(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
None |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Class | Outstanding at October 18, 2021 | ||||||||||
Common Shares (par value $0.20 per share) | Shares |
Page No. | |||||||||||||||||
Three Months Ended September 30, | Change 2021 vs. 2020 | Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Millions, except percentages and per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense | $ | 10,928 | $ | 8,751 | $ | 2,177 | 25% | $ | 30,235 | $ | 26,736 | $ | 3,499 | 13% | ||||||||||||||||||||||||||||||||||||
Provisions for credit losses | (191) | 665 | (856) | # | (1,472) | 4,841 | (6,313) | # | ||||||||||||||||||||||||||||||||||||||||||
Expenses | 8,669 | 6,722 | 1,947 | 29 | 23,324 | 19,457 | 3,867 | 20 | ||||||||||||||||||||||||||||||||||||||||||
Pretax income | 2,450 | 1,364 | 1,086 | 80 | 8,383 | 2,438 | 5,945 | # | ||||||||||||||||||||||||||||||||||||||||||
Income tax provision | 624 | 291 | 333 | # | 2,042 | 741 | 1,301 | # | ||||||||||||||||||||||||||||||||||||||||||
Net income | 1,826 | 1,073 | 753 | 70 | 6,341 | 1,697 | 4,644 | # | ||||||||||||||||||||||||||||||||||||||||||
Earnings per common share — diluted (a) | $ | 2.27 | $ | 1.30 | $ | 0.97 | 75% | $ | 7.82 | $ | 2.01 | $ | 5.81 | # | ||||||||||||||||||||||||||||||||||||
Return on average equity (b) | 32.6 | % | 15.3 | % | 32.6 | % | 15.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 25.5 | % | 21.3 | % | 24.4 | % | 30.4 | % | ||||||||||||||||||||||||||||||||||||||||||
# Denotes a variance of 100 percent or more |
Three Months Ended September 30, | Change 2021 vs. 2020 | Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Millions, except percentages) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Discount revenue | $ | 6,676 | $ | 4,999 | $ | 1,677 | 34% | $ | 18,245 | $ | 14,852 | $ | 3,393 | 23% | ||||||||||||||||||||||||||||||||||||
Net card fees (a) | 1,312 | 1,191 | 121 | 10 | 3,851 | 3,442 | 409 | 12 | ||||||||||||||||||||||||||||||||||||||||||
Other fees and commissions | 632 | 478 | 154 | 32 | 1,712 | 1,647 | 65 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Other | 314 | 209 | 105 | 50 | 785 | 707 | 78 | 11 | ||||||||||||||||||||||||||||||||||||||||||
Total non-interest revenues | 8,934 | 6,877 | 2,057 | 30 | 24,593 | 20,648 | 3,945 | 19 | ||||||||||||||||||||||||||||||||||||||||||
Total interest income | 2,301 | 2,324 | (23) | (1) | 6,633 | 7,796 | (1,163) | (15) | ||||||||||||||||||||||||||||||||||||||||||
Total interest expense | 307 | 450 | (143) | (32) | 991 | 1,708 | (717) | (42) | ||||||||||||||||||||||||||||||||||||||||||
Net interest income | 1,994 | 1,874 | 120 | 6 | 5,642 | 6,088 | (446) | (7) | ||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense | $ | 10,928 | $ | 8,751 | $ | 2,177 | 25% | $ | 30,235 | $ | 26,736 | $ | 3,499 | 13% |
Three Months Ended September 30, | Change 2021 vs. 2020 | Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Millions, except percentages) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net write-offs | $ | 32 | $ | 219 | $ | (187) | (85)% | $ | 89 | $ | 776 | $ | (687) | (89)% | ||||||||||||||||||||||||||||||||||||
Reserve (release) build (a) | (44) | (102) | 58 | (57) | (236) | 293 | (529) | # | ||||||||||||||||||||||||||||||||||||||||||
Total | (12) | 117 | (129) | # | (147) | 1,069 | (1,216) | # | ||||||||||||||||||||||||||||||||||||||||||
Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net write-offs | 161 | 523 | (362) | (69) | 708 | 1,750 | (1,042) | (60) | ||||||||||||||||||||||||||||||||||||||||||
Reserve (release) build (a) | (338) | 48 | (386) | # | (1,854) | 1,666 | (3,520) | # | ||||||||||||||||||||||||||||||||||||||||||
Total | (177) | 571 | (748) | # | (1,146) | 3,416 | (4,562) | # | ||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net write-offs - Other loans (b) | — | 27 | (27) | # | 19 | 80 | (61) | (76) | ||||||||||||||||||||||||||||||||||||||||||
Net write-offs - Other receivables (c) | 9 | 12 | (3) | (25) | 25 | 20 | 5 | 25 | ||||||||||||||||||||||||||||||||||||||||||
Reserve (release) build - Other loans (a)(b) | (5) | (53) | 48 | (91) | (171) | 198 | (369) | # | ||||||||||||||||||||||||||||||||||||||||||
Reserve (release) build - Other receivables (a)(c) | (6) | (9) | 3 | (33) | (52) | 58 | (110) | # | ||||||||||||||||||||||||||||||||||||||||||
Total | (2) | (23) | 21 | (91) | (179) | 356 | (535) | # | ||||||||||||||||||||||||||||||||||||||||||
Total provisions for credit losses | $ | (191) | $ | 665 | $ | (856) | # | $ | (1,472) | $ | 4,841 | $ | (6,313) | # |
Three Months Ended September 30, | Change 2021 vs. 2020 | Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Millions, except percentages) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing and business development | $ | 2,355 | $ | 1,822 | $ | 533 | 29% | $ | 6,340 | $ | 4,889 | $ | 1,451 | 30% | ||||||||||||||||||||||||||||||||||||
Card Member rewards | 3,020 | 2,004 | 1,016 | 51 | 7,975 | 5,745 | 2,230 | 39 | ||||||||||||||||||||||||||||||||||||||||||
Card Member services | 579 | 259 | 320 | # | 1,328 | 923 | 405 | 44 | ||||||||||||||||||||||||||||||||||||||||||
Total marketing, business development, and Card Member rewards and services | 5,954 | 4,085 | 1,869 | 46 | 15,643 | 11,557 | 4,086 | 35 | ||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 1,497 | 1,408 | 89 | 6 | 4,586 | 4,152 | 434 | 10 | ||||||||||||||||||||||||||||||||||||||||||
Other, net | 1,218 | 1,229 | (11) | (1) | 3,095 | 3,748 | (653) | (17) | ||||||||||||||||||||||||||||||||||||||||||
Total expenses | $ | 8,669 | $ | 6,722 | $ | 1,947 | 29% | $ | 23,324 | $ | 19,457 | $ | 3,867 | 20% |
As of or for the Three Months Ended September 30, | Change 2021 vs. 2020 | As of or for the Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Network volumes: (billions) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 232.0 | $ | 174.6 | 33 | % | $ | 640.8 | $ | 513.2 | 25 | % | ||||||||||||||||||||||||||
Outside the U.S. | 98.7 | 80.9 | 22 | 275.3 | 238.7 | 15 | ||||||||||||||||||||||||||||||||
Total | $ | 330.7 | $ | 255.5 | 29 | $ | 916.1 | $ | 751.9 | 22 | ||||||||||||||||||||||||||||
Billed business | $ | 280.4 | $ | 213.6 | 31 | $ | 773.6 | $ | 630.9 | 23 | ||||||||||||||||||||||||||||
Processed volumes | 50.3 | 41.9 | 20 | 142.5 | 121.0 | 18 | ||||||||||||||||||||||||||||||||
Total | $ | 330.7 | $ | 255.5 | 29 | $ | 916.1 | $ | 751.9 | 22 | ||||||||||||||||||||||||||||
Cards-in-force: (millions) | ||||||||||||||||||||||||||||||||||||||
U.S. | 56.0 | 53.6 | 4 | 56.0 | 53.6 | 4 | ||||||||||||||||||||||||||||||||
Outside the U.S. | 63.2 | 57.9 | 9 | 63.2 | 57.9 | 9 | ||||||||||||||||||||||||||||||||
Total | 119.2 | 111.5 | 7 | 119.2 | 111.5 | 7 | ||||||||||||||||||||||||||||||||
Proprietary | 70.6 | 68.8 | 3 | 70.6 | 68.8 | 3 | ||||||||||||||||||||||||||||||||
GNS | 48.6 | 42.7 | 14 | 48.6 | 42.7 | 14 | ||||||||||||||||||||||||||||||||
Total | 119.2 | 111.5 | 7 | 119.2 | 111.5 | 7 | ||||||||||||||||||||||||||||||||
Basic cards-in-force: (millions) | ||||||||||||||||||||||||||||||||||||||
U.S. | 44.0 | 42.0 | 5 | 44.0 | 42.0 | 5 | ||||||||||||||||||||||||||||||||
Outside the U.S. | 54.3 | 48.8 | 11 | 54.3 | 48.8 | 11 | ||||||||||||||||||||||||||||||||
Total | 98.3 | 90.8 | 8 | 98.3 | 90.8 | 8 | ||||||||||||||||||||||||||||||||
Average proprietary basic Card Member spending: (dollars) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 5,771 | $ | 4,486 | 29 | $ | 16,106 | $ | 13,110 | 23 | ||||||||||||||||||||||||||||
Outside the U.S. | 3,893 | 2,989 | 30 | 10,745 | 8,776 | 22 | ||||||||||||||||||||||||||||||||
Worldwide Average | $ | 5,231 | $ | 4,041 | 29 | $ | 14,555 | $ | 11,814 | 23 | ||||||||||||||||||||||||||||
Average discount rate | 2.32 | % | 2.27 | % | 2.30 | % | 2.29 | % | ||||||||||||||||||||||||||||||
Average fee per card (dollars)(a) | $ | 75 | $ | 69 | 9 | % | $ | 74 | $ | 66 | 12 | % |
Three Months Ended September 30, 2021 | |||||||||||
Year over Year Percentage Increase (Decrease) | Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a) | ||||||||||
Worldwide | |||||||||||
Network volumes | 29 | % | 29 | % | |||||||
Total billed business | 31 | 31 | |||||||||
Consumer billed business | 34 | 34 | |||||||||
Commercial billed business | 28 | 28 | |||||||||
Processed volumes | 20 | 18 | |||||||||
U.S. | |||||||||||
Network volumes | 33 | ||||||||||
Total billed business | 32 | ||||||||||
Consumer billed business | 37 | ||||||||||
Commercial billed business | 28 | ||||||||||
Outside the U.S. | |||||||||||
Network volumes | 22 | 20 | |||||||||
Total billed business | 28 | 25 | |||||||||
Consumer billed business | 27 | 24 | |||||||||
Commercial billed business | 28 | 27 | |||||||||
Asia Pacific network volumes | 10 | 10 | |||||||||
Latin America & Canada network volumes | 39 | 35 | |||||||||
Europe, the Middle East & Africa network volumes | 36 | 31 | |||||||||
Merchant Industry Metrics | |||||||||||
Worldwide billed business | |||||||||||
G&S-related (79% of worldwide billed business) | 18 | 18 | |||||||||
T&E-related (21% of worldwide billed business) | 126 | 124 | |||||||||
Airline-related (3% of worldwide billed business) | 429 | 426 | % | ||||||||
U.S. billed business | |||||||||||
G&S-related (80% of U.S. billed business) | 19 | ||||||||||
T&E-related (20% of U.S. billed business) | 141 | ||||||||||
Airline-related (3% of U.S. billed business) | 421 | % |
Nine Months Ended September 30, 2021 | |||||||||||
Year over Year Percentage Increase (Decrease) | Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a) | ||||||||||
Worldwide | |||||||||||
Network volumes | 22 | % | 20 | % | |||||||
Total billed business | 23 | 21 | |||||||||
Consumer billed business | 27 | 25 | |||||||||
Commercial billed business | 18 | 16 | |||||||||
Processed volumes | 18 | 14 | |||||||||
U.S. | |||||||||||
Network volumes | 25 | ||||||||||
Total billed business | 24 | ||||||||||
Consumer billed business | 30 | ||||||||||
Commercial billed business | 19 | ||||||||||
Outside the U.S. | |||||||||||
Network Volumes | 15 | 9 | |||||||||
Total billed business | 18 | 11 | |||||||||
Consumer billed business | 21 | 14 | |||||||||
Commercial billed business | 13 | 7 | |||||||||
Asia Pacific network volumes | 12 | 6 | |||||||||
Latin America & Canada network volumes | 18 | 16 | |||||||||
Europe, the Middle East & Africa network volumes | 20 | 12 | |||||||||
Merchant Industry Metrics | |||||||||||
Worldwide billed business | |||||||||||
G&S-related (82% of worldwide billed business) | 19 | 18 | |||||||||
T&E-related (18% of worldwide billed business) | 39 | 37 | |||||||||
Airline-related (3% of worldwide billed business) | 27 | 24 | % | ||||||||
U.S. billed business | |||||||||||
G&S-related (82% of U.S. billed business) | 19 | ||||||||||
T&E-related (18% of U.S. billed business) | 51 | ||||||||||
Airline-related (3% of U.S. billed business) | 45 | % |
As of or for the Three Months Ended September 30, | Change 2021 vs. 2020 | As of or for the Nine Months Ended September 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. | $ | 67.5 | $ | 61.4 | 10 | % | $ | 67.5 | $ | 61.4 | 10 | % | ||||||||||||||||||||||||||
Outside the U.S. | 9.5 | 8.2 | 16 | 9.5 | 8.2 | 16 | ||||||||||||||||||||||||||||||||
Total | $ | 77.0 | $ | 69.6 | 11 | $ | 77.0 | $ | 69.6 | 11 | ||||||||||||||||||||||||||||
Credit loss reserves: | ||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,835 | $ | 5,628 | (32) | $ | 5,344 | $ | 4,027 | 33 | ||||||||||||||||||||||||||||
Provisions - principal, interest and fees | (177) | 571 | # | (1,146) | 3,416 | # | ||||||||||||||||||||||||||||||||
Net write-offs — principal less recoveries | (118) | (432) | (73) | (544) | (1,449) | (62) | ||||||||||||||||||||||||||||||||
Net write-offs — interest and fees less recoveries | (43) | (91) | (53) | (164) | (301) | (46) | ||||||||||||||||||||||||||||||||
Other (a) | $ | (8) | $ | 12 | # | (1) | (5) | (80) | ||||||||||||||||||||||||||||||
Ending balance | $ | 3,489 | $ | 5,688 | (39) | $ | 3,489 | $ | 5,688 | (39) | ||||||||||||||||||||||||||||
% of loans | 4.5 | % | 8.2 | % | 4.5 | % | 8.2 | % | ||||||||||||||||||||||||||||||
% of past due | 666 | % | 679 | % | 666 | % | 679 | % | ||||||||||||||||||||||||||||||
Average loans (billions) | $ | 76.4 | $ | 69.9 | 9 | $ | 73.4 | $ | 75.4 | (3) | ||||||||||||||||||||||||||||
Net write-off rate — principal only (b) | 0.6 | % | 2.5 | % | 1.0 | % | 2.6 | % | ||||||||||||||||||||||||||||||
Net write-off rate — principal, interest and fees (b) | 0.8 | 3.0 | 1.3 | 3.1 | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total | 0.7 | % | 1.2 | % | 0.7 | % | 1.2 | % | ||||||||||||||||||||||||||||||
Worldwide Card Member receivables: | ||||||||||||||||||||||||||||||||||||||
