American Express: A Global Leader in Payments and Financial Services

What makes American Express a global financial icon? For 175 years, American Express, often referred to as Amex, has exemplified trust, security, and premium service in the payments and financial services industry. From its humble beginnings as a freight delivery service in 1850 to its current role as a leading issuer of premium credit cards and a global payments network, Amex connects millions of customers, merchants, and partners worldwide through its integrated platform. This comprehensive American Express company overview explores its rich history, diverse products and services, iconic brands, leadership, subsidiaries, and financial performance, providing an in-depth look at a cornerstone of the global financial landscape.

Company Profile: A Legacy of Trust and Innovation

Founded in 1850 in New York, American Express started as an express delivery company, transporting goods across the United States during the California Gold Rush. Its commitment to reliability and customer trust laid the groundwork for its transformation into a financial services powerhouse. Today, American Express operates as a globally integrated payments company, functioning as a card issuer, merchant acquirer, and card network provider. Headquartered at 200 Vesey Street, New York, NY, the company employs approximately 75,100 colleagues worldwide, with 25,800 in the United States and 49,300 in international markets, as of the end of 2024.

The company’s business model is distinctive, centered on a spend-centric approach that targets high-spending, creditworthy customers, particularly in the premium consumer and commercial segments. This model generates revenue primarily through card spending, annual fees, and finance charges, enabling American Express to offer differentiated rewards, benefits, and services that resonate with its affluent customer base. In 2024, American Express reported a worldwide billed business of $1,551 billion, reflecting the total value of transactions processed through its network. The company had 83.6 million proprietary cards in force, alongside 62.8 million cards issued by third-party partners, underscoring its global reach.

American Express operates through four key reportable segments: U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS), and Global Merchant and Network Services (GMNS). These segments work synergistically to create an integrated payments platform that connects card members, merchants, and partners across significant markets, including the United Kingdom, the European Union, Australia, Japan, Canada, and Mexico. The company’s merchant network spans approximately 108 million locations worldwide, including 31 million registered merchants in China, making it one of the largest card acceptance networks globally.

The core of American Express’s success lies in its unwavering commitment to trust, security, and service—values that have remained constant since its inception. In 2024, the company celebrated its 175th anniversary, a milestone that highlighted its ability to navigate major historical challenges, from the Great Depression to the 2008 financial crisis, while staying true to its brand promise of “Powerful Backing.” This promise fosters loyalty among card members, merchants, and partners, positioning American Express as a premium financial and lifestyle brand.

American Express has a storied history of innovation, reinventing itself to meet evolving customer needs. It introduced Travelers Cheques in 1891, a secure payment alternative that became a global standard for travelers. In 1958, the launch of the American Express Card marked its entry into the charge card market, setting the stage for its dominance in premium payments. Over the decades, the company has continued to innovate, leveraging technology and data analytics to enhance its offerings. In 2024, American Express acquired 13 million new proprietary cards, driven by strong demand from Millennials, Gen Z, and small- and medium-sized enterprises (SMEs). The company also achieved double-digit net card fee growth for 26 consecutive quarters, reflecting the strength of its premium value propositions.

The company’s integrated payments platform uses advanced data analytics to reduce fraud, underwrite risk, and deliver personalized offers, all while prioritizing card member privacy and data security. Strategic partnerships with brands like Delta Air Lines, Hilton, and Marriott enhance its offerings, providing exclusive benefits that appeal to high-spending consumers and businesses. These partnerships, combined with a focus on younger demographics and international markets, position American Express for continued growth in the global payments industry.

American Express’s global presence is supported by its ability to adapt to local markets while maintaining a consistent brand identity. In regions like China, the company operates through joint ventures, enabling it to tap into high-growth markets. Its focus on digital transformation, including mobile apps and online platforms, ensures accessibility and convenience for customers worldwide. As a result, American Express remains a trusted partner for consumers, businesses, and merchants seeking premium financial solutions.

