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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Transition Period from ____ to ____
Commission file number 1-7657
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
New York13-4922250
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
200 Vesey Street, New York, New York
10285
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code                                          (212) 640-2000
None
Former name, former address and former fiscal year, if changed since last report.
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares (par value $0.20 per share)AXPNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes þ      No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes þ      No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐      No þ
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassOutstanding at April 18, 2022
Common Shares (par value $0.20 per share)753,060,278 Shares



AMERICAN EXPRESS COMPANY
FORM 10-Q
INDEX
Page No.
Throughout this report the terms “American Express,” “we,” “our” or “us,” refer to American Express Company and its subsidiaries on a consolidated basis, unless stated or the context implies otherwise. The use of the term “partner” or “partnering” in this report does not mean or imply a formal legal partnership, and is not meant in any way to alter the terms of American Express’ relationship with any third parties. Refer to the “MD&A― Glossary of Selected Terminology” for the definitions of other key terms used in this report.


PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
Business Introduction
We are a globally integrated payments company that provides our customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are credit and charge card products, along with travel and lifestyle related services, offered to consumers and businesses around the world. Our range of products and services includes:
Credit card, charge card, banking and other payment and financing products
Merchant acquisition and processing, servicing and settlement, and point-of-sale marketing and information products and services for merchants
Network services
Other fee services, including fraud prevention services and the design and operation of customer loyalty programs
Expense management products and services
Travel and lifestyle services
Our various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. We have a significant ownership position in, and extensive commercial arrangements with, American Express Global Business Travel (GBT). The commercial arrangements with GBT include, among other things, a long-term trademark license agreement pursuant to which GBT uses the American Express brand, GBT’s support of certain of our partnerships, joint negotiation with travel suppliers and a strategic relationship between GBT and our Global Commercial Services (GCS) business.
We compete in the global payments industry with card networks, issuers and acquirers, paper-based transactions (e.g., cash and checks), bank transfer models (e.g., wire transfers and Automated Clearing House (ACH)), as well as evolving and growing alternative payment and financing providers. As the payments industry continues to evolve, we face increasing competition from non-traditional players that leverage new technologies, business models and customer relationships to create payment or financing solutions.
Effective for the first quarter of 2022, we made the following reporting presentation changes to our Consolidated Statements of Income:
Within Non-interest revenues:
Processed revenue represents revenues earned from processed volumes, previously reported in Discount revenue, Other fees and commissions and Other revenue.
Service fees and other revenue combines the remaining balances from Other fees and commissions and Other revenue.
Within Total expenses:
Disaggregated Marketing and business development expense into Business development expense and Marketing expense.
Prior period amounts have been recast to conform with current period presentation; there was no impact to Total non-interest revenues or Total expenses.
Refer to the “Glossary of Selected Terminology” for the definitions of certain key terms and related information appearing within this Form 10-Q.
1

Forward-Looking Statements and Non-GAAP Measures
Certain of the statements in this Form 10-Q are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the “Cautionary Note Regarding Forward-Looking Statements” section. We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included within this Form 10-Q constitutes non-GAAP financial measures. Our calculations of non-GAAP financial measures may differ from the calculations of similarly titled measures by other companies.
Bank Holding Company
American Express is a bank holding company under the Bank Holding Company Act of 1956 and The Board of Governors of the Federal Reserve System (the Federal Reserve) is our primary federal regulator. As such, we are subject to the Federal Reserve’s regulations, policies and minimum capital standards.
2

Table 1: Summary of Financial Performance
As of or for the Three Months Ended
March 31,
Change
2022 vs. 2021
(Millions, except percentages, per share amounts and where indicated)20222021
Selected Income Statement Data
Total revenues net of interest expense$11,735$9,064$2,671 29 %
Provisions for credit losses(33)(675)642 95 
Expenses9,0566,7462,310 34 
Pretax income2,7122,993(281)(9)
Income tax provision613758(145)(19)
Net income2,0992,235(136)(6)
Earnings per common share — diluted (a)
$2.73$2.74$(0.01)— %
Common Share Statistics (b)
Cash dividends declared per common share$0.52$0.43$0.09 21 %
Average common shares outstanding:
Basic757804(47)(6)%
Diluted758805(47)(6)%
Selected Metrics and Ratios
Network volumes (Billions)
$350.3$269.3$81 30 %
Return on average equity (c)
37.7 %37.7 %
Net interest income divided by average Card Member loans10.1 %10.4 %
Net interest yield on average Card Member loans (d)
10.5 %11.3 %
Effective tax rate22.6 %25.3 %
Common Equity Tier 1 10.4 %14.8 %
Selected Balance Sheet Data ($ in millions)
Cash and cash equivalents$27,678$40,280$(12,602)(31)%
Card Member receivables53,16442,00211,162 27 
Card Member loans88,83270,10018,732 27 
Customer deposits90,91789,1931,724 
Long-term debt$38,337$42,019$(3,682)(9)%
# Denotes a variance of 100 percent or more
(a)Represents net income, less (i) earnings allocated to participating share awards of $16 million and $15 million for the three months ended March 31, 2022 and 2021, respectively, and (ii) dividends on preferred shares of $14 million for both the three months ended March 31, 2022 and 2021.
(b)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP.
(c)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders’ equity for the period. Effective for the first quarter of 2022, the interim period calculation methodology for Return on average equity was modified to present the returns for the period on an annualized basis rather than the preceding twelve months. Prior period amounts have been recast to conform with current period presentation.
(d)Net interest yield on average Card Member loans reflects adjusted net interest income divided by average Card Member loans, computed on an annualized basis. Adjusted net interest income and net interest yield on average Card Member loans are non-GAAP measures. Refer to Table 8 for a reconciliation to Net interest income divided by average Card Member loans.
3

