68 unchanged sentences
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.
−Removed: These procedures included testing the effectiveness of controls relating to the estimate of the Membership Rewards liability, including the URR and WAC assumptions.
+Added: These procedures included testing the effectiveness of controls relating to the estimate of the Membership Rewards liability, including the URR.
These procedures also included, among others, (i) testing the completeness and accuracy of significant inputs to the statistical and actuarial models used to estimate the URR assumption, including redemption trends, card product type, enrollment tenure, and card spend levels, (ii) the involvement of professionals with specialized skill and knowledge to assist in developing an independent estimate of the URR assumption and comparing the independent estimate to management’s assumption to evaluate its reasonableness and (iii) comparing our independently calculated Membership Rewards liability to management’s estimate.
22 unchanged sentences
Note 11 – Retirement Plans
−Removed: Note 1 2 – Contingencies and Commitments
+Added: Note 12 – Contingencies, Commitments and Guarantees
Note 13 – Derivatives and Hedging Activities
Note 14 – Fair Values
−Removed: Note 1 5 – Guarantees
Note 15 – Common and Preferred Shares
15 unchanged sentences
Service fees and other revenue 7,471 6,765 6,710
−Removed: Processed revenue 1,636 1,705 1,637
Total non-interest revenues 54,865 50,406 47,381
32 unchanged sentences
Diluted 696 713 736
−Removed: (a) Represents net income less (i) earnings allocated to participating share awards of $ 76 million, $ 64 million and $ 57 million for the years ended December 31, 2024, 2023 and 2022, respectively, and (ii) dividends on preferred shares of $ 58 million, $ 58 million and $ 57 million for the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: (a) Represents net income less (i) earnings allocated to participating share awards of $ 74 million, $ 76 million and $ 64 million for the years ended December 31, 2025, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $ 58 million for each of the years ended December 31, 2025, 2024 and 2023.
See Notes to Consolidated Financial Statements.
54 unchanged sentences
Total liabilities $ 266,578 $ 241,197
−Removed: Contingencies and Commitments (Note 12)
+Added: Contingencies, Commitments and Guarantees (Note 12)
Shareholders’ Equity
40 unchanged sentences
Net increase in customer deposits 13,045 10,305 18,915
−Removed: Net increase (decrease) in short-term borrowings (c)
+Added: Net (decrease) increase in short-term borrowings (c)
( 27 ) 207 ( 105 )
6 unchanged sentences
Effect of foreign currency exchange rates on cash and cash equivalents 405 ( 40 ) 177
−Removed: Net (decrease) increase in cash and cash equivalents ( 5,956 ) 12,682 11,886
+Added: Net increase (decrease) in cash and cash equivalents 7,152 ( 5,956 ) 12,682
Cash and cash equivalents at beginning of year 40,640 46,596 33,914
Cash and cash equivalents at end of year $ 47,792 $ 40,640 $ 46,596
−Removed: (a) Primarily includes the gain recognized on the sale of Accertify (See Note 1), losses on tax credit investments, changes in reserves, net gains and losses on Amex Ventures investments, gains/losses on fair value hedges and changes in equity method investments.
−Removed: (b) Includes Card Member loans held for sale (HFS) which were previously held for investment within Card Member loans and were reclassified on the Consolidated Balance Sheets effective December 1, 2024.
+Added: (a) Primarily includes gains/losses on foreign currency transactions, fair value hedges and tax credit and Amex Ventures investments and movements in equity method investments.
+Added: For the period ended on December 31, 2024, also includes the gain recognized on the sale of Accertify (refer to Note 1 for additional information).
+Added: (b) Includes Card Member loans held for sale (HFS) which were previously held for investment within Card Member loans and were reclassified on the Consolidated Balance Sheets effective June 1, 2025 and December 1, 2024.
Refer to Note 1 for additional information.
12 unchanged sentences
Repurchase of common shares ( 3,519 ) — ( 4 ) ( 334 ) — ( 3,181 )
−Removed: Other changes, including employee plans
+Added: Other changes
181 — — 213 — ( 32 )
8 unchanged sentences
Repurchase of common shares ( 5,857 ) — ( 4 ) ( 377 ) — ( 5,476 )
−Removed: Other changes, including employee plans
+Added: Other changes
315 — — 375 — ( 60 )
8 unchanged sentences
Repurchase of common shares ( 5,311 ) — ( 3 ) ( 273 ) — ( 5,035 )
−Removed: Other changes, including employee plans
+Added: Other changes
( 86 ) — — 29 — ( 115 )
7 unchanged sentences
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
−Removed: We are a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success.
−Removed: Our various products and services are offered globally to consumers, small businesses, mid-sized companies and large corporations through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone and direct response advertising.
+Added: We are a global payments and premium lifestyle brand powered by technology.
+Added: Founded in 1850 and headquartered in New York, American Express’ card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world.
+Added: These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone and direct response advertising.
Refer to Note 23 for additional discussion of the products and services that comprise each segment.
1 unchanged sentence
BUSINESS EVENTS
−Removed: On May 1, 2024, we completed the previously announced transaction to sell fraud prevention solutions provider Accertify, Inc.
+Added: On May 1, 2024, we completed the sale of fraud prevention solutions provider Accertify, Inc.
(Accertify), a wholly owned subsidiary we acquired in 2010, the operations of which were reported within the Global Merchant and Network Services (GMNS) segment.
3 unchanged sentences
The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).
−Removed: Significant intercompany transactions are eliminated.
+Added: All intercompany transactions are eliminated.
We consolidate entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlling financial interest when we are able to exercise control over the investees’ operating and financial decisions.
39 unchanged sentences
Service Fees and Other Revenue
−Removed: Service fees and other revenue includes service fees earned from merchants and other customers and travel commissions and fees, which are generally recognized in the period when the service is performed, and delinquency and foreign currency-related fees, which are primarily recognized in the period when they are charged to the Card Member.
−Removed: In addition, Service fees and other revenue includes income (losses) from our investments in which we have significant influence and therefore account for under the equity method.
−Removed: Refer to Note 18 for additional information.
−Removed: Processed Revenue
−Removed: Processed revenue primarily represents revenues related to network partnership agreements, comprising royalties, fees and amounts earned for facilitating transactions on cards issued by network partners.
+Added: Service fees and other revenue includes network partnership revenue, foreign currency-related revenue, loyalty coalition, merchant and other service fees, delinquency fees, travel commissions and fees and other fees and revenues.
+Added: Network partnership revenue primarily represents revenues related to network partnership agreements, comprising royalties, fees and amounts earned for facilitating transactions on cards issued by network partners.
In our role as the operator of the American Express network, we settle with merchants and our third-party merchant acquirers on behalf of our network card issuing partners.
−Removed: The amount of fees charged for accepting American Express-branded cards is generally deducted from the payment to the merchant or third-party merchant acquirer and recorded as Processed revenue at the time the Card Member transaction occurs.
−Removed: Our network card issuing partners receive an issuer rate that is individually negotiated between that issuer and us and is recorded as contra-revenue within Processed revenue to the extent that there is revenue from the same customer, after which any additional issuer rate is recorded as expense in Business development.
+Added: The amount of fees charged for accepting American Express-branded cards is generally deducted from the payment to the merchant or third-party merchant acquirer and recorded as network partnership revenue at the time the Card Member transaction occurs.
+Added: Our network card issuing partners receive an issuer rate that is individually negotiated between that issuer and us and is recorded as contra-revenue within network partnership revenue to the extent that there is revenue from the same customer, after which any additional issuer rate is recorded as expense in Business development.
+Added: Network partnership revenue also includes fees earned on alternative payment solutions facilitated by us.
+Added: Foreign currency-related fees and delinquency fees are primarily recognized in the period when they are applied to a Card Member account.
+Added: Loyalty coalition, merchant and other service fees and travel commissions and fees are generally recognized in the period when the service is performed.
+Added: Other fees and revenues includes income (losses) from our investments in which we have significant influence and therefore account for under the equity method.
+Added: Refer to Note 17 for additional information on the components of Service fees and other revenue.
Interest Income
37 unchanged sentences
We will continue to recognize discount revenue, interest income and other revenues and expenses related to the HFS loans until they are sold.
−Removed: Effective December 1, 2024, we reclassified $ 758 million of Card Member loans related to the Lowe’s small business cobrand portfolio to Card Member loans held for sale on the Consolidated Balance Sheets and reversed $ 49 million of associated reserves for credit losses.
+Added: Effective June 1, 2025 and December 1, 2024, we reclassified $ 1.6 billion and $ 758 million, respectively, of Card Member loans related to two small business cobrand portfolios to Card Member loans held for sale on the Consolidated Balance Sheets and released $ 144 million and $ 49 million, respectively, of associated reserves for credit losses.
Goodwill represents the excess of the acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed.
15 unchanged sentences
For the years ended December 31, 2025 and 2024, we performed assessments for each reporting unit in connection with our annual goodwill impairment evaluation and determined that it was more likely than not that the fair values of each of our reporting units exceeded their carrying values and accordingly no impairment was recognized.
+Added: Other Intangible Assets
+Added: Intangible assets are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years.
+Added: We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable.
+Added: An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value.
Premises and Equipment
1 unchanged sentence
Costs incurred during construction are capitalized and are depreciated once an asset is placed in service.
−Removed: Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at the acquisition date.
+Added: Premises and equipment are depreciated on a straight-line basis over their estimated useful lives, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises.
Certain costs associated with the acquisition or development of internal-use software are also capitalized and recorded in Premises and equipment.
Once the specific software feature is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years.
−Removed: We review these assets for impairment using the same impairment methodology used for our intangible assets.
−Removed: Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and range from 5 to 10 years.
+Added: We review these assets for impairment using the same impairment methodology used for Other intangible assets.
+Added: Leasehold improvements are capitalized and recorded in Premises and equipment and are depreciated using the straight-line method over the shorter of the remaining term of the leased facility, or the estimated useful life of the improvement, and range from 5 to 10 years.
We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term.
