 30, 2020 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of March 31, 2020	$	90	$	(2,511)	$	(575)	$	(2,996)
Net unrealized losses	(5)		—		—		(5)
Decrease due to amounts reclassified into earnings	—		(3)		—		(3)
Net translation on investments in foreign operations	—		465		—		465
Net hedges of investments in foreign operations	—		(339)		—		(339)
Pension and other postretirement benefits	—		—		(33)		(33)
Net change in accumulated other comprehensive income (loss)	(5)		123		(33)		85
Balances as of June 30, 2020	$	85	$	(2,388)	$	(608)	$	(2,911)

Six Months Ended June 30, 2020 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of December 31, 2019	$	33	$	(2,189)	$	(581)	$	(2,737)
Net unrealized gains	52		—		—		52
Decrease due to amounts reclassified into earnings	—		(3)		—		(3)
Net translation on investments in foreign operations	—		(589)		—		(589)
Net hedges of investments in foreign operations	—		393		—		393
Pension and other postretirement benefits	—		—		(27)		(27)
Net change in accumulated other comprehensive income (loss)	52		(199)		(27)		(174)
Balances as of June 30, 2020	$	85	$	(2,388)	$	(608)	$	(2,911)

AOCI income tax effect

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

	Tax expense (benefit)
	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Net unrealized (losses) gains on debt securities	$	(3)	$	(2)	$	(6)	$	16
Net translation on investments in foreign operations	(3)		(6)		5		24
Net hedges of investments in foreign operations	(35)		(106)		(35)		124
Pension and other postretirement benefits	2		(1)		13		11
Total tax impact	$	(39)	$	(115)	$	(23)	$	175

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Other Fees and Commissions and Other Expenses (Tables)

6 Months Ended

Jun. 30, 2021

Other Fees and Commissions and Other Expenses [Abstract]

Other commissions and fees

The following is a detail of Other fees and commissions for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Fees charged to Card Members:
Delinquency fees	$	146	$	196	$	294	$	456
Foreign currency conversion fee revenue	109		57		205		250
Other customer fees:
Loyalty coalition-related fees	121		90		245		198
Travel commissions and fees	57		5		90		65
Service fees and other (a)	127		101		246		200
Total Other fees and commissions	$	560	$	449	$	1,080	$	1,169

(a)Other includes Membership Rewards program fees that are not related to contracts with customers.

Other net expense

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

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions)	2021		2020		2021		2020
Data processing and equipment (a)	$	577	$	564	$	1,159	$	1,113
Professional services	458		406		861		845
Net unrealized gains on Amex Ventures equity investments (b)	(248)		(7)		(625)		(22)
Other (c)	220		267		482		583
Total Other expenses	$	1,007	$	1,230	$	1,877	$	2,519

(a)Effective for the first quarter of 2021, we changed the expense category name from Occupancy and equipment to Data processing and equipment to better reflect the nature and components of the expense.

(b)Represents net unrealized gains on equity investments without a readily determinable fair value.

(c)Other expense primarily includes general operating expenses, communication expenses, non-income taxes, Card Member and merchant-related fraud losses, foreign currency-related gains and losses and litigation expenses.

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Earnings Per Common Share (EPS) (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Computation of basic and diluted EPS

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

	Three Months Ended June 30,				Six Months Ended June 30,
(Millions, except per share amounts)	2021		2020		2021		2020
Numerator:
Basic and diluted:
Net income	$	2,280	$	257	$	4,515	$	624
Preferred dividends	(15)		(17)		(29)		(49)
Net income available to common shareholders	$	2,265	$	240	$	4,486	$	575
Earnings allocated to participating share awards (a)	(16)		(2)		(31)		(4)
Net income attributable to common shareholders	$	2,249	$	238	$	4,455	$	571
Denominator: (a)
Basic: Weighted-average common stock	801		804		802		806
Add: Weighted-average stock options (b)	1		1		1		1
Diluted	802		805		803		807
Basic EPS	$	2.81	$	0.29	$	5.55	$	0.71
Diluted EPS	$	2.80	$	0.29	$	5.54	$	0.71

(a)Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.

(b)The dilutive effect of unexercised stock options excludes from the computation of EPS 0.01 million and 1.51 million of options for the three months ended June 30, 2021 and 2020, respectively, and 0.21 million and 0.59 million of options for the six months ended June 30, 2021 and 2020, respectively, because inclusion of the options would have been anti-dilutive.

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Reportable Operating Segments (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Operating segment information

The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three and six months ended June 30:

Three Months Ended June 30, 2021 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	4,464	$	2,815	$	1,204	$	(58)	$	8,425
Revenue from contracts with customers (b)	3,223		2,411		1,135		(7)		6,762
Interest income	1,749		345		4		42		2,140
Interest expense	174		111		(20)		57		322
Total revenues net of interest expense	6,039		3,049		1,228		(73)		10,243
Pretax segment income (loss)	$	1,882	$	839	$	527	$	(308)	$	2,940
Total assets (billions)	$	90	$	46	$	14	$	37	$	187

Six Months Ended June 30, 2021 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	8,283	$	5,247	$	2,265	$	(136)	$	15,659
Revenue from contracts with customers (b)	5,837		4,463		2,129		(13)		12,416
Interest income	3,557		681		8		86		4,332
Interest expense	362		227		(37)		132		684
Total revenues net of interest expense	11,478		5,701		2,310		(182)		19,307
Pretax segment income (loss)	$	4,037	$	1,504	$	912	$	(520)	$	5,933
Total assets (billions)	$	90	$	46	$	14	$	37	$	187