Business Environment
Our results for the first quarter reflect the continued strong growth momentum we have seen in our business during the last several quarters. We are committed to investing in our brand, customers, value proposition, coverage, technology and talent, which is driving sustainable growth across our businesses.
Worldwide network volumes for the first quarter increased 30 percent year-over-year and billed business, which represented 86 percent of our total network volumes and drives most of our financial results, increased 34 percent. G&S spend, which accounts for the majority of our billed business, grew by 19 percent on a year-over-year basis, primarily driven by ongoing strong growth in online and card-not-present spending, even while offline spending growth accelerated further. T&E spend increased 119 percent versus the prior year and essentially reached the pre-pandemic levels of 2019 globally in March.
Total revenues net of interest expense increased 29 percent year-over-year reflecting double digit growth in most of our revenue lines. The growth in network volumes drove increases in Discount revenue, our largest revenue line, and Processed revenue. Service fees and other revenue increased 42 percent year-over-year, primarily driven by higher travel-related revenues. Net card fees grew 14 percent year over year, as new card acquisitions increased and Card Member retention remained high, demonstrating the impact of investments we have made in our premium value propositions. Net interest income grew by 20 percent year-over-year, primarily driven by growth in loans, partially offset by higher paydown rates on loan balances.
Card Member loans grew 27 percent year-over-year, which was lower than the growth in billed business due to higher paydown rates driven in part by the continued liquidity and financial strength of our customer base. Provisions for credit losses increased, resulting in a lower net benefit in the current quarter as compared to a year ago, primarily due to a lower net reserve release in the current quarter, partially offset by lower net write-offs. The reserve release in the current period was primarily driven by a reduction in pandemic-driven reserves reflecting sustained recovery from the macroeconomic impact of the COVID-19 pandemic. While delinquency and net write-off rates remain well below pre-pandemic levels, they increased modestly on a sequential basis as compared to the prior quarter.
Card Member rewards, Business development, and Card Member services increased year-over-year due to spend growth and higher usage of travel-related benefits. Card Member rewards expense growth was also driven by a larger proportion of spend in categories that earn incremental rewards such as travel. Marketing expense increased 27 percent year-over-year, due to higher investments to drive growth momentum and accelerate new card acquisitions. We continue to see great demand for our products and a wide range of attractive investment opportunities. Operating expenses increased 26 percent year-over-year primarily due to prior-year net gains on our Amex Ventures equity investments and higher compensation costs in the current quarter.
During the quarter, we maintained our capital ratios within our target range and returned $1.9 billion of capital to our shareholders through share buybacks and dividends. We also increased our quarterly common stock dividend by 21 percent. We plan to continue to return to shareholders the excess capital we generate while supporting our balance sheet growth.
Although we recognize the uncertainty in the geopolitical and inflationary environment, the combination of our investments, successful execution of our strategy, and a number of structural shifts have all come together to deliver our strong first quarter results and build growth momentum.
See “Certain Legislative, Regulatory and Other Developments” and "Risk Factors" for information on certain matters that could have a material adverse effect on our results of operations and financial condition.
4

Results of Operations
The discussions in both the “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three months ended March 31, 2022 compared to the same period in the prior year, as presented in the accompanying tables.
Consolidated Results of Operations
Table 2: Total Revenues Net of Interest Expense Summary
Three Months Ended
March 31,
Change
2022 vs. 2021
(Millions, except percentages)20222021
Discount revenue$6,835 $5,001 $1,834 37%
Net card fees (a)
1,423 1,253 170 14
Service fees and other revenue906 638 268 42
Processed revenue372 342 30 9
Total non-interest revenues9,536 7,234 2,302 32
Total interest income2,520 2,192 328 15
Total interest expense321 362 (41)(11)
Net interest income2,199 1,830 369 20
Total revenues net of interest expense$11,735 $9,064 $2,671 29%
(a)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 expense.
Total Revenues Net of Interest Expense
Discount revenue increased, primarily driven by an increase in billed business of 34 percent. U.S. billed business increased 33 percent and non-U.S. billed business increased 34 percent. See Tables 5 and 6 for more details on billed business performance.
Net card fees increased, primarily driven by growth in our premium card portfolios. The year-over-year growth rate also reflected a prospective change we made in the recognition of certain costs paid to a third party previously recognized in Net card fees, effective April 1, 2021.
Service fees and other revenue increased, primarily due to higher foreign exchange conversion revenue related to cross-border Card Member spending, higher travel commissions and fees from our consumer travel business and a lower net loss from GBT in the current year compared to the prior year.
Processed revenue increased, primarily driven by an increase in processed volumes, partially offset by the repositioning of certain of our alternative payment solutions.
Interest income increased, primarily due to an increase in average Card Member loan balances, partially offset by higher paydown rates on Card Member loan balances.
Interest expense decreased, primarily driven by a reduction in average debt and lower interest rates paid on deposits.
5

Table 3: Provisions for Credit Losses Summary
Three Months Ended
March 31,
Change
2022 vs. 2021
(Millions, except percentages)20222021
Card Member receivables
Net write-offs
$67 $53 $14 26%
Reserve (release) build (a)
13 (63)76 #
Total
80 (10)90 #
Card Member loans
Net write-offs
215 304 (89)(29)
Reserve (release) build (a)
(326)(877)551 63
Total
(111)(573)462 81
Other
Net write-offs - Other loans (b)
2 14 (12)(86)
Net write-offs - Other receivables (c)
3 (5)(63)
Reserve (release) build - Other loans (a)(b)
(4)(96)92 96
Reserve (release) build - Other receivables (a)(c)
(3)(18)15 83
Total
(2)(92)90 98
Total provisions for credit losses$(33)$(675)$642 95%
# Denotes a variance of 100 percent or more
(a)Refer to the “Glossary of Selected Terminology” for a definition of reserve (release) build.
(b)Relates to Other loans of $3.3 billion and $2.9 billion, less reserves of $48 million and $52 million, as of March 31, 2022 and December 31, 2021, respectively; and $2.3 billion and $2.9 billion, less reserves of $143 million and $238 million, as of March 31, 2021 and December 31, 2020, respectively.
(c)Relates to Other receivables included in Other assets on the Consolidated Balance Sheets of $2.7 billion and $2.7 billion, less reserves of $22 million, and $25 million, as of March 31, 2022 and December 31, 2021, respectively; and $2.4 billion and $3.0 billion, less reserves of $67 million and $85 million, as of March 31, 2021 and December 31, 2020, respectively.
Provisions for Credit Losses
Card Member loans provision for credit losses resulted in a lower net benefit for the current three month period, primarily due to a lower reserve release in the current period, partially offset by lower net write-offs. The reserve release in the current period was primarily driven by a reduction in pandemic-driven reserves reflecting sustained recovery from the macroeconomic impact of the COVID-19 pandemic. The reserve release in the prior period was driven by improving macroeconomic indicators as well as improved credit performance.
Card Member receivables provision for credit losses increased for the current three month period, primarily due to a reserve build in the current period, versus a reserve release in the prior period, primarily driven by higher delinquencies.
Other loans provision for credit losses resulted in a lower net benefit for the current three month period, primarily due to a higher reserve release in the prior period, partially offset by lower net write-offs. The reserve release in the prior period was due to improved credit performance and lower balances on non-card loans.
Refer to Note 3 to the "Consolidated Financial Statements" for further information regarding our reserves for credit losses.
6