Products and Services: A Premium Portfolio

American Express offers a wide range of products and services tailored to meet the needs of consumers, small businesses, mid-sized companies, and large corporations. These offerings are designed to enhance customer engagement, provide financial flexibility, and deliver premium experiences that differentiate American Express from competitors. Below is a comprehensive overview of its key American Express products and services, reflecting its commitment to serving a diverse, high-value customer base.

Credit and Charge Cards

American Express is renowned for its general-purpose credit and charge cards, which cater to a premium customer base seeking exclusive benefits and rewards. Its card portfolio includes a variety of products designed to meet different customer needs:

• Consumer Cards: The iconic American Express Green Card, Gold Card, Platinum Card, and the invitation-only Centurion Card are cornerstones of the company’s consumer offerings. In 2024, the U.S. Consumer Gold Card was refreshed with enhanced benefits, including dining credits and travel perks, making it a favorite among affluent customers. These cards are integrated with the Membership Rewards program, allowing card members to earn points on purchases that can be redeemed for travel, dining, shopping, and other experiences. The program’s flexibility and value drive high customer engagement and loyalty.
• Commercial Cards: American Express offers a suite of cards for businesses, including Corporate Cards, launched in 1966, and small business cards. The company is the leading issuer of small business cards in the United States based on transaction volume, reflecting its strong appeal to entrepreneurs and SMEs. These cards provide expense management tools, cash flow solutions, and rewards tailored to business needs, such as travel benefits and office supply discounts. The American Express Business Card is particularly popular for its robust features.
• Cobrand Cards: American Express partners with major brands to offer cobranded cards that enhance its travel and lifestyle offerings. Key partners include Delta Air Lines, Hilton, Marriott, and British Airways. The Delta cobrand portfolio is a significant revenue driver, accounting for 12% of worldwide billed business and 21% of card member loans in 2024. These cards offer travel-related benefits, such as airport lounge access, priority boarding, and free checked bags, appealing to frequent travelers and premium consumers.
• Debit and Revolving Credit Cards: The Optima Card, introduced in 1987, offers revolving credit, allowing card members to pay balances over time with interest, providing greater flexibility than traditional charge cards. American Express also offers debit products in select markets, expanding its payment options to cater to a broader audience.

The company’s card offerings are supported by a robust digital infrastructure, including mobile apps and online portals, which enable card members to manage accounts, track rewards, and access exclusive offers. American Express’s focus on premium customers ensures that its cards deliver exceptional value, fostering long-term loyalty.

Merchant Acquiring and Processing

Through its Global Merchant and Network Services (GMNS) segment, American Express manages relationships with millions of merchants worldwide who accept its cards as a form of payment. The company charges a discount rate—a fee for card acceptance—that varies based on merchant size and industry. In 2024, American Express expanded its merchant network by adding millions of new locations, bringing the total to approximately 108 million globally. Key services provided to merchants include:

• Fraud Prevention: Advanced tools and algorithms to protect merchants from fraudulent transactions, ensuring secure payment processing.
• Marketing Solutions: Programs like Amex Offers, which provide card members with discounts and incentives at participating merchants, driving foot traffic and sales.
• Data Analytics: Insights into customer spending patterns, enabling merchants to optimize operations and target high-value customers.
• OptBlue Program: A partnership with third-party processors to streamline card acceptance for small merchants, offering flexible pricing and expanding American Express’s reach.

These services strengthen merchant relationships and enhance the value of accepting American Express cards, contributing to the company’s integrated payments ecosystem.

Network Services

American Express operates a global payments network that licenses its brand to third-party banks and financial institutions in approximately 120 countries. These partners issue local currency American Express-branded cards and serve as merchant acquirers, processing transactions on the Amex network. In 2024, the network services segment processed $213.9 billion in transaction volume, with 62.8 million cards in force issued by third parties. This global network enhances American Express’s reach, allowing it to serve customers and merchants in markets where it does not directly operate.