Card Member receivables: (billions) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 34.8 | $ | 29.2 | 19 | $ | 34.8 | $ | 29.2 | 19 | ||||||||||||||||||||||||||||
Outside the U.S. | 14.0 | 11.6 | 21 | 14.0 | $ | 11.6 | 21 | |||||||||||||||||||||||||||||||
Total | $ | 48.8 | $ | 40.8 | 20 | $ | 48.8 | $ | 40.8 | 20 | ||||||||||||||||||||||||||||
Credit loss reserves: | ||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 73 | $ | 519 | (86) | $ | 267 | $ | 126 | # | ||||||||||||||||||||||||||||
Provisions - principal and fees | (12) | 117 | # | (147) | 1,069 | # | ||||||||||||||||||||||||||||||||
Net write-offs - principal and fees less recoveries (c) | (32) | (219) | (85) | (89) | (776) | (89) | ||||||||||||||||||||||||||||||||
Other (a) | 1 | 5 | (80) | (1) | 3 | # | ||||||||||||||||||||||||||||||||
Ending balance | $ | 30 | $ | 422 | (93) | % | $ | 30 | $ | 422 | (93) | % | ||||||||||||||||||||||||||
% of receivables | 0.1 | % | 1.0 | % | 0.1 | % | 1.0 | % | ||||||||||||||||||||||||||||||
Net write-off rate — principal and fees (b)(c)(d) | 0.3 | % | 2.2 | % | 0.3 | % | 2.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions, except percentages and where indicated) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net interest income | $ | 1,994 | $ | 1,874 | $ | 5,642 | $ | 6,088 | ||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (a) | 172 | 296 | 603 | 1,041 | ||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (b) | (92) | (137) | (281) | (557) | ||||||||||||||||||||||
Adjusted net interest income (c) | $ | 2,074 | $ | 2,033 | $ | 5,964 | $ | 6,572 | ||||||||||||||||||
Average Card Member loans (billions) | $ | 76.4 | $ | 69.9 | $ | 73.4 | $ | 75.4 | ||||||||||||||||||
Net interest income divided by average Card Member loans (c) | 10.4 | % | 10.7 | % | 10.2 | % | 10.8 | % | ||||||||||||||||||
Net interest yield on average Card Member loans (c) | 10.8 | % | 11.6 | % | 10.9 | % | 11.6 | % |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
(Millions, except percentages) | 2021 | 2020 | 2021 vs. 2020 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest revenues | $ | 4,699 | $ | 3,632 | $ | 1,067 | 29% | $ | 12,982 | $ | 10,662 | $ | 2,320 | 22% | ||||||||||||||||||||||||||||||||||||
Interest income | 1,879 | 1,916 | (37) | (2) | 5,436 | 6,298 | (862) | (14) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | 174 | 244 | (70) | (29) | 536 | 844 | (308) | (36) | ||||||||||||||||||||||||||||||||||||||||||
Net interest income | 1,705 | 1,672 | 33 | 2 | 4,900 | 5,454 | (554) | (10) | ||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense | 6,404 | 5,304 | 1,100 | 21 | 17,882 | 16,116 | 1,766 | 11 | ||||||||||||||||||||||||||||||||||||||||||
Provisions for credit losses | (126) | 411 | (537) | # | (972) | 3,107 | (4,079) | # | ||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense after provisions for credit losses | 6,530 | 4,893 | 1,637 | 33 | 18,854 | 13,009 | 5,845 | 45 | ||||||||||||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Marketing, business development, and Card Member rewards and services | 3,791 | 2,547 | 1,244 | 49 | 9,745 | 7,042 | 2,703 | 38 | ||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits and other operating expenses | 1,251 | 1,221 | 30 | 2 | 3,584 | 3,740 | (156) | (4) | ||||||||||||||||||||||||||||||||||||||||||
Total expenses | 5,042 | 3,768 | 1,274 | 34% | 13,329 | 10,782 | 2,547 | 24% | ||||||||||||||||||||||||||||||||||||||||||
Pretax segment income | $ | 1,488 | $ | 1,125 | $ | 363 | 32% | $ | 5,525 | $ | 2,227 | $ | 3,298 | # | ||||||||||||||||||||||||||||||||||||
As of or for the Three Months Ended September 30, | Change 2021 vs. 2020 | As of or for the Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||
(Millions, except percentages and where indicated) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Billed business: (billions) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 114.9 | $ | 83.9 | 37 | % | $ | 314.7 | $ | 242.9 | 30 | % | ||||||||||||||||||||||||||
Outside the U.S. | 38.2 | 30.2 | 26 | 104.3 | 86.4 | 21 | ||||||||||||||||||||||||||||||||
Total | $ | 153.1 | $ | 114.1 | 34 | $ | 419.0 | $ | 329.3 | 27 | ||||||||||||||||||||||||||||
Proprietary cards-in-force: | ||||||||||||||||||||||||||||||||||||||
U.S. | 38.7 | 37.5 | 3 | 38.7 | 37.5 | 3 | ||||||||||||||||||||||||||||||||
Outside the U.S. | 16.8 | 16.8 | — | 16.8 | 16.8 | — | ||||||||||||||||||||||||||||||||
Total | 55.5 | 54.3 | 2 | 55.5 | 54.3 | 2 | ||||||||||||||||||||||||||||||||
Proprietary basic cards-in-force: | ||||||||||||||||||||||||||||||||||||||
U.S. | 27.2 | 26.5 | 3 | 27.2 | 26.5 | 3 | ||||||||||||||||||||||||||||||||
Outside the U.S. | 11.7 | 11.7 | — | 11.7 | 11.7 | — | ||||||||||||||||||||||||||||||||
Total | 38.9 | 38.2 | 2 | 38.9 | 38.2 | 2 | ||||||||||||||||||||||||||||||||
Average proprietary basic Card Member spending: (dollars) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 4,255 | $ | 3,162 | 35 | $ | 11,731 | $ | 9,080 | 29 | ||||||||||||||||||||||||||||
Outside the U.S. | $ | 3,278 | $ | 2,555 | 28 | $ | 8,982 | $ | 7,209 | 25 | ||||||||||||||||||||||||||||
Average | $ | 3,960 | $ | 2,975 | 33 | $ | 10,901 | $ | 8,501 | 28 | ||||||||||||||||||||||||||||
Total segment assets (billions) | $ | 91.8 | $ | 81.9 | 12 | $ | 91.8 | $ | 81.9 | 12 | ||||||||||||||||||||||||||||
Card Member loans: | ||||||||||||||||||||||||||||||||||||||
Total loans (billions) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 52.6 | $ | 49.8 | 6 | $ | 52.6 | $ | 49.8 | 6 | ||||||||||||||||||||||||||||
Outside the U.S. | 9.0 | 7.7 | 17 | 9.0 | 7.7 | 17 | ||||||||||||||||||||||||||||||||
Total | $ | 61.6 | $ | 57.5 | 7 | $ | 61.6 | $ | 57.5 | 7 | ||||||||||||||||||||||||||||
Average loans (billions) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 52.3 | $ | 50.0 | 5 | $ | 50.5 | $ | 53.8 | (6) | ||||||||||||||||||||||||||||
Outside the U.S. | 8.9 | 7.8 | 14 | 8.5 | 8.6 | (1) | ||||||||||||||||||||||||||||||||
Total | $ | 61.2 | $ | 57.8 | 6 | % | $ | 59.0 | $ | 62.4 | (5) | % | ||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||||||||
Net write-off rate - principal only (a) | 0.5 | % | 2.4 | % | 0.9 | % | 2.6 | % | ||||||||||||||||||||||||||||||
Net write-off rate - principal, interest and fees (a) | 0.8 | 2.9 | 1.2 | 3.1 | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total | 0.7 | 1.1 | 0.7 | 1.1 | ||||||||||||||||||||||||||||||||||
Outside the U.S. | ||||||||||||||||||||||||||||||||||||||
Net write-off rate - principal only (a) | 1.3 | 3.3 | 2.0 | 3.2 | ||||||||||||||||||||||||||||||||||
Net write-off rate - principal, interest and fees (a) | 1.7 | 4.1 | 2.6 | 4.0 | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total | 1.0 | 1.8 | 1.0 | 1.8 | ||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||
Net write-off rate – principal only (a) | 0.7 | 2.5 | 1.1 | 2.7 | ||||||||||||||||||||||||||||||||||
Net write-off rate – principal, interest and fees (a) | 0.9 | 3.1 | 1.4 | 3.2 | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total | 0.7 | % | 1.2 | % | 0.7 | % | 1.2 | % |
As of or for the Three Months Ended September 30, | Change 2021 vs. 2020 | As of or for the Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||
(Millions, except percentages and where indicated) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Card Member receivables: (billions) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 12.6 | $ | 10.3 | 22 | % | $ | 12.6 | $ | 10.3 | 22 | % | ||||||||||||||||||||||||||
Outside the U.S. | 6.9 | 5.8 | 19 | 6.9 | 5.8 | 19 | ||||||||||||||||||||||||||||||||
Total receivables | $ | 19.5 | $ | 16.1 | 21 | % | $ | 19.5 | $ | 16.1 | 21 | % | ||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||||||||
Net write-off rate – principal only (a) | — | % | 1.0 | % | — | % | 1.6 | % | ||||||||||||||||||||||||||||||
Net write-off rate – principal and fees (a) | 0.1 | 1.1 | — | 1.7 | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total | 0.4 | 0.6 | 0.4 | 0.6 | ||||||||||||||||||||||||||||||||||
Outside the U.S. | ||||||||||||||||||||||||||||||||||||||
Net write-off rate – principal only (a) | 0.6 | 2.8 | 1.0 | 2.9 | ||||||||||||||||||||||||||||||||||
Net write-off rate – principal and fees (a) | 0.7 | 3.1 | 1.1 | 3.1 | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total | 0.7 | 1.2 | 0.7 | 1.2 | ||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||
Net write-off rate – principal only (a) | 0.2 | 1.7 | 0.3 | 2.0 | ||||||||||||||||||||||||||||||||||
Net write-off rate – principal and fees (a) | 0.3 | 1.8 | 0.4 | 2.2 | ||||||||||||||||||||||||||||||||||
30+ days past due as a % of total | 0.5 | % | 0.8 | % | 0.5 | % | 0.8 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions, except percentages and where indicated) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||
Net interest income | $ | 1,524 | $ | 1,470 | $ | 4,337 | $ | 4,732 | ||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (a) | 31 | 81 | 135 | 224 | ||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (b) | (27) | (42) | (74) | (156) | ||||||||||||||||||||||
Adjusted net interest income (c) | $ | 1,528 | $ | 1,509 | $ | 4,398 | $ | 4,800 | ||||||||||||||||||
Average Card Member loans (billions) | $ | 52.3 | $ | 50.0 | $ | 50.5 | $ | 53.8 | ||||||||||||||||||
Net interest income divided by average Card Member loans (c) | 11.7 | % | 11.8 | % | 11.5 | % | 11.7 | % | ||||||||||||||||||
Net interest yield on average Card Member loans (c) | 11.6 | % | 12.0 | % | 11.7 | % | 11.9 | % | ||||||||||||||||||
Outside the U.S. | ||||||||||||||||||||||||||
Net interest income | $ | 181 | $ | 202 | $ | 563 | $ | 721 | ||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (a) | 29 | 36 | 81 | 71 | ||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (b) | (2) | (3) | (6) | (9) | ||||||||||||||||||||||
Adjusted net interest income (c) | $ | 208 | $ | 235 | $ | 638 | $ | 783 | ||||||||||||||||||
Average Card Member loans (billions) | $ | 8.9 | $ | 7.8 | $ | 8.6 | $ | 8.6 | ||||||||||||||||||
Net interest income divided by average Card Member loans (c) | 8.1 | % | 10.4 | % | 8.7 | % | 11.2 | % | ||||||||||||||||||
Net interest yield on average Card Member loans (c) | 9.3 | % | 11.9 | % | 10.0 | % | 12.2 | % | ||||||||||||||||||
Total | ||||||||||||||||||||||||||
Net interest income | $ | 1,705 | $ | 1,672 | $ | 4,900 | $ | 5,454 | ||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (a) | 60 | 117 | 216 | 295 | ||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (b) | (29) | (45) | (80) | (166) | ||||||||||||||||||||||
Adjusted net interest income (c) | $ | 1,736 | $ | 1,744 | $ | 5,036 | $ | 5,583 | ||||||||||||||||||
Average Card Member loans (billions) | $ | 61.2 | $ | 57.8 | $ | 59.0 | $ | 62.4 | ||||||||||||||||||
Net interest income divided by average Card Member loans (c) | 11.1 | % | 11.6 | % | 11.1 | % | 11.7 | % | ||||||||||||||||||
Net interest yield on average Card Member loans (c) | 11.3 | % | 12.0 | % | 11.4 | % | 12.0 | % |
Three Months Ended September 30, | Change 2021 vs. 2020 | Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Millions, except percentages) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest revenues | $ | 2,978 | $ | 2,327 | $ | 651 | 28 | % | $ | 8,225 | $ | 7,129 | $ | 1,096 | 15 | % | ||||||||||||||||||||||||||||||||||
Interest income | 378 | 351 | 27 | 8 | 1,059 | 1,252 | (193) | (15) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | 111 | 139 | (28) | (20) | 338 | 493 | (155) | (31) | ||||||||||||||||||||||||||||||||||||||||||
Net interest income | 267 | 212 | 55 | 26 | 721 | 759 | (38) | (5) | ||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense | 3,245 | 2,539 | 706 | 28 | 8,946 | 7,888 | 1,058 | 13 | ||||||||||||||||||||||||||||||||||||||||||
Provisions for credit losses | (67) | 250 | (317) | # | (464) | 1,657 | (2,121) | # | ||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense after provisions for credit losses | 3,312 | 2,289 | 1,023 | 45 | 9,410 | 6,231 | 3,179 | 51 | ||||||||||||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Marketing, business development, and Card Member rewards and services | 1,757 | 1,221 | 536 | 44 | 4,773 | 3,653 | 1,120 | 31 | ||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits and other operating expenses | 837 | 796 | 41 | 5 | 2,415 | 2,309 | 106 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Total expenses | 2,594 | 2,017 | 577 | 29 | 7,188 | 5,962 | 1,226 | 21 | ||||||||||||||||||||||||||||||||||||||||||
Pretax segment income | $ | 718 | $ | 272 | $ | 446 | # | $ | 2,222 | $ | 269 | $ | 1,953 | # | ||||||||||||||||||||||||||||||||||||
As of or for the Three Months Ended September 30, | Change 2021 vs 2020 | As of or for the Nine Months Ended September 30, | Change 2021 vs 2020 | |||||||||||||||||||||||||||||||||||