Three Months Ended June 30, 2020 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	3,024	$	2,014	$	827	$	(74)	$	5,791
Revenue from contracts with customers (b)	1,927		1,652		784		(6)		4,357
Interest income	1,971		402		4		49		2,426
Interest expense	272		154		(6)		122		542
Total revenues net of interest expense	4,723		2,262		837		(147)		7,675
Pretax segment income (loss)	$	843	$	(22)	$	188	$	(387)	$	622
Total assets (billions)	$	81	$	38	$	11	$	59	$	189

Six Months Ended June 30, 2020 (Millions, except where indicated)	GCSG		GCS		GMNS		Corporate & Other (a)		Consolidated
Total non-interest revenues	$	7,030	$	4,802	$	2,060	$	(121)	$	13,771
Revenue from contracts with customers (b)	4,729		4,024		1,916		(16)		10,653
Interest income	4,382		901		10		179		5,472
Interest expense	600		354		(42)		346		1,258
Total revenues net of interest expense	10,812		5,349		2,112		(288)		17,985
Pretax segment income (loss)	$	1,102	$	(3)	$	713	$	(738)	$	1,074
Total assets (billions)	$	81	$	38	$	11	$	59	$	189

(a)Corporate & Other includes adjustments and eliminations for intersegment activity.

(b)Includes discount revenue, certain other fees and commissions and other revenues from customers.

XML

Basis of Presentation (Details Textuals) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Jan. 01, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax provision		$ 660	$ 365	$ 1,418	$ 450
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2014-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax provision	$ 55

XML

Loans and Card Member Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Card Member Loans
Loans segment information
Financing receivables, gross	$ 75,610		$ 73,373
Less: Reserves for credit losses	3,835	$ 4,467	5,344	$ 5,628	$ 5,236	$ 4,027
Financing receivables, net	71,775		68,029
Card Member Receivables
Loans segment information
Financing receivables, gross	47,585		43,701
Less: Reserves for credit losses	73	$ 202	267	$ 519	$ 459	$ 126
Financing receivables, net	47,512		43,434
Other Loans
Loans segment information
Less: Reserves for credit losses	72		238
Financing receivables, net	2,154		2,614
PPP Loans | Other Loans
Loans segment information
Financing receivables, gross	200		600
Variable Interest Entity, Primary Beneficiary | Card Member Loans
Loans segment information
Financing receivables, gross	25,149		25,908
Variable Interest Entity, Primary Beneficiary | Card Member Receivables
Loans segment information
Financing receivables, gross	4,787		4,296
GCSG | Card Member Loans
Loans segment information
Financing receivables, gross	60,561		60,084
GCSG | Card Member Receivables
Loans segment information
Financing receivables, gross	19,932		18,685
GCSG | Variable Interest Entity, Primary Beneficiary | Card Member Loans
Loans segment information
Financing receivables, gross	25,100		25,900
GCS | Card Member Loans
Loans segment information
Financing receivables, gross	15,049		13,289
GCS | Card Member Receivables
Loans segment information
Financing receivables, gross	27,653		25,016
GCS | Variable Interest Entity, Primary Beneficiary | Card Member Receivables
Loans segment information
Financing receivables, gross	$ 4,800		$ 4,300

XML

Loans and Card Member Receivables (Details 1) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Card Member Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	$ 75,610	$ 73,373
Card Member Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	47,585	43,701
GCSG | Card Member Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	60,561	60,084
GCSG | Card Member Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	19,932	18,685
GCSG | Current | Card Member Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	60,138	59,442
GCSG | Current | Card Member Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	19,844	18,570
GCSG | 30 to 59 Days Past Due | Card Member Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	119	177
GCSG | 30 to 59 Days Past Due | Card Member Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	34	33
GCSG | 60 to 89 Days Past Due | Card Member Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	86	148
GCSG | 60 to 89 Days Past Due | Card Member Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	16	26
GCSG | 90+ Days Past Due | Card Member Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	218	317
GCSG | 90+ Days Past Due | Card Member Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	38	56
GCS | Card Member Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	15,049	13,289
GCS | Card Member Loans | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	14,994	13,226
GCS | Card Member Loans | Global Corporate Payments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	55	63
GCS | Card Member Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	27,653	25,016
GCS | Card Member Receivables | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	15,929	14,119
GCS | Card Member Receivables | Global Corporate Payments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	11,724	10,897
GCS | Current | Card Member Loans | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	14,927	13,132
GCS | Current | Card Member Receivables | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	15,853	14,023
GCS | 30 to 59 Days Past Due | Card Member Loans | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	22	27
GCS | 30 to 59 Days Past Due | Card Member Receivables | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	32	37
GCS | 60 to 89 Days Past Due | Card Member Loans | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	14	20
GCS | 60 to 89 Days Past Due | Card Member Receivables | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	14	21
GCS | 90+ Days Past Due | Card Member Loans | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	31	47
GCS | 90+ Days Past Due | Card Member Loans | Global Corporate Payments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	0	0
GCS | 90+ Days Past Due | Card Member Receivables | Global Small Business Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	30	38
GCS | 90+ Days Past Due | Card Member Receivables | Global Corporate Payments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, gross	$ 32	$ 60