The company’s network services are supported by joint ventures in key regions, such as China, the Middle East, and Switzerland, which enable localized offerings while maintaining brand consistency. This approach ensures that American Express remains competitive in diverse markets, offering tailored solutions that meet local needs.

Banking and Financing Products

In addition to its card offerings, American Express provides a range of banking and financing solutions designed to support customers’ financial needs. These include:

• Business Checking and Consumer Rewards Checking: Digital accounts that offer cash flow management tools and rewards. The Business Blueprint platform, launched to support small businesses, provides insights and tools for financial planning, helping entrepreneurs manage expenses and growth.
• Retail Deposit Program: Initiated during the 2008 financial crisis, this program has grown significantly, accounting for over 70% of the company’s funding. As of 2024, total deposits reached $139.4 billion, including savings accounts, checking accounts, certificates of deposit, and sweep accounts. These products are offered through American Express National Bank, insured by the FDIC up to $250,000 per depositor.
• Other Financing Products: American Express provides installment loans and business-to-business (B2B) payment solutions, catering to diverse financial needs. These products support customers seeking flexible financing options for personal or business purposes.

The company’s banking and financing offerings are designed to complement its card products, providing a holistic financial ecosystem for customers. By leveraging its data-driven approach, American Express ensures that these products meet the needs of its premium customer base.

Travel and Lifestyle Services

American Express has a long history in the travel industry, evolving from its Travelers Cheque business to a comprehensive provider of travel and lifestyle services. Key offerings include:

• Travel Services: Through programs like Fine Hotels and Resorts, American Express offers premium travel benefits, including hotel upgrades, late check-out, and exclusive amenities. The company also holds an ownership stake in Global Business Travel Group, Inc. (GBTG), which provides business travel solutions for corporate clients, including booking tools and expense management.
• Dining Platforms: The acquisition of Tock and Rooam in 2024 enhanced the Resy dining platform, which provides reservation, table, and event management technology for restaurants and entertainment venues. Resy enables card members to book exclusive dining experiences, aligning with American Express’s focus on premium lifestyle offerings.
• Experiential Offerings: American Express offers exclusive access to high-profile events, such as Formula 1 sponsorships, concerts through partnerships with AEG Worldwide, and curated dining experiences. These offerings appeal to the company’s affluent customer base, enhancing the value of its cards and services.

The company’s travel and lifestyle services are delivered through a combination of proprietary platforms and strategic partnerships, ensuring a seamless and premium experience for card members. These offerings differentiate American Express from competitors, positioning it as a leader in the premium lifestyle market.

Customer Loyalty Programs

American Express’s Membership Rewards program is a cornerstone of its value proposition, allowing card members to earn points on eligible purchases and redeem them for a wide range of rewards, including travel, shopping, dining, and gift cards. The program’s flexibility, combined with partnerships with merchants like Amazon.com (Pay with Points), enhances its appeal. Additionally, Amex Offers provides statement credits and discounts at participating merchants, driving engagement and encouraging card member spending.

These loyalty programs are supported by advanced data analytics, which enable American Express to deliver personalized offers that resonate with individual card members. The company’s focus on customer engagement ensures that its loyalty programs remain a key differentiator in the competitive payments industry.

American Express delivers its products and services through multiple channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party partners, in-house sales teams, direct mail, telephone, and direct response advertising. This multi-channel approach ensures accessibility and convenience for customers worldwide, reinforcing American Express’s position as a leader in premium financial services.