3 unchanged sentences
Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease.
+Added: Lease assets and liabilities are recognized based on the lease term, which includes any extension or termination options that we are reasonably certain to exercise.
Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred.
9 unchanged sentences
Stock-Based Compensation
−Removed: Stock-Based Compensation
−Removed: Legal Contingencies Note 12 Contingencies and Commitments
+Added: Note 10 Stock-Based Compensation
+Added: Legal Contingencies Note 12 Contingencies, Commitments and Guarantees
Derivative Financial Instruments and Hedging Activities Note 13 Derivatives and Hedging Activities
Fair Value Measurements Note 14 Fair Values
−Removed: Guarantees Note 15 Guarantees
Income Taxes Note 19 Income Taxes
Earnings Per Common Share
−Removed: Earnings Per Common Share
+Added: Note 20 Earnings Per Common Share
CLASSIFICATION OF VARIOUS ITEMS
1 unchanged sentence
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS
−Removed: In November 2023, the Financial Accounting Standards Board issued updated accounting guidance for segment reporting, effective for annual reporting periods beginning after December 15, 2023 and for interim reporting periods beginning January 1, 2025.
−Removed: The updated guidance requires enhanced disclosures for significant expenses by reportable operating segment.
−Removed: Significant expense categories and amounts are those regularly provided to the chief operating decision maker (CODM) and included in the measure of a segment’s profit or loss.
−Removed: The updated guidance also requires us to disclose the title and position of our CODM, including an explanation of how our CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.
−Removed: We adopted the updated guidance for the annual reporting period beginning January 1, 2024, which did not result in a material impact to our Consolidated Financial Statements.
−Removed: Refer to Note 24 for related disclosures about our reportable operating segments.
In December 2023, the Financial Accounting Standards Board issued updated accounting guidance on Disclosures for Income Taxes, effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted.
1 unchanged sentence
The updated guidance also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by jurisdictional categories (federal (national), state and foreign).
−Removed: We are currently assessing the updated guidance, however it is not expected to have a material impact to our Consolidated Financial Statements.
−Removed: In November 2024, the Financial Accounting Standards Board issued updated accounting guidance on the Disaggregation of Income Statement Expenses for annual reporting periods beginning after December 15, 2026 and for interim reporting periods beginning December 15, 2027, with early adoption permitted.
+Added: We adopted the updated guidance prospectively for the annual reporting period beginning January 1, 2025, which did not result in a material impact to our Consolidated Financial Statements.
+Added: Refer to Note 19 for related disclosures about income taxes.
+Added: In November 2024 and as amended in January 2025, the Financial Accounting Standards Board issued updated accounting guidance on the Disaggregation of Income Statement Expenses for annual reporting periods beginning after December 15, 2026 and for interim reporting periods beginning December 15, 2027, with early adoption permitted.
The updated guidance includes the requirement for a new tabular disclosure within a Note to the Consolidated Financial Statements, to disaggregate defined expense categories from the expense report lines presented on the Consolidated Statements of Income.
−Removed: We are currently assessing the updated guidance and its impact to our Consolidated Financial Statements.
+Added: We are currently assessing the updated guidance;
+Added: however, it is not expected to have a material impact to our Consolidated Financial Statements.
+Added: In September 2025, the Financial Accounting Standards Board issued updated guidance on accounting for internal-use software, effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted.
+Added: The amendments modernize guidance to consider different methods of software development, updating the requirements for capitalization of software costs.
+Added: We are currently assessing the updated guidance;
+Added: however, it is not expected to have a material impact to our Consolidated Financial Statements.
LOANS AND CARD MEMBER RECEIVABLES
46 unchanged sentences
Past Due 60-89
−Removed: Past Due Total 90+ Days Past Due and Still Accruing Interest (c)
−Removed: Non-Accruals (d)
+Added: Past Due Total 90+ Days Past Due and Still Accruing Interest (a)
+Added: Non-Accruals (b)
Card Member Loans:
1 unchanged sentence
Small Business 33,528 173 121 252 34,074 130 177
−Removed: Corporate (a)
−Removed: (b) (b) (b) — 37 — —
+Added: Corporate (c)
+Added: (d) (d) (d) — 39 — —
Card Member Receivables:
1 unchanged sentence
Small Business 19,342 82 47 88 19,558 — —
−Removed: Corporate (a)
−Removed: (b) (b) (b) 65 15,361 — —
+Added: Corporate (c)
+Added: (d) (d) (d) 75 15,868 — —
2024 ( Millions )
2 unchanged sentences
Days Past Due 90+
−Removed: Due Total 90+ Days Past Due and Still Accruing Interest (c)
−Removed: Non-Accruals (d)
+Added: Due Total 90+ Days Past Due and Still Accruing Interest (a)
+Added: Non-Accruals (b)
Card Member Loans:
1 unchanged sentence
Small Business 31,510 151 107 223 31,991 132 135
−Removed: Corporate (a)
−Removed: (b) (b) (b) — 51 — —
+Added: Corporate (c)
+Added: (d) (d) (d) — 37 — —
Card Member Receivables:
1 unchanged sentence
Small Business 18,400 77 54 88 18,619 — —
−Removed: Corporate (a)
−Removed: (b) (b) (b) 67 15,547 — —
−Removed: (a) For corporate accounts, delinquency data is tracked based on days past billing status rather than days past due.
+Added: Corporate (c)
+Added: (d) (d) (d) 65 15,361 — —
+Added: (a) Our policy is generally to accrue interest through the date of write-off (typically 180 days past due).
+Added: We establish reserves for interest that we believe will not be collected.
+Added: (b) Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.
+Added: (c) For 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.
1 unchanged sentence
These amounts are shown above as 90+ Days Past Due for presentation purposes.
−Removed: See also (b).
−Removed: (b) Delinquency data for periods other than 90+ days past billing has not historically been available due to system constraints.
+Added: See also (d).
+Added: (d) Delinquency data for periods other than 90+ days past billing has not historically been available due to system constraints.
Therefore, such data has not been a material input for risk management purposes.
The balances that are current to 89 days past billing can be derived as the difference between the Total and the 90+ Days Past Due balances.
−Removed: (c) Our policy is generally to accrue interest through the date of write-off (typically 180 days past due).
+Added: OTHER LOANS AGING AND GROSS WRITE-OFFS BY ORIGINATION YEAR
+Added: Generally, a customer loan is considered past due if payment due is not received within 30 days after the payment due date.
+Added: The following tables present the aging and gross write-offs for other loans by year of origination as of or for the years ended December 31:
+Added: OTHER LOANS AGING AND GROSS WRITE-OFFS BY ORIGINATION YEAR
+Added: 2025 ( Millions )
+Added: 2025 2024 2023 2022 2021 Prior
+Added: Revolving Loans (a)
+Added: $ 5,532 $ 2,172 $ 494 $ 45 $ 6 $ 54 $ 2,564 $ 10,867
+Added: 30-59 Days Past Due
+Added: 6 7 2 — — 1 8 25
+Added: 60-89 Days Past Due
+Added: 4 5 2 — — — 8 19
+Added: 90+ Days Past Due (b)
+Added: 3 5 2 — — 1 6 17
+Added: $ 5,545 $ 2,188 $ 500 $ 46 $ 6 $ 56 $ 2,587 $ 10,928
+Added: Gross Write-Offs
+Added: $ 15 $ 77 $ 47 $ 13 $ 1 $ — $ 88 $ 242
+Added: 2024 ( Millions )
+Added: 2024 2023 2022 2021 2020 Prior
+Added: Revolving Loans (a)
+Added: $ 4,950 $ 1,578 $ 356 $ 10 $ 14 $ 57 $ 2,209 $ 9,174
+Added: 30-59 Days Past Due
+Added: 5 5 2 — — — 10 22
+Added: 60-89 Days Past Due
+Added: 5 4 2 — — — 7 18
+Added: 90+ Days Past Due (b)
+Added: 4 4 2 — — 1 7 18
+Added: $ 4,964 $ 1,591 $ 362 $ 10 $ 14 $ 58 $ 2,233 $ 9,232
+Added: Gross Write-Offs
+Added: $ 13 $ 59 $ 42 $ 6 $ — $ — $ 87 $ 207
+Added: (a) Revolving loans consist primarily of lines of credit offered to small business customers.
+Added: (b) Over 90 days past due includes $ 7 million and $ 6 million as of December 31, 2025 and 2024, respectively, of loans on which interest is still accruing.
+Added: Our policy is generally to accrue interest through the date of write-off (typically 120 days past due) except for lines of credit offered to small business customers, where interest ceases to accrue at 90 days past due.
We establish reserves for interest that we believe will not be collected.
−Removed: (d) Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.
−Removed: CREDIT QUALITY INDICATORS FOR CARD MEMBER LOANS AND RECEIVABLES
−Removed: The following table presents the key credit quality indicators as of or for the years ended December 31:
−Removed: CREDIT QUALITY INDICATORS FOR CARD MEMBER LOANS AND RECEIVABLES
+Added: (c) This total includes non-accrual loans of $ 16 million and $ 19 million as of December 31, 2025 and 2024, respectively.
+Added: Non-accruals for consumer installment loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.
+Added: CREDIT QUALITY INDICATORS FOR LOANS AND CARD MEMBER RECEIVABLES
+Added: The following table presents the key credit quality indicators as of or for the years ended December 31, 2025 and 2024:
+Added: CREDIT QUALITY INDICATORS FOR LOANS AND CARD MEMBER RECEIVABLES
Net Write-Off Rate Net Write-Off Rate
9 unchanged sentences
(b) 0.5 % (c) (b) 0.6 % (c)
+Added: 2.0 % 2.0 % 0.6 % 2.2 % 2.3 % 0.6 %
(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.
3 unchanged sentences
Delinquency data for periods other than 90+ days past billing is not available due to system constraints.
−Removed: 90+ days past billing as a % of total was 0.4 % as of both December 31, 2024 and 2023.