XML

Loans and Card Member Receivables (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Credit Quality Indicator for Loans and Receivables
90+ Days Past Billing as a % of total	0.30%	2.50%	0.30%	2.50%
Card Member Receivables
Credit Quality Indicator for Loans and Receivables
Net write-offs	$ (4)	$ (299)	$ (57)	$ (557)
GCSG | Card Member Loans
Credit Quality Indicator for Loans and Receivables
30+ Days Past Due as a % of Total	0.70%	1.60%	0.70%	1.60%
GCSG | Card Member Loans | Net Write-Off Rate - Principal Only
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			1.30%	2.70%
GCSG | Card Member Loans | Net Write-Off Rate Principal Interest, and Fees
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			1.70%	3.30%
GCSG | Card Member Receivables
Credit Quality Indicator for Loans and Receivables
30+ Days Past Due as a % of Total	0.40%	1.30%	0.40%	1.30%
GCSG | Card Member Receivables | Net Write-Off Rate - Principal Only
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			0.40%	2.20%
GCSG | Card Member Receivables | Net Write-Off Rate Principal Interest, and Fees
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			0.50%	2.40%
GCS | Global Small Business Services | Card Member Loans
Credit Quality Indicator for Loans and Receivables
30+ Days Past Due as a % of Total	0.40%	1.60%	0.40%	1.60%
GCS | Global Small Business Services | Card Member Loans | Net Write-Off Rate - Principal Only
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			0.80%	2.10%
GCS | Global Small Business Services | Card Member Loans | Net Write-Off Rate Principal Interest, and Fees
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			1.00%	2.40%
GCS | Global Small Business Services | Card Member Receivables
Credit Quality Indicator for Loans and Receivables
30+ Days Past Due as a % of Total	0.50%	2.10%	0.50%	2.10%
GCS | Global Small Business Services | Card Member Receivables | Net Write-Off Rate - Principal Only
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			0.30%	2.40%
GCS | Global Small Business Services | Card Member Receivables | Net Write-Off Rate Principal Interest, and Fees
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			0.40%	2.60%
GCS | Global Corporate Payments | Card Member Receivables
Credit Quality Indicator for Loans and Receivables
Net write-offs			$ 37	$ (53)
GCS | Global Corporate Payments | Card Member Receivables | Net Write-Off Rate Principal Interest, and Fees
Credit Quality Indicator for Loans and Receivables
Net Write-Off Rate			(0.30%)	2.20%

XML

Loans and Card Member Receivables (Details 3) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Impaired loans and receivables
Loans over 90 days past due and accruing interest	$ 152	$ 226
Non-accrual loans	105	176
Loans and receivables modified as a Troubled Debt Restructuring in Program	1,889	3,086
Loans and receivables modified as Troubled Debt Restructuring Out of Program	1,303	430
Total impaired loans and receivables	3,449	3,918
Reserve for Credit Losses - TDRs	1,035	1,346
Accounts Receivable and Loans Textuals
Total loans and receivables modified as a TDR, past due 90 days and still accruing	29	32
Total loans and receivables modified as a TDR, non-accrual	11	11
Out of Program TDR accounts that completed modification programs	1,140	316
Out of Program TDR accounts not in compliance with modification programs	163	114
Other Loans
Impaired loans and receivables
Loans over 90 days past due and accruing interest	1	2
Non-accrual loans	1	1
Loans and receivables modified as a Troubled Debt Restructuring in Program	140	248
Loans and receivables modified as Troubled Debt Restructuring Out of Program	5	6
Total impaired loans and receivables	147	257
Reserve for Credit Losses - TDRs	13	80
GCSG | Card Member Loans
Impaired loans and receivables
Loans over 90 days past due and accruing interest	136	203
Non-accrual loans	88	146
Loans and receivables modified as a Troubled Debt Restructuring in Program	1,057	1,586
Loans and receivables modified as Troubled Debt Restructuring Out of Program	729	248
Total impaired loans and receivables	2,010	2,183
Reserve for Credit Losses - TDRs	655	782
GCSG | Card Member Receivables
Impaired loans and receivables
Loans over 90 days past due and accruing interest	0	0
Non-accrual loans	0	0
Loans and receivables modified as a Troubled Debt Restructuring in Program	154	240
Loans and receivables modified as Troubled Debt Restructuring Out of Program	86	34
Total impaired loans and receivables	240	274
Reserve for Credit Losses - TDRs	52	60
GCS | Card Member Loans
Impaired loans and receivables
Loans over 90 days past due and accruing interest	15	21
Non-accrual loans	16	29
Loans and receivables modified as a Troubled Debt Restructuring in Program	256	478
Loans and receivables modified as Troubled Debt Restructuring Out of Program	263	67
Total impaired loans and receivables	550	595
Reserve for Credit Losses - TDRs	229	285
GCS | Card Member Receivables
Impaired loans and receivables
Loans over 90 days past due and accruing interest	0	0
Non-accrual loans	0	0
Loans and receivables modified as a Troubled Debt Restructuring in Program	282	534
Loans and receivables modified as Troubled Debt Restructuring Out of Program	220	75
Total impaired loans and receivables	502	609
Reserve for Credit Losses - TDRs	$ 86	$ 139