(Millions, except percentages and where indicated) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Billed business (billions) | $ | 126.1 | $ | 98.5 | 28 | % | $ | 350.0 | $ | 297.4 | 18 | % | ||||||||||||||||||||||||||
Proprietary cards-in-force | 15.1 | 14.5 | 4 | 15.1 | 14.5 | 4 | ||||||||||||||||||||||||||||||||
Average Card Member spending (dollars) | $ | 8,447 | $ | 6,776 | 25 | $ | 23,790 | $ | 20,268 | 17 | ||||||||||||||||||||||||||||
Total segment assets (billions) | $ | 48.2 | $ | 39.9 | 21 | $ | 48.2 | $ | 39.9 | 21 | ||||||||||||||||||||||||||||
GSBS Card Member loans: | ||||||||||||||||||||||||||||||||||||||
Total loans (billions) | $ | 15.3 | $ | 12.0 | 28 | $ | 15.3 | $ | 12.0 | 28 | ||||||||||||||||||||||||||||
Average loans (billions) | $ | 15.2 | $ | 12.1 | 26 | $ | 14.3 | $ | 13.0 | 10 | ||||||||||||||||||||||||||||
Net write-off rate - principal only (a) | 0.5 | % | 2.2 | % | 0.7 | % | 2.1 | % | ||||||||||||||||||||||||||||||
Net write-off rate - principal, interest and fees (a) | 0.6 | % | 2.5 | % | 0.8 | % | 2.4 | % | ||||||||||||||||||||||||||||||
30+ days past due as a % of total | 0.5 | % | 1.1 | % | 0.5 | % | 1.1 | % | ||||||||||||||||||||||||||||||
Calculation of Net Interest Yield on Average Card Member Loans: | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 267 | $ | 212 | $ | 721 | $ | 759 | ||||||||||||||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||||||||||||||
Interest expense not attributable to our Card Member loan portfolio (b) | 88 | 111 | 269 | 375 | ||||||||||||||||||||||||||||||||||
Interest income not attributable to our Card Member loan portfolio (c) | (17) | (34) | (62) | (145) | ||||||||||||||||||||||||||||||||||
Adjusted net interest income (d) | $ | 338 | $ | 289 | $ | 928 | $ | 989 | ||||||||||||||||||||||||||||||
Average Card Member loans (billions) | $ | 15.2 | $ | 12.1 | $ | 14.4 | $ | 13.1 | ||||||||||||||||||||||||||||||
Net interest income divided by average Card Member loans (d) | 7.0 | % | 7.0 | % | 6.7 | % | 7.7 | % | ||||||||||||||||||||||||||||||
Net interest yield on average Card Member loans (d) | 8.8 | % | 9.5 | % | 8.6 | % | 10.1 | % | ||||||||||||||||||||||||||||||
Card Member receivables: | ||||||||||||||||||||||||||||||||||||||
Total receivables (billions) | $ | 29.3 | $ | 24.7 | 19 | $ | 29.3 | 24.7 | 19 | |||||||||||||||||||||||||||||
Net write-off rate - principal and fees (a)(e)(f) | 0.2 | % | 2.5 | % | 0.2 | % | 2.4 | % | ||||||||||||||||||||||||||||||
GCP Card Member receivables: | ||||||||||||||||||||||||||||||||||||||
Total receivables (billions) | $ | 12.5 | $ | 10.4 | 20 | $ | 12.5 | $ | 10.4 | 20 | ||||||||||||||||||||||||||||
90+ days past billing as a % of total (e) | 0.3 | % | 0.6 | % | 0.3 | % | 0.6 | % | ||||||||||||||||||||||||||||||
Net write-off rate - principal and fees (a)(e)(f) | 0.2 | % | 2.4 | % | (0.1) | % | 2.2 | % | ||||||||||||||||||||||||||||||
GSBS Card Member receivables: | ||||||||||||||||||||||||||||||||||||||
Total receivables (billions) | $ | 16.8 | $ | 14.3 | 17 | % | $ | 16.8 | $ | 14.3 | 17 | % | ||||||||||||||||||||||||||
Net write-off rate - principal only (a) | 0.2 | % | 2.3 | % | 0.3 | % | 2.3 | % | ||||||||||||||||||||||||||||||
Net write-off rate - principal and fees (a) | 0.3 | % | 2.5 | % | 0.4 | % | 2.6 | % | ||||||||||||||||||||||||||||||
30+ days past due as a % of total | 0.6 | % | 1.0 | % | 0.6 | % | 1.0 | % |
Three Months Ended September 30, | Change 2021 vs. 2020 | Nine Months Ended September 30, | Change 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Millions, except percentages and where indicated) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest revenues | $ | 1,280 | $ | 997 | $ | 283 | 28% | $ | 3,545 | $ | 3,057 | $ | 488 | 16% | ||||||||||||||||||||||||||||||||||||
Interest income | 4 | 4 | — | — | 12 | 14 | (2) | (14) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | (24) | (19) | (5) | 26 | (61) | (61) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net interest income | 28 | 23 | 5 | 22 | 73 | 75 | (2) | (3) | ||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense | 1,308 | 1,020 | 288 | 28 | 3,618 | 3,132 | 486 | 16 | ||||||||||||||||||||||||||||||||||||||||||
Provisions for credit losses | — | 3 | (3) | # | (37) | 75 | (112) | # | ||||||||||||||||||||||||||||||||||||||||||
Total revenues net of interest expense after provisions for credit losses | 1,308 | 1,017 | 291 | 29 | 3,655 | 3,057 | 598 | 20 | ||||||||||||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Marketing, business development, and Card Member rewards and services | 375 | 297 | 78 | 26 | 1,048 | 800 | 248 | 31 | ||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits and other operating expenses | 404 | 394 | 10 | 3 | 1,166 | 1,218 | (52) | (4) | ||||||||||||||||||||||||||||||||||||||||||
Total expenses | 779 | 691 | 88 | 13 | 2,214 | 2,018 | 196 | 10 | ||||||||||||||||||||||||||||||||||||||||||
Pretax segment income | 529 | 326 | 203 | 62 | 1,441 | 1,039 | 402 | 39 | ||||||||||||||||||||||||||||||||||||||||||
Total segment assets (billions) | $ | 14.2 | $ | 12.0 | 18% | $ | 14.2 | $ | 12.0 | 18% |
Effective Minimum (a) | Ratios as of September 30, 2021 | |||||||||||||
Risk-Based Capital | ||||||||||||||
Common Equity Tier 1 | 7.0 | % | ||||||||||||
American Express Company | 12.6 | % | ||||||||||||
American Express National Bank | 13.5 | |||||||||||||
Tier 1 | 8.5 | |||||||||||||
American Express Company | 14.2 | |||||||||||||
American Express National Bank | 13.5 | |||||||||||||
Total | 10.5 | |||||||||||||
American Express Company | 15.7 | |||||||||||||
American Express National Bank | 15.6 | |||||||||||||
Tier 1 Leverage | 4.0 | % | ||||||||||||
American Express Company | 11.8 | |||||||||||||
American Express National Bank | 10.4 | % |
American Express Company ($ in Billions) | September 30, 2021 | |||||||
Risk-Based Capital | ||||||||
Common Equity Tier 1 | $ | 19.1 | ||||||
Tier 1 Capital | 21.4 | |||||||
Tier 2 Capital | 2.2 | |||||||
Total Capital | 23.7 | |||||||
Risk-Weighted Assets | 150.7 | |||||||
Average Total Assets to calculate the Tier 1 Leverage Ratio | $ | 182.1 |
(Billions) | September 30, 2021 | December 31, 2020 | ||||||||||||
Short-term borrowings | $ | 2.3 | $ | 1.9 | ||||||||||
Long-term debt | 34.5 | 43.0 | ||||||||||||
Total debt | 36.8 | 44.9 | ||||||||||||
Customer deposits | 84.3 | 86.9 | ||||||||||||
Total debt and customer deposits | $ | 121.1 | $ | 131.8 |
Credit Agency | American Express Entity | Short-Term Ratings | Long-Term Ratings | Outlook | ||||||||||||||||||||||
Fitch | American Express Credit Corporation | N/A | A | Stable | ||||||||||||||||||||||
Fitch | All other rated entities | F1 | A | Stable | ||||||||||||||||||||||
Moody’s | American Express Travel Related Services Company, Inc. | Prime-1 | A2 | Stable | ||||||||||||||||||||||
Moody's | American Express Credit Corporation | Prime-1 | A2 | Stable | ||||||||||||||||||||||
Moody's | American Express National Bank | Prime-1 | A3 | Stable | ||||||||||||||||||||||
Moody's | American Express Company | N/A | A3 | Stable | ||||||||||||||||||||||
S&P | American Express Travel Related Services Company, Inc. | A-2 | A- | Stable | ||||||||||||||||||||||
S&P | American Express Credit Corporation | N/A | A- | Stable | ||||||||||||||||||||||
S&P | American Express National Bank | A-2 | A- | Stable | ||||||||||||||||||||||
S&P | American Express Company | A-2 | BBB+ | Stable |
(Billions) | 2021 | 2020 | ||||||||||||
Total cash provided by (used in): | ||||||||||||||
Operating activities | $ | 9.6 | $ | 2.1 | ||||||||||
Investing activities | 0.8 | 17.2 | ||||||||||||
Financing activities | (15.3) | (8.4) | ||||||||||||
Effect of foreign currency exchange rates on cash and cash equivalents | (0.2) | 0.3 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (5.1) | $ | 11.2 |
Three Months Ended September 30 (Millions, except per share amounts) | 2021 | 2020 | ||||||||||||
Revenues | ||||||||||||||
Non-interest revenues | ||||||||||||||
Discount revenue | $ | $ | ||||||||||||
Net card fees | ||||||||||||||
Other fees and commissions | ||||||||||||||
Other | ||||||||||||||
Total non-interest revenues | ||||||||||||||
Interest income | ||||||||||||||
Interest on loans | ||||||||||||||
Interest and dividends on investment securities | ||||||||||||||
Deposits with banks and other | ||||||||||||||
Total interest income | ||||||||||||||
Interest expense | ||||||||||||||
Deposits | ||||||||||||||
Long-term debt and other | ||||||||||||||
Total interest expense | ||||||||||||||
Net interest income | ||||||||||||||
Total revenues net of interest expense | ||||||||||||||
Provisions for credit losses | ||||||||||||||
Card Member receivables | ( | |||||||||||||
Card Member loans | ( | |||||||||||||
Other | ( | ( | ||||||||||||
Total provisions for credit losses | ( | |||||||||||||
Total revenues net of interest expense after provisions for credit losses | ||||||||||||||
Expenses | ||||||||||||||
Marketing and business development | ||||||||||||||
Card Member rewards | ||||||||||||||
Card Member services | ||||||||||||||
Salaries and employee benefits | ||||||||||||||
Other, net | ||||||||||||||
Total expenses | ||||||||||||||
Pretax income | ||||||||||||||
Income tax provision | ||||||||||||||
Net income | $ | $ | ||||||||||||
Earnings per Common Share (Note 14)(a) | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ | ||||||||||||
Average common shares outstanding for earnings per common share: | ||||||||||||||
Basic | ||||||||||||||
Diluted |
Nine Months Ended September 30 (Millions, except per share amounts) | 2021 | 2020 | ||||||||||||
Revenues | ||||||||||||||
Non-interest revenues | ||||||||||||||
Discount revenue | $ | $ | ||||||||||||
Net card fees | ||||||||||||||
Other fees and commissions | ||||||||||||||
Other | ||||||||||||||
Total non-interest revenues | ||||||||||||||
Interest income | ||||||||||||||
Interest on loans | ||||||||||||||
Interest and dividends on investment securities | ||||||||||||||
Deposits with banks and other | ||||||||||||||
Total interest income | ||||||||||||||
Interest expense | ||||||||||||||
Deposits | ||||||||||||||
Long-term debt and other | ||||||||||||||
Total interest expense | ||||||||||||||
Net interest income | ||||||||||||||
Total revenues net of interest expense | ||||||||||||||
Provisions for credit losses | ||||||||||||||
Card Member receivables | ( | |||||||||||||
Card Member loans | ( | |||||||||||||
Other | ( | |||||||||||||
Total provisions for credit losses | ( | |||||||||||||
Total revenues net of interest expense after provisions for credit losses | ||||||||||||||
Expenses | ||||||||||||||
Marketing and business development | ||||||||||||||
Card Member rewards | ||||||||||||||
Card Member services | ||||||||||||||
Salaries and employee benefits | ||||||||||||||
Other, net | ||||||||||||||
Total expenses | ||||||||||||||
Pretax income | ||||||||||||||
Income tax provision | ||||||||||||||
Net income | $ | $ | ||||||||||||
Earnings per Common Share (Note 14)(a) | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ | ||||||||||||
Average common shares outstanding for earnings per common share: | ||||||||||||||
Basic | ||||||||||||||
Diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Net unrealized debt securities (losses) gains, net of tax | ( | ( | ( | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | ( | ( | ( | |||||||||||||||||||||||
Net unrealized pension and other postretirement benefits, net of tax | ( | |||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
(Millions, except share data) | September 30, 2021 | December 31, 2020 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2021, $ | ||||||||||||||
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2021, $ | ||||||||||||||
Total cash and cash equivalents | ||||||||||||||
Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2021, $ | ||||||||||||||
Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2021, $ | ||||||||||||||
Other loans, less reserves for credit losses: 2021, $ | ||||||||||||||
Investment securities | ||||||||||||||
Premises and equipment, less accumulated depreciation and amortization: 2021, $ | ||||||||||||||
Other assets, less reserves for credit losses: 2021, $ | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Liabilities | ||||||||||||||
Customer deposits | $ | $ | ||||||||||||
Accounts payable | ||||||||||||||
Short-term borrowings | ||||||||||||||
Long-term debt (includes debt issued by consolidated variable interest entities: 2021, $ | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | $ | $ | ||||||||||||
Contingencies (Note 7) | ||||||||||||||
Shareholders’ Equity | ||||||||||||||
Preferred shares, $1.662/3 par value, authorized | ||||||||||||||
Common shares, $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive income (loss) | ||||||||||||||