Brands: Trust, Security, and Prestige

The American Express brand is a global icon, consistently ranked among the most valuable brands worldwide due to its attributes of trust, security, and exceptional service. The company invests heavily in managing, marketing, and protecting its brand, which is synonymous with premium financial services and lifestyle experiences. Below is a detailed overview of the key trademarks and service marks associated with American Express, which collectively reinforce its brand identity:

• AMERICAN EXPRESS: The core brand name, representing the company’s global identity and its commitment to excellence in payments and financial services.
• AMERICAN EXPRESS Box Logo: A distinctive logo featuring the brand name within a blue box, symbolizing trust, reliability, and prestige.
• AMERICAN EXPRESS Card Design: The iconic card designs, including the Green, Gold, Platinum, and Centurion cards, each with a unique aesthetic that conveys exclusivity and status.
• AMERICAN EXPRESS WORLD SERVICE & Design: A mark that underscores the company’s dedication to world-class customer service, available 24/7 to card members globally.
• AMEX: A shorthand brand name used in marketing and customer communications, reflecting the company’s approachable yet premium identity.
• BLUE FROM AMERICAN EXPRESS: A brand for specific card products targeting younger or broader audiences, offering accessible benefits and rewards.
• CENTURION: The exclusive, invitation-only card known for its unparalleled prestige and elite benefits, reserved for the company’s most affluent customers.
• DEPARTURES: A luxury lifestyle magazine for Platinum and Centurion card members, offering content on travel, fashion, and culture.
• DON’T DO BUSINESS WITHOUT IT: A tagline emphasizing the essential role of American Express cards for business owners and entrepreneurs.
• Gladiator Head Design: A visual element used in branding, symbolizing strength, resilience, and prestige.
• MEMBERSHIP REWARDS: The company’s flagship loyalty program, driving card member engagement through points-based rewards redeemable for a variety of experiences.
• PLATINUM CARD: A premium card offering exclusive benefits, such as airport lounge access and travel credits, introduced in 1984 to cater to high-net-worth individuals.
• POWERFUL BACKING: A tagline encapsulating American Express’s commitment to supporting its customers with reliable, high-quality service.
• SHOP SMALL: A campaign promoting spending at small businesses, tied to the Small Business Saturday initiative, which encourages community support and economic growth.

These trademarks and service marks are protected under intellectual property laws, with American Express securing rights globally to maintain brand integrity. The company’s brand is further strengthened by its reputation for exceptional customer service, recognized through numerous industry awards. The “Member Since” designation on cards, introduced in 1964, underscores the sense of membership and loyalty that differentiates American Express from competitors like Visa or Mastercard.

The Shop Small campaign, launched in 2010, has had a significant economic impact, generating over $223 billion in reported consumer spending at small businesses since its inception. This initiative aligns with American Express’s commitment to supporting local communities and fostering economic resilience. The campaign’s success is driven by marketing efforts, including Small Business Saturday, which encourages card members to shop at independent retailers during the holiday season.

American Express’s brand is also enhanced by strategic partnerships with high-profile brands and organizations, such as Delta Air Lines, Hilton, Marriott, and Formula 1. These partnerships increase brand visibility and appeal, particularly among younger demographics like Millennials and Gen Z, who represent the fastest-growing consumer cohort for American Express. In 2024, the company’s focus on digital marketing and social media engagement further strengthened its brand, with campaigns highlighting its premium offerings and community initiatives.

The company’s ability to maintain a consistent brand identity across diverse markets is a key strength. Whether through its iconic card designs, loyalty programs, or marketing campaigns, American Express ensures that its brand resonates with customers seeking premium financial services and exclusive experiences. This brand equity positions American Express as a leader in the global payments industry, capable of attracting and retaining high-value customers.

Board of Directors: Strategic Leadership

American Express’s Board of Directors comprises a diverse group of accomplished leaders from various industries, providing strategic oversight and guidance to ensure the company’s long-term success. As of February 7, 2025, the board includes the following members, each bringing unique expertise to the table:

• Michael J. Angelakis: Chairman and CEO of Atairos Group, a private equity firm, bringing extensive experience in strategic investments and corporate finance.
• Thomas J. Baltimore, Jr.: Chairman, President, and CEO of Park Hotels & Resorts, Inc., offering deep insights into the hospitality and real estate sectors.
• John J. Brennan: Chairman Emeritus and Senior Advisor at The Vanguard Group, Inc., contributing expertise in financial services and asset management.
• Walter J. Clayton III: Senior Policy Adviser and of Counsel at Sullivan & Cromwell LLP, providing legal and regulatory expertise critical to navigating complex global markets.
• Theodore J. Leonsis: Founder, Chairman, and CEO of Monumental Sports & Entertainment, LLC, known for his leadership in sports, media, and technology.
• Deborah P. Majoras: Former Chief Legal Officer and Corporate Secretary at Procter & Gamble Co., offering legal and corporate governance expertise.
• Karen L. Parkhill: Executive Vice President and Chief Financial Officer at HP Inc., bringing financial and operational leadership from the technology sector.
• Charles E. Phillips, Jr.: Managing Partner and Co-Founder of Recognize, with extensive experience in technology and business strategy.
• Lynn A. Pike: Former President of Capital One Bank, contributing deep knowledge of banking and financial services.
• Stephen J. Squeri: Chairman and CEO of American Express Company, leading the company’s strategic initiatives and ensuring alignment with its customer-centric mission.
• Daniel L. Vasella: Honorary Chairman and Former Chairman and CEO of Novartis AG, providing global business and healthcare insights.
• Lisa W. Wardell: Former Executive Chairman of Adtalem Global Education, Inc., with expertise in education and corporate leadership.
• Christopher D. Young: Former Executive Vice President of Business Development, Strategy, and Ventures at Microsoft Corporation, offering technology and innovation expertise.

The board’s diverse backgrounds in finance, technology, hospitality, legal, and corporate governance ensure robust oversight and strategic guidance. Their collective expertise supports American Express’s focus on innovation, customer experience, and global expansion, enabling the company to navigate competitive and regulatory challenges effectively.

Executive Officers: Driving Operational Excellence

American Express’s executive team, as of February 7, 2025, comprises seasoned leaders responsible for executing the company’s strategic vision and ensuring operational excellence. The team includes:

• Stephen J. Squeri (65): Chairman and CEO since February 2018, leading American Express’s global strategy and overseeing its integrated payments platform.
• Douglas E. Buckminster (64): Vice Chairman since April 2021, previously Group President of Global Consumer Services, with extensive experience in consumer card operations.
• Howard Grosfield (56): Group President, U.S. Consumer Services since February 2025, with prior roles in consumer marketing and product development.
• Monique R. Herena (53): Chief Colleague Experience Officer since April 2019, overseeing human resources, workplace culture, and colleague engagement.
• Raymond Joabar (59): Group President, Global Commercial Services since February 2025, previously leading Global Merchant and Network Services.
• Christophe Y. Le Caillec (59): Chief Financial Officer since August 2023, with prior experience as Deputy CFO, managing financial strategy and reporting.
• Rafael Marquez (53): President, International Card Services since May 2022, driving growth in international markets.
• Anna Marrs (51): Group President, Global Merchant and Network Services since February 2025, previously leading Global Commercial Services.
• Glenda McNeal (64): Chief Partner Officer since February 2024, focusing on strategic partnerships with brands like Delta and Hilton.
• Denise Pickett (59): President, Enterprise Shared Services since February 2025, overseeing global shared services and operational efficiency.
• Ravi Radhakrishnan (53): Chief Information Officer since January 2022, driving technology innovation and digital transformation.
• Elizabeth Rutledge (63): Chief Marketing Officer since February 2018, leading brand management and marketing campaigns.
• Laureen E. Seeger (63): Chief Legal Officer since July 2014, managing legal, regulatory, and compliance affairs.
• Jennifer Skyler (48): Chief Corporate Affairs Officer since October 2019, overseeing communications, public affairs, and corporate social responsibility.
• Douglas Tabish (55): Chief Risk Officer since April 2024, managing risk, compliance, and credit policies.

This executive team drives American Express’s strategic imperatives, ensuring alignment with its mission to deliver exceptional value to customers, merchants, and shareholders. Their leadership has been instrumental in achieving record financial performance and expanding the company’s global footprint.