XML

Loans and Card Member Receivables (Details 4) account in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) account	Jun. 30, 2020 USD ($) account	Jun. 30, 2021 USD ($) account	Jun. 30, 2020 USD ($) account
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Accounts | account	28	143	74	170
Account Balances	$ 257	$ 2,001
Outstanding Balances			$ 669	$ 2,270
Card Member Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Accounts | account	23	116	61	140
Account Balances	$ 172	$ 1,103
Average Interest Rate Reduction (as a percentage)	13.00%	14.00%	13.00%	14.00%
Outstanding Balances			$ 459	$ 1,298
Card Member Receivables
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Accounts | account	4	22	11	25
Account Balances	$ 83	$ 744
Average Payment Term Extension (in months)	18 months	18 months	18 months	19 months
Outstanding Balances			$ 200	$ 818
Other Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Accounts | account	1	5	2	5
Account Balances	$ 2	$ 154
Average Interest Rate Reduction (as a percentage)	3.00%	4.00%	3.00%	400.00%
Average Payment Term Extension (in months)	18 months	15 months	15 months	15 months
Outstanding Balances			$ 10	$ 154

XML

Loans and Card Member Receivables (Details 5) account in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) account	Jun. 30, 2020 USD ($) account	Jun. 30, 2021 USD ($) account	Jun. 30, 2020 USD ($) account
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Accounts | account	13	5	22	10
Aggregated Outstanding Balance Upon Default | $	$ 91	$ 34	$ 162	$ 71
Card Member Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Accounts | account	9	3	16	7
Aggregated Outstanding Balance Upon Default | $	$ 69	$ 24	$ 116	$ 52
Card Member Receivables
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Accounts | account	3	1	4	2
Aggregated Outstanding Balance Upon Default | $	$ 19	$ 9	$ 38	$ 18
Other Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Accounts | account	1	1	2	1
Aggregated Outstanding Balance Upon Default | $	$ 3	$ 1	$ 8	$ 1

XML

Reserves for Credit Losses (Details)	Jun. 30, 2021	Dec. 31, 2020
U.S. Unemployment Rate | Second quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.06
U.S. Unemployment Rate | Minimum | Second quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input		0.08
U.S. Unemployment Rate | Minimum | Fourth quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.04	0.07
U.S. Unemployment Rate | Minimum | Fourth quarter of 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.04	0.06
U.S. Unemployment Rate | Minimum | Fourth quarter of 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.03	0.04
U.S. Unemployment Rate | Maximum | Second quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input		0.10
U.S. Unemployment Rate | Maximum | Fourth quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.08	0.11
U.S. Unemployment Rate | Maximum | Fourth quarter of 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.09	0.12
U.S. Unemployment Rate | Maximum | Fourth quarter of 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.07	0.10
U.S. GDP Growth (Contraction) | Second quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.11
U.S. GDP Growth (Contraction) | Fourth quarter of 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.02
U.S. GDP Growth (Contraction) | Minimum | Second quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input		0.04
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.07	0.06
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input		0.04
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.03	0.05
U.S. GDP Growth (Contraction) | Maximum | Second quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input		(0.04)
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	(0.03)	(0.02)
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input		0.03
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reserves for credit losses, measurement input	0.02	0.03

XML

Reserves for Credit Losses (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reserve for Losses [Roll Forward]
Provisions	$ (606)	$ 1,555	$ (1,281)	$ 4,176
Card Member Loans
Reserve for Losses [Roll Forward]
Beginning Balance	4,467	5,236	5,344	4,027
Provisions	(396)	969	(969)	2,845
Other	7	25	7	(17)
Ending Balance	3,835	5,628	3,835	5,628
Net (write-offs) recoveries from TDRs	(43)	(32)	(88)	(63)
Foreign currency translation adjustments	7	25	6	(17)
Card Member Loans | Principal
Reserve for Losses [Roll Forward]
Net write-offs	(185)	(499)	(426)	(1,017)
Recoveries	172	134	340	279
Card Member Loans | Interest and fees
Reserve for Losses [Roll Forward]
Net write-offs	$ (58)	$ (103)	$ (121)	$ (210)

XML

Reserves for Credit Losses (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reserve for Losses [Roll Forward]
Provisions	$ (606)	$ 1,555	$ (1,281)	$ 4,176
Card Member Receivables
Reserve for Losses [Roll Forward]
Beginning Balance	202	459	267	126
Provisions	(125)	355	(135)	952
Net write-offs	(4)	(299)	(57)	(557)
Other	0	4	(2)	(2)
Ending Balance	73	519	73	519
Recoveries	127	88	224	180
Net (write-offs) recoveries from TDRs	(16)	(9)	(36)	(16)
Foreign currency translation adjustments	$ 0	$ 4	$ (1)	$ (1)