+Added: 90+ days past billing as a % of total was 0.5 percent and 0.4 percent as of December 31, 2025 and 2024, respectively.
Refer to Note 3 for additional indicators, including external qualitative factors, management considers in its evaluation process for reserves for credit losses.
LOANS AND RECEIVABLES RESTRUCTURINGS FOR BORROWERS EXPERIENCING FINANCIAL DIFFICULTY
−Removed: Effective January 1, 2023, we prospectively adopted the new guidance that eliminated the recognition and measurement of troubled debt restructurings (TDRs).
−Removed: Following the adoption of this guidance, we evaluate all loans and receivables restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether such loan modification should be accounted for as a new loan or a continuation of the existing loan.
+Added: We evaluate all loans and receivables restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether such loan modification should be accounted for as a new loan or a continuation of the existing loan.
Our loans and receivables restructurings for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan, which reflects the ongoing effort to support our customer and recover our investment in the existing loan.
60 unchanged sentences
(c) We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.
−Removed: The following tables provide information with respect to loans and receivables modified on or after January 1, 2023 that defaulted in the periods presented and were modified in the twelve months prior to the payment default.
+Added: The following tables provide information with respect to modified loans and receivables that defaulted in the periods presented and were modified in the twelve months prior to the payment default.
A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.
28 unchanged sentences
Total $ 128 $ 27 $ 2 $ 157
−Removed: (a) Represents the outstanding balances as of December 31, 2024 and 2023, respectively, of all modifications undertaken on or after January 1, 2023 that defaulted in the periods presented and were modified in the twelve months prior to payment default.
+Added: (a) Represents the outstanding balances as of December 31, 2025 and 2024, respectively, of all modifications that defaulted in the periods presented and were modified in the twelve months prior to payment default.
The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables.
32 unchanged sentences
(a) The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables.
−Removed: TROUBLED DEBT RESTRUCTURING DISCLOSURES PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE
−Removed: Prior to adoption of the new loan modification guidance, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR.
−Removed: Loans that were classified as a TDR prior to adoption will continue to be accounted for under the historical TDR accounting until the loan is entirely paid off or written off.
−Removed: As of December 31, 2024, there are no remaining loans which are accounted for under the historical TDR accounting.
−Removed: The following table provides additional information with respect to our impaired loans and receivables as of December 31, 2022:
−Removed: IMPAIRED LOANS AND RECEIVABLES
−Removed: As of December 31, 2022
−Removed: Accounts Classified as a
−Removed: 2022 ( Millions )
−Removed: Over 90 days Past Due & Accruing Interest (a)
−Removed: Balance Reserve for Credit
−Removed: Card Member Loans
−Removed: Consumer $ 252 $ 155 $ 781 $ 1,098 $ 2,286 $ 335
−Removed: Small Business 54 34 267 380 735 108
−Removed: Corporate — — — — — —
−Removed: Card Member Receivables
−Removed: Consumer — — 257 179 436 20
−Removed: Small Business — — 403 402 805 40
−Removed: Corporate — — 6 7 13 1
−Removed: Other Loans 3 2 19 2 26 —
−Removed: Total $ 309 $ 191 $ 1,733 $ 2,068 $ 4,301 $ 504
−Removed: (a) Our policy is generally to accrue interest through the date of write-off (typically 180 days past due).
−Removed: We establish reserves for interest that we believe will not be collected.
−Removed: Amounts presented exclude loans classified as a TDR.
−Removed: (b) Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest.
−Removed: Amounts presented exclude loans classified as TDRs.
−Removed: (c) Accounts classified as a TDR include $ 48 million that were over 90 days past due and accruing interest and $ 17 million that were non-accruals as of December 31, 2022.
−Removed: (d) In Program TDRs include accounts that are currently enrolled in a modification program.
−Removed: (e) Out of Program TDRs include $ 1,922 million of accounts that have successfully completed a modification program and $ 146 million of accounts that were not in compliance with the terms of the modification programs as of December 31, 2022.
−Removed: LOANS AND RECEIVABLES MODIFIED AS TDRs PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE
−Removed: The following table provides additional information with respect to loans and receivables that were modified as TDRs during the year ended December 31, 2022:
−Removed: LOANS AND RECEIVABLES MODIFIED AS TDRs
−Removed: 2022 Number of
−Removed: Accounts (Thousands)
−Removed: Balances (Millions) (a)
−Removed: Average Interest Rate Reduction (% points)
−Removed: Average Payment Term Extensions
−Removed: (# of months)
−Removed: Troubled Debt Restructurings:
−Removed: Card Member Loans 149 $ 1,002 14 % (b)
−Removed: Card Member Receivables 27 900 (c) 20
−Removed: Other Loans (d)
−Removed: Total 180 $ 1,910
−Removed: (a) Represents the outstanding balance immediately prior to modification.
−Removed: The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables.
−Removed: Modifications did not reduce the principal balance.
−Removed: (b) For Card Member loans, there have been no payment term extensions.
−Removed: (c) We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.
−Removed: (d) Other loans primarily represent consumer installment loans and lines of credit offered to small business customers.
−Removed: LOANS AND RECEIVABLES MODIFIED AS TDRs AND SUBSEQUENTLY DEFAULTED PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE
−Removed: The following table provides information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification.
−Removed: A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.
−Removed: LOANS AND RECEIVABLES MODIFIED AS TDRs THAT DEFAULTED WITHIN TWELVE MONTHS OF MODIFICATION
−Removed: 2022 Number of Accounts
−Removed: Outstanding Balances
−Removed: (Millions) (a)
−Removed: Troubled Debt Restructurings That Subsequently Defaulted:
−Removed: Card Member Loans 14 $ 81
−Removed: Card Member Receivables 3 38
−Removed: Other Loans (b)
−Removed: Total 18 $ 120
−Removed: (a) The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables.
−Removed: (b) Other loans primarily represent consumer installment loans and lines of credit offered to small business customers.
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.
−Removed: 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.
+Added: The Current Expected Credit Loss (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 .
20 unchanged sentences
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.
−Removed: 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.
−Removed: Loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification.
−Removed: The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses:
+Added: For Other loans, we use vintage-based historical performance to estimate expected credit losses over the life of the loan, net of recovery estimates.
+Added: We also assess the need to establish a reserve for expected credit losses as it relates to our card network business, taking into account our historical loss experience, and any collateral or other forms of credit enhancements from network participants.
+Added: If our expected credit losses exceed our outstanding receivables from network participants, a portion of the reserve for credit losses is recorded within Other liabilities on our Consolidated Balance Sheets.
+Added: 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 Card Member loans and receivables and 120 days past due for Other loans.
+Added: Balances in bankruptcy or owed by deceased individuals are generally written off upon notification.
+Added: The following table reflects the range of macroeconomic scenario key variables available to us as of December 31, 2025 and 2024, respectively, which were used, in conjunction with other inputs, to calculate reserves for credit losses:
KEY MACROECONOMIC VARIABLES
3 unchanged sentences
Fourth quarter of 2025
+Added: 4 % 3 % - 8 %
+Added: 0.5 % 3 % - 1 %
First quarter of 2026
1 unchanged sentence
Fourth quarter of 2027
+Added: 2 % 4 % - 2 %
(a) Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates.
CHANGES IN CARD MEMBER LOANS RESERVE FOR CREDIT LOSSES
+Added: Card Member loans reserve for credit losses increased for the year ended December 31, 2025, primarily driven by an increase in loans outstanding and deterioration in the macroeconomic outlook used in our reserve models, partially offset by the release of a reserve upon the reclassification of a small business cobrand portfolio to Card Member loans HFS from held for investment.
Card Member loans reserve for credit losses increased for the year ended December 31, 2024, primarily driven by an increase in loans outstanding.
−Removed: Card Member loans reserve for credit losses increased for the year ended December 31, 2023, primarily driven by an increase in loans outstanding and higher delinquencies.
The following table presents changes in the Card Member loans reserve for credit losses for the years ended December 31:
7 unchanged sentences
Interest and fees ( 692 ) ( 621 ) ( 443 )
−Removed: ( 33 ) 18 ( 6 )
Ending Balance $ 5,909 $ 5,679 $ 5,118
1 unchanged sentence
Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.
−Removed: In addition, provisions for the year ended December 31, 2024 includes the reserve release of $ 49 million upon the reclassification of Card Member loans related to the Lowe’s small business cobrand portfolio as HFS in the fourth quarter of 2024.
+Added: In addition, provisions for the years ended December 31, 2025 and 2024 include the reserve releases of $ 144 million and $ 49 million, respectively, upon the previously-mentioned reclassifications of small business cobrand portfolios to Card Member loans HFS.
See Note 1 for additional information.
(b) Principal write-offs are presented less recoveries of $ 988 million, $ 730 million and $ 537 million for the years ended December 31, 2025, 2024 and 2023, respectively.
−Removed: Recoveries of interest and fees were not significant.
(c) Primarily includes foreign currency translation adjustments of $ 32 million, $( 33 ) million and $ 18 million for the years ended December 31, 2025, 2024 and 2023, respectively.
CHANGES IN CARD MEMBER RECEIVABLES RESERVE FOR CREDIT LOSSES
+Added: Card Member receivables reserve for credit losses increased for the year ended December 31, 2025, primarily driven by deterioration in the macroeconomic outlook used in our reserve models and an increase in receivables outstanding.
Card Member receivables reserve for credit losses remained relatively flat for the year ended December 31, 2024.
−Removed: Card Member receivables reserve for credit losses decreased for the year ended December 31, 2023, primarily driven by lower delinquencies, partially offset by an increase in receivables outstanding.
The following table presents changes in the Card Member receivables reserve for credit losses for the years ended December 31:
10 unchanged sentences
(c) Primarily includes foreign currency translation adjustments of $ 3 million, $( 4 ) million and $ 1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
+Added: CHANGES IN OTHER LOANS RESERVE FOR CREDIT LOSSES
+Added: Other loans reserve for credit losses increased for both the years ended December 31, 2025 and 2024, primarily driven by increases in other loans outstanding.