Subsidiaries: Supporting a Global Network

American Express operates through several subsidiaries that support its integrated payments platform and enable its global operations. These subsidiaries play a critical role in delivering the company’s products and services across diverse markets. Key subsidiaries include:

• American Express Travel Related Services Company, Inc. (TRS): A principal operating subsidiary and bank holding company under the Bank Holding Company Act of 1956, subject to oversight by the Federal Reserve. TRS supports card-issuing activities, travel-related services, and other financial products, serving as a core component of American Express’s operations.
• American Express National Bank (AENB): The company’s U.S. bank subsidiary, offering deposit products such as savings accounts, checking accounts, and certificates of deposit. AENB’s deposits, totaling $139.4 billion in 2024, are insured by the FDIC up to $250,000 per depositor, providing a stable funding source for the company.
• Global Network Services (GNS): A business unit that manages relationships with third-party banks and financial institutions issuing American Express-branded cards in approximately 120 countries. GNS contributes to the company’s global reach, processing $213.9 billion in transaction volume in 2024.
• Resy: A dining platform that provides reservation, table, and event management technology for restaurants and entertainment venues. The acquisitions of Tock and Rooam in 2024 enhanced Resy’s capabilities, enabling American Express to offer exclusive dining experiences to card members.

In addition to these subsidiaries, American Express holds an ownership position in Global Business Travel Group, Inc. (GBTG), which provides business travel solutions for corporate clients. The company also operates joint ventures in regions like China, the Middle East, and Switzerland, enabling it to expand its network and offer localized services. These subsidiaries and partnerships enhance American Express’s ability to deliver a seamless, premium experience to customers and merchants worldwide.

The structure of American Express’s subsidiaries reflects its integrated business model, which combines card issuing, merchant acquiring, network services, and banking under a single brand. This integration allows the company to leverage synergies across its operations, driving efficiency and growth. By maintaining a strong presence in both developed and emerging markets, American Express ensures that its subsidiaries contribute to its global leadership in the payments industry.

Financial Performance: Record Results

American Express delivered a record-setting financial performance in 2024, reflecting the strength of its business model, disciplined expense management, and ability to attract high-spending customers. The company’s focus on premium consumer and commercial segments, combined with its integrated payments platform, drove significant growth in revenue, net income, and key operational metrics. Below is a detailed overview of its consolidated financial statements, including the Profit and Loss (P&L), Balance Sheet, and Cash Flow Statement, highlighting the company’s financial achievements.

Consolidated Statement of Income (Profit and Loss)

For the year ended December 31, 2024, American Express reported record revenues and net income, driven by robust card member spending, strong fee growth, and strategic initiatives. Key financial highlights include:

• Total Revenues: $66 billion, representing a 9% increase year-over-year (10% on a foreign exchange-adjusted basis). This growth was driven by higher card member spending, increased net card fees, and strong performance across all business segments.
• Net Income: Over $10 billion, or $14.01 per share, up 25% from 2023. This included a $0.66 per share gain from the sale of Accertify, Inc., a fraud prevention subsidiary, in the second quarter of 2024.
• Key Revenue Drivers:
  • Card Member Spending: Record worldwide billed business of $1,551 billion, reflecting strong demand from premium consumers, SMEs, and international markets.
  • Net Card Fees: Double-digit growth for 26 consecutive quarters, driven by the acquisition of 13 million new proprietary cards and enhanced value propositions.
  • Segment Performance: U.S. Consumer Services, Commercial Services, and International Card Services all achieved strong growth, with ICS reporting double-digit billings growth due to increased adoption in markets like the UK and Australia.
  • Product Refreshes: Over 40 product refreshes globally, including enhancements to the U.S. Consumer Gold Card and Delta cobrand portfolio, drove engagement among Millennials, Gen Z, and SME customers.

The company’s revenue growth was supported by its ability to attract high-spending customers and maintain best-in-class credit performance. American Express’s focus on premium value propositions, such as exclusive travel benefits and dining credits, ensured high customer retention and spending, even in a competitive market.