XML

Investment Securities (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Accrued interest available-for-sale debt securities	$ 21	$ 26
Available-for-sale debt securities:
Cost	12,336
Estimated Fair Value	12,392
Equity securities
Cost	52	56
Gross Unrealized Gains	1	27
Gross Unrealized Losses	(2)	(2)
Estimated Fair Value	51	81
Total Cost	12,388	21,521
Total Gross Unrealized Gains	58	112
Total Gross Unrealized Losses	(3)	(2)
Total Estimated Fair Value	12,443	21,631
State and municipal obligations
Available-for-sale debt securities:
Cost	133	172
Gross Unrealized Gains	6	7
Gross Unrealized Losses	(1)	0
Estimated Fair Value	138	179
U.S. Government agency obligations
Available-for-sale debt securities:
Cost	6	7
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	6	7
U.S. Government treasury obligations
Available-for-sale debt securities:
Cost	11,397	20,655
Gross Unrealized Gains	49	76
Gross Unrealized Losses	0	0
Estimated Fair Value	11,446	20,731
Mortgage-backed securities
Available-for-sale debt securities:
Cost	22	28
Gross Unrealized Gains	2	2
Gross Unrealized Losses	0	0
Estimated Fair Value	24	30
Foreign government bonds and obligations
Available-for-sale debt securities:
Cost	741	581
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	741	581
Other Debt Securities
Available-for-sale debt securities:
Cost	37	22
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 37	$ 22

XML

Investment Securities (Details 1) $ in Millions	Jun. 30, 2021 USD ($) security	Dec. 31, 2020 security
Debt Securities, Available-for-sale [Line Items]
Number of securities with gross unrealized losses | security	6	0
Estimated Fair Value
Less than 12 months	$ 26
12 months or more	0
Gross Unrealized Losses
Less than 12 months	(1)
12 months or more	0
State and municipal obligations
Estimated Fair Value
Less than 12 months	26
12 months or more	0
Gross Unrealized Losses
Less than 12 months	(1)
12 months or more	$ 0

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Investment Securities (Details 2) $ in Millions	Jun. 30, 2021 USD ($) security	Dec. 31, 2020 security
Number of Securities
Less than 12 months | security	6
12 months or more | security	0
Total | security	6	0
Estimated Fair Value
Less than 12 months	$ 26
12 months or more	0
Total	26
Gross Unrealized Losses
Less than 12 months	(1)
12 months or more	0
Total	$ (1)
90%-100%
Number of Securities
Less than 12 months | security	6
12 months or more | security	0
Total | security	6
Estimated Fair Value
Less than 12 months	$ 26
12 months or more	0
Total	26
Gross Unrealized Losses
Less than 12 months	(1)
12 months or more	0
Total	$ (1)
Less than 90%
Number of Securities
Less than 12 months | security	0
12 months or more | security	0
Total | security	0
Estimated Fair Value
Less than 12 months	$ 0
12 months or more	0
Total	0
Gross Unrealized Losses
Less than 12 months	0
12 months or more	0
Total	$ 0

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Investment Securities (Details 3) $ in Millions	Jun. 30, 2021 USD ($)
Cost
Due within 1 year	$ 11,001
Due after 1 year but within 5 years	1,201
Due after 5 years but within 10 years	35
Due after 10 years	99
Total	12,336
Estimated Fair Value
Due within 1 year	11,014
Due after 1 year but within 5 years	1,235
Due after 5 years but within 10 years	42
Due after 10 years	101
Total	$ 12,392

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Asset Securitizations (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Assets from Trusts [Line Items]
Restricted balances included in Cash and cash equivalents	$ 1,841	$ 606	$ 606	$ 514
American Express Lending Trust
Assets from Trusts [Line Items]
Direct and Indirect ownership of variable interests	13,500	13,400
Restricted balances included in Cash and cash equivalents	1,400	47
American Express Charge Trust
Assets from Trusts [Line Items]
Direct and Indirect ownership of variable interests	4,800	4,300
Restricted balances included in Cash and cash equivalents	$ 0	$ 0

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Customer Deposits (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
U.S.:
Interest-bearing	$ 83,823	$ 85,583
Non-interest-bearing (includes Card Member credit balances of: 2021, $442; 2020, $576)	466	599
Non-U.S.:
Interest-bearing	19	19
Non-interest-bearing (includes Card Member credit balances of: 2021, $593; 2020, $671)	597	674
Total customer deposits	84,905	86,875
Card Member Credit Balances
U.S.:
Non-interest-bearing (includes Card Member credit balances of: 2021, $442; 2020, $576)	442	576
Non-U.S.:
Non-interest-bearing (includes Card Member credit balances of: 2021, $593; 2020, $671)	$ 593	$ 671

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Customer Deposits (Details 1) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
U.S. retail deposits:
Savings accounts – Direct	$ 65,472	$ 63,512
Certificates of deposit:
Direct	1,963	2,440
Third-party (brokered)	3,757	5,561
Sweep accounts – Third-party (brokered)	12,631	14,070
Other deposits:
U.S. non-interest bearing deposits	24	23
Non-U.S. deposits	23	22
Card Member credit balances ― U.S. and non-U.S.	1,035	1,247
Total customer deposits	$ 84,905	$ 86,875

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Customer Deposits (Details 2) $ in Millions	Jun. 30, 2021 USD ($)
Time Deposits By Maturity
2021	$ 1,436
2022	3,108
2023	682
2024	283
2025	210
After 5 years	9
Total	5,728
U.S.
Time Deposits By Maturity
2021	1,432
2022	3,104
2023	682
2024	283
2025	210
After 5 years	9
Total	5,720
Non-U.S.
Time Deposits By Maturity
2021	4
2022	4
2023	0
2024	0
2025	0
After 5 years	0
Total	$ 8

