American Express Company (AXP) SEC Filings & Earnings Calls

Potential deposit cost pressure as customer deposits remain high and interest expense on deposits is still significant despite YoY decline

“Interest expense on deposits $1,242M in Q3'26, down 9% YoY but still material”

Regulatory Compliance Cost

“AENB also agreed to pay a civil money penalty of $350 million to the OCC, a portion of which was reserved for in prior periods.” · word for word

Litigation Liability Pressure

“Includes a $400 million increase in legal reserves for the three months ended September 30, 2026 pertaining to the portion of the OCC civil money penalty not reserved for prior to this period as well as previously-disclosed, unrelated legal proceedings.” · word for word

Payments Regulation Pressure

“Regulation of bankcard fees has negatively impacted, and may continue to negatively impact, the discount revenue we earn, including as a result of downward pressure on our merchant discount rates from decreases in competitor pricing in connection with caps on interchange fees.” · word for word

Credit quality stable; no material deterioration.

“Consumer net write-off 1.6%, Small Business 2.3%, Lending Trust default 1.0%.”

Regulatory compliance remediation costs and potential additional fines.

“costs associated with addressing the requirements of the consent orders are not anticipated to affect the Company's 2027 guidance” · word for word

Credit quality stable; slight improvement in Small Business write-offs but still elevated vs Consumer.

“Net write-off rate – principal only: U.S. Consumer 1.7% (flat), U.S. Small Business 2.2% (down from 2.6%)”

Credit quality stable; no material deterioration.

“Delinquency rates unchanged; write-off rates within normal range.”

Dividend restriction risk on common shares if Series E dividends not paid.

“Item 3.03: restrictions on common dividends if Series E dividends not declared.”

Regulatory and legislative risk

“We are subject to evolving and extensive government regulation and supervision in jurisdictions around the world, and the costs of ongoing compliance are substantial.” · word for word

Anti-money laundering enforcement action

“we have been engaging with regulators in relation to certain aspects of our anti-money laundering (AML) programs and as a result, we expect to be subject to enforcement action, which could include civil money penalties and lead to further regulatory inquiries.” · word for word

Merchant surcharging and steering risk

“Surcharging is an adverse customer experience and could have a material adverse effect on us, particularly where it only or disproportionately impacts credit card usage or card usage generally, our Card Members or our business.” · word for word

Cybersecurity and information security risk

“Global financial institutions like us, as well as our customers, colleagues, regulators, service providers and other third parties, have experienced a significant increase in information security and cybersecurity risk in recent years”

Macroeconomic and geopolitical uncertainty

“While we recognize the uncertainty of the geopolitical and regulatory landscape, we continue to manage the company for the long term” · word for word

Credit quality remains stable with lower provisions, but net write-off rates show slight uptick in small business

“U.S. Small Business net write-off rate 2.4% for Q2 vs 2.3% prior quarter”

Credit quality stable; slight improvement in consumer write-offs but small business remains elevated.

“Net write-off rates: Consumer 1.8%, Small Business 2.4% for Q2 2026.”

No material risk change; SCB at minimum suggests low regulatory capital risk.

“SCB remains at 2.5% minimum; no supervisory action.”

Credit quality stable; slight improvement in consumer delinquency; small business write-off rate ticked up to 2.6% from 2.4%

“U.S. Small Business net write-off rate increased to 2.6% (May) from 2.4% (Apr)”

Consumer net write-off rate increased to 2.1% from 2.0% in March, indicating slight credit deterioration.

“Net write-off rate – principal only: U.S. Consumer 2.1% (Apr) vs 2.0% (Mar).”

Regulatory approval risk for merger

“expects to dispose of its Stockholder Securities pursuant to such transactions upon the closing thereof, which remain subject to regulatory approval and other customary closing conditions.” · word for word

Transaction subject to closing conditions; gain not factored into prior FY2026 guidance.

“GBTG’s ability to satisfy closing conditions and consummate the transaction.” · word for word

Geopolitical uncertainty

“While we recognize the uncertainty of the geopolitical and regulatory landscape, we continue to manage the company for the long term.” · word for word

Regulatory changes

“See "Certain Legislative, Regulatory and Other Developments" for information on legislative and regulatory changes that could have a material adverse effect on our results of operations and financial condition.” · word for word

Competition

“We compete in the global payments industry with networks, issuers, acquirers and other payment service providers and methods of payment.” · word for word

Credit loss provisions increased 9% YoY, reflecting loan growth and potential credit normalization.

“Provisions for credit losses $1,251M vs $1,150M YoY; Card balances provisions +13%”

Card Member services expense surged 49% YoY, indicating elevated investment in customer engagement.

“Card Member services $1,975M vs $1,328M YoY (+49%)”

Net write-off rates for U.S. Consumer loans increased from 1.9% (Jan'26) to 2.0% (Q1'26), indicating slight credit deterioration.

“Consumer net write-off rate 2.0% (Q1'26) vs 1.9% (Jan'26)”

Small Business write-off rates remain elevated at 2.8%, stable but higher than Consumer segment.

“Small Business net write-off rate 2.8% (Q1'26)”

Regulatory compliance cost

“Uplift our processes and capabilities in support of the Company's growth to higher Category Bank... Enhanced processes and capabilities to address incremental regulatory requirements applicable to the Company in 2025” · word for word

Cybersecurity risk

“We maintain an information security and cybersecurity program and a cybersecurity governance framework that are designed to protect our information systems against operational risks related to cybersecurity.” · word for word

Credit risk

“Maintained our strong and stable credit performance, with net write-off and delinquency rates remaining best-in-class.” · word for word

Credit loss cycle risk: net write-off rates stable but elevated vs historical lows; consumer 2.0%, small business 2.8%.

“Net write-off rates: Consumer 2.0% (Feb), Small Business 2.8% (Feb); prior month 1.9% and 2.8% respectively.”

Construction delays and cost overruns could impact project timeline and budget.

“risks of real estate development, including construction delays and cost overruns”

Small business net write-off rate increased slightly to 2.8% from 2.7%, indicating potential credit deterioration in that segment.

“Net write-off rate – principal only (a) 2.8% (Jan) vs 2.7% (Dec) for U.S. Small Business.”

Increased leverage from $3.5B debt issuance

“Issuance of $3.5B in senior and subordinated notes”

Credit loss normalization

“Net write-off rate — principal, interest and fees 2.7% for 2025 vs 2.7% for 2024 and 2.2% for 2023.” · word for word

Interest rate sensitivity

“Changes in interest rates could adversely affect our net interest yield, and consequently our net interest income and results of operations.” · word for word

Regulatory capital requirements

“Our failure to meet current or future requirements could compromise our competitive position and result in restrictions imposed by the Federal Reserve.” · word for word

Credit loss provisions increased 9% YoY in Q4, driven by loan growth and normalization

“Total provisions for credit losses $1,414M in Q4'25, +9% YoY”

Interest expense on deposits remains elevated, though down 4% YoY

“Deposits interest expense $1,343M in Q4'25, -4% YoY”

Credit quality remains stable with low delinquency and write-off rates; no deterioration signal.

“Consumer 30+ day delinquency 1.3%, net write-off 2.1%; Small Business 30+ day 1.7%, net write-off 2.7%.”

Credit quality stable; no material deterioration in delinquency or write-off rates.

“Delinquency rates unchanged month-over-month; write-off rates slightly up from prior month but within normal range.”

Rising net write-off rates in both consumer and small business portfolios suggest potential credit cycle deterioration, though levels remain low historically.

“Consumer net write-off rate increased from 1.9% to 2.2%; Small Business from 2.5% to 2.6% month-over-month.”