+Added: The following table presents changes in the Other loans reserve for credit losses for the years ended December 31:
+Added: CHANGES IN OTHER LOANS RESERVE FOR CREDIT LOSSES
+Added: (Millions) 2025 2024 2023
+Added: Beginning Balance $ 194 $ 126 $ 59
+Added: Provisions (a)
+Added: Net write-offs (b)
+Added: ( 198 ) ( 180 ) ( 104 )
+Added: Interest and Fees
+Added: ( 9 ) ( 7 ) ( 3 )
+Added: Ending Balance $ 323 $ 194 $ 126
+Added: (a) Provisions for principal, interest and fee reserve components.
+Added: Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.
+Added: (b) Principal write-offs are presented less recoveries of $ 34 million, $ 20 million and $ 14 million for the years ended December 31, 2025, 2024 and 2023, respectively.
INVESTMENT SECURITIES
4 unchanged sentences
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.
−Removed: We had accrued interest on our AFS debt securities totaling $ 3 million and $ 5 million as of December 31, 2024 and 2023, respectively, presented as Other assets on the Consolidated Balance Sheets.
+Added: We had accrued interest on our AFS debt securities totaling $ 3 million as of both December 31, 2025 and 2024, 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.
1 unchanged sentence
Refer to Note 14 for a description of our methodology for determining the fair value of investment securities.
−Removed: The following is a summary of investment securities as of December 31:
+Added: The following is a summary of investment securities as of December 31, 2025 and 2024:
INVESTMENT SECURITIES
11 unchanged sentences
81 — — 81 77 — — 77
−Removed: Equity securities (c)(d)
+Added: Equity securities (c)
54 — ( 8 ) 46 53 4 ( 9 ) 48
3 unchanged sentences
(c) Equity securities comprise investments in common stock and mutual funds.
−Removed: (d) During 2024, an equity investment transferred from Other assets to Investment securities following the completion of an initial public offering by the issuer of the securities.
−Removed: The investment had a fair value of $ 7 million with an associated cost of $ 3 million as of December 31, 2024.
The following table provides information about our AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2025 and 2024:
17 unchanged sentences
We concluded that there was no credit loss attributable to the securities in an unrealized loss position for the periods presented.
−Removed: The following table summarizes the gross unrealized losses for AFS debt securities by ratio of fair value to amortized cost as of December 31, 2024 and 2023:
−Removed: AFS GROSS UNREALIZED LOSSES BY RATIO OF FAIR VALUE TO AMORTIZED COST
−Removed: Less than 12 months 12 months or more Total
−Removed: Ratio of Fair Value to
−Removed: Amortized Cost (Dollars in millions)
−Removed: Securities Estimated
−Removed: Fair Value Gross
−Removed: Losses Number of
−Removed: Securities Estimated
−Removed: Fair Value Gross
−Removed: Losses Number of
−Removed: Securities Estimated
−Removed: Fair Value Gross
−Removed: 90%–100% — $ — $ — 30 $ 129 $ ( 3 ) 30 $ 129 $ ( 3 )
−Removed: Less than 90% — — — 15 23 ( 9 ) 15 23 ( 9 )
−Removed: Total as of December 31, 2024 — $ — $ — 45 $ 152 $ ( 12 ) 45 $ 152 $ ( 12 )
−Removed: 90%–100% — $ — $ — 69 $ 1,140 $ ( 14 ) 69 $ 1,140 $ ( 14 )
−Removed: Less than 90% — — — 2 14 ( 5 ) 2 14 ( 5 )
−Removed: Total as of December 31, 2023 — $ — $ — 71 $ 1,154 $ ( 19 ) 71 $ 1,154 $ ( 19 )
Weighted average yields and contractual maturities for AFS debt securities with stated maturities as of December 31, 2025 were as follows:
WEIGHTED AVERAGE YIELDS AND CONTRACTUAL MATURITIES OF AFS DEBT SECURITIES
−Removed: (Millions) 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
+Added: (Millions) Due in 1 year or less
+Added: Due after 1 year through 5 years
+Added: Due after 5 years through 10 years
+Added: Due after 10 years Total
State and municipal obligations (a)
12 unchanged sentences
(c) Represents investments in debt securities issued by Community Development Financial Institutions.
−Removed: (d) Average yields for investment securities have been calculated using the effective yield on the date of purchase.
+Added: (d) Weighted average yields for investment securities have been calculated using the effective yield on the date of purchase.
Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S.
17 unchanged sentences
During the years ended December 31, 2025 and 2024, no such triggering events occurred.
−Removed: The following is a summary of Other assets as of December 31:
+Added: The following is a summary of Other assets as of December 31, 2025 and 2024:
(Millions) 2025 2024
4 unchanged sentences
Total $ 24,263 $ 21,179
−Removed: (a) Primarily includes net deferred tax assets, other receivables net of reserves, investments in non-consolidated entities, tax credit investments, prepaid assets and derivative assets.
+Added: (a) Primarily includes net deferred tax assets, other receivables net of reserves, investments in non-consolidated entities, prepaid assets and tax credit investments.
The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows:
2 unchanged sentences
Balance as of December 31, 2023 $ 379 $ 2,151 $ 743 $ 578 $ 3,851
−Removed: Acquisitions — 30 — 18 48
+Added: Acquisitions (a)
+Added: 394 — — — 394
Dispositions — — — ( 27 ) ( 27 )
4 unchanged sentences
Dispositions — — — — —
−Removed: ( 1 ) ( 3 ) ( 27 ) — ( 31 )
Balance as of December 31, 2025 $ 799 $ 2,744 $ 775 $ 554 $ 4,872
−Removed: (a) Primarily includes foreign currency translation.
−Removed: (b) Includes the acquisition of a reservation, table and event management technology provider.
+Added: (a) Includes the acquisition of a reservation, table and event management technology provider.
+Added: (b) Includes the acquisition of an expense management software company.
+Added: (c) Primarily includes foreign currency translation.
Accumulated impairment losses were $ 221 million as of both December 31, 2025 and 2024.
OTHER INTANGIBLE ASSETS
−Removed: Intangible assets are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years.
−Removed: We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable.
−Removed: An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value.
The gross carrying amount for Other intangible assets as of December 31, 2025 and 2024 was $ 662 million and $ 642 million, respectively, with accumulated amortization of $ 572 million and $ 519 million, respectively.
8 unchanged sentences
As of December 31, 2025 and 2024, $ 1,266 million and $ 1,168 million of our tax credit investments, respectively, related to investments in unconsolidated VIEs for which we do not have a controlling financial interest.
−Removed: As of December 31, 2024, we committed to provide funding related to certain of our tax credit investments, which is expected to be paid between 2025 and 2040 , resulting in $ 682 million in unfunded commitments reported in Other liabilities, of which $ 401 million specifically related to unconsolidated VIEs.
−Removed: In addition, as of December 31, 2024, we had contractual off-balance sheet obligations to provide additional funding up to $ 4 million for these tax credit investments, fully related to unconsolidated VIEs.
−Removed: We may be required to fund these amounts between 2025 and 2034.
+Added: These amounts also represented our maximum exposure to loss for these entities.
+Added: As of December 31, 2025, we committed to provide funding related to certain of our tax credit investments, which is expected to be paid between 2026 and 2041 , resulting in $ 755 million in future equity contributions reported in Other liabilities, of which $ 445 million specifically related to unconsolidated VIEs.
The following table presents tax credit investment expenses and associated income tax credits and other income tax benefits for the years ended December 31:
2 unchanged sentences
Proportional amortization recognized in tax provision $ ( 233 ) $ ( 193 ) $ ( 185 )
−Removed: Equity method expenses recognized in Other, net expenses $ — $ — $ 9
Income tax credits and Other income tax benefits (a) recognized in tax provision
3 unchanged sentences
CUSTOMER DEPOSITS
−Removed: As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:
+Added: As of December 31, 2025 and 2024, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:
INTEREST-BEARING AND NON-INTEREST-BEARING CUSTOMER DEPOSITS
9 unchanged sentences
Total customer deposits $ 152,488 $ 139,413
−Removed: Customer deposits by deposit type as of December 31 were as follows:
+Added: Customer deposits by deposit type as of December 31, 2025 and 2024 were as follows:
CUSTOMER DEPOSITS BY TYPE
23 unchanged sentences
SHORT-TERM BORROWINGS
−Removed: Our short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows:
+Added: Our short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of one year or less than one year as of December 31, 2025 and 2024 were as follows:
SHORT-TERM BORROWINGS
8 unchanged sentences
(b) Includes borrowings from banks and book overdrafts with banks, which represents negative cash balances for accounts with an associated overdraft facility, due to timing differences arising in the ordinary course of business.
−Removed: As of December 31, 2024, we maintained a three-year committed, revolving, secured borrowing facility, with a maturity date of September 15, 2026, which gives us the right to sell up to $ 3.0 billion face amount of eligible certificates issued from the Lending Trust.
+Added: As of December 31, 2025, we maintained a committed, revolving, secured borrowing facility, with a maturity date of September 15, 2028, which gives us the right to sell up to $ 2.0 billion face amount of eligible certificates issued from the Lending Trust.
This facility enhances our contingent funding resources and is also used in the ordinary course of business to fund working capital needs.
1 unchanged sentence
Additionally, certain of our subsidiaries maintained total committed lines of credit of $ 123 million and $ 191 million as of December 31, 2025 and 2024, respectively.
−Removed: As of December 31, 2024 and 2023, $ 16 million and nil were drawn on these committed lines of credit, respectively.
+Added: As of December 31, 2025 and 2024, $ 12 million and $ 16 million were drawn on these committed lines of credit, respectively.
We paid $ 13.1 million and $ 11.9 million in fees to maintain the secured borrowing facility in 2025 and 2024, respectively.