Table 4: Expenses Summary
Three Months Ended
March 31,
Change
2022 vs. 2021
(Millions, except percentages)20222021
Card Member rewards$3,111 $2,243 $868 39%
Business development1,043 802 241 30
Card Member services626 317 309 97
Marketing1,224 964 260 27
Salaries and employee benefits1,654 1,550 104 7
Other, net1,398 870 528 61
Total expenses$9,056 $6,746 $2,310 34%
Expenses
Card Member rewards expense increased, primarily driven by increases in Membership Rewards and cash back rewards expenses of $563 million and cobrand rewards expense of $305 million, both of which were primarily driven by higher billed business. The increase in Membership Rewards expense was also driven by a larger proportion of spend in categories that earn incremental rewards such as travel.
The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 96 percent (rounded down) at March 31, 2022 and 96 percent (rounded up) at March 31, 2021.
Business development expense increased, primarily due to increased partner payments driven by higher billed business.
Card Member services expense increased, primarily due to higher usage of travel-related benefits.
Marketing expense increased, primarily due to increases in business investments. The year-over-year growth rate also reflected the previously mentioned prospective change we made in the recognition of certain costs paid to a third party previously recognized in Net card fees, effective April 1, 2021.
Salaries and employee benefits expense increased, primarily driven by higher compensation.
Other expenses increased, primarily driven by net gains on Amex Ventures equity investments in the prior year and an increase in professional services expense.
7

Income Taxes
The effective tax rate was 22.6 percent and 25.3 percent for the three months ended March 31, 2022 and 2021, respectively. The decrease primarily reflected discrete tax benefits in the current period related to the resolution of certain prior years’ tax items and stock-based compensation. The prior period effective tax rate also reflected the prospective implementation of the Proportional Amortization Method to account for investments in qualified affordable housing projects.
Table 5: Selected Card-Related Statistical Information
As of or for the
Three Months Ended
March 31,
Change
2022
vs.
2021
20222021
Network volumes: (billions)
U.S.$244.5$186.231 %
Outside the U.S.105.883.127 
Total$350.3$269.330 
Billed business$301.0$225.434 
Processed volumes49.343.912 
Total$350.3$269.330 
Cards-in-force: (millions)
U.S.57.754.1
Outside the U.S.66.958.814 
Total124.6112.910 
Proprietary72.869.0
Basic cards-in-force: (millions)
U.S.45.442.4
Outside the U.S.57.949.816 
Total103.392.212 
Average proprietary basic Card Member spending: (dollars)
U.S.$5,965$4,72326 
Outside the U.S.4,1653,17031 
Worldwide Average$5,452$4,27028 
Average discount rate2.32 %2.26 %
Average fee per card (dollars)(a)
$79$73%
(a)Average fee per card is computed on an annualized basis based on proprietary Net card fees divided by average proprietary total cards-in-force.
8

Table 6: Network Volumes-Related Statistical Information
Three Months Ended
March 31, 2022
Year over Year Percentage
Increase (Decrease)
Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a)
Worldwide
Network volumes30 %32 %
Total billed business34 35 
Consumer billed business37 39 
Commercial billed business30 32 
Processed volumes12 15 
U.S.
Network volumes31 
Total billed business33 
Consumer billed business38 
Commercial billed business30 
Outside the U.S.
Network volumes27 33 
Total billed business34 41 
Consumer billed business36 43 
Commercial billed business32 39 
Asia Pacific, Australia & New Zealand network volumes13 19 
Latin America, Canada & Caribbean network volumes39 40 
Europe, the Middle East & Africa network volumes50 57 
Merchant Industry Metrics
Worldwide billed business
G&S-related (77% of worldwide billed business)19 21 
T&E-related (23% of worldwide billed business)119 121 
Airline-related (5% of worldwide billed business)241 246 %
U.S. billed business
G&S-related (77% of U.S. billed business)20 
T&E-related (23% of U.S. billed business)110 
Airline-related (5% of U.S. billed business)217 %
(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared).
9

Table 7: Selected Credit-Related Statistical Information
As of or for the
Three Months Ended
March 31,
Change
2022
vs.
2021
(Millions, except percentages and where indicated)20222021
Worldwide Card Member loans:
Card Member loans: (billions)
U.S.$77.2$61.625 %
Outside the U.S.11.68.536 
Total$88.8$70.127 
Credit loss reserves:
Beginning balance
$3,305$5,344(38)
Provisions - principal, interest and fees(111)(573)81 
Net write-offs — principal less recoveries(165)(241)(32)
Net write-offs — interest and fees less recoveries(50)(63)(21)
Other (a)
2
Ending balance$2,981$4,467(33)
% of loans3.4 %6.4 %
% of past due455 %723 %
Average loans (billions)
$86.8 $70.7 23 
Net write-off rate — principal only (b)
0.8 %1.4 %
Net write-off rate — principal, interest and fees (b)
1.0 1.7 
30+ days past due as a % of total
0.7 %0.9 %
Worldwide Card Member receivables:
Card Member receivables: (billions)
U.S.$38.2$30.127 
Outside the U.S.15.011.926 
Total
$53.2$42.027 
Credit loss reserves:
Beginning balance$64$267(76)
Provisions - principal and fees80(10)#
Net write-offs - principal and fees less recoveries
(67)(53)26 
Other (a)
(1)(2)(50)
Ending balance$76$202(62)%
% of receivables0.1 %0.5 %
Net write-off rate — principal and fees (c)
0.5 %0.5 %
# Denotes a variance of 100 percent or more
(a)Other includes foreign currency translation adjustments.
(b)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.
(c)Refer to Tables 10 and 13 for Net write-off rate - principal only and 30+ days past due metrics for Global Consumer Services Group (GCSG) and Global Small Business Services (GSBS) receivables, respectively. A net write-off rate based on principal losses only for Global Corporate Payments (GCP), which reflects global, large and middle market corporate accounts, is not available due to system constraints.
10

Table 8: Net Interest Yield on Average Card Member Loans
Three Months Ended March 31,
(Millions, except percentages and where indicated)20222021
Net interest income$2,199$1,830
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)
158236
Interest income not attributable to our Card Member loan portfolio (b)
(105)(96)
Adjusted net interest income (c)
$2,252$1,970
Average Card Member loans (billions)
$86.8$70.7
Net interest income divided by average Card Member loans (c)
10.1 %10.4 %
Net interest yield on average Card Member loans (c)
10.5 %11.3 %
(a)Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(b)Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.
(c)Adjusted net interest income and net interest yield on average Card Member loans are non-GAAP measures. Refer to “Glossary of Selected Terminology” for the definitions of these terms. We believe adjusted net interest income is useful to investors because it represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio. Net interest yield on average Card Member loans reflects adjusted net interest income divided by average Card Member loans, computed on an annualized basis. Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans.
11