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Customer Deposits (Details 3) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Time Deposits $250,000 Or More [Line Items]
Time Deposits, $250,000 or More	$ 746	$ 931
U.S.
Time Deposits $250,000 Or More [Line Items]
Time Deposits, $250,000 or More	745	930
Non-U.S.
Time Deposits $250,000 Or More [Line Items]
Time Deposits, $250,000 or More	$ 1	$ 1

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Contingencies (Details Textuals)	Jun. 30, 2021 USD ($)	Jan. 29, 2019 state
Minimum
Loss Contingencies [Line Items]
Current estimate of possible loss	$ 0
Maximum
Loss Contingencies [Line Items]
Current estimate of possible loss	210,000,000
Exposure Associated with Card Member Purchases of Goods and Services
Loss Contingencies [Line Items]
Loss accrual	$ 33,000,000
Violation Of Federal Antitrust Law And Consumer Laws Class Action Case
Loss Contingencies [Line Items]
Number of states with remaining claims under antitrust laws | state		11
Number of states with remaining claims under consumer protection laws | state		6

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Derivatives and Hedging Activities (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	$ 581	$ 629
Total fair value of derivative liabilities	194	702
Derivative asset and derivative liability netting, assets	(97)	(98)
Derivative asset and derivative liability netting, liabilities	(97)	(98)
Other Assets
Derivatives, Fair Value [Line Items]
Total derivatives assets, net	132	31
Cash collateral netting, assets	(352)	(500)
Other Assets | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	428	524
Other Assets | Interest Rate Contract | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total derivatives assets, net	352	500
Other Assets | Foreign Exchange Contract | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total derivatives assets, net	76	24
Other Assets | Foreign Exchange Contract | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	153	105
Other Liabilities
Derivatives, Fair Value [Line Items]
Total derivative liabilities, net	97	588
Cash collateral netting, liabilities	0	(16)
Other Liabilities | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	129	474
Other Liabilities | Interest Rate Contract | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total derivative liabilities, net	0	0
Other Liabilities | Foreign Exchange Contract | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total derivative liabilities, net	129	474
Other Liabilities | Foreign Exchange Contract | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	$ 65	$ 228

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Derivatives and Hedging Activities (Details Textuals) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Derivative [Line Items]
Margin on interest rate swaps	$ 23,000,000		$ 23,000,000		$ 34,000,000
Carrying values of hedged liabilities	13,200,000,000		13,200,000,000		16,400,000,000
Cumulative amount of fair value hedging adjustment	424,000,000		424,000,000		622,000,000
Net decrease in interest expense on long term debt and other	63,000,000	$ 81,000,000	136,000,000	$ (102,000,000)
Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative notional amount	14,400,000,000		14,400,000,000		14,400,000,000
Other Expense
Derivative [Line Items]
(Gain) loss on changes in fair value of derivatives and related underlying foreign currency exposures	9,000,000	2,000,000	14,000,000	(18,000,000)
Fair Value Hedging | Fixed-Rate Debt Obligations
Derivative [Line Items]
Fixed-rate debt obligations designated in fair value hedging relationships	12,900,000,000		12,900,000,000		15,800,000,000
Net Investment Hedges
Derivative [Line Items]
Notional amounts of derivatives	10,800,000,000		10,800,000,000		$ 10,500,000,000
Net hedges of investments in foreign operations	108,000,000	339,000,000	102,000,000	(393,000,000)
Reclassifications out of AOCI	$ 0	$ 0	$ 0	$ 0

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Derivatives and Hedging Activities (Details 1) - Interest Expense - Interest Rate Contract - Fair Value Hedging - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Fixed-rate long-term debt	$ 55	$ 4	$ 198	$ (593)
Derivatives designated as hedging instruments	(54)	(10)	(199)	601
Total	$ 1	$ (6)	$ (1)	$ 8

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Fair Values (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Investment securities:
Equity securities	$ 51	$ 81
Debt securities	12,392
Fair Value, Recurring
Investment securities:
Equity securities	51	81
Debt securities	12,392	21,550
Derivatives, gross	581	629
Total Assets	13,024	22,260
Liabilities
Derivatives, gross	194	702
Total Liabilities	194	702
Level 1 | Fair Value, Recurring
Investment securities:
Equity securities	50	80
Debt securities	0	0
Derivatives, gross	0	0
Total Assets	50	80
Liabilities
Derivatives, gross	0	0
Total Liabilities	0	0
Level 2 | Fair Value, Recurring
Investment securities:
Equity securities	1	1
Debt securities	12,372	21,550
Derivatives, gross	581	629
Total Assets	12,954	22,180
Liabilities
Derivatives, gross	194	702
Total Liabilities	194	702
Level 3 | Fair Value, Recurring
Investment securities:
Equity securities	0	0
Debt securities	20	0
Derivatives, gross	0	0
Total Assets	20	0
Liabilities
Derivatives, gross	0	0
Total Liabilities	$ 0	$ 0