Net unrealized debt securities gains, net of tax of: 2021, $ | ||||||||||||||
Foreign currency translation adjustments, net of tax of: 2021, $( | ( | ( | ||||||||||||
Net unrealized pension and other postretirement benefits, net of tax of: 2021, $( | ( | ( | ||||||||||||
Total accumulated other comprehensive income (loss) | ( | ( | ||||||||||||
Total shareholders’ equity | ||||||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Nine Months Ended September 30 (Millions) | 2021 | 2020 | ||||||||||||
Cash Flows from Operating Activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Provisions for credit losses | ( | |||||||||||||
Depreciation and amortization | $ | |||||||||||||
Deferred taxes and other | ( | |||||||||||||
Stock-based compensation | ||||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||
Other assets | ( | |||||||||||||
Accounts payable & other liabilities | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||
Sale of investment securities | ||||||||||||||
Maturities and redemptions of investment securities | ||||||||||||||
Purchase of investments | ( | ( | ||||||||||||
Net (increase) decrease in Card Member loans and receivables, and other loans | ( | |||||||||||||
Purchase of premises and equipment, net of sales: 2021, $ | ( | ( | ||||||||||||
Other investing activities | ||||||||||||||
Net cash provided by investing activities | ||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||
Net (decrease) increase in customer deposits | ( | |||||||||||||
Net increase (decrease) in short-term borrowings | ( | |||||||||||||
Proceeds from long-term debt | ||||||||||||||
Payments of long-term debt | ( | ( | ||||||||||||
Issuance of American Express preferred shares | ||||||||||||||
Redemption of American Express preferred shares | ( | |||||||||||||
Issuance of American Express common shares | ||||||||||||||
Repurchase of American Express common shares and other | ( | ( | ||||||||||||
Dividends paid | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Effect of foreign currency exchange rates on cash and cash equivalents | ( | |||||||||||||
Net (decrease) increase in cash and cash equivalents | ( | |||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ |
Supplemental cash flow information | ||||||||||||||||||||||||||
Cash and cash equivalents reconciliation | Sep-21 | Dec-20 | Sep-20 | Dec-19 | ||||||||||||||||||||||
Cash and cash equivalents per Consolidated Balance Sheets | $ | $ | $ | $ | ||||||||||||||||||||||
Restricted balances included in Cash and cash equivalents | ||||||||||||||||||||||||||
Total cash and cash equivalents excluding restricted balances | $ | $ | $ | $ |
Three months ended September 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 June 30, 2021 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||
Preferred shares issued | — | — | — | — | ||||||||||||||||||||||||||||||||||
Redemption of preferred shares | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Repurchase of common shares | ( | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Other changes, primarily employee plans | — | — | — | — | ||||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series B, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series C, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series D, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared common, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Balances as of September 30, 2021 | $ | $ | $ | $ | $ | ( | $ |
Nine months ended September 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 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||
Preferred shares issued | — | — | — | — | ||||||||||||||||||||||||||||||||||
Redemption of preferred shares | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Repurchase of common shares | ( | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Other changes, primarily employee plans | — | — | ( | |||||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series B, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series C, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series D, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared common, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Balances as of September 30, 2021 | $ | $ | $ | $ | $ | ( | $ |
Three months ended September 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 June 30, 2020 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||
Other changes, primarily employee plans | — | — | — | |||||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series B, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series C, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared common, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Balances as of September 30, 2020 | $ | $ | $ | $ | $ | ( | $ |
Nine months ended September 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 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle - (a) | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||
Repurchase of common shares | ( | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Other changes, primarily employee plans | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series B, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared preferred Series C, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared common, $ | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||
Balances as of September 30, 2020 | $ | $ | $ | $ | $ | ( | $ |
(Millions) | 2021 | 2020 | ||||||||||||
Global Consumer Services Group (a) | $ | $ | ||||||||||||
Global Commercial Services | ||||||||||||||
Card Member loans | ||||||||||||||
Less: Reserves for credit losses | ||||||||||||||
Card Member loans, net | $ | $ | ||||||||||||
Other loans, net (b) | $ | $ |
(Millions) | 2021 | 2020 | ||||||||||||
Global Consumer Services Group | $ | $ | ||||||||||||
Global Commercial Services (a) | ||||||||||||||
Card Member receivables | ||||||||||||||
Less: Reserves for credit losses | ||||||||||||||
Card Member receivables, net | $ | $ |
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 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Global Commercial Services | ||||||||||||||||||||||||||||||||
Global Small Business Services | ||||||||||||||||||||||||||||||||
Global Corporate Payments (a) | (b) | (b) | (b) | |||||||||||||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||||||||||||
Global Consumer Services Group | ||||||||||||||||||||||||||||||||
Global Commercial Services | ||||||||||||||||||||||||||||||||
Global Small Business Services | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Global Corporate Payments (a) | (b) | (b) | (b) | $ | $ |
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 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Global Commercial Services | ||||||||||||||||||||||||||||||||
Global Small Business Services | ||||||||||||||||||||||||||||||||
Global Corporate Payments (a) | (b) | (b) | (b) | |||||||||||||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||||||||||||
Global Consumer Services Group | ||||||||||||||||||||||||||||||||
Global Commercial Services | ||||||||||||||||||||||||||||||||
Global Small Business Services | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Global Corporate Payments (a) | (b) | (b) | (b) | $ | $ |
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 | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
Global Small Business Services | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||||||||||||||||||
Global Consumer Services Group | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
Global Small Business Services | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
Global Corporate Payments (d) | (b) | ( | % | (c) | (b) | % | (c) |
As of September 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 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Global Commercial Services | ||||||||||||||||||||||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||||||||||||||||||
Global Consumer Services Group | ||||||||||||||||||||||||||||||||||||||
Global Commercial Services | ||||||||||||||||||||||||||||||||||||||
Other Loans (f) | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
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 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Global Commercial Services | ||||||||||||||||||||||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||||||||||||||||||
Global Consumer Services Group | ||||||||||||||||||||||||||||||||||||||
Global Commercial Services | ||||||||||||||||||||||||||||||||||||||
Other Loans (f) | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2021 | Nine Months Ended September 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) | Account Balances (millions)(a) | Average Interest Rate Reduction (% Points) | Average Payment Term Extension (# of Months) | |||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member Loans | $ | (b) | $ | (b) | ||||||||||||||||||||||||||||||||||||||||||||||
Card Member Receivables | (c) | (c) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Loans (d) | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ |
Three Months Ended September 30, 2020 | Nine Months Ended September 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) | Account Balances (millions)(a) | Average Interest Rate Reduction (% Points) | Average Payment Term Extension (# of Months) | |||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member Loans | $ | (b) | $ | (b) | ||||||||||||||||||||||||||||||||||||||||||||||
Card Member Receivables | (c) | (c) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Loans (d) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ |
Three Months Ended September 30, 2021 | Nine Months Ended September 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 | $ | $ | ||||||||||||||||||||||||
Card Member Receivables | ||||||||||||||||||||||||||
Other Loans (b) | ||||||||||||||||||||||||||
Total | $ | $ |
Three Months Ended September 30, 2020 | Nine Months Ended September 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 | $ | $ | ||||||||||||||||||||||||
Card Member Receivables | ||||||||||||||||||||||||||
Other Loans (b) | $ | |||||||||||||||||||||||||
Total | $ | $ |
U.S. Unemployment Rate | U.S. GDP Growth (Contraction) (a) | |||||||||||||||||||||||||
September 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||
Third quarter of 2021 | ||||||||||||||||||||||||||
Fourth quarter of 2021 | ||||||||||||||||||||||||||
Fourth quarter of 2022 | ||||||||||||||||||||||||||
Fourth quarter of 2023 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | ||||||||||||||||||||||
Provisions (a) | ( | ( | ||||||||||||||||||||||||
Net write-offs (b) | ||||||||||||||||||||||||||
Principal | ( | ( | ( | ( | ||||||||||||||||||||||
Interest and fees | ( | ( | ( | ( | ||||||||||||||||||||||
Other (c) | ( | ( | ( | |||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | ||||||||||||||||||||||
Provisions (a) | ( | ( | ||||||||||||||||||||||||
Net write-offs (b) | ( | ( | ( | ( | ||||||||||||||||||||||
Other (c) | ( | |||||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ |
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 | $ | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
U.S. Government agency obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government treasury obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds and obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other (b) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities (c)(d) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ |
(Millions) | Cost | Estimated Fair Value | ||||||||||||
Due within 1 year | $ | $ | ||||||||||||
Due after 1 year but within 5 years | ||||||||||||||
Due after 5 years but within 10 years | ||||||||||||||
Due after 10 years | ||||||||||||||
Total | $ | $ |
(Millions) | 2021 | 2020 | ||||||||||||
U.S.: | ||||||||||||||
Interest-bearing | $ | $ | ||||||||||||
Non-interest-bearing (includes Card Member credit balances of: 2021, $ | ||||||||||||||
Non-U.S.: | ||||||||||||||
Interest-bearing | ||||||||||||||
Non-interest-bearing (includes Card Member credit balances of: 2021, $ | ||||||||||||||
Total customer deposits | $ | $ |
(Millions) | 2021 | 2020 | ||||||||||||
U.S. retail deposits: | ||||||||||||||
Savings accounts – Direct | $ | $ | ||||||||||||
Certificates of deposit: | ||||||||||||||
Direct | ||||||||||||||
Third-party (brokered) | ||||||||||||||
Sweep accounts – Third-party (brokered) | ||||||||||||||
Other deposits: | ||||||||||||||
U.S. deposits | ||||||||||||||
Non-U.S. deposits | ||||||||||||||
Card Member credit balances ― U.S. and non-U.S. | ||||||||||||||
Total customer deposits | $ | $ |
(Millions) | U.S. | Non-U.S. | Total | |||||||||||||||||