Business Segment Results of Operations
Effective for the first quarter of 2022, we updated the methodology used to allocate certain revenues across reportable operating segments. Prior period amounts have been recast to conform with current period presentation.
Global Consumer Services Group
Table 9: GCSG Selected Income Statement Data
Three Months Ended
March 31,
Change
(Millions, except percentages)20222021
2022 vs. 2021
Revenues
Non-interest revenues$5,049$3,809$1,240 33%
Interest income2,0401,808232 13
Interest expense1921882
Net interest income1,8481,620228 14
Total revenues net of interest expense6,8975,4291,468 27
Provisions for credit losses(55)(503)448 89
Total revenues net of interest expense after provisions for credit losses6,9525,9321,020 17
Total expenses5,2173,7871,430 38
Pretax segment income$1,735$2,145$(410)(19)%
GCSG primarily issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel and lifestyle services and non-card financing products, and manages certain international joint ventures, our partnership agreements in China and our loyalty coalition businesses operated in certain countries.
Non-interest revenues increased across all revenue categories.
Discount revenue increased 40 percent, primarily driven by an increase in consumer billed business of 37 percent.
See Tables 5, 6 and 10 for more details on volume performance.
Net card fees increased 13 percent, primarily driven by growth in our premium card portfolios. The year-over-year growth rate also reflected the previously-mentioned prospective change we made in the recognition of certain costs paid to a third party previously recognized in Net card fees, effective April 1, 2021.
Service fees and other revenue increased 38 percent, primarily due to higher foreign exchange conversion revenue related to cross-border Card Member spending and higher travel commissions and fees from our consumer travel business.
Net interest income increased, primarily due to an increase in average Card Member loan balances, partially offset by higher paydown rates on Card Member loan balances.
Card Member loans provision for credit losses resulted in a lower net benefit for the current three month period, primarily due to a lower reserve release in the current period, partially offset by lower net write-offs. The reserve release in the current period was primarily driven by a reduction in pandemic-driven reserves reflecting sustained recovery from the macroeconomic impact of the COVID-19 pandemic. The reserve release in the prior period was driven by improving macroeconomic indicators as well as improved credit performance.
Card Member receivables provision for credit losses increased for the current three month period, primarily due to a reserve build in the current period, versus a reserve release in the prior period, primarily driven by higher delinquencies.
12

Card Member rewards expense increased 43 percent, primarily driven by higher billed business as well as a larger proportion of spend in categories that earn incremental rewards such as travel.
Business development expense increased 38 percent, primarily due to increased partner payments driven by higher network volumes.
Card Member services expense increased 97 percent, primarily due to higher usage of travel-related benefits in the current year.
Marketing expense increased 32 percent, primarily due to increases in business investments. The year-over-year growth rate also reflected the previously-mentioned prospective change we made in the recognition of certain costs paid to a third party previously recognized in Net card fees, effective April 1, 2021.
Salaries and employee benefits and other operating expenses increased 21 percent, primarily driven by higher compensation and higher technology and other servicing-related costs.
13

Table 10: GCSG Selected Statistical Information
As of or for the
Three Months Ended
March 31,
Change
2022
vs.
2021
(Millions, except percentages and where indicated)20222021
Billed business: (billions)
U.S.$122.7$89.038 %
Outside the U.S.41.130.336 
Total$163.8$119.337 
Proprietary cards-in-force:
U.S.39.837.8
Outside the U.S.17.216.7
Total57.054.5
Proprietary basic cards-in-force:
U.S.27.926.7
Outside the U.S.12.111.6
Total40.038.3
Average proprietary basic Card Member spending: (dollars)
U.S.$4,444$3,33633 
Outside the U.S.$3,434$2,61631 
Average$4,138$3,11833 
Total segment assets (billions)
$101.0$81.923 
Card Member loans:
Total loans (billions)
U.S.$59.1$48.322 
Outside the U.S.10.48.030 
Total$69.5$56.323 
Average loans (billions)
U.S.$58.1$49.019 
Outside the U.S.10.48.325 
Total$68.5$57.320 %
U.S.
Net write-off rate - principal only (a)
0.8 %1.3 %
Net write-off rate - principal, interest and fees (a)
1.0 1.6 
30+ days past due as a % of total0.8 0.9 
   Outside the U.S.
Net write-off rate - principal only (a)
1.0 2.5 
Net write-off rate - principal, interest and fees (a)
1.3 3.2 
30+ days past due as a % of total0.9 1.6 
Total
Net write-off rate – principal only (a)
0.8 1.4 
Net write-off rate – principal, interest and fees (a)
1.1 1.8 
30+ days past due as a % of total0.8 %1.0 %

14

As of or for the
Three Months Ended
March 31,
Change
2022
vs.
2021
(Millions, except percentages and where indicated)20222021
Card Member receivables: (billions)
U.S.$13.4$11.220 %
Outside the U.S.7.26.020 
Total$20.6$17.220 %
U.S.
Net write-off rate – principal only (a)
0.2 %— %
Net write-off rate – principal and fees (a)
0.3 0.1 
30+ days past due as a % of total0.6 0.4 
Outside the U.S.
Net write-off rate – principal only (a)
0.9 1.3 
Net write-off rate – principal and fees (a)
0.9 1.4 
30+ days past due as a % of total1.0 0.9 
Total
Net write-off rate – principal only (a)
0.5 0.5 
Net write-off rate – principal and fees (a)
0.5 0.6 
30+ days past due as a % of total0.7 %0.6 %
(a)Refer to Table 7 footnote (b).
15