1 unchanged sentence
LONG-TERM DEBT
−Removed: Our long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows:
+Added: Our long-term debt outstanding, defined as debt with original contractual maturity dates of greater than one year as of December 31, 2025 and 2024 was as follows:
LONG-TERM DEBT
10 unchanged sentences
Fixed-to-Floating Rate Senior Notes 2027 - 2036 27,445 5.07 4.98 15,973 5.35 5.57
−Removed: Fixed Rate Subordinated Notes — — — 586 3.63 6.74
Fixed-to-Floating Rate Subordinated Notes 2033 - 2035 1,771 5.44 5.36 1,742 5.44 5.80
23 unchanged sentences
Total Long-Term Debt $ 56,387
−Removed: We maintained a committed syndicated bank credit facility of $ 4.0 billion as of both December 31, 2024 and 2023, all of which was undrawn as of the respective dates.
−Removed: The facility has a maturity date of October 30, 2026, and the availability of the facility is subject to compliance with certain covenants, principally our maintenance of a minimum Common Equity Tier 1 (CET1) risk-based capital ratio of 4.5 percent, with certain restrictions in relation to either accessing the facility or distributing capital to common shareholders in the event our CET1 risk-based capital ratio falls between 4.5 percent and 6.5 percent.
+Added: We maintained a committed syndicated bank credit facility of $ 6.0 billion as of December 31, 2025 and $ 4.0 billion as of December 31, 2024, all of which was undrawn as of the respective dates.
+Added: The facility has a maturity date of September 24, 2028, and the availability of the facility is subject to compliance with certain covenants, principally our maintenance of a minimum Common Equity Tier 1 (CET1) risk-based capital ratio of 4.5 percent, with certain restrictions in relation to either accessing the facility or distributing capital to common shareholders in the event our CET1 risk-based capital ratio falls between 4.5 percent and 6.5 percent.
As of December 31, 2025 and 2024, we were in compliance with the covenants contained in the credit facility.
−Removed: Additionally, we maintained a three-year committed, revolving, secured borrowing facility that gives us the right to sell up to $ 3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 15, 2026 .
−Removed: As of both December 31, 2024 and 2023, no amounts were outstanding on this facility.
+Added: Additionally, we maintained a committed, revolving, secured borrowing facility that gives us the right to sell up to $ 3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 17, 2028 .
+Added: The facility was undrawn as of both December 31, 2025 and 2024.
We paid $ 21.8 million and $ 14.2 million in fees to maintain these lines in 2025 and 2024, respectively.
2 unchanged sentences
OTHER LIABILITIES
−Removed: The following is a summary of Other liabilities as of December 31:
+Added: The following is a summary of Other liabilities as of December 31, 2025 and 2024:
OTHER LIABILITIES
5 unchanged sentences
Card Member rebate and reward accruals (c)
−Removed: Income tax liability (d)
+Added: Income tax liability
$ 41,632 $ 36,811
−Removed: (a) Primarily includes negative cash balances for accounts without an associated overdraft facility, due to timing differences arising in the ordinary course of business.
+Added: (a) Includes negative cash balances for accounts without an associated overdraft facility, due to timing differences arising in the ordinary course of business.
(b) Includes employee benefit plan obligations and incentive compensation.
−Removed: (c) Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards.
−Removed: (d) Includes repatriation tax liability of $ 749 million and $ 998 million as of December 31, 2024 and 2023, respectively, which represents our remaining obligation under the Tax Cuts and Jobs Act enacted on December 22, 2017 to pay a one-time transition tax on unrepatriated earnings and profits of certain foreign subsidiaries, the net position for current federal, state and non-U.S.
−Removed: income tax liabilities and deferred tax liabilities for foreign jurisdictions.
−Removed: (e) Primarily includes prepaid products and Travelers Cheques, lease liabilities, accruals for general operating expenses, unfunded commitments for tax credit investments, payments to cobrand partners, dividends payable and client incentives.
+Added: (c) Includes liabilities related to rewards earned on cobrand and cash back card products.
+Added: (d) Primarily includes prepaid products and Travelers Cheques, lease liabilities, accruals for general operating expenses, derivative liabilities, unfunded commitments for tax credit investments, dividends payable, payments to cobrand partners and client incentives.
MEMBERSHIP REWARDS
7 unchanged sentences
DEFERRED CARD AND OTHER FEES, NET
−Removed: The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations, as of December 31 was as follows:
+Added: The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31, 2025 and 2024 was as follows:
DEFERRED CARD AND OTHER FEES, NET
50 unchanged sentences
(b) The expected life of stock options was determined using historical option exercise behavior.
−Removed: Certain executives were awarded a grant of stock options on October 31, 2022 that vest, subject to achieving performance and market conditions.
−Removed: These options vest in tranches on the third and fourth anniversaries from the grant date, subject to continued employment through the applicable anniversary, and have a contractual term of seven years .
+Added: Certain executives were awarded a grant of stock options on October 31, 2022 with a contractual term of seven years and vesting in tranches on the third and fourth anniversaries of the grant date, subject to achieving performance and market conditions and continued employment through the applicable anniversary.
+Added: The third-anniversary tranche vested on October 31, 2025.
The fair value was estimated at the grant date using a Monte Carlo valuation model assuming a dividend yield of 1.4 percent, expected volatility (based on historical and implied volatilities of our common stock price) of 34 percent, risk-free rate of 3.9 percent and an expected life of seven years , resulting in a fair value of $ 50.10 .
12 unchanged sentences
We grant RSUs that contain either a) service conditions or b) both service and performance conditions.
−Removed: RSUs containing only service conditions generally vest ratably over three years , or four years for awards granted prior to 2022, beginning with the first anniversary of the grant date.
+Added: RSUs containing only service conditions generally vest ratably over three years beginning with the first anniversary of the grant date.
RSUs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned generally ranges from zero to 120 percent of target depending on the achievement of predetermined Company metrics.
11 unchanged sentences
As of December 31, 2025, there was $ 417 million of total unrecognized compensation cost related to non-vested RSUs, which will be recognized over the weighted-average remaining vesting period of 1.9 years.
−Removed: The weighted-average grant-date fair value of RSUs granted in 2024, 2023 and 2022 was $ 188.37 , $ 163.88 and $ 168.26 , respectively.
+Added: The weighted-average grant-date fair value per RSU granted in 2025, 2024 and 2023 was $ 288.18 , $ 188.37 and $ 163.88 , respectively.
For RSUs vested during 2025, 2024 and 2023, the total fair value, based upon our stock price at the date the RSUs vested, was $ 652 million, $ 437 million and $ 389 million, respectively.
14 unchanged sentences
We also sponsor unfunded other postretirement benefit plans that provide health care and life insurance to certain retired colleagues in the United States.
−Removed: For these plans, the total net benefit was $ 18 million, $ 12 million and $ 24 million in 2024, 2023 and 2022, respectively.
+Added: For these plans, the total net cost recognized in Salaries and employee benefits was $ 28 million in 2025 and the total net benefit recognized was $ 18 million and $ 12 million in 2024 and 2023, respectively.
We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the Consolidated Balance Sheets.
As of December 31, 2025 and 2024, the unfunded status related to the defined benefit pension plans and other postretirement benefit plans was $ 217 million and $ 88 million, respectively, and is recorded in Other liabilities.
−Removed: CONTINGENCIES AND COMMITMENTS
+Added: CONTINGENCIES, COMMITMENTS AND GUARANTEES
CONTINGENCIES
5 unchanged sentences
American Express Co., et al., in which plaintiffs allege that the anti-steering and non-discrimination provisions in our merchant agreements violate federal antitrust law and that the arbitration provision in our merchant agreements violates federal antitrust law to the extent it prevents antitrust challenges to our anti-steering and non-discrimination provisions.
−Removed: Plaintiffs seek, on behalf of themselves and a class of merchants that accept through the OptBlue Program, unspecified damages and an injunction prohibiting us from enforcing our anti-steering and non-discrimination provisions and prohibiting us from enforcing our arbitration provision to the extent it prevents antitrust challenges to our anti-steering and non-discrimination provisions.
+Added: Plaintiffs seek, on behalf of themselves and a class of merchants that accept through the OptBlue Program, unspecified damages and an injunction prohibiting us from enforcing our anti-steering and non-discrimination provisions and prohibiting us from enforcing our arbitration provision to the extent the arbitration provision prevents antitrust challenges to our anti-steering and non-discrimination provisions.
+Added: The court rejected our motion to compel the case to arbitration;
+Added: we have appealed the decision to the Court of Appeals for the First Circuit.
On March 21, 2024, we were named as a defendant in a case filed in the United States District Court for the District of Rhode Island, captioned 5-Star General Store aka Bento LLC, et al.
1 unchanged sentence
, in which plaintiffs allege that the anti-steering and non-discrimination provisions in our merchant agreements violate federal antitrust law and seek, on behalf of themselves and a class of merchants, an injunction prohibiting us from enforcing our anti-steering and non-discrimination provisions and a declaration that we have violated antitrust laws.
−Removed: 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.
+Added: The court rejected our motion to compel the case to arbitration;
+Added: we have appealed the decision to the Court of Appeals for the First Circuit.
+Added: 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 David Moskowitz, et al.
+Added: (formerly Oliver) v.
American Express Company and American Express Travel Related Services Company Inc.
4 unchanged sentences
and (ii) holders of Visa, MasterCard and Discover credit cards that do not offer rewards or charge an annual fee in two states and Washington, D.C.
+Added: After trial in August 2025, the jury returned a verdict finding in favor of us on all claims except an Illinois consumer law claim for the class of non-rewards credit card holders in Illinois for which the jury awarded $ 12.5 million in damages.
+Added: We have reached an agreement with the class representatives to settle all claims in this action, which is subject to court approval.
On March 8, 2016, plaintiffs B&R Supermarket, Inc.
8 unchanged sentences
On August 14, 2024, the court granted our motion to compel arbitration as to class members who are subject to our merchant agreements, but did not stay the claims pending arbitration.
−Removed: On November 15, 2024, we appealed to the Second Circuit requesting a stay of all claims against us that are subject to arbitration.