2021 | $ | $ | $ | |||||||||||||||||
2022 | ||||||||||||||||||||
2023 | ||||||||||||||||||||
2024 | ||||||||||||||||||||
2025 | ||||||||||||||||||||
After 5 years | ||||||||||||||||||||
Total | $ | $ | $ |
(Millions) | 2021 | 2020 | ||||||||||||
U.S. | $ | $ | ||||||||||||
Non-U.S. | ||||||||||||||
Total | $ | $ |
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) | $ | $ | $ | $ | ||||||||||||||||||||||
Net investment hedges - Foreign exchange contracts | ||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Total derivatives, gross | ||||||||||||||||||||||||||
Derivative asset and derivative liability netting (b) | ( | ( | ( | ( | ||||||||||||||||||||||
Cash collateral netting (c) | ( | ( | ( | ( | ||||||||||||||||||||||
Total derivatives, net | $ | $ | $ | $ |
Gains (losses) | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Fixed-rate long-term debt | $ | $ | $ | $ | ( | |||||||||||||||||||||
Derivatives designated as hedging instruments | ( | ( | ( | |||||||||||||||||||||||
Total | $ | $ | ( | $ | $ |
2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Debt securities (b) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, gross (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, gross (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
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) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Other financial assets (b) | ||||||||||||||||||||||||||||||||
Financial assets carried at other than fair value | ||||||||||||||||||||||||||||||||
Card Member and Other loans, less reserves (c) | ||||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Financial liabilities for which carrying values equal or approximate fair value | ||||||||||||||||||||||||||||||||
Financial liabilities carried at other than fair value | ||||||||||||||||||||||||||||||||
Certificates of deposit (d) | ||||||||||||||||||||||||||||||||
Long-term debt (c) | $ | $ | $ | $ | $ |
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) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Other financial assets (b) | ||||||||||||||||||||||||||||||||
Financial assets carried at other than fair value | ||||||||||||||||||||||||||||||||
Card Member and Other loans, less reserves (c) | ||||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Financial liabilities for which carrying values equal or approximate fair value | ||||||||||||||||||||||||||||||||
Financial liabilities carried at other than fair value | ||||||||||||||||||||||||||||||||
Certificates of deposit (d) | ||||||||||||||||||||||||||||||||
Long-term debt (c) | $ | $ | $ | $ | $ |
Three Months Ended September 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 June 30, 2021 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Net unrealized losses | ( | — | — | ( | ||||||||||||||||||||||
Net translation on investments in foreign operations | — | ( | — | ( | ||||||||||||||||||||||
Net hedges of investments in foreign operations | — | — | ||||||||||||||||||||||||
Pension and other postretirement benefits | — | — | ||||||||||||||||||||||||
Net change in accumulated other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Balances as of September 30, 2021 | $ | $ | ( | $ | ( | $ | ( |
Nine Months Ended September 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 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Net unrealized losses | ( | — | — | ( | ||||||||||||||||||||||
Net translation on investments in foreign operations | — | ( | — | ( | ||||||||||||||||||||||
Net hedges of investments in foreign operations | — | — | ||||||||||||||||||||||||
Pension and other postretirement benefits | — | — | ||||||||||||||||||||||||
Net change in accumulated other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Balances as of September 30, 2021 | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended September 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 June 30, 2020 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Net unrealized losses | ( | — | — | ( | ||||||||||||||||||||||
Net translation on investments in foreign operations | — | — | ||||||||||||||||||||||||
Net hedges of investments in foreign operations | — | ( | — | ( | ||||||||||||||||||||||
Pension and other postretirement benefits | — | — | ||||||||||||||||||||||||
Net change in accumulated other comprehensive income (loss) | ( | |||||||||||||||||||||||||
Balances as of September 30, 2020 | $ | $ | ( | $ | ( | $ | ( |
Nine Months Ended September 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 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Net unrealized gains | — | — | ||||||||||||||||||||||||
Decrease due to amounts reclassified into earnings | — | ( | — | ( | ||||||||||||||||||||||
Net translation on investments in foreign operations | — | ( | — | ( | ||||||||||||||||||||||
Net hedges of investments in foreign operations | — | — | ||||||||||||||||||||||||
Pension and other postretirement benefits | — | — | ( | ( | ||||||||||||||||||||||
Net change in accumulated other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Balances as of September 30, 2020 | $ | $ | ( | $ | ( | $ | ( |
Tax expense (benefit) | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net unrealized (losses) gains on debt securities | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||
Net translation on investments in foreign operations | ( | ( | ||||||||||||||||||||||||
Net hedges of investments in foreign operations | ( | |||||||||||||||||||||||||
Pension and other postretirement benefits | ( | |||||||||||||||||||||||||
Total tax impact | $ | $ | ( | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Fees charged to Card Members: | ||||||||||||||||||||||||||
Delinquency fees | $ | $ | $ | $ | ||||||||||||||||||||||
Foreign currency conversion fee revenue | ||||||||||||||||||||||||||
Other customer fees: | ||||||||||||||||||||||||||
Loyalty coalition-related fees | ||||||||||||||||||||||||||
Travel commissions and fees | ||||||||||||||||||||||||||
Service fees and other (a) | ||||||||||||||||||||||||||
Total Other fees and commissions | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Data processing and equipment (a) | $ | $ | $ | $ | ||||||||||||||||||||||
Professional services | ||||||||||||||||||||||||||
Net unrealized and realized gains on Amex Ventures equity investments | ( | ( | ( | ( | ||||||||||||||||||||||
Other (b) | ||||||||||||||||||||||||||
Total Other expenses | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Basic and diluted: | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Preferred dividends | ( | ( | ( | ( | ||||||||||||||||||||||
Equity-related adjustment (a) | ( | ( | ||||||||||||||||||||||||
Net income available to common shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings allocated to participating share awards (b) | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to common shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Denominator:(b) | ||||||||||||||||||||||||||
Basic: Weighted-average common stock | ||||||||||||||||||||||||||
Add: Weighted-average stock options (c) | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Basic EPS | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted EPS | $ | $ | $ | $ |
Series B | Series D | |||||||||||||
Issuance Date | November 10, 2014 | August 3, 2021 | ||||||||||||
Securities issued | ||||||||||||||
Dividend rate per annum | ||||||||||||||
Dividend payment date | Semi-annual beginning May 15, 2015 and, quarterly beginning February 15, 2020 | Quarterly beginning September 15, 2021 | ||||||||||||
Earliest redemption date | November 15, 2019 | September 15, 2026 | ||||||||||||
Aggregate liquidation preference | $ | $ | ||||||||||||
Carrying value (a) | $ | $ |
Three Months Ended September 30, 2021 (Millions, except where indicated) | GCSG | GCS | GMNS | Corporate & Other (a) | Consolidated | |||||||||||||||||||||||||||
Total non-interest revenues | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Revenue from contracts with customers (b) | ( | |||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||||||||||||||
Total revenues net of interest expense | ( | |||||||||||||||||||||||||||||||
Pretax segment income (loss) | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Total assets (billions) | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2021 (Millions, except where indicated) | GCSG | GCS | GMNS | Corporate & Other (a) | Consolidated | |||||||||||||||||||||||||||
Total non-interest revenues | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Revenue from contracts with customers (b) | ( | |||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||||||||||||||
Total revenues net of interest expense | ( | |||||||||||||||||||||||||||||||
Pretax segment income (loss) | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Total assets (billions) | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2020 (Millions, except where indicated) | GCSG | GCS | GMNS | Corporate & Other (a) | Consolidated | |||||||||||||||||||||||||||
Total non-interest revenues | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Revenue from contracts with customers (b) | ( | |||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||||||||||||||
Total revenues net of interest expense | ( | |||||||||||||||||||||||||||||||
Pretax segment income (loss) | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Total assets (billions) | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2020 (Millions, except where indicated) | GCSG | GCS | GMNS | Corporate & Other (a) | Consolidated | |||||||||||||||||||||||||||
Total non-interest revenues | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Revenue from contracts with customers (b) | ( | |||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||||||||||||||
Total revenues net of interest expense | ( | |||||||||||||||||||||||||||||||
Pretax segment income (loss) | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Total assets (billions) | $ | $ | $ | $ | $ |
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 | |||||||||||||||||||||||
July 1-31, 2021 | ||||||||||||||||||||||||||
Repurchase program(a) | 11,545,072 | $168.87 | 11,545,072 | 81,603,030 | ||||||||||||||||||||||
Employee transactions(b) | — | — | N/A | N/A | ||||||||||||||||||||||
August 1-31, 2021 | ||||||||||||||||||||||||||
Repurchase program(a) | 3,119,478 | $167.56 | 3,119,478 | 78,483,552 | ||||||||||||||||||||||
Employee transactions(b) | 18,346 | $170.53 | N/A | N/A | ||||||||||||||||||||||
September 1-30, 2021 | ||||||||||||||||||||||||||
Repurchase program(a) | 5,064,065 | $163.45 | 5,064,065 | 73,419,487 | ||||||||||||||||||||||
Employee transactions(b) | — | — | N/A | N/A | ||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Repurchase program(a) | 19,728,615 | $167.27 | 19,728,615 | 73,419,487 | ||||||||||||||||||||||
Employee transactions(b) | 18,346 | $170.53 | N/A | N/A |
Exhibit | Description | ||||
3.1 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
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) |
AMERICAN EXPRESS COMPANY | ||||||||
(Registrant) | ||||||||
Date: October 22, 2021 | By | /s/ Jeffrey C. Campbell | ||||||
Jeffrey C. Campbell Chief Financial Officer | ||||||||
Date: October 22, 2021 | By | /s/ Jessica Lieberman Quinn | ||||||
Jessica Lieberman Quinn Executive Vice President and Corporate Controller (Principal Accounting Officer) |
SECTION 1. | NAME |
SECTION 2. | PURPOSES |
SECTION 3. | OFFICE |
SECTION 4. | AUTHORIZED SHARES |
SECTION 5. | AGENT FOR PROCESS |
SECTION 6. | SHAREHOLDER VOTE |
SECTION 7. | AMENDMENTS |
SECTION 8. | LIABILITY OF DIRECTORS |
SECTION 9. | DESIGNATION OF FIXED RATE CUMULATIVE PERPETUAL PREFERRED STOCK, SERIES A |
Certificate Number ________ | Number of Series B Preferred | |||||||
Shares ________ |
AMERICAN EXPRESS COMPANY | ||||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
By: | ||||||||
Name: | ||||||||
Title: |
COMPUTERSHARE TRUST COMPANY, N.A., as Registrar | ||||||||
By: | ||||||||
Name: | ||||||||
Title: |
Certificate Number ________ | Number of Series C Preferred | |||||||
Shares ________ |
AMERICAN EXPRESS COMPANY | ||||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
By: | ||||||||
Name: | ||||||||
Title: |
COMPUTERSHARE TRUST COMPANY, N.A., as Registrar | ||||||||
By: | ||||||||
Name: | ||||||||
Title: |
SECTION 12. | DESIGNATION OF 3.550% FIXED RATE RESET NONCUMULATIVE PREFERRED SHARES, SERIES D |
Date: October 22, 2021 | |||||
/s/ Stephen J. Squeri | |||||
Stephen J. Squeri Chief Executive Officer |
Date: October 22, 2021 | |||||
/s/ Jeffrey C. Campbell | |||||
Jeffrey C. Campbell Chief Financial Officer |
/s/ Stephen J. Squeri | ||
Name: Stephen J. Squeri Title: Chief Executive Officer | ||
Date: October 22, 2021 |