Table 11: GCSG Net Interest Yield on Average Card Member Loans
Three Months Ended
March 31,
(Millions, except percentages and where indicated)20222021
U.S.
Net interest income$1,633$1,421
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)
3460
Interest income not attributable to our Card Member loan portfolio (b)
(42)(25)
Adjusted net interest income (c)
$1,625$1,456
Average Card Member loans (billions)
$58.1$49.0
Net interest income divided by average Card Member loans (c)
11.2 %11.6 %
Net interest yield on average Card Member loans (c)
11.3 %12.1 %
Outside the U.S.
Net interest income$215$199
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)
2626
Interest income not attributable to our Card Member loan portfolio (b)
(3)(2)
Adjusted net interest income (c)
$238$223
Average Card Member loans (billions)
$10.4$8.3
Net interest income divided by average Card Member loans (c)
8.3 %9.6 %
Net interest yield on average Card Member loans (c)
9.3 %10.9 %
Total
Net interest income$1,848$1,620
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)
5986
Interest income not attributable to our Card Member loan portfolio (b)
(44)(27)
Adjusted net interest income (c)
$1,863$1,679
Average Card Member loans (billions)
$68.5$57.3
Net interest income divided by average Card Member loans (c)
10.8 %11.3 %
Net interest yield on average Card Member loans (c)
11.0 %11.9 %
(a)Refer to Table 8 footnote (a).
(b)Refer to Table 8 footnote (b).
(c)Refer to Table 8 footnote (c).
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Global Commercial Services
Table 12: GCS Selected Income Statement Data
Three Months Ended
March 31,
Change
2022 vs. 2021
(Millions, except percentages)20222021
Revenues
Non-interest revenues$3,180$2,442$738 30 %
Interest income436336100 30 
Interest expense122116
Net interest income31422094 43 
Total revenues net of interest expense3,4942,662832 31 
Provisions for credit losses21(161)182 #
Total revenues net of interest expense after provisions for credit losses3,4732,823650 23 
Total expenses2,6692,148521 24 
Pretax segment income$804$675$129 19 %
# Denotes a variance of 100 percent or more
GCS primarily issues a wide range of proprietary corporate and small business cards globally. GCS also provides payment, expense management and financing solutions to businesses.
Non-interest revenues increased, primarily driven by higher Discount revenue, Net card fees and Service fees and other revenue, partially offset by a decrease in Processed revenue.
Discount revenue increased 34 percent, primarily driven by an increase in commercial billed business of 30 percent.
See Tables 5, 6 and 13 for more details on volume performance.
Net card fees increased 16 percent, primarily driven by growth in our premium card portfolios.
Processed revenue decreased 48 percent, primarily driven by the repositioning of certain of our alternative payment solutions.
Net interest income increased, primarily due to an increase in average Card Member loan balances, partially offset by higher paydown rates on Card Member loan balances.
Card Member loans provision for credit losses resulted in a lower net benefit for the current three month period, primarily due to a lower reserve release in the current period, partially offset by lower net write-offs. The reserve release in the current period was primarily driven by a reduction in pandemic-driven reserves reflecting sustained recovery from the macroeconomic impact of the COVID-19 pandemic. The reserve release in the prior period was driven by improving macroeconomic indicators as well as improved credit performance.
Card Member receivables provision for credit losses increased for the current three month period, primarily due to a lower reserve release in the current period versus the prior period, primarily driven by higher delinquencies.
Card Member rewards expense increased 32 percent, primarily driven by higher billed business as well as a larger proportion of spend in categories that earn incremental rewards such as travel.
Business development expense increased 41 percent, primarily due to increased partner payments driven by higher billed business.
Card Member services expense increased 116 percent, primarily due to higher usage of travel-related benefits in the current year.
Marketing expense increased 20 percent, primarily due to increases in business investments.
Salaries and employee benefits and other operating expenses increased 8 percent, primarily driven by higher compensation and higher technology and other servicing-related costs.
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Table 13: GCS Selected Statistical Information
As of or for the
Three Months Ended
March 31,
Change 2022 vs 2021
(Millions, except percentages and where indicated)20222021
Billed business (billions)
$135.7$104.030 %
Proprietary cards-in-force15.814.5
Average Card Member spending (dollars)
$8,682$7,15921 
Total segment assets (billions)
$55.6$42.431 
GSBS Card Member loans:
Total loans (billions)
$19.3$13.840 
Average loans (billions)
$18.2$13.436 
Net write-off rate - principal only (a)
0.6 %1.0 %
Net write-off rate - principal, interest and fees (a)
0.7 %1.2 %
30+ days past due as a % of total0.6 %0.6 %
Calculation of Net Interest Yield on Average Card Member Loans:
Net interest income$314$220
Exclude:
Interest expense not attributable to our Card Member loan portfolio (b)
9193
Interest income not attributable to our Card Member loan portfolio (c)
(16)(22)
Adjusted net interest income (d)
$389$291
Average Card Member loans (billions)
$18.3$13.5
Net interest income divided by average Card Member loans (d)
6.9 %6.5 %
Net interest yield on average Card Member loans (d)
8.6 %8.7 %
Card Member receivables:
Total receivables (billions)
$32.5$24.831 
Net write-off rate - principal and fees (e)
0.5 %0.5 %
GCP Card Member receivables:
Total receivables (billions)
$14.5$10.538 
90+ days past billing as a % of total (e)
0.3 %0.4 %
Net write-off rate - principal and fees (e)
0.2 %0.4 %
GSBS Card Member receivables:
Total receivables (billions)
$18.0$14.326 %
Net write-off rate - principal only (a)
0.7 %0.5 %
Net write-off rate - principal and fees (a)
0.8 %0.5 %
30+ days past due as a % of total0.9 %0.6 %
(a)Refer to Table 7 footnote (b).
(b)Refer to Table 8 footnote (a).
(c)Refer to Table 8 footnote (b).
(d)Refer to Table 8 footnote (c).
(e)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. GCP delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.
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Global Merchant and Network Services
Table 14: GMNS Selected Income Statement and Other Data
Three Months Ended
March 31,
Change
2022 vs. 2021
(Millions, except percentages and where indicated)20222021
Revenues
Non-interest revenues$1,356$1,061$295 28%
Interest income24(2)(50)
Interest expense(44)(17)(27)#
Net interest income462125 #
Total revenues net of interest expense1,4021,082320 30
Provisions for credit losses(10)10 #
Total revenues net of interest expense after provisions for credit losses1,4021,092310 28
Total expenses7157071
Pretax segment income687385302 78
Total segment assets (billions)
$16.1$13.618%
# Denotes a variance of 100 percent or more
GMNS operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network.
Non-interest revenues increased, primarily driven by higher Discount revenue due to a 34 percent increase in worldwide billed business.
See Tables 5 and 6 for more details on volume performance.
GMNS receives an interest expense credit relating to internal transfer pricing due to its merchant payables. Net interest income increased, primarily due to a higher interest expense credit, largely driven by an increase in average merchant payables related to year-over-year network volume growth.
Business development expense increased 9 percent, primarily due to increased partner payments driven by higher network volumes.
Marketing expense increased 13 percent, primarily due to increases in business investments.
Salaries and employee benefits and other operating expenses decreased 5 percent, primarily driven by a current year reserve release versus a prior year reserve build for merchant exposure associated with Card Member travel-related purchases during the COVID-19 pandemic, partially offset by higher compensation.
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Corporate & Other
Corporate functions and certain other businesses are included in Corporate & Other.
Corporate & Other pretax loss was $514 million for the three months ended March 31, 2022, compared to $212 million for the same period in the prior year. The increase in the pretax loss was primarily driven by net gains on Amex Ventures equity investments in the prior year, partially offset by lower deferred and current compensation costs and a lower net loss in the current year from GBT.
CONSOLIDATED CAPITAL RESOURCES AND LIQUIDITY
Our balance sheet management objectives are to maintain:
A solid and flexible equity capital profile;
A broad, deep and diverse set of funding sources to finance our assets and meet operating requirements; and
Liquidity programs that enable us to continuously meet expected future financing obligations and business requirements for at least a twelve month period in the event we are unable to continue to raise new funds under our regular funding programs during a substantial weakening in economic conditions.
We continue to see volatility in the capital markets due to a variety of factors, including the COVID-19 pandemic, the ongoing military conflict between Russia and Ukraine, supply chain disruptions and inflation. We monitor the changing macroeconomic environment and manage our balance sheet to reflect evolving circumstances.
Capital
We believe capital allocated to growing businesses with a return on risk-adjusted equity in excess of our costs will generate shareholder value. Our objective is to retain sufficient levels of capital generated through net income and other sources, such as the exercise of stock options by employees, to maintain a strong balance sheet, provide flexibility to support future business growth, and distribute excess capital to shareholders through dividends and share repurchases. See “Dividends and Share Repurchases” below.
We seek to maintain capital levels and ratios in excess of the minimum regulatory requirements, specifically within a 10 to 11 percent target range for American Express Company's Common Equity Tier 1 (CET1) risk-based capital ratio.
We maintain certain flexibility to shift capital across our businesses as appropriate. For example, we may infuse additional capital into subsidiaries to maintain capital at targeted levels in consideration of debt ratings and regulatory requirements. These infused amounts can affect the capital and liquidity positions at the American Express parent company level or in other subsidiaries.
We report our capital ratios using the Basel III capital definitions and the Basel III standardized approach for calculating risk-weighted assets.
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The following table presents our regulatory risk-based capital and leverage ratios and those of our U.S. bank subsidiary, American Express National Bank (AENB), as of March 31, 2022.
Table 15: Regulatory Risk-Based Capital and Leverage Ratios
Effective Minimum (a)
Ratios as of March 31, 2022
Risk-Based Capital
Common Equity Tier 17.0 %
American Express Company10.4 %
American Express National Bank12.6 
Tier 18.5 
American Express Company11.4 
American Express National Bank12.6 
Total10.5 
American Express Company12.8 
American Express National Bank14.6 
Tier 1 Leverage4.0 %
American Express Company10.4 
American Express National Bank10.9 %
(a)Represents Basel III minimum requirements and applicable regulatory buffers as defined by the federal banking regulators, which includes the stress capital buffer (SCB) for American Express Company and the capital conservation buffer for AENB.
The following table presents American Express Company's regulatory risk-based capital and risk-weighted assets as of March 31, 2022:
Table 16: Regulatory Risk-Based Capital Components and Risk Weighted Assets
American Express Company
($ in Billions)
March 31, 2022
Risk-Based Capital
Common Equity Tier 1$17.6 
Tier 1 Capital19.3 
Tier 2 Capital
2.4 
Total Capital21.6 
Risk-Weighted Assets169.4 
Average Total Assets to calculate the Tier 1 Leverage Ratio$185.3 
The following are definitions for our regulatory risk-based capital ratios and leverage ratio, which are calculated as per standard regulatory guidance:
Risk-Weighted Assets — Assets are weighted for risk according to a formula used by the Federal Reserve to conform to capital adequacy guidelines. On- and off-balance sheet items are weighted for risk, with off-balance sheet items converted to balance sheet equivalents, using risk conversion factors, before being allocated a risk-adjusted weight. Off-balance sheet exposures comprise a minimal part of the total risk-weighted assets.
Common Equity Tier 1 Risk-Based Capital Ratio — Calculated as CET1 capital, divided by risk-weighted assets. CET1 capital is common shareholders’ equity, adjusted for ineligible goodwill and intangible assets and certain deferred tax assets. CET1 capital is also adjusted for the Current Expected Credit Loss (CECL) final rules, as described below.
Tier 1 Risk-Based Capital Ratio — Calculated as Tier 1 capital divided by risk-weighted assets. Tier 1 capital is the sum of CET1 capital, preferred shares and third-party non-controlling interests in consolidated subsidiaries, adjusted for capital held by insurance subsidiaries. The minimum requirement for the Tier 1 risk-based capital ratio is 1.5 percent higher than the minimum for the CET1 risk-based capital ratio. We have $1.6 billion of preferred shares outstanding to help address a portion of the Tier 1 capital requirements in excess of common equity requirements.
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Total Risk-Based Capital Ratio — Calculated as the sum of Tier 1 capital and Tier 2 capital, divided by risk-weighted assets. Tier 2 capital is the sum of the reserve for loan and receivable credit losses adjusted for the CECL final rules (limited to 1.25 percent of risk-weighted assets) and $240 million of eligible subordinated notes, adjusted for capital held by insurance subsidiaries. The $240 million of eligible subordinated notes reflect a 60 percent, or $360 million, reduction of Tier 2 capital credit for the $600 million subordinated debt issued in December 2014.
Tier 1 Leverage Ratio — Calculated by dividing Tier 1 capital by our average total consolidated assets for the most recent quarter.
We elected to delay the impact of the adoption of the CECL methodology on regulatory capital for two years followed by a three-year phase-in period pursuant to rules issued by federal banking regulators (the CECL final rules). We have begun phasing in the $0.7 billion cumulative amount that is not recognized in regulatory capital at 25 percent per year beginning January 1, 2022.
As a Category IV firm, we are subject to the Federal Reserve's supervisory stress tests in 2022. We submitted to the Federal Reserve our annual capital plan in April 2022. The Federal Reserve is expected to notify us of our SCB by the end of the second quarter of 2022, which will be effective by the beginning of the fourth quarter of 2022.
Dividends and Share Repurchases
We return capital to common shareholders through dividends and share repurchases. The share repurchases reduce common shares outstanding and generally more than offset the issuance of new shares as part of employee compensation plans.
During the three months ended March 31, 2022, we returned $1.9 billion to our shareholders in the form of common stock dividends of $0.4 billion and share repurchases of $1.5 billion. We repurchased 8.2 million common shares at an average price of $180.64 in the first quarter of 2022.
In addition, during the three months ended March 31, 2022, we paid $14 million in dividends on non-cumulative perpetual preferred shares outstanding.
Funding Strategy
Our principal funding objective is to maintain broad and well-diversified funding sources to allow us to finance our global businesses and to maintain a strong liquidity profile.
We aim to satisfy our financing needs with a diverse set of funding sources. The diversity of funding sources by type of instrument, by tenor and by investor base, among other factors, mitigates the impact of disruptions in any one type of instrument, tenor or investor. We seek to achieve diversity and cost efficiency in our funding sources by maintaining scale and market relevance in unsecured debt, asset securitizations and deposits, and access to secured borrowing facilities and a committed bank credit facility.
Summary of Consolidated Debt
We had the following customer deposits and consolidated debt outstanding as of March 31, 2022 and December 31, 2021:
Table 17: Summary of Customer Deposits and Consolidated Debt
(Billions)March 31, 2022December 31, 2021
Customer deposits$90.9 $84.4 
Short-term borrowings2.1 2.2 
Long-term debt38.3 38.7 
Total customer deposits and debt$131.3 $125.3 
We may redeem from time to time certain debt securities prior to the original contractual maturity dates in accordance with the optional redemption provisions of those debt securities.
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Table 18: Debt Issuances
(Billions)2022
American Express Company:
Fixed Rate Senior Notes (weighted-average coupon rate of 2.40%)$3.5 
Floating Rate Senior Notes (compounded SOFR (a) plus weighted-average spread of 93 basis points)
0.5 
American Express Credit Account Master Trust:
Fixed Rate Class A Certificates (weighted-average coupon of 2.21%)
1.3 
Total$5.3 
(a)Secured overnight financing rate (SOFR).