+Added: On November 15, 2024, we appealed to the Court of Appeals for the Second Circuit requesting a stay of all claims against us that are subject to arbitration.
+Added: On March 31, 2025, we reached an agreement with the class representatives to settle this action, which is subject to court approval.
+Added: On October 16, 2025, KServicing Wind Down Corp., the post-bankruptcy wind-down estate of Kabbage, Inc.
+Added: (Kabbage), filed an action against American Express Kabbage Inc.
+Added: and American Express Travel Related Services Company, Inc., captioned KServicing Wind Down Corp, et al.
+Added: American Express Kabbage Inc.
+Added: (f/k/a Alpha Kabbage, Inc.) and American Express Travel Related Services Company, Inc ., in the United States Bankruptcy Court for the District of Delaware, seeking to recover up to approximately $ 746 million.
+Added: The complaint alleges that our acquisition of Kabbage’s lending platform and other specified assets and liabilities included a fraudulent transfer that left Kabbage insolvent due to Kabbage’s liabilities, including those owed to the Department of Justice and Small Business Administration arising from Kabbage’s participation in the Paycheck Protection Program.
+Added: The complaint seeks to avoid the alleged fraudulent transfer and recover the value of that transfer from us.
+Added: A separate complaint seeking to recover some or all of the same amount was also filed on October 16, 2025 against certain of Kabbage’s former directors, officers and shareholders, who have taken the position that we must indemnify them for any resulting liability (which we dispute).
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.
3 unchanged sentences
In May 2022, the tribunal further clarified the 2021 partial award and the discount rate that should apply to transactions through non-physical channels.
−Removed: In December 2024, the tribunal rendered a further partial award providing further clarifications on the allocation of revenue.
−Removed: A final award is expected in 2025.
−Removed: In May 2020, we began responding to a review by the Office of the Comptroller of the Currency (OCC) and the Department of Justice (DOJ) Civil Division regarding historical sales practices relating to sales to small business customers in the United States.
−Removed: In January 2021, we received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York (EDNY) regarding these sales practices issues, as well as a Civil Investigative Demand from the Consumer Financial Protection Bureau (CFPB) pertaining to its investigation into sales practices related to consumers.
−Removed: We have also been made aware of a related investigation by the New York Department of Financial Services (NYDFS) and have provided information regarding these sales practices issues to The Board of Governors of the Federal Reserve System (Federal Reserve).
−Removed: In January 2023, the CFPB notified us that its investigation was completed and that it did not intend to recommend an enforcement action be taken against us at that time.
−Removed: In July 2023, we reached a settlement with the OCC to resolve its review of historical sales practices to certain U.S.
−Removed: small business card customers that occurred between 2015 and 2017.
−Removed: In January 2025, we announced that we entered into agreements with the EDNY and DOJ Civil Division and reached an agreement in principle with the Staff of the Federal Reserve to resolve their investigations into historical sales practices for certain U.S.
−Removed: small business customers, which we ended in 2021 or earlier.
−Removed: Pursuant to the agreements and after crediting, we are required to pay approximately $ 230 million in total to resolve these matters.
+Added: In December 2024, the tribunal rendered a further partial award providing further clarifications on the allocation of revenue and in January 2026, the tribunal rendered the final award in this matter.
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.
20 unchanged sentences
The weighted average remaining lease term was 14 years and 17 years as of December 31, 2025 and 2024, respectively.
−Removed: The weighted average rate used to discount lease commitments was 4 percent and 3 percent as of December 31, 2024 and 2023, respectively.
−Removed: The following represents the maturities of our outstanding lease commitments as of December 31, 2024:
+Added: The weighted average rate used to discount lease commitments was 4 percent as of both December 31, 2025 and 2024.
+Added: The following represents the maturities of our outstanding lease commitments, including extension or termination options used in the determination of the lease term which we are reasonably certain to exercise as of December 31, 2025:
MATURITIES OF OUTSTANDING LEASE COMMITMENTS
4 unchanged sentences
(a) Excludes $ 355 million related to leases that were not yet commenced but were commitments as of December 31, 2025.
+Added: Certain of our leases involve joint and several arrangements, including potential restoration of the leased property in the event of damage or destruction.
+Added: We expect that any amount payable for restoration, estimated to be up to $ 1.7 billion, including the co-tenant’s share of approximately $ 0.9 billion, would be largely offset by recoveries under existing insurance policies, which we are contractually required to maintain.
+Added: Prior to the fourth quarter of 2025, the co-tenant’s share of the potential restoration amount was included in our maximum potential undiscounted future payments resulting from guarantees and indemnifications.
As of December 31, 2025, we had approximately $ 11.2 billion in financial commitments outstanding related to agreements with certain cobrand partners under which we are required to make a certain level of minimum payments over the life of the agreement, generally ranging from five to ten years .
3 unchanged sentences
As of both December 31, 2025 and 2024, AENB held shares with a carrying value of $ 132 million, with the remaining half subject to call by the Federal Reserve District Bank Board, the likelihood of which we believe is remote.
+Added: The maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by us in the ordinary course of business were $ 148 million and $ 11 million, respectively, as of December 31, 2025 and $ 1.0 billion and $ 10 million, respectively, as of December 31, 2024.
+Added: Both periods include amounts related to business dispositions and certain commercial arrangements and, in addition, the prior period includes amounts related to the co-tenant’s share of the potential restoration amount of our leased property of approximately $ 1.0 billion under real estate arrangements, which is now presented above as part of the lease arrangements.
+Added: To date, we have not experienced any significant losses related to guarantees or indemnifications.
+Added: These instruments are recognized at fair value.
+Added: In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated.
DERIVATIVES AND HEDGING ACTIVITIES
30 unchanged sentences
Refer to Note 14 for a description of our methodology for determining the fair value of derivatives.
−Removed: The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31:
+Added: The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31, 2025 and 2024:
FAIR VALUE OF DERIVATIVE ASSETS AND LIABILITIES
42 unchanged sentences
The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $ 37.0 billion and $ 18.9 billion as of December 31, 2025 and 2024, respectively, including the cumulative amount of fair value hedging adjustments of $ 366 million and $ 27 million for the respective periods.
−Removed: We recognized in Interest expense on Long-term debt net increases of $ 254 million and $ 189 million for the years ended December 31, 2024 and 2023, respectively and a net decrease of $ 57 million for the year ended December 31, 2022.
+Added: We recognized in Interest expense on Long-term debt net increases of $ 106 million, $ 254 million and $ 189 million for the years ended December 31, 2025, 2024 and 2023, respectively.
These were primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges.
1 unchanged sentence
A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation.
−Removed: 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.
−Removed: subsidiaries.
−Removed: We had notional amounts of approximately $ 14.3 billion and $ 14.1 billion of foreign currency derivatives designated as net investment hedges as of December 31, 2024 and 2023, respectively.
−Removed: 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 $ 816 million, a loss of $ 640 million and a gain of $ 237 million for the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: We primarily designate foreign currency derivatives (typically foreign exchange forwards) and, in certain cases, foreign currency-denominated debt, as hedging instruments to reduce our exposure to changes in currency exchange rates on net investments in foreign subsidiaries with non-U.S.
+Added: dollar functional currency.
+Added: We had notional amounts of approximately $ 16.3 billion and $ 14.3 billion designated as net investment hedges as of December 31, 2025 and 2024, respectively.
+Added: The gain or loss on these net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, was a loss of $ 1 billion, a gain of $ 0.8 billion and a loss of $ 0.6 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income were no t significant for the years ended December 31, 2025, 2024 and 2023, respectively.
9 unchanged sentences
This embedded derivative had a fair value of $ 10 million and $ 31 million as of December 31, 2025 and 2024, respectively.
−Removed: The changes in the fair value of the embedded derivative resulted in a gain of $ 13 million, a loss of $ 9 million and a gain of $ 4 million for the years ended December 31, 2024, 2023 and 2022, respectively, which were recognized in Service fees and other revenue in the Consolidated Statements of Income.
+Added: The changes in the fair value of the embedded derivative resulted in a loss of $ 21 million, a gain of $ 13 million and a loss of $ 9 million for the years ended December 31, 2025, 2024 and 2023, respectively, which were recognized in Service fees and other revenue in the Consolidated Statements of Income.
Fair value is defined as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the principal or, in the absence of a principal, most advantageous market for the specific asset or liability.
10 unchanged sentences
FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT FAIR VALUE
−Removed: 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 described in the preceding paragraphs), as of December 31:
+Added: 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 described in the preceding paragraphs), as of December 31, 2025 and 2024:
FINANCIAL ASSETS AND FINANCIAL LIABILITIES MEASURED AT FAIR VALUE
53 unchanged sentences
Financial Assets:
−Removed: Financial assets for which carrying values equal or
−Removed: approximate fair value
+Added: Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)
7 unchanged sentences
Financial liabilities for which carrying values equal or approximate fair value
+Added: 166 166 — 166 —
Financial liabilities carried at other than fair value
6 unchanged sentences
Financial Assets:
−Removed: Financial assets for which carrying values equal or
−Removed: approximate fair value
+Added: Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)
4 unchanged sentences
143 149 — — 149
+Added: Card Member loans HFS
Financial Liabilities:
36 unchanged sentences
We have certain assets that are subject to measurement at fair value on a nonrecurring basis.
−Removed: 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.
−Removed: We estimate the Level 3 fair value of equity investments without readily determinable fair values, which include investments in our Amex Ventures portfolio, based on price changes as of the date of new similar equity financing transactions completed by the companies in the portfolio.
+Added: Equity investments without readily determinable fair values, which include investments in our Amex Ventures portfolio, are measured at fair value in periods subsequent to their initial recognition if they are determined to be impaired or where there is an observable price change for an identical or similar investment of the same issuer.
+Added: We generally estimate the fair value of these investments based on the observed transaction price.
In addition, impairments on such investments are recorded to account for the difference between the estimated fair value and carrying value of an investment based on a qualitative assessment of impairment indicators such as business performance, general market conditions and the economic and regulatory environment.