/s/ Jeffrey C. Campbell | ||
Name: Jeffrey C. Campbell Title: Chief Financial Officer | ||
Date: October 22, 2021 |
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|||||||||
Non-interest revenues | ||||||||||||
Non-interest revenues | $ 8,934 | $ 6,877 | $ 24,593 | $ 20,648 | ||||||||
Interest income | ||||||||||||
Interest on loans | 2,256 | 2,266 | 6,494 | 7,543 | ||||||||
Interest and dividends on investment securities | 18 | 33 | 66 | 98 | ||||||||
Deposits with banks and other | 27 | 25 | 73 | 155 | ||||||||
Total interest income | 2,301 | 2,324 | 6,633 | 7,796 | ||||||||
Interest expense | ||||||||||||
Deposits | 109 | 202 | 356 | 788 | ||||||||
Long-term debt and other | 198 | 248 | 635 | 920 | ||||||||
Total interest expense | 307 | 450 | 991 | 1,708 | ||||||||
Net interest income | 1,994 | 1,874 | 5,642 | 6,088 | ||||||||
Total revenues net of interest expense | 10,928 | 8,751 | 30,235 | 26,736 | ||||||||
Provisions for credit losses | ||||||||||||
Provisions | (191) | 665 | (1,472) | 4,841 | ||||||||
Total revenues net of interest expense after provisions for credit losses | 11,119 | 8,086 | 31,707 | 21,895 | ||||||||
Expenses | ||||||||||||
Marketing and business development | 2,355 | 1,822 | 6,340 | 4,889 | ||||||||
Card Member rewards | 3,020 | 2,004 | 7,975 | 5,745 | ||||||||
Card Member services | 579 | 259 | 1,328 | 923 | ||||||||
Salaries and employee benefits | 1,497 | 1,408 | 4,586 | 4,152 | ||||||||
Other, net | 1,218 | 1,229 | 3,095 | 3,748 | ||||||||
Total expenses | 8,669 | 6,722 | 23,324 | 19,457 | ||||||||
Pretax income | 2,450 | 1,364 | 8,383 | 2,438 | ||||||||
Income tax provision | 624 | 291 | 2,042 | 741 | ||||||||
Net income | $ 1,826 | $ 1,073 | $ 6,341 | $ 1,697 | ||||||||
Earnings per Common Share | ||||||||||||
Basic (in dollars per share) | $ 2.27 | [1] | $ 1.31 | [1] | $ 7.84 | [2] | $ 2.01 | [2] | ||||
Diluted (in dollars per share) | $ 2.27 | [1] | $ 1.30 | [1] | $ 7.82 | [2] | $ 2.01 | [2] | ||||
Average common shares outstanding for earnings per common share: | ||||||||||||
Basic (in shares) | 786 | 804 | 796 | 805 | ||||||||
Diluted (in shares) | 787 | 805 | 797 | 806 | ||||||||
Card Member Receivables | ||||||||||||
Provisions for credit losses | ||||||||||||
Provisions | $ (12) | $ 117 | $ (147) | $ 1,069 | ||||||||
Card Member Loans | ||||||||||||
Provisions for credit losses | ||||||||||||
Provisions | (177) | 571 | (1,146) | 3,416 | ||||||||
Other Loans | ||||||||||||
Provisions for credit losses | ||||||||||||
Provisions | (2) | (23) | (179) | 356 | ||||||||
Discount revenue | ||||||||||||
Non-interest revenues | ||||||||||||
Non-interest revenues | 6,676 | 4,999 | 18,245 | 14,852 | ||||||||
Net card fees | ||||||||||||
Non-interest revenues | ||||||||||||
Non-interest revenues | 1,312 | 1,191 | 3,851 | 3,442 | ||||||||
Other fees and commissions | ||||||||||||
Non-interest revenues | ||||||||||||
Non-interest revenues | 632 | 478 | 1,712 | 1,647 | ||||||||
Other | ||||||||||||
Non-interest revenues | ||||||||||||
Non-interest revenues | $ 314 | $ 209 | $ 785 | $ 707 | ||||||||
|
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 15, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Statement [Abstract] | |||||
Earnings allocated to participating share awards | $ 14 | $ 7 | $ 45 | $ 10 | |
Dividends on preferred shares | 20 | 16 | 49 | 65 | |
Equity adjustments in connection with redemption of Preferred Shares | $ 9 | $ 9 | $ 0 | $ 9 | $ 0 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,826 | $ 1,073 | $ 6,341 | $ 1,697 |
Other comprehensive income (loss): | ||||
Net unrealized debt securities (losses) gains, net of tax | (8) | (9) | (31) | 43 |
Foreign currency translation adjustments, net of tax | (83) | 40 | (81) | (159) |
Net unrealized pension and other postretirement benefits, net of tax | 9 | 8 | 44 | (19) |
Other comprehensive income (loss) | (82) | 39 | (68) | (135) |
Comprehensive income | $ 1,744 | $ 1,112 | $ 6,273 | $ 1,562 |
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Statement of Cash Flows [Abstract] | ||||
Sales of premises and equipment | $ 41 | $ 1 | ||
Cash and cash equivalents reconciliation | ||||
Total cash and cash equivalents | 27,916 | 35,627 | $ 32,965 | $ 24,446 |
Restricted balances included in Cash and cash equivalents | 475 | 2,597 | 606 | 514 |
Total cash and cash equivalents excluding restricted balances | $ 27,441 | $ 33,030 | $ 32,359 | $ 23,932 |
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
|
Series D Preferred Stock |
Series D 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 | 1,697 | 1,697 | ||||||||||||||
Other comprehensive income (loss) | (135) | (135) | 0 | |||||||||||||
Repurchase of common shares | (875) | (2) | (105) | (768) | ||||||||||||
Other changes, primarily employee plans | 102 | 149 | (47) | |||||||||||||
Cash dividends declared preferred | $ (27) | $ (27) | $ (38) | $ (38) | ||||||||||||
Cash dividends declared common | (1,044) | (1,044) | ||||||||||||||
Ending Balance at Sep. 30, 2020 | 21,869 | 0 | 161 | 11,818 | (2,872) | 12,762 | ||||||||||
Beginning Balance at Jun. 30, 2020 | 21,062 | 0 | 161 | 11,760 | (2,911) | 12,052 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 1,073 | 1,073 | ||||||||||||||
Other comprehensive income (loss) | 39 | 39 | 0 | |||||||||||||
Other changes, primarily employee plans | 59 | 58 | 1 | |||||||||||||
Cash dividends declared preferred | (7) | (7) | (9) | (9) | ||||||||||||
Cash dividends declared common | (348) | (348) | ||||||||||||||
Ending Balance at Sep. 30, 2020 | 21,869 | 0 | 161 | 11,818 | (2,872) | 12,762 | ||||||||||
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 | 6,341 | 6,341 | ||||||||||||||
Other comprehensive income (loss) | (68) | (68) | ||||||||||||||
Preferred shares issued | 1,584 | 1,584 | ||||||||||||||
Redemption of preferred shares | (850) | (841) | (9) | |||||||||||||
Repurchase of common shares | (4,646) | (6) | (400) | (4,240) | ||||||||||||
Other changes, primarily employee plans | 160 | 1 | 177 | (18) | ||||||||||||
Cash dividends declared preferred | (21) | (21) | (22) | (22) | $ (6) | $ (6) | ||||||||||
Cash dividends declared common | (1,030) | (1,030) | ||||||||||||||
Ending Balance at Sep. 30, 2021 | 24,426 | 0 | 156 | 12,401 | (2,963) | 14,832 | ||||||||||
Beginning Balance at Jun. 30, 2021 | 25,539 | 0 | 160 | 11,858 | (2,881) | 16,402 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 1,826 | 1,826 | ||||||||||||||
Other comprehensive income (loss) | (82) | (82) | ||||||||||||||
Preferred shares issued | 1,584 | 1,584 | ||||||||||||||
Redemption of preferred shares | (850) | (841) | (9) | |||||||||||||
Repurchase of common shares | (3,300) | (4) | (266) | (3,030) | ||||||||||||
Other changes, primarily employee plans | 66 | 66 | ||||||||||||||
Cash dividends declared preferred | $ (7) | $ (7) | $ (7) | $ (7) | $ (6) | $ (6) | ||||||||||
Cash dividends declared common | (337) | (337) | ||||||||||||||
Ending Balance at Sep. 30, 2021 | $ 24,426 | $ 0 | $ 156 | $ 12,401 | $ (2,963) | $ 14,832 | ||||||||||
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Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Cash dividends declared | |||||
Common stock, dividend per share (in dollars per share) | $ 0.43 | $ 0.43 | $ 1.29 | $ 1.29 | |
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 depositary share (in dollars per share) | 9.06 | 9.98 | 27.44 | 36.44 | |
Series C Preferred Stock | |||||
Cash dividends declared | |||||
Preferred stock, dividend per depositary share (in dollars per share) | 8.70 | $ 9.20 | 26.32 | $ 43.99 | |
Series D Preferred Stock | |||||
Cash dividends declared | |||||
Preferred stock, dividend per depositary share (in dollars per share) | $ 4.24 | $ 4.24 |
Basis of Presentation |
9 Months Ended |
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Sep. 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 |
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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 September 30, 2021 and December 31, 2020 consisted of:
(a)Includes approximately $24.7 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of September 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 $0.1 billion and $0.6 billion of gross PPP loans outstanding as of September 30, 2021 and December 31, 2020, respectively. Other loans are presented net of reserves for credit losses of $66 million and $238 million as of September 30, 2021 and December 31, 2020, respectively. Card Member receivables by segment as of September 30, 2021 and December 31, 2020 consisted of:
(a)Includes $5.1 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of September 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 September 30, 2021 and December 31, 2020:
(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 nine months ended September 30:
(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, 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. (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 0.6% as of September 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 September 30, 2021 and December 31, 2020:
(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 $32 million and $32 million that are over 90 days past due and accruing interest as of September 30, 2021 and December 31, 2020, respectively, and $17 million and $11 million that are non-accruals as of September 30, 2021 and December 31, 2020, respectively. (d)In Program TDRs include accounts that are currently enrolled in a modification program. (e)Out of Program TDRs include $1,413 million and $316 million of accounts that have successfully completed a modification program and $146 million and $114 million of accounts that were not in compliance with the terms of the modification programs as of September 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 nine months ended September 30, 2021 and 2020:
(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.
(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 |
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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:
(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 nine months ended September 30, 2021, driven by improved portfolio quality and macroeconomic outlook, partially offset by an increase in the outstanding balance of loans, and for the current nine month period, the decrease in reserves was also driven by lower delinquencies. Card Member loans reserve for credit losses increased for the three and nine months ended September 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 and lower delinquencies. The following table presents changes in the Card Member loans reserve for credit losses for the three and nine months ended September 30:
(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 $167 million and $142 million for the three months ended September 30, 2021 and 2020, respectively, and $507 million and $421 million for the nine months ended September 30, 2021 and 2020, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(36) million and $(35) million for the three months ended September 30, 2021 and 2020, respectively, and $(124) million and $(98) million for the nine months ended September 30, 2021 and 2020, respectively. (c)Primarily includes foreign currency translation adjustments of $(8) million and $13 million for the three months ended September 30, 2021 and 2020, respectively, and $(2) million and $(4) million for the nine months ended September 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 nine months ended September 30, 2021, driven by improved portfolio quality and macroeconomic outlook, partially offset by an increase in the outstanding balance of receivables. Card Member receivables reserve for credit losses decreased for the three months ended September 30, 2020, primarily driven by lower delinquencies. Card Member receivables reserve for credit losses increased for the nine months ended September 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 nine months ended September 30:
(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 $79 million and $103 million for the three months ended September 30, 2021 and 2020, respectively, and $303 million and $283 million for the nine months ended September 30, 2021 and 2020, respectively. Amounts include net (write-offs) recoveries from TDRs of $(15) million and $(15) million for the three months ended September 30, 2021 and 2020, respectively, and $(51) million and $(31) million for the nine months ended September 30, 2021 and 2020, respectively. (c)Primarily includes foreign currency translation adjustments of nil and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $(1) million and $2 million for the nine months ended September 30, 2021 and 2020, respectively.