Our equity capital and funding strategies are designed, among other things, to maintain appropriate and stable unsecured debt ratings from the major credit rating agencies: Moody’s Investor Services (Moody’s), Standard & Poor’s (S&P) and Fitch Ratings (Fitch). Such ratings help support our access to cost-effective unsecured funding as part of our overall funding strategy. Our asset securitization activities are rated separately.
Table 19: Unsecured Debt Ratings
American Express EntityMoody'sS&PFitch
American Express CompanyLong TermA2BBB+A
Short TermN/AA-2F1
OutlookStableStableStable
American Express Travel Related Services Company, Inc.Long TermA2A-A
Short TermPrime-1A-2F1
OutlookStableStableStable
American Express National BankLong TermA3A-A
Short TermPrime-1A-2F1
OutlookStableStableStable
American Express Credit CorporationLong TermA2A-A
Short TermN/AN/AN/A
OutlookStableStableStable
These ratings are not a recommendation to buy or hold any of our securities and they may be revised or revoked at any time at the sole discretion of the rating organization.
Downgrades in the ratings of our unsecured debt or asset securitization program securities could result in higher funding costs, as well as higher fees related to borrowings under our unused credit facilities. Declines in credit ratings could also reduce our borrowing capacity in the unsecured debt and asset securitization capital markets. We believe our funding mix, including the proportion of U.S. retail deposits insured by the Federal Deposit Insurance Corporation (FDIC) to total funding, should reduce the impact that credit rating downgrades would have on our funding capacity and costs.
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Liquidity Management
Our liquidity objective is to maintain access to a diverse set of on- and off-balance sheet liquidity sources. We seek to maintain liquidity sources in amounts sufficient to meet our expected future financial obligations and business requirements for liquidity for a period of at least twelve months in the event we are unable to raise new funds under our regular funding programs during a substantial weakening in economic conditions.
Our liquidity management strategy includes a number of elements, including, but not limited to:
Maintaining diversified funding sources (refer to the “Funding Strategy” section for more details);
Maintaining unencumbered liquid assets and off-balance sheet liquidity sources;
Projecting cash inflows and outflows under a variety of economic and market scenarios; and
Establishing clear objectives for liquidity risk management, including compliance with regulatory requirements.
The amount and type of liquidity resources we maintain can vary over time, based upon the results of stress scenarios required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as additional stress scenarios required under our liquidity risk policy.
The investment income we receive on liquidity resources is less than the interest expense on the sources of funding for these balances. The net interest costs to maintain these resources have been substantial. The level of future net interest costs depends on the amount of liquidity resources we maintain and the difference between our cost of funding these amounts and their investment yields.
Securitized Borrowing Capacity
As of March 31, 2022, we maintained our committed, revolving, secured borrowing facility, with a maturity date of July 15, 2024, which gives us the right to sell up to $3.0 billion face amount of eligible AAA notes from the American Express Issuance Trust II (the Charge Trust). We also maintained our committed, revolving, secured borrowing facility with a maturity date of September 16, 2024, which gives us the right to sell up to $2.0 billion face amount of eligible AAA certificates from the American Express Credit Account Master Trust (the Lending Trust). Both facilities are used in the ordinary course of business to fund working capital needs, as well as to further enhance our contingent funding resources. As of March 31, 2022, $1.0 billion was drawn on the Charge Trust facility and no amounts were drawn on the Lending Trust facility.
Federal Reserve Discount Window
As an insured depository institution, AENB may borrow from the Federal Reserve Bank of San Francisco, subject to the amount of qualifying collateral that it may pledge. The Federal Reserve has indicated that both credit and charge card receivables are a form of qualifying collateral for secured borrowings made through the discount window. Whether specific assets will be considered qualifying collateral and the amount that may be borrowed against the collateral remain at the discretion of the Federal Reserve.
As of March 31, 2022, we had approximately $85.1 billion in U.S. credit card loans and charge card receivables that could be sold over time through our securitization trusts or pledged in return for secured borrowings to provide further liquidity, subject in each case to applicable market conditions and eligibility criteria.
Committed Bank Credit Facility
In addition to the secured borrowing facilities described above, we maintained a committed syndicated bank credit facility of $3.5 billion as of March 31, 2022, with a maturity date of October 15, 2024. As of March 31, 2022, no amounts were drawn on this facility.
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Unused Credit Outstanding
As of March 31, 2022, we had approximately $337 billion of unused credit available to Card Members as part of established lending product agreements. Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Our charge card products generally have no pre-set spending limit and therefore are not reflected in unused credit available to Card Members.
Cash Flows
The following table summarizes our cash flow activity, followed by a discussion of the major drivers impacting operating, investing and financing cash flows for the three months ended March 31:
Table 20: Cash Flows
(Billions)20222021
Total cash provided by (used in):
Operating activities$3.9 $2.3 
Investing activities(2.8)4.8 
Financing activities4.5 0.4 
Effect of foreign currency exchange rates on cash and cash equivalents (0.2)
Net increase in cash and cash equivalents$5.6 $7.3 
Cash Flows from Operating Activities
Our cash flows from operating activities primarily include net income adjusted for (i) non-cash items included in net income, such as provisions for credit losses, depreciation and amortization, stock-based compensation, deferred taxes and other non-cash items and (ii) changes in the balances of operating assets and liabilities, which can vary significantly in the normal course of business due to the amount and timing of payments.
In 2022, the net cash provided by operating activities was primarily driven by cash generated from net income for the period and higher net operating liabilities.
In 2021, the net cash provided by operating activities was primarily driven by cash generated from net income for the period and lower net operating assets and liabilities.
Cash Flows from Investing Activities
Our cash flows from investing activities primarily include changes in Card Member loans and receivables, as well as changes in our available-for-sale investment securities portfolio.
In 2022, the net cash used in investing activities was primarily driven by net purchases of investment securities.
In 2021, the net cash provided by investing activities was primarily driven by lower Card Member loans and receivables balances. The decline in Card Member loans and receivables balances was due to ongoing paydown of outstanding balances by Card Members, combined with the decline in spending that occurred due to the COVID-19 pandemic.
Cash Flows from Financing Activities
Our cash flows from financing activities primarily include changes in customer deposits, long-term debt and short-term borrowings, as well as dividend payments and share repurchases.
In 2022, the net cash provided by financing activities was primarily driven by growth in customer deposits, partially offset by share repurchases and dividend payments.
In 2021, the net cash provided by financing activities was primarily driven by growth in customer deposits, partially offset by debt repayments and share repurchases and dividend payments.
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OTHER MATTERS
Certain Legislative, Regulatory and Other Developments
Supervision & Regulation
We are subject to extensive government regulation and supervision in jurisdictions around the world, and the costs of compliance are substantial. The financial services industry is subject to rigorous scrutiny, high regulatory expectations, a range of regulations, and a stringent and unpredictable enforcement environment.