When an impairment triggering event occurs, the fair value measurement is generally derived by taking into account all available information, such as share prices of publicly traded peer companies, internal valuations performed by our investees, and other third-party fair value data.
−Removed: The fair value of impaired investments represents a Level 3 fair value measurement.
−Removed: The carrying value of equity investments without readily determinable fair values totaled $ 0.9 billion as of both December 31, 2024 and 2023, of which investments representing nonrecurring Level 3 fair value measurement were $ 1 million and nil as of December 31, 2024 and 2023, respectively.
+Added: The fair value of these investments represents a Level 3 fair value measurement.
+Added: The carrying value of equity investments without readily determinable fair values totaled $ 1.1 billion and $ 0.9 billion as of December 31, 2025 and 2024, respectively, of which investments subject to nonrecurring Level 3 fair value measurement during the years ended December 31, 2025 and 2024 totaled $ 0.5 billion and $ 1.0 million, respectively.
These amounts are included within Other assets on the Consolidated Balance Sheets.
2 unchanged sentences
Unrealized gains and losses are recorded in Other, net on the Consolidated Statements of Income.
−Removed: Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains for equity investments without readily determinable fair values totaled $ 1.1 billion as of both December 31, 2024 and 2023, and cumulative unrealized losses were $ 460 million and $ 431 million as of December 31, 2024 and 2023, respectively.
+Added: Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains and losses for equity investments without readily determinable fair values totaled $ 1.2 billion and $ 0.5 billion as of December 31, 2025, 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 December 31, 2025 and 2024.
−Removed: 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 $ 10 million, respectively, as of December 31, 2024 and $ 1 billion and $ 24 million, respectively, as of December 31, 2023, all of which were primarily related to our real estate arrangements and business dispositions.
−Removed: To date, we have not experienced any significant losses related to guarantees or indemnifications.
−Removed: Our recognition of these instruments is at fair value.
−Removed: In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated.
COMMON AND PREFERRED SHARES
12 unchanged sentences
During 2025, 2024 and 2023, we repurchased 17 million common shares with a cost of $ 5.3 billion, 24 million common shares with a cost of $ 5.9 billion and 22 million common shares with a cost of $ 3.5 billion, respectively.
−Removed: The cost includes excise tax and commissions of $ 55 million and $ 32 million in 2024 and 2023, respectively, and commissions of $ 4 million in 2022.
−Removed: As of December 31, 2024, we had approximately 75 million common shares remaining under the Board share repurchase authorization.
+Added: The cost includes excise tax and commissions of $ 48 million, $ 55 million and $ 32 million in 2025, 2024 and 2023, respectively.
+Added: As of December 31, 2025, we had approximately 58 million common shares remaining under the repurchase authorization.
Common shares are generally retired by us upon repurchase (except for 2.1 million, 2.2 million and 2.3 million shares held as treasury shares as of December 31, 2025, 2024 and 2023, respectively);
38 unchanged sentences
Accumulated Other Comprehensive Income (Loss)
+Added: $ ( 3,277 ) $ 118 $ ( 3,395 ) $ ( 323 ) $ ( 3,072 ) $ 138 $ ( 3,210 )
(a) Refer to Note 13 for additional information on hedging activity.
3 unchanged sentences
(Millions) 2025 2024 2023
−Removed: Net unrealized gains (losses) on debt securities
−Removed: $ 2 $ 16 $ ( 27 )
+Added: Net unrealized gains on debt securities
Foreign currency translation adjustment, net of hedges ( 258 ) 205 ( 158 )
6 unchanged sentences
(Millions) 2025 2024 2023
−Removed: Service fees $ 1,609 $ 1,518 $ 1,444
+Added: Network partnership revenue (a)
+Added: $ 1,773 $ 1,636 $ 1,705
+Added: Loyalty coalition, merchant and other service fees (b)
+Added: 1,711 1,609 1,518
Foreign currency-related revenue 1,697 1,527 1,428
2 unchanged sentences
Other fees and revenues
−Removed: Total Service fees and other revenue $ 5,129 $ 5,005 $ 4,521
+Added: Total Service fees and other revenue (a)
+Added: $ 7,471 $ 6,765 $ 6,710
+Added: (a) Beginning in 2025, network partnership revenue, previously reported as Processed revenue on our Consolidated Statements of Income, is consolidated within Service fees and other revenue.
+Added: Prior period amounts have been recast to conform to the current period presentation.
+Added: (b) Beginning in 2025, the revenue line previously reported as Service fees was renamed to Loyalty coalition, merchant and other service fees to better reflect its nature and components.
The following is a detail of Other expenses for the years ended December 31:
13 unchanged sentences
Restructuring expense, which primarily relates to new severance charges, net of revisions to existing reserves, was $ 96 million, $ 123 million and $ 179 million for the years ended December 31, 2025, 2024 and 2023, respectively, and is included within Salaries and employee benefits within our Consolidated Statements of Income.
−Removed: The cumulative cost relating to restructuring programs initiated in 2024 or in prior years that were in progress during 2024 was $ 400 million.
−Removed: There were no programs initiated prior to 2022 that were still in progress during 2024.
+Added: The cumulative expense for restructuring programs in progress during 2025 was $ 443 million.
+Added: These programs were initiated from 2022 through 2025.
Cumulative amounts were not material to any reportable operating segment.
+Added: In December 2023, the Financial Accounting Standards Board issued updated accounting guidance on disclosure for income taxes which the Company adopted prospectively as of January 1, 2025.
+Added: Refer to Note 1 for additional information.
+Added: As required under the updated guidance, the components of pretax income for the year ended December 31, 2025 included in the Consolidated Statements of Income were as follows:
+Added: COMPONENTS OF PRETAX INCOME
+Added: (Millions) 2025
+Added: Income (loss) from continuing operations before income tax expense (benefit):
The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows:
4 unchanged sentences
state and local 497 494 351
+Added: 1,272 894 662
Total current income tax expense 3,504 3,756 3,468
6 unchanged sentences
A reconciliation of the U.S.
−Removed: federal statutory rate of 21 percent as of December 31, 2024, 2023 and 2022, to our actual income tax rate was as follows:
−Removed: RECONCILIATION OF ACTUAL INCOME TAX RATE
+Added: federal statutory rate of 21 percent to our actual income tax rate as of December 31, 2025, prepared under the updated guidance was as follows:
+Added: RECONCILIATION OF ACTUAL INCOME TAX RATE FOR 2025
+Added: (Millions, except percentages)
+Added: statutory federal income tax rate $ 2,897 21.0 %
+Added: (Decrease) increase in taxes resulting from:
+Added: State and local income taxes, net of federal benefit (a)
+Added: Foreign tax effects:
+Added: Jersey – Statutory tax rate differential
( 423 ) ( 3.1 )
+Added: Jersey – Multinational corporate income tax & other
+Added: Other foreign jurisdictions (b)
+Added: Effect of cross-border tax laws ( 42 ) ( 0.3 )
+Added: ( 146 ) ( 1.0 )
+Added: Changes in valuation allowances
+Added: Non-taxable or non-deductible items ( 9 ) ( 0.1 )
+Added: Changes in unrecognized tax benefits 69 0.5
+Added: Actual tax rates $ 2,962 21.5 %
+Added: (a) State and local income taxes in California, New York, New York City and Florida comprise the majority of the state and local income taxes, net of federal benefit as of December 31, 2025.
+Added: (b) In certain jurisdictions outside the United States, we benefit from agreements that temporarily lower our income tax expense.
+Added: The impact of these agreements was not material to our Consolidated Statements of Income.
+Added: A reconciliation of the U.S.
+Added: federal statutory rate of 21 percent to our actual income tax rate as of December 31, 2024 and 2023 prepared under the prior guidance was as follows:
+Added: RECONCILIATION OF ACTUAL INCOME TAX RATE FOR 2024 AND 2023
statutory federal income tax rate 21.0 % 21.0 %
8 unchanged sentences
Valuation allowances
−Removed: — 0.1 ( 0.1 )
Other 0.2 0.3
4 unchanged sentences
These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse.
−Removed: The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table:
+Added: The significant components of deferred tax assets and liabilities as of December 31, 2025 and 2024 are reflected in the following table:
COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES
11 unchanged sentences
Intangibles and fixed assets 733 673
−Removed: Deferred revenue — 62
Deferred interest 112 113
13 unchanged sentences
Accumulated earnings of certain non-U.S.
−Removed: subsidiaries, which totaled approximately $ 1.2 billion as of December 31, 2024, are intended to be permanently reinvested outside the U.S.
−Removed: We do not provide for state income and foreign withholding taxes on foreign earnings intended to be permanently reinvested outside the U.S.
+Added: subsidiaries, which totaled approximately $ 1.7 billion as of December 31, 2025, are intended to be permanently reinvested outside the United States.
+Added: We do not provide for state income and foreign withholding taxes on foreign earnings intended to be permanently reinvested outside the United States.
Accordingly, state income and foreign withholding taxes, which would have aggregated to approximately $ 0.2 billion as of December 31, 2025, have not been provided on those earnings.
−Removed: Net income taxes paid by us during 2024, 2023 and 2022, were approximately $ 3.6 billion, $ 3.3 billion and $ 3.0 billion, respectively.
+Added: As required under the updated guidance, the income taxes paid (net of refunds received) disaggregated by jurisdictional categories (U.S.
+Added: federal, U.S.
+Added: state and non-U.S.) for the year ended December 31, 2025 were as follows:
+Added: INCOME TAXES PAID
+Added: (Millions) 2025
+Added: Income taxes paid by jurisdiction:
+Added: state and local
+Added: Net income taxes paid by us during 2024 and 2023 were approximately $ 3.6 billion and $ 3.3 billion, respectively.
These amounts include estimated tax payments and cash settlements relating to prior tax years.