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Investment Securities |
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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 $38 million and $26 million as of September 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 September 30, 2021 and December 31, 2020:
(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. (d)During the third quarter of 2021, certain equity securities were reclassified from Other assets to Investment securities following the completion of initial public offerings by the issuers of the securities. The investments had a fair value of $51 million with an associated cost basis of $7 million as of September 30, 2021. The gross unrealized gains amount includes $5 million that was recognized during 2018. There were no available-for-sale debt securities with gross unrealized losses as of both September 30, 2021 and December 31, 2020. Contractual maturities for investment securities with stated maturities as of September 30, 2021 were as follows:
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 |
9 Months Ended |
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Sep. 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 September 30, 2021 and December 31, 2020, our ownership of variable interests was $15.8 billion and $13.4 billion, respectively, for the Lending Trust and $5.1 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 $25 million and nil, respectively, as of September 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 nine months ended September 30, 2021 and the year ended December 31, 2020, no such triggering events occurred.
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Customer Deposits |
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Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Deposits | Customer Deposits As of September 30, 2021 and December 31, 2020, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:
Customer deposits by deposit type as of September 30, 2021 and December 31, 2020 were as follows:
The scheduled maturities of certificates of deposit as of September 30, 2021 were as follows:
As of September 30, 2021 and December 31, 2020, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows:
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Contingencies |
9 Months Ended |
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Sep. 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. In 2006, Mawarid Investments Limited filed a request for confidential arbitration under the 1998 London Court of International Arbitration Rules in connection with certain claims arising under a shareholders agreement between Mawarid and American Express Travel Related Services Company, Inc. (TRS) relating to a joint venture between the parties, Amex (Middle East) BSC(c) (AEME). In 2008, the tribunal rendered a partial award, including a direction that an audit should take place to verify whether acquirer discount revenue related to transactions occurring with airlines located in the Middle East region had been properly allocated to AEME since its inception in 1992. In September 2021, the tribunal rendered a further partial award regarding the location of transactions through non-physical channels. The consequences of the tribunal’s 2008 and 2021 partial awards on the allocation of airline acquirer revenues will be determined in the remaining phase of the arbitration. 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 $18 million related to these exposures as of September 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 |
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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 September 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 September 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 September 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 September 30, 2021 and December 31, 2020:
(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 $15 million and $34 million as of September 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 September 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 nine months ended September 30:
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 September 30, 2021 and December 31, 2020, respectively, including the cumulative amount of fair value hedging adjustments of $365 million and $622 million for the respective periods. We recognized net decreases of $60 million and $81 million in Interest expense on Long-term debt for the three months ended September 30, 2021 and 2020, respectively, and net decreases of $196 million and $183 million for the nine months ended September 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 $11.4 billion and $10.5 billion of foreign currency derivatives designated as net investment hedges as of September 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, was a gain of $155 million and a loss of $170 million for the three months ended September 30, 2021 and 2020, respectively, and gains of $53 million and $223 million for the nine months ended September 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 nine months ended September 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 $16.8 billion and $14.4 billion as of September 30, 2021 and December 31, 2020, respectively. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in a net loss of $10 million and a net gain of $4 million for the three months ended September 30, 2021 and 2020, respectively, and a net loss of $24 million and a net gain of $22 million for the nine months ended September 30, 2021 and 2020, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income.
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Fair Values |
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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 September 30, 2021 and December 31, 2020:
(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 September 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 September 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.
(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 $5.1 billion and $4.2 billion held by a consolidated VIE as of September 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 $24.7 billion and $25.8 billion as of September 30, 2021 and December 31, 2020, respectively, and the fair values of Long-term debt were $9.2 billion and $13.0 billion as of September 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 nine months ended September 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 $1.3 billion and $530 million as of September 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 $103 million and $25 million for the three months ended September 30, 2021 and 2020, respectively, and $728 million and $47 million for the nine months ended September 30, 2021 and 2020, respectively. Unrealized losses including any impairments were not significant for any of the three and nine months ended September 30, 2021 and 2020. Beginning in January 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion and $347 million as of September 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 September 30, 2021 and December 31, 2020.
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Guarantees |
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Sep. 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 $25 million, respectively, as of September 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) |
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Sep. 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 nine months ended September 30, 2021 and 2020 were as follows:
The following table shows the tax impact for the three and nine months ended September 30 for the changes in each component of AOCI presented above:
Reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, were not significant for any of the three and nine months ended September 30, 2021 and 2020.
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Other Fees and Commissions and Other Expenses |
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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 nine months ended September 30:
(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 nine months ended September 30:
(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)Other 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 |
9 Months Ended |
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Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate was 25.5 percent and 21.3 percent for the three months ended September 30, 2021 and 2020, respectively, and 24.4 percent and 30.4 percent for the nine months ended September 30, 2021 and 2020, respectively. The increase in the effective tax rate for the three month period primarily reflected changes in the level and geographic mix of pretax income and discrete tax charges in the current period. The decrease in the effective tax rate for the nine month period primarily reflected discrete tax charges in the prior period related to the realizability of certain foreign deferred tax assets. The current period effective tax rates also reflect the implementation of PAM. Refer to Note 1 for further information. 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 $144 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 $144 million of unrecognized tax benefits, approximately $114 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) |
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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 nine months ended September 30 were as follows:
(a)Represents the difference between the redemption value and carrying value of the Series C preferred shares, which were redeemed on September 15, 2021. The carrying value represents the original issuance proceeds, net of underwriting fees and offering costs for the Series C preferred shares. (b)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. (c)The dilutive effect of unexercised stock options excludes from the computation of EPS 0.01 million and 0.88 million of options for the three months ended September 30, 2021 and 2020, respectively, and 0.01 million and 0.61 million of options for the nine months ended September 30, 2021 and 2020, respectively, because inclusion of the options would have been anti-dilutive.
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Preferred Shares |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Shares | Preferred Shares The Board of Directors is authorized to permit us to issue up to 20 million preferred shares at a par value of $1.662/3 without further shareholder approval. The following table summarizes our preferred shares issued and outstanding as of September 30, 2021:
(a)Carrying value, presented in the Statements of Shareholders' Equity, represents the issuance proceeds, net of underwriting fees and offering costs. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the Company, the preferred shares then outstanding take precedence over our common shares for the payment of dividends and the distribution of assets out of funds legally available for distribution to shareholders. We may redeem each outstanding series of preferred shares at $1 million per preferred share (equivalent to $1,000 per depositary share) plus any declared but unpaid dividends in whole or in part, from time to time, on any dividend payment date on or after the respective earliest redemption date, or in whole, but not in part, within 90 days of certain bank regulatory changes. We paid $850 million to redeem in full the outstanding 4.900% Fixed Rate/Floating Rate Noncumulative Preferred Shares, Series C, on September 15, 2021. The difference between the redemption value and carrying value of the redeemed Series C preferred shares resulted in a $9 million reduction to net income available to common shareholders. On October 15, 2021, we issued a redemption notice for all outstanding Series B preferred shares; the redemption date will be November 15, 2021.
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Reportable Operating Segments |
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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 Global Consumer Services Group (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 nine months ended September 30:
(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) |
9 Months Ended |
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Sep. 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.
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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.”
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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.
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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.”
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Derivatives | A majority of our derivative assets and liabilities as of September 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 nine months ended September 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 $1.3 billion and $530 million as of September 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 $103 million and $25 million for the three months ended September 30, 2021 and 2020, respectively, and $728 million and $47 million for the nine months ended September 30, 2021 and 2020, respectively. Unrealized losses including any impairments were not significant for any of the three and nine months ended September 30, 2021 and 2020. Beginning in January 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion and $347 million as of September 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 September 30, 2021 and December 31, 2020.
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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. |
Loans and Card Member Receivables (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member receivables segment and other loans detail | Card Member loans by segment and Other loans as of September 30, 2021 and December 31, 2020 consisted of:
(a)Includes approximately $24.7 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of September 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 $0.1 billion and $0.6 billion of gross PPP loans outstanding as of September 30, 2021 and December 31, 2020, respectively. Other loans are presented net of reserves for credit losses of $66 million and $238 million as of September 30, 2021 and December 31, 2020, respectively. Card Member receivables by segment as of September 30, 2021 and December 31, 2020 consisted of: (a)Includes $5.1 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of September 30, 2021 and December 31, 2020, respectively.
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Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of September 30, 2021 and December 31, 2020:
(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.
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Credit quality indicators for loans and receivables | The following tables present the key credit quality indicators as of or for the nine months ended September 30:
(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, 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. (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 0.6% as of September 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.
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Impaired Card Member loans and receivables | The following tables provide additional information with respect to our impaired loans and receivables as of September 30, 2021 and December 31, 2020:
(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 $32 million and $32 million that are over 90 days past due and accruing interest as of September 30, 2021 and December 31, 2020, respectively, and $17 million and $11 million that are non-accruals as of September 30, 2021 and December 31, 2020, respectively. (d)In Program TDRs include accounts that are currently enrolled in a modification program. (e)Out of Program TDRs include $1,413 million and $316 million of accounts that have successfully completed a modification program and $146 million and $114 million of accounts that were not in compliance with the terms of the modification programs as of September 30, 2021 and December 31, 2020, respectively. (f)Other loans primarily represent consumer and commercial non-card financing products.
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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 nine months ended September 30, 2021 and 2020:
(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.
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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.
(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) |
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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:
(a)Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates.
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Card Member Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 nine months ended September 30:
(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 $167 million and $142 million for the three months ended September 30, 2021 and 2020, respectively, and $507 million and $421 million for the nine months ended September 30, 2021 and 2020, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(36) million and $(35) million for the three months ended September 30, 2021 and 2020, respectively, and $(124) million and $(98) million for the nine months ended September 30, 2021 and 2020, respectively. (c)Primarily includes foreign currency translation adjustments of $(8) million and $13 million for the three months ended September 30, 2021 and 2020, respectively, and $(2) million and $(4) million for the nine months ended September 30, 2021 and 2020, respectively.
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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 nine months ended September 30:
(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 $79 million and $103 million for the three months ended September 30, 2021 and 2020, respectively, and $303 million and $283 million for the nine months ended September 30, 2021 and 2020, respectively. Amounts include net (write-offs) recoveries from TDRs of $(15) million and $(15) million for the three months ended September 30, 2021 and 2020, respectively, and $(51) million and $(31) million for the nine months ended September 30, 2021 and 2020, respectively. (c)Primarily includes foreign currency translation adjustments of nil and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $(1) million and $2 million for the nine months ended September 30, 2021 and 2020, respectively.
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of available for sale securities by type | The following is a summary of investment securities as of September 30, 2021 and December 31, 2020:
(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. (d)During the third quarter of 2021, certain equity securities were reclassified from Other assets to Investment securities following the completion of initial public offerings by the issuers of the securities. The investments had a fair value of $51 million with an associated cost basis of $7 million as of September 30, 2021. The gross unrealized gains amount includes $5 million that was recognized during 2018.
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Contractual maturities of investment securities | Contractual maturities for investment securities with stated maturities as of September 30, 2021 were as follows:
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Customer Deposits (Tables) |
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Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits by component alternative | As of September 30, 2021 and December 31, 2020, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:
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Deposits by type | Customer deposits by deposit type as of September 30, 2021 and December 31, 2020 were as follows:
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Time deposits by maturity | The scheduled maturities of certificates of deposit as of September 30, 2021 were as follows:
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Time deposits $250,000 or more | As of September 30, 2021 and December 31, 2020, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows:
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Derivatives and Hedging Activities (Tables) |
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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 September 30, 2021 and December 31, 2020:
(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.
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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 nine months ended September 30:
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Fair Values (Tables) |
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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 September 30, 2021 and December 31, 2020:
(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.
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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 September 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 September 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.
(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 $5.1 billion and $4.2 billion held by a consolidated VIE as of September 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 $24.7 billion and $25.8 billion as of September 30, 2021 and December 31, 2020, respectively, and the fair values of Long-term debt were $9.2 billion and $13.0 billion as of September 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) |
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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 nine months ended September 30, 2021 and 2020 were as follows:
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AOCI income tax effect | The following table shows the tax impact for the three and nine months ended September 30 for the changes in each component of AOCI presented above:
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Other Fees and Commissions and Other Expenses (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 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 nine months ended September 30:
(a)Other includes Membership Rewards program fees that are not related to contracts with customers.
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Other net expense | The following is a detail of Other expenses for the three and nine months ended September 30:
(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)Other 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) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the three and nine months ended September 30 were as follows:
(a)Represents the difference between the redemption value and carrying value of the Series C preferred shares, which were redeemed on September 15, 2021. The carrying value represents the original issuance proceeds, net of underwriting fees and offering costs for the Series C preferred shares. (b)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. (c)The dilutive effect of unexercised stock options excludes from the computation of EPS 0.01 million and 0.88 million of options for the three months ended September 30, 2021 and 2020, respectively, and 0.01 million and 0.61 million of options for the nine months ended September 30, 2021 and 2020, respectively, because inclusion of the options would have been anti-dilutive.