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Fair Values (Details 2) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Card Member Receivables
Fair Values (Textuals)
Financing receivables, gross	$ 47,585	$ 43,701
Card Member Loans
Fair Values (Textuals)
Financing receivables, gross	75,610	73,373
Variable Interest Entity, Primary Beneficiary | Card Member Receivables
Fair Values (Textuals)
Financing receivables, gross	4,787	4,296
Variable Interest Entity, Primary Beneficiary | Card Member Loans
Fair Values (Textuals)
Financing receivables, gross	25,149	25,908
Carrying Value
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	31,000	33,000
Other financial assets	50,000	46,000
Financial assets carried at other than fair value
Card Member and Other loans, less reserves	74,000	71,000
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101,000	101,000
Financial liabilities carried at other than fair value
Certificates of deposit	6,000	8,000
Long-term debt	37,000	43,000
Fair Values (Textuals)
Long-term debt	37,000	43,000
Corresponding Fair Value Amount
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	31,000	33,000
Other financial assets	50,000	46,000
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101,000	101,000
Corresponding Fair Value Amount | Variable Interest Entity, Primary Beneficiary | Card Member Receivables
Fair Values (Textuals)
Financing receivables, gross	4,800	4,200
Corresponding Fair Value Amount | Level 1
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	28,000	31,000
Other financial assets	0	0
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	0	0
Corresponding Fair Value Amount | Level 2
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	3,000	2,000
Other financial assets	50,000	46,000
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101,000	101,000
Corresponding Fair Value Amount | Level 3
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	0	0
Other financial assets	0	0
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	0	0
Portion at Other than Fair Value Measurement
Financial assets carried at other than fair value
Card Member and Other loans, less reserves	78,000	75,000
Financial liabilities carried at other than fair value
Certificates of deposit	6,000	8,000
Long-term debt	39,000	45,000
Fair Values (Textuals)
Long-term debt	39,000	45,000
Portion at Other than Fair Value Measurement | Variable Interest Entity, Primary Beneficiary
Financial liabilities carried at other than fair value
Long-term debt	12,000	13,000
Fair Values (Textuals)
Long-term debt	12,000	13,000
Portion at Other than Fair Value Measurement | Variable Interest Entity, Primary Beneficiary | Card Member Loans
Fair Values (Textuals)
Financing receivables, gross	25,200	25,800
Portion at Other than Fair Value Measurement | Level 1
Financial assets carried at other than fair value
Card Member and Other loans, less reserves	0	0
Financial liabilities carried at other than fair value
Certificates of deposit	0	0
Long-term debt	0	0
Fair Values (Textuals)
Long-term debt	0	0
Portion at Other than Fair Value Measurement | Level 2
Financial assets carried at other than fair value
Card Member and Other loans, less reserves	0	0
Financial liabilities carried at other than fair value
Certificates of deposit	6,000	8,000
Long-term debt	39,000	45,000
Fair Values (Textuals)
Long-term debt	39,000	45,000
Portion at Other than Fair Value Measurement | Level 3
Financial assets carried at other than fair value
Card Member and Other loans, less reserves	78,000	75,000
Financial liabilities carried at other than fair value
Certificates of deposit	0	0
Long-term debt	0	0
Fair Values (Textuals)
Long-term debt	$ 0	$ 0

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Fair Values (Details Textuals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net upward adjustments of equity securities without readily determinable fair values	$ 248	$ 7	$ 625	$ 22
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of equity securities without readily determinable fair values	1,200		1,200		$ 530
Net upward adjustments of equity securities without readily determinable fair values	248	$ 7	625	$ 22
Cumulative net unrealized gains for equity investments without readily determinable fair values	$ 977		$ 977		$ 347

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Guarantees (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Guarantees [Abstract]
Maximum potential amount of undiscounted future payments	$ 1,000	$ 1,000
Amount of related liability	$ 26	$ 24

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Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 24,449	$ 21,006	$ 22,984	$ 23,071
Net change in accumulated other comprehensive income (loss)	17	85	14	(174)
Ending Balance	25,539	21,062	25,539	21,062
Tax impact for the changes in each component of accumulated other comprehensive (loss) income
Total tax impact	(39)	(115)	(23)	175
Decrease due to amounts reclassified into earnings
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Net change in accumulated other comprehensive income (loss)	0	(3)	0	(3)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(2,898)	(2,996)	(2,895)	(2,737)
Ending Balance	(2,881)	(2,911)	(2,881)	(2,911)
Net Unrealized Gains (Losses) on Debt Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	53	90	65	33
Net change in accumulated other comprehensive income (loss)	(11)	(5)	(23)	52
Ending Balance	42	85	42	85
Tax impact for the changes in each component of accumulated other comprehensive (loss) income
Total tax impact	(3)	(2)	(6)	16
Foreign Currency Translation Adjustment Gains (Losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(2,246)	(2,511)	(2,229)	(2,189)
Net change in accumulated other comprehensive income (loss)	19	123	2	(199)
Ending Balance	(2,227)	(2,388)	(2,227)	(2,388)
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(705)	(575)	(731)	(581)
Net change in accumulated other comprehensive income (loss)	9	(33)	35	(27)
Ending Balance	(696)	(608)	(696)	(608)
Tax impact for the changes in each component of accumulated other comprehensive (loss) income
Total tax impact	2	(1)	13	11
Net translation on investments in foreign operations
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Net change in accumulated other comprehensive income (loss)	127	465	104	(589)
Tax impact for the changes in each component of accumulated other comprehensive (loss) income
Total tax impact	(3)	(6)	5	24
Net hedges of investments in foreign operations
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Net change in accumulated other comprehensive income (loss)	(108)	(339)	(102)	393
Tax impact for the changes in each component of accumulated other comprehensive (loss) income
Total tax impact	$ (35)	$ (106)	$ (35)	$ 124