Consolidated Balance Sheet

As of December 31, 2024, American Express’s balance sheet reflected its strong financial position, with significant growth in assets, deposits, and shareholders’ equity. Key highlights include:

• Total Assets: Approximately $268 billion, driven by growth in card member loans and customer deposits, reflecting the company’s ability to fund its operations effectively.
• Interest-Earning Assets:
  • U.S.: $166.3 billion, including $121.7 billion in card member and other loans (average balance for the year).
  • Non-U.S.: $20.2 billion, including $17.2 billion in card member and other loans, reflecting growth in international markets.
• Total Liabilities: $238.5 billion, with interest-bearing liabilities totaling $186.2 billion, including:
  • Customer Deposits: $139.4 billion, with $12.4 billion uninsured, primarily in savings accounts ($101.7 billion), certificates of deposit ($14.7 billion), and sweep accounts ($15.4 billion).
  • Long-Term Debt: $50.9 billion in the U.S. and $0.2 billion in non-U.S. markets, providing a stable funding structure.
• Shareholders’ Equity: Approximately $29.6 billion, reflecting strong capital reserves and the company’s ability to generate consistent returns for investors.
• Cards in Force: 83.6 million proprietary cards and 62.8 million third-party cards, demonstrating the scale of American Express’s card-issuing operations.
• Reserve for Credit Losses: $6.0 billion, with 94% allocated to card member loans, 3% to card member receivables, and 3% to other loans, reflecting prudent risk management.

The balance sheet underscores American Express’s financial stability, with significant liquidity and a diversified funding base. The growth in customer deposits, which increased from $129.1 billion in 2023 to $139.4 billion in 2024, highlights the success of its retail deposit program, a critical component of its funding strategy.

Consolidated Statement of Cash Flows

While specific cash flow figures are not fully detailed, key insights into American Express’s cash flow performance in 2024 include:

• Operating Activities: Strong cash inflows from card member spending, net card fees, and interest income, supported by high retention rates and a creditworthy customer base. The company’s spend-centric model ensured consistent cash generation, even in a dynamic economic environment.
• Investing Activities: Significant investments in technology, marketing, and acquisitions, including Tock and Rooam, which enhanced the Resy dining platform. The sale of Accertify, Inc. in Q2 2024 generated additional cash inflows, contributing to the company’s financial flexibility.
• Financing Activities: Growth in customer deposits, which reached $139.4 billion, provided a stable funding source. The company also managed its long-term debt effectively, maintaining a balanced capital structure to support liquidity and growth initiatives.
• Net Interest Income: $15.5 billion in 2024, up from $13.1 billion in 2023, driven by higher card member loan volumes ($121.7 billion in the U.S., $17.2 billion non-U.S.) and favorable interest rate environments.

American Express’s cash flow performance reflects its ability to generate strong operating cash flows while investing in strategic priorities, such as digital transformation and customer acquisition. The company’s disciplined approach to capital allocation ensures that it can fund growth initiatives while maintaining financial stability.

Key Financial Metrics

In addition to the consolidated financial statements, several key metrics highlight American Express’s financial strength in 2024:

• Interest Income: $23.8 billion, with an average yield of 12.8% on interest-earning assets, reflecting the profitability of its card member loans and other financing products.
• Interest Expense: $8.3 billion, with an average rate of 4.4% on interest-bearing liabilities, indicating effective management of funding costs.
• Net Write-Off Rates:
  • Consumer Loans: 1.7% (principal only), 2.2% (principal, interest, and fees).
  • Small Business Loans: 2.1% (principal only), 2.6% (principal, interest, and fees).
  • Consumer Receivables: 1.5% (principal only), 1.6% (principal and fees).
  • Small Business Receivables: 2.0% (principal only), 2.1% (principal and fees).
  • Corporate Receivables: 0.8% (principal and fees).
• Non-Accrual Loans: Low levels, reflecting American Express’s best-in-class credit performance and rigorous risk management practices.
• Market Value: As of June 30, 2024, the aggregate market value of voting shares held by non-affiliates was approximately $164.7 billion, based on the closing price of American Express’s common shares on the New York Stock Exchange (NYSE: AXP).