24 unchanged sentences
Tax positions related to prior years 46 47 40
+Added: Effects of foreign currency translations 13 — —
Tax positions related to prior years
6 unchanged sentences
Included in the unrecognized tax benefits of $ 1.1 billion, $ 1.0 billion and $ 0.9 billion for December 31, 2025, 2024 and 2023, respectively, are approximately $ 840 million, $ 780 million and $ 670 million, respectively, that, if recognized, would favorably affect the effective tax rate in a future period.
−Removed: We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next twelve months by as much as $ 107 million, principally as a result of potential resolutions of prior years’ tax items with various taxing authorities.
−Removed: 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.
−Removed: Of the $ 107 million of unrecognized tax benefits, approximately $ 84 million relates to amounts that, if recognized, would impact the effective tax rate in a future period.
Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision.
5 unchanged sentences
Undistributed earnings are calculated after deducting dividends on preferred shares, common shares and RSUs.
−Removed: RSUs granted under our 2016 Incentive Compensation Plan entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends on common shares.
+Added: RSUs granted under our 2016 Incentive Compensation Plan generally entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends on common shares.
These unvested awards meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities and are not included in computing basic EPS.
36 unchanged sentences
December 31, 2024:
−Removed: American Express Company $ 23,174 $ 24,779 $ 28,784 10.5 % 11.3 % 13.1 % 9.9 % (b)
−Removed: American Express National Bank $ 17,038 $ 17,038 $ 19,548 11.6 % 11.6 % 13.3 % 9.5 % (b)
−Removed: Well-capitalized ratios (c)
+Added: American Express Company $ 24,860 $ 26,405 $ 31,127 10.5 % 11.2 % 13.2 % 9.8 % 8.3 %
+Added: American Express National Bank $ 18,748 $ 18,748 $ 21,289 11.6 % 11.6 % 13.2 % 9.6 % 8.0 %
+Added: Well-capitalized ratios (b)
American Express Company N/A 6.0 % 10.0 % N/A N/A
American Express National Bank 6.5 % 8.0 % 10.0 % 5.0 % N/A
−Removed: Minimum capital ratios (d)
+Added: Minimum capital ratios (c)
4.5 % 6.0 % 8.0 % 4.0 % 3.0 %
−Removed: Effective Minimum (e)
+Added: Effective Minimum (d)
American Express Company 7.0 % 8.5 % 10.5 % 4.0 % 3.0 %
1 unchanged sentence
(a) Capital ratios reported using Basel III capital definitions and risk-weighted assets using the Basel III standardized approach.
−Removed: (b) We became a Category III firm in the third quarter of 2024 and thus are subject to a minimum SLR of 3 percent beginning with the fourth quarter of 2024.
−Removed: (c) Represents requirements for bank holding companies and banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Reserve Regulation Y and the Federal Deposit Insurance Corporation Improvement Act, respectively.
+Added: (b) Represents requirements for bank holding companies and banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Reserve Regulation Y and the Federal Deposit Insurance Corporation Improvement Act, respectively.
There is no CET1 capital ratio, Tier 1 leverage ratio or SLR requirement for a bank holding company to be considered “well capitalized.”
−Removed: (d) As defined by the regulations issued by the Federal Reserve and OCC.
−Removed: (e) Represents Basel III minimum capital requirement and applicable regulatory buffers as defined by the federal banking regulators, which includes the stress capital buffer for American Express Company and the capital conservation buffer for American Express National Bank.
+Added: (c) As defined by the regulations issued by the Federal Reserve and OCC.
+Added: (d) Represents Basel III minimum capital requirement and applicable regulatory buffers as defined by the federal banking regulators, which includes the stress capital buffer for American Express Company and the capital conservation buffer for American Express National Bank.
RESTRICTED NET ASSETS OF SUBSIDIARIES
18 unchanged sentences
Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to American Express’ total credit exposure.
−Removed: Our customers operate in diverse industries, economic sectors and geographic regions.
−Removed: The following table details our maximum credit exposure of the on-balance sheet assets by category as of December 31:
+Added: The following table details our maximum credit exposure of the on-balance sheet assets by category as of December 31, 2025 and 2024:
MAXIMUM CREDIT EXPOSURE OF ON-BALANCE SHEET ASSETS
5 unchanged sentences
Federal Reserve Bank
−Removed: Government and agencies (e)
Total on-balance sheet $ 280 $ 255
−Removed: (a) Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management.
+Added: (a) Primarily reflects loans and receivables from global consumer and small business Card Members.
(b) The geographic regions with the largest concentration outside the United States include the United Kingdom, Japan, the European Union, Australia, Canada and Mexico.
−Removed: (c) Represents banks, broker-dealers, insurance companies and savings and loan associations, which are governed by institutional credit risk management.
−Removed: (d) Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management.
−Removed: (e) Represent debt obligations of the U.S.
−Removed: Government and its agencies, states and municipalities and government-sponsored entities.
−Removed: Risk management for these balances is governed by our Asset and Liability Management Committee.
−Removed: As of December 31, 2024 and 2023, our most significant concentration of credit risk was with individuals.
+Added: (c) Represents banks, broker-dealers, insurance companies and savings and loan associations.
+Added: (d) Primarily reflects loans and receivables from global corporate Card Members.
+Added: As of December 31, 2025 and 2024, our most significant concentration of credit risk was with individuals in the aggregate.
These amounts are generally advanced on an unsecured basis.
23 unchanged sentences
SELECTED FINANCIAL INFORMATION BY SEGMENT
−Removed: USCS CS ICS GMNS Corporate & Other (a)
+Added: USCS CS ICS GMNS Total Reportable Operating Segments
+Added: Corporate & Other (a)
Total non-interest revenues $ 22,307 $ 13,654 $ 11,819 $ 7,058 $ 54,838 $ 27 $ 54,865
18 unchanged sentences
$ 122,968 $ 63,168 $ 50,089 $ 18,686 $ 254,911 $ 45,141 $ 300,052
−Removed: USCS CS ICS GMNS Corporate & Other (a)
+Added: USCS CS ICS GMNS Total Reportable Operating Segments
+Added: Corporate & Other (a)
Total non-interest revenues $ 20,137 $ 13,219 $ 10,369 $ 6,729 $ 50,454 $ ( 48 ) $ 50,406
18 unchanged sentences
$ 114,228 $ 58,969 $ 42,879 $ 17,712 $ 233,788 $ 37,673 $ 271,461
−Removed: (Millions) USCS CS ICS GMNS Corporate & Other (a)
+Added: (Millions) USCS CS ICS GMNS Total Reportable Operating Segments
+Added: Corporate & Other (a)
Total non-interest revenues $ 18,464 $ 12,931 $ 9,472 $ 6,620 $ 47,487 $ ( 106 ) $ 47,381
19 unchanged sentences
(a) Corporate & Other includes adjustments and eliminations for intersegment activity.
−Removed: (b) Includes discount revenue, certain service fees and other revenue and processed revenues from customers.
+Added: (b) Includes discount revenue and certain service fees and other revenue from customers.
(c) Card Member rewards, business development and Card Member services expenses are generally correlated to volumes or are variable based on usage.
3 unchanged sentences
within the GMNS segment, discount revenue generally reflects the network and acquirer component of the overall discount revenue being allocated.
−Removed: Net card fees, processed revenue and certain other revenues are directly attributable to the segment in which they are reported.
+Added: Net card fees and Service fees and other revenues are generally directly attributable to the segment in which they are reported.
Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported.
2 unchanged sentences
The provisions for credit losses are directly attributable to the segment in which they are reported.
−Removed: Card Member rewards, Business development and Card Member services expenses, as well as Marketing expenses, are generally included in each segment based on the actual expenses incurred.
+Added: Card Member rewards, Business development, Card Member services and Marketing expenses are generally included in each segment based on the actual expenses incurred.
Global brand advertising, a component of Marketing expense, is primarily allocated to the segments based on the relative levels of revenue.
−Removed: Salaries and employee benefits and other operating expenses reflect both costs incurred directly within each segment, as well as allocated expenses.
+Added: Salaries and employee benefits and other operating expenses reflect costs incurred directly within each segment, as well as allocated expenses.
The allocated expenses include service costs, which primarily reflect salaries and benefits associated with our technology and customer servicing groups, and overhead expenses.
14 unchanged sentences
and LACC represents Latin America, Canada and the Caribbean.
−Removed: (b) Other Unallocated includes net costs which are not directly allocated to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses.
+Added: (b) Other Unallocated includes net costs which are not directly allocated to specific geographic regions, including costs related to excess liquidity funding and executive office operations expenses.
PARENT COMPANY
43 unchanged sentences
Equity in net income of subsidiaries and affiliates ( 11,411 ) ( 10,483 ) ( 8,577 )
−Removed: Dividends received from subsidiaries and affiliates 8,027 5,326 5,549
+Added: Dividends received from subsidiaries 7,793 8,027 5,326
Other operating activities, primarily with subsidiaries and affiliates 1,104 14 360
2 unchanged sentences
Net increase in loans to subsidiaries and affiliates ( 3,014 ) ( 3,449 ) ( 2,836 )
−Removed: Investments in subsidiaries and affiliates ( 55 ) — ( 1 )
+Added: Investments in subsidiaries, net of returned capital 12 ( 55 ) —
Other investing activities ( 1 ) 5 —
1 unchanged sentence
Cash Flows from Financing Activities
−Removed: Net decrease in short-term debt from subsidiaries and affiliates — — ( 136 )
Proceeds from long-term debt 15,063 8,872 9,969
3 unchanged sentences
Dividends paid ( 2,271 ) ( 1,999 ) ( 1,780 )
−Removed: Net cash (used in) provided by financing activities ( 6,547 ) ( 1,183 ) 2,380
−Removed: Net (decrease) increase in cash and cash equivalents ( 2,359 ) 1,464 2,847
+Added: Net cash used in financing activities ( 739 ) ( 6,547 ) ( 1,183 )
+Added: Net increase (decrease) in cash and cash equivalents 4,577 ( 2,359 ) 1,464
Cash and cash equivalents at beginning of year 7,293 9,652 8,188
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.