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Preferred Shares (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of preferred shares issued and outstanding | The following table summarizes our preferred shares issued and outstanding as of September 30, 2021:
(a)Carrying value, presented in the Statements of Shareholders' Equity, represents the issuance proceeds, net of underwriting fees and offering costs.
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Reportable Operating Segments (Tables) |
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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 nine months ended September 30:
(a)Corporate & Other includes adjustments and eliminations for intersegment activity. (b)Includes discount revenue, certain other fees and commissions and other revenues from customers.
|
Basis of Presentation (Details Textuals) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax provision | $ 624 | $ 291 | $ 2,042 | $ 741 | |
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 |
Loans and Card Member Receivables (Details 5) account in Thousands, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021
USD ($)
account
|
Sep. 30, 2020
USD ($)
account
|
Sep. 30, 2021
USD ($)
account
|
Sep. 30, 2020
USD ($)
account
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 6 | 6 | 28 | 16 |
Aggregated Outstanding Balance Upon Default | $ | $ 43 | $ 49 | $ 205 | $ 120 |
Card Member Loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 4 | 4 | 20 | 11 |
Aggregated Outstanding Balance Upon Default | $ | $ 32 | $ 32 | $ 148 | $ 84 |
Card Member Receivables | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 1 | 1 | 5 | 3 |
Aggregated Outstanding Balance Upon Default | $ | $ 10 | $ 16 | $ 48 | $ 34 |
Other Loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 1 | 1 | 3 | 2 |
Aggregated Outstanding Balance Upon Default | $ | $ 1 | $ 1 | $ 9 | $ 2 |
Reserves for Credit Losses (Details 1) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Reserve for Losses [Roll Forward] | ||||
Provisions | $ (191) | $ 665 | $ (1,472) | $ 4,841 |
Card Member Loans | ||||
Reserve for Losses [Roll Forward] | ||||
Beginning Balance | 3,835 | 5,628 | 5,344 | 4,027 |
Provisions | (177) | 571 | (1,146) | 3,416 |
Other | (8) | 12 | (1) | (5) |
Ending Balance | 3,489 | 5,688 | 3,489 | 5,688 |
Net (write-offs) recoveries from TDRs | (36) | (35) | (124) | (98) |
Foreign currency translation adjustments | (8) | 13 | (2) | (4) |
Card Member Loans | Principal | ||||
Reserve for Losses [Roll Forward] | ||||
Net write-offs | (118) | (432) | (544) | (1,449) |
Recoveries | 167 | 142 | 507 | 421 |
Card Member Loans | Interest and fees | ||||
Reserve for Losses [Roll Forward] | ||||
Net write-offs | $ (43) | $ (91) | $ (164) | $ (301) |
Reserves for Credit Losses (Details 2) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Reserve for Losses [Roll Forward] | ||||
Provisions | $ (191) | $ 665 | $ (1,472) | $ 4,841 |
Card Member Receivables | ||||
Reserve for Losses [Roll Forward] | ||||
Beginning Balance | 73 | 519 | 267 | 126 |
Provisions | (12) | 117 | (147) | 1,069 |
Net write-offs | (32) | (219) | (89) | (776) |
Other | 1 | 5 | (1) | 3 |
Ending Balance | 30 | 422 | 30 | 422 |
Recoveries | 79 | 103 | 303 | 283 |
Net (write-offs) recoveries from TDRs | (15) | (15) | (51) | (31) |
Foreign currency translation adjustments | $ 0 | $ 3 | $ (1) | $ 2 |
Investment Securities (Details 1) - security |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities with gross unrealized losses | 0 | 0 |
Investment Securities (Details 3) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Cost | |
Due within 1 year | $ 8,453 |
Due after 1 year but within 5 years | 879 |
Due after 5 years but within 10 years | 35 |
Due after 10 years | 75 |
Total | 9,442 |
Estimated Fair Value | |
Due within 1 year | 8,460 |
Due after 1 year but within 5 years | 909 |
Due after 5 years but within 10 years | 41 |
Due after 10 years | 77 |
Total | $ 9,487 |
Asset Securitizations (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Assets from Trusts [Line Items] | ||||
Restricted balances included in Cash and cash equivalents | $ 475 | $ 606 | $ 2,597 | $ 514 |
American Express Lending Trust | ||||
Assets from Trusts [Line Items] | ||||
Direct and Indirect ownership of variable interests | 15,800 | 13,400 | ||
Restricted balances included in Cash and cash equivalents | 25 | 47 | ||
American Express Charge Trust | ||||
Assets from Trusts [Line Items] | ||||
Direct and Indirect ownership of variable interests | 5,100 | 4,300 | ||
Restricted balances included in Cash and cash equivalents | $ 0 | $ 0 |
Customer Deposits (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
U.S.: | ||
Interest-bearing | $ 83,299 | $ 85,583 |
Non-interest-bearing (includes Card Member credit balances of: 2021, $467; 2020, $576) | 489 | 599 |
Non-U.S.: | ||
Interest-bearing | 19 | 19 |
Non-interest-bearing (includes Card Member credit balances of: 2021, $515; 2020, $671) | 519 | 674 |
Total customer deposits | 84,326 | 86,875 |
Card Member Credit Balances | ||
U.S.: | ||
Non-interest-bearing (includes Card Member credit balances of: 2021, $467; 2020, $576) | 467 | 576 |
Non-U.S.: | ||
Non-interest-bearing (includes Card Member credit balances of: 2021, $515; 2020, $671) | $ 515 | $ 671 |
Customer Deposits (Details 1) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
U.S. retail deposits: | ||
Savings accounts – Direct | $ 65,721 | $ 63,512 |
Certificates of deposit: | ||
Direct | 1,665 | 2,440 |
Third-party (brokered) | 3,274 | 5,561 |
Sweep accounts – Third-party (brokered) | 12,637 | 14,070 |
Other deposits: | ||
U.S. deposits | 24 | 23 |
Non-U.S. deposits | 23 | 22 |
Card Member credit balances ― U.S. and non-U.S. | 982 | 1,247 |
Total customer deposits | $ 84,326 | $ 86,875 |
Customer Deposits (Details 2) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Time Deposits By Maturity | |
2021 | $ 569 |
2022 | 3,128 |
2023 | 738 |
2024 | 284 |
2025 | 211 |
After 5 years | 16 |
Total | 4,946 |
U.S. | |
Time Deposits By Maturity | |
2021 | 567 |
2022 | 3,123 |
2023 | 738 |
2024 | 284 |
2025 | 211 |
After 5 years | 16 |
Total | 4,939 |
Non-U.S. | |
Time Deposits By Maturity | |
2021 | 2 |
2022 | 5 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
After 5 years | 0 |
Total | $ 7 |
Customer Deposits (Details 3) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $250,000 or More | $ 628 | $ 931 |
U.S. | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $250,000 or More | 627 | 930 |
Non-U.S. | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $250,000 or More | $ 1 | $ 1 |
Derivatives and Hedging Activities (Details 1) - Interest Expense - Interest Rate Contract - Fair Value Hedging - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fixed-rate long-term debt | $ 59 | $ 96 | $ 257 | $ (497) |
Derivatives designated as hedging instruments | (58) | (97) | (257) | 504 |
Total | $ 1 | $ (1) | $ 0 | $ 7 |
Fair Values (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Investment securities: | ||
Equity securities | $ 102 | $ 81 |
Debt securities | 9,487 | |
Fair Value, Recurring | ||
Investment securities: | ||
Equity securities | 102 | 81 |
Debt securities | 9,487 | 21,550 |
Derivatives, gross | 531 | 629 |
Total Assets | 10,120 | 22,260 |
Liabilities | ||
Derivatives, gross | 119 | 702 |
Total Liabilities | 119 | 702 |
Level 1 | Fair Value, Recurring | ||
Investment securities: | ||
Equity securities | 101 | 80 |
Debt securities | 0 | 0 |
Derivatives, gross | 0 | 0 |
Total Assets | 101 | 80 |
Liabilities | ||
Derivatives, gross | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Investment securities: | ||
Equity securities | 1 | 1 |
Debt securities | 9,462 | 21,550 |
Derivatives, gross | 531 | 629 |
Total Assets | 9,994 | 22,180 |
Liabilities | ||
Derivatives, gross | 119 | 702 |
Total Liabilities | 119 | 702 |
Level 3 | Fair Value, Recurring | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities | 25 | 0 |
Derivatives, gross | 0 | 0 |
Total Assets | 25 | 0 |
Liabilities | ||
Derivatives, gross | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Values (Details Textuals) - Fair Value, Nonrecurring - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of equity securities without readily determinable fair values | $ 1,300 | $ 1,300 | $ 530 | ||
Net upward adjustments of equity securities without readily determinable fair values | 103 | $ 25 | 728 | $ 47 | |
Cumulative net unrealized gains for equity investments without readily determinable fair values | $ 1,100 | $ 1,100 | $ 347 |
Guarantees (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Guarantees [Abstract] | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | $ 1,000 |
Amount of related liability | $ 25 | $ 24 |
Changes in Accumulated Other Comprehensive Income (Loss) (Details Textual) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | $ (82) | $ 39 | $ (68) | $ (135) |
Decrease due to amounts reclassified into earnings | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ (3) |
Other Fees and Commissions and Other Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Fees charged to Card Members: | ||||
Delinquency fees | $ 166 | $ 159 | $ 460 | $ 615 |
Foreign currency conversion fee revenue | 142 | 86 | 347 | 336 |
Other customer fees: | ||||
Loyalty coalition-related fees | 123 | 112 | 368 | 309 |
Travel commissions and fees | 74 | 19 | 164 | 84 |
Service fees and other | 127 | 102 | 373 | 303 |
Other fees and commissions | ||||
Other customer fees: | ||||
Total Other fees and commissions | $ 632 | $ 478 | $ 1,712 | $ 1,647 |
Other Fees and Commissions and Other Expenses (Details 1) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Other Fees and Commissions and Other Expenses [Abstract] | ||||
Data processing and equipment | $ 613 | $ 577 | $ 1,772 | $ 1,690 |
Professional services | 490 | 421 | 1,351 | 1,266 |
Net unrealized and realized gains on Amex Ventures equity investments | (142) | (66) | (773) | (116) |
Other | 257 | 297 | 745 | 908 |
Total Other expenses | $ 1,218 | $ 1,229 | $ 3,095 | $ 3,748 |
Income Taxes (Details Textuals) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Actual tax rates | 25.50% | 21.30% | 24.40% | 30.40% |
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax | $ 144 | $ 144 | ||
Unrecognized tax benefits that, if recognized, could impact effective tax rate | $ 114 | $ 114 |
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 15, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|||||||||
Basic and diluted: | |||||||||||||
Net income | $ 1,826 | $ 1,073 | $ 6,341 | $ 1,697 | |||||||||
Preferred dividends | (20) | (16) | (49) | (65) | |||||||||
Equity-related adjustment | $ (9) | (9) | 0 | (9) | 0 | ||||||||
Net income available to common shareholders | 1,797 | 1,057 | 6,283 | 1,632 | |||||||||
Earnings allocated to participating share awards | (14) | (7) | (45) | (10) | |||||||||
Net income attributable to common shareholders | $ 1,783 | $ 1,050 | $ 6,238 | $ 1,622 | |||||||||
Denominator: | |||||||||||||
Basic: Weighted-average common stock (in shares) | 786,000 | 804,000 | 796,000 | 805,000 | |||||||||
Add: Weighted-average stock options (in shares) | 1,000 | 1,000 | 1,000 | 1,000 | |||||||||
Diluted (in shares) | 787,000 | 805,000 | 797,000 | 806,000 | |||||||||
Basic EPS (in dollars per share) | $ 2.27 | [1] | $ 1.31 | [1] | $ 7.84 | [2] | $ 2.01 | [2] | |||||
Diluted EPS (in dollars per share) | $ 2.27 | [1] | $ 1.30 | [1] | $ 7.82 | [2] | $ 2.01 | [2] | |||||
Stock options | |||||||||||||
Denominator: | |||||||||||||
The dilutive effect of securities excluded from the calculation of earnings per share (in shares) | 10 | 880 | 10 | 610 | |||||||||
|
Preferred Shares (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
shares
| |
Series B Preferred Stock | |
Preferred Shares [Line Items] | |
Securities issued (in shares) | shares | 750 |
Depositary shares issued (in shares) | shares | 750,000 |
Fixed dividend rate per annum (as a percent) | 5.20% |
Floating dividend rate per annum (as a percent) | 3.428% |
Aggregate liquidation preference | $ | $ 750 |
Carrying value | $ | $ 742 |
Series D Preferred Stock | |
Preferred Shares [Line Items] | |
Securities issued (in shares) | shares | 1,600 |
Depositary shares issued (in shares) | shares | 1,600,000 |
Fixed dividend rate per annum (as a percent) | 3.55% |
Floating dividend rate per annum (as a percent) | 2.854% |
Aggregate liquidation preference | $ | $ 1,600 |
Carrying value | $ | $ 1,584 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |
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