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Changes in Accumulated Other Comprehensive Income (Loss) (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss)	$ 17	$ 85	$ 14	$ (174)
Decrease due to amounts reclassified into earnings
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss)	$ 0	$ (3)	$ 0	$ (3)

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Other Fees and Commissions and Other Expenses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Fees charged to Card Members:
Delinquency fees	$ 146	$ 196	$ 294	$ 456
Foreign currency conversion fee revenue	109	57	205	250
Other customer fees:
Loyalty coalition-related fees	121	90	245	198
Travel commissions and fees	57	5	90	65
Service fees and other	127	101	246	200
Other fees and commissions
Other customer fees:
Total Other fees and commissions	$ 560	$ 449	$ 1,080	$ 1,169

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Other Fees and Commissions and Other Expenses (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Fees and Commissions and Other Expenses [Abstract]
Data processing and equipment	$ 577	$ 564	$ 1,159	$ 1,113
Professional services	458	406	861	845
Net unrealized gains on Amex Ventures equity investments	(248)	(7)	(625)	(22)
Other	220	267	482	583
Total Other expenses	$ 1,007	$ 1,230	$ 1,877	$ 2,519

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Income Taxes (Details Textuals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Actual tax rates	22.40%	58.70%	23.90%	41.90%
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax	$ 133		$ 133
Unrecognized tax benefits that, if recognized, could impact effective tax rate	$ 105		$ 105

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Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2021		Jun. 30, 2020		Jun. 30, 2021		Jun. 30, 2020
Basic and diluted:
Net income	$ 2,280		$ 257		$ 4,515		$ 624
Preferred dividends	(15)		(17)		(29)		(49)
Net income available to common shareholders	2,265		240		4,486		575
Earnings allocated to participating share awards	(16)		(2)		(31)		(4)
Net income attributable to common shareholders	$ 2,249		$ 238		$ 4,455		$ 571
Denominator:
Basic: Weighted-average common stock (in shares)	801,000		804,000		802,000		806,000
Add: Weighted-average stock options (in shares)	1,000		1,000		1,000		1,000
Diluted (in shares)	802,000		805,000		803,000		807,000
Basic EPS (in dollars per share)	$ 2.81	[1]	$ 0.29	[1]	$ 5.55	[2]	$ 0.71	[2]
Diluted EPS (in dollars per share)	$ 2.80	[1]	$ 0.29	[1]	$ 5.54	[2]	$ 0.71	[2]
Stock options
Denominator:
The dilutive effect of securities excluded from the calculation of earnings per share (in shares)	10		1,510		210		590

[1] Represents net income less (i) earnings allocated to participating share awards of $16 million and $2 million for the three months ended June 30, 2021 and 2020, respectively, and (ii) dividends on preferred shares of $15 million and $17 million for the three months ended June 30, 2021 and 2020, respectively.

[2] Represents net income less (i) earnings allocated to participating share awards of $31 million and $4 million for the six months ended June 30, 2021 and 2020, respectively, and (ii) dividends on preferred shares of $29 million and $49 million for the six months ended June 30, 2021 and 2020, respectively.

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Reportable Operating Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Non-interest revenues	$ 8,425	$ 5,791	$ 15,659	$ 13,771
Revenue from contracts with customers	6,762	4,357	12,416	10,653
Interest income	2,140	2,426	4,332	5,472
Interest expense	322	542	684	1,258
Total revenues net of interest expense	10,243	7,675	19,307	17,985
Pretax segment income (loss)	2,940	622	5,933	1,074
Total assets	186,973	189,000	186,973	189,000	$ 191,367
Corporate and Other
Segment Reporting Information [Line Items]
Non-interest revenues	(58)	(74)	(136)	(121)
Revenue from contracts with customers	(7)	(6)	(13)	(16)
Interest income	42	49	86	179
Interest expense	57	122	132	346
Total revenues net of interest expense	(73)	(147)	(182)	(288)
Pretax segment income (loss)	(308)	(387)	(520)	(738)
Total assets	37,000	59,000	37,000	59,000
GCSG | Operating Segments
Segment Reporting Information [Line Items]
Non-interest revenues	4,464	3,024	8,283	7,030
Revenue from contracts with customers	3,223	1,927	5,837	4,729
Interest income	1,749	1,971	3,557	4,382
Interest expense	174	272	362	600
Total revenues net of interest expense	6,039	4,723	11,478	10,812
Pretax segment income (loss)	1,882	843	4,037	1,102
Total assets	90,000	81,000	90,000	81,000
GCS | Operating Segments
Segment Reporting Information [Line Items]
Non-interest revenues	2,815	2,014	5,247	4,802
Revenue from contracts with customers	2,411	1,652	4,463	4,024
Interest income	345	402	681	901
Interest expense	111	154	227	354
Total revenues net of interest expense	3,049	2,262	5,701	5,349
Pretax segment income (loss)	839	(22)	1,504	(3)
Total assets	46,000	38,000	46,000	38,000
GMNS | Operating Segments
Segment Reporting Information [Line Items]
Non-interest revenues	1,204	827	2,265	2,060
Revenue from contracts with customers	1,135	784	2,129	1,916
Interest income	4	4	8	10
Interest expense	(20)	(6)	(37)	(42)
Total revenues net of interest expense	1,228	837	2,310	2,112
Pretax segment income (loss)	527	188	912	713
Total assets	$ 14,000	$ 11,000	$ 14,000	$ 11,000