Governmental authorities have focused, and we believe will continue to focus, considerable attention on reviewing compliance by financial services firms with laws and regulations, and we continually work to evolve and improve our risk management framework, governance structures, practices and procedures. Reviews by us and governmental authorities to assess compliance with laws and regulations, as well as our own internal reviews to assess compliance with internal policies, including errors or misconduct by employees or third parties or control failures, have resulted in, and are likely to continue to result in, changes to our products, practices and procedures, restitution to our customers and increased costs related to regulatory oversight, supervision and examination. We have also been subject to regulatory actions and may continue to be the subject of such actions, including governmental inquiries, investigations, enforcement proceedings and the imposition of fines or civil money penalties, in the event of noncompliance or alleged noncompliance with laws or regulations. External publicity concerning investigations can increase the scope and scale of those investigations and lead to further regulatory inquiries.
For example, as previously disclosed, beginning in May 2020 we began responding to a regulatory review led by the Office of the Comptroller of the Currency and the Department of Justice Civil Division regarding historical sales practices relating to certain small business card sales. In January 2021, we received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York regarding the sales practices for small business cards and a Civil Investigative Demand from the Consumer Financial Protection Bureau (CFPB) seeking information on sales practices related to consumers. We are cooperating with all inquiries into our sales practices and related compliance practices. We continue to review and enhance our processes and controls related to our sales practices and business conduct generally, take disciplinary and remedial actions where appropriate, and provide information regarding our reviews to our regulators, including the Federal Reserve. We do not believe these matters will have a material adverse impact on our business or results of operations.
Please see the “Supervision and Regulation” and “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2021 (the 2021 Form 10-K) for further information.
Consumer Financial Products Regulation
In the United States, our marketing, sale and servicing of consumer financial products and our compliance with certain federal consumer financial laws are supervised and examined by the CFPB, which has broad rulemaking and enforcement authority over providers of credit, savings and payment services and products and authority to prevent “unfair, deceptive or abusive” acts or practices. In addition, a number of U.S. states have significant consumer credit protection, disclosure and other laws (in certain cases more stringent than U.S. federal laws). U.S. federal law also regulates abusive debt collection practices, which along with bankruptcy and debtor relief laws, can affect our ability to collect amounts owed to us or subject us to regulatory scrutiny. Other jurisdictions around the world are increasingly focusing on consumer financial protection.
For more information on consumer financial products regulation, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2021 Form 10-K.
Payments Regulation
Legislators and regulators in various countries in which we operate have focused on the operation of card networks, including through enforcement actions, legislation and regulations to change certain practices or pricing of card issuers, merchant acquirers and payment networks, and, in some cases, to establish broad and ongoing regulatory oversight regimes for payment systems.
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The European Union, Australia, Canada and other jurisdictions have focused on interchange fees (that is, the fee paid by the bankcard merchant acquirer to the card issuer in payment networks like Visa and Mastercard), as well as the rules, contract terms and practices governing merchant card acceptance. Regulation and other governmental actions relating to pricing or practices could affect all networks directly or indirectly, as well as adversely impact consumers and merchants. Among other things, regulation of bankcard fees has negatively impacted, and may continue to negatively impact, the discount revenue we earn, including as a result of downward pressure on our merchant discount rates from decreases in competitor pricing in connection with caps on interchange fees. In some cases, regulations also extend to certain aspects of our business, such as network and cobrand arrangements or the terms of card acceptance for merchants. There is uncertainty as to when or how interchange fee caps and other provisions of the EU and U.K. payments legislation might apply when we work with cobrand partners and agents in the EU and the U.K. Given differing interpretations by regulators and participants in cobrand arrangements, we are subject to regulatory action, penalties and the possibility we will not be able to maintain our existing cobrand and agent relationships in the EU or the U.K.
Broad regulatory oversight over payment systems can also include, in some cases, requirements for international card networks to localize aspects of their operations, such as processing infrastructure and data storage, which increases our costs and could diminish the value of our closed loop. The development and enforcement of payment system regulatory regimes generally continue to grow and may adversely affect our ability to compete effectively and maintain and extend our global network. On April 23, 2021, the Reserve Bank of India imposed restrictions on the ability of American Express Banking Corp. to engage in certain card issuing activities in India from May 1, 2021 until it complies with a regulation requiring storage of payment transaction data exclusively in India. This order does not impact existing customers. We are working towards complying with the regulation.
For more information on payments regulation, as well as the potential impacts on our results of operations and business, please see the “Supervision and Regulation” and “Risk Factors” sections of the 2021 Form 10-K.
Surcharging
In various countries, such as certain Member States in the EU and Australia, merchants are permitted by law to surcharge card purchases. In addition, the laws of a number of states in the United States that prohibit surcharging have been overturned and certain states have passed or are considering laws to permit surcharging by merchants. Surcharging is an adverse customer experience and could have a material adverse effect on us, particularly where it only or disproportionately impacts credit card usage or card usage generally, our Card Members or our business. In addition, other steering or differential acceptance practices that are permitted by regulation in some jurisdictions could also have a material adverse effect on us.
For more information on the potential impacts of surcharging and other actions that could impair the Card Member experience, please see the “Risk Factors” section of the 2021 Form 10-K.
Antitrust Litigation
We continue to vigorously defend antitrust and other claims initiated by merchants. See Note 7 to the "Consolidated Financial Statements" for descriptions of the cases. It is possible that actions impairing the Card Member experience, or the resolution of one or any combination of these merchant claims for damages, could have a material adverse effect on our business. For more information on the potential impacts of an adverse decision in the merchant litigations on our business, please see the “Risk Factors” section of the 2021 Form 10-K.
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Privacy, Data Protection, Data Governance, Information and Cyber Security
Regulatory and legislative activity in the areas of privacy, data protection, data governance, resiliency and information and cyber security continues to increase worldwide. We have established, and continue to maintain, policies and a governance framework to comply with applicable laws, meet evolving customer and industry expectations and support and enable business innovation and growth. Global financial institutions like us, as well as our customers, employees, regulators, service providers and other third parties, have experienced a significant increase in information and cyber security risk in recent years and will likely continue to be the target of increasingly sophisticated cyberattacks, including computer viruses, malicious or destructive code, ransomware, social engineering attacks (including phishing, impersonation and identity takeover attempts), corporate espionage, hacking, website defacement, denial-of-service attacks, exploitation of vulnerabilities and other attacks and similar disruptions from the misconfiguration or unauthorized use of or access to computer systems. For mo