American Express’s financial strength is further evidenced by its stock performance, with the company listed on the NYSE under the ticker AXP. As of January 31, 2025, American Express had 702.5 million common shares outstanding, with Berkshire Hathaway as its largest shareholder, reflecting strong investor confidence in its long-term value. The company’s ability to deliver consistent returns, coupled with its robust capital position, positions it as a leader in the financial services industry.

Strategic Imperatives and Future Outlook

American Express’s strategic vision is built on four key pillars that guide its growth and ensure its continued leadership in the payments industry:

1. Premium Consumer Leadership: Enhancing card benefits, expanding strategic partnerships, and attracting high-spending customers, particularly Millennials and Gen Z. The company’s focus on younger demographics has driven record card acquisitions, with 13 million new proprietary cards added in 2024.
2. Commercial Payments Growth: Differentiating corporate and small business card offerings with innovative financing and expense management solutions. American Express’s leadership in small business cards, based on U.S. transaction volume, underscores its success in this segment.
3. Global Network Expansion: Increasing merchant acceptance, enhancing fraud protection, and growing third-party card issuance through the Global Network Services business. The addition of millions of new merchant locations in 2024 strengthened the company’s network of 108 million locations.
4. Global Presence: Leveraging its differentiated business model to drive growth in key international markets, such as the UK, Australia, and Japan. The International Card Services segment’s double-digit billings growth in 2024 highlights the success of this strategy.

Looking ahead, American Express is well-positioned for sustained growth, driven by its premium customer base, innovative products, and global network. The company’s investments in technology, including mobile apps, data analytics, and fraud prevention, ensure that it remains at the forefront of the payments industry. Strategic acquisitions, such as Tock and Rooam, enhance its lifestyle offerings, while partnerships with brands like Delta and Formula 1 strengthen its brand appeal.

American Express’s commitment to expense discipline and credit quality provides a strong foundation for navigating economic uncertainties. The company’s focus on digital transformation, including enhancements to its online and mobile platforms, ensures that it can meet the evolving needs of customers and merchants. By continuing to deliver exceptional value and maintaining its brand promise of “Powerful Backing,” American Express is poised to remain a leader in the global payments industry for years to come.

Commitment to Colleagues and Communities

American Express’s 75,100 colleagues are central to its success, representing a diverse and talented workforce that drives innovation and customer satisfaction. As of 2024, the company’s global workforce is 52.6% women, with significant diversity in the U.S., including 22.4% Asian, 14.2% Black/African American, and 14.5% Hispanic/Latino/a colleagues. American Express fosters a strong workplace culture, with 90% of colleagues recommending it as a great place to work in 2024, according to internal surveys.

The company supports its colleagues through a range of programs, including Smart Saving for financial wellness, Healthy Living for physical health, and Healthy Minds for mental well-being. Annual pay equity reviews ensure fair compensation across gender and ethnicity, reinforcing American Express’s commitment to diversity, equity, and inclusion. The company’s flexible work arrangements, including hybrid and remote options, enhance colleague satisfaction and productivity.

Beyond its workforce, American Express is deeply committed to supporting communities worldwide. The Shop Small campaign and Small Business Saturday initiative have driven significant economic impact, generating over $223 billion in reported consumer spending at small businesses since 2010. During crises like the COVID-19 pandemic, American Express provided financial relief to card members, supported first responders, and committed to no pandemic-related layoffs in 2020, demonstrating its dedication to its stakeholders.

The company’s philanthropy includes grants and volunteer programs focused on economic opportunity, community resilience, and sustainability. In 2024, American Express continued to invest in initiatives that promote financial inclusion, support small businesses, and address social challenges, aligning with its mission to create positive impact. These efforts enhance the company’s reputation as a socially responsible organization and strengthen its brand equity.