Company presentation

We are a globally integrated payments company that provides our customers with
access to products, insights and experiences that enrich lives and build
business success. Our principal products and services are credit and charge card
products, along with travel and lifestyle related services, offered to consumers
and businesses around the world. Our range of products and services includes:

• Credit card, charge card, banking products and other payment and financing products

• Merchant acquisition and processing, service and settlement, and point-of-sale marketing and information products and services for merchants

• Network services

• Other fee-based services, including fraud prevention services and the design and operation of customer loyalty programs

• Spend management products and services

• Travel and lifestyle services

Our various products and services are offered globally to diverse customer
groups, including consumers, small businesses, mid-sized companies and large
corporations. 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, direct mail,
telephone, in-house sales teams, and direct response advertising.

We have a significant ownership position in, and extensive commercial
arrangements with, Global Business Travel Group, Inc. (GBTG). The commercial
arrangements with GBTG include, among other things, a long-term trademark
license agreement pursuant to which GBTG uses the American Express brand, GBTG's
support of certain of our partnerships, joint negotiation with travel suppliers
and a strategic relationship between GBTG and our Global Commercial Services
(GCS) business. During the second quarter of 2022, GBTG became a publicly traded
company following the completion of a business combination between American
Express Global Business Travel and Apollo Strategic Growth Capital. As a result
of the transaction, our economic interest was reduced to approximately 35
percent from approximately 40 percent.

We compete in the global payments industry with card networks, issuers and acquirers, paper-based transactions (eg cash and checks), wire transfer models (eg wire transfers and the Automated Clearing House (ACH)), as well as the evolution and growth of alternative payment and financing providers. As the payments industry continues to evolve, we face increasing competition from non-traditional players who are leveraging new technologies, business models and customer relationships to create payment or financing solutions.

Effective in the first quarter of 2022, we have made the following changes to the presentation of our Consolidated Statements of Income:

In non-interest income:

•Processed revenue represents revenue from volumes processed, previously reported in discount revenue, other fees and commissions, and other revenue.

•Service fees and other income include the remaining balances of other fees and commissions and other income.

In total expenses:

•Marketing and business development expenses disaggregated into business development expenses and marketing expenses.

Prior period amounts have been restated to conform to the current period presentation; there was no impact on total non-interest revenue or total expense.


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Effective July 1, 2022, we made changes to our management organization
structure. Our financial disclosures will reflect these organizational changes
when our executives, including our chief operating decision maker, begin to
review financial information aligned to the new management organization. At that
time, we will also recast prior periods to conform to the new reportable
operating segments. We expect our reportable operating segments will be as

• US consumer services, including our US consumer card issuance, travel and lifestyle services WE;

•International Card Services, including our consumer card issuing business and
travel and lifestyle services outside the U.S., our commercial services business
outside the U.S. and our loyalty coalition businesses;

• Commercial services, including our commercial services activities in the WE
and for global customers; and

•Global Merchant and Network Services, including our merchant acquiring and card network businesses.

Refer to the “Glossary of Selected Terminology” for definitions of certain key terms and related information appearing in this Form 10-Q.

Forward-Looking Statements and Non-GAAP Measures

Certain of the statements in this Form 10-Q are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Refer to the "Cautionary Note Regarding Forward-Looking Statements" section. We
prepare our Consolidated Financial Statements in accordance with accounting
principles generally accepted in the United States of America (GAAP). However,
certain information included within this Form 10-Q constitutes non-GAAP
financial measures. Our calculations of non-GAAP financial measures may differ
from the calculations of similarly titled measures by other companies.

Bank holding company

American Express is a bank holding company under the Bank Holding Company Act of 1956 and The Board of Governors of the Federal Reserve System (the Federal Reserve) is our primary federal regulator. As such, we are subject to the
of the Federal Reserve minimum capital regulations, policies and standards.


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Table 1: Summary of financial performance

                                        As of or for the Three Months                                              As of or for the Six Months
                                                    Ended                                                                     Ended
                                                  June 30,                                                                  June 30,
(Millions, except percentages,
per share amounts and where                                                             Change                                                                    Change
indicated)                                     2022              2021                2022 vs. 2021                       2022              2021                2022 vs. 2021
Selected Income Statement Data
Total revenues net of interest
expense                                 $    13,395       $    10,243       $       3,152             31  %       $    25,130       $    19,307       $       5,823             30  %
Provisions for credit losses                    410             (606)               1,016                 #               377           (1,281)               1,658                 #
Expenses                                     10,442             7,909               2,533             32               19,498            14,655               4,843             33
Pretax income                                 2,543             2,940                (397)           (14)               5,255             5,933                (678)           (11)
Income tax provision                            579               660                 (81)           (12)               1,192             1,418                (226)           (16)
Net income                                    1,964             2,280                (316)           (14)               4,063             4,515                (452)           (10)
Earnings per common share -
diluted (a)                             $      2.57       $      2.80       $       (0.23)            (8) %       $      5.30       $      5.54       $       (0.24)            (4)

Common Share Statistics (b)
Cash dividends declared per
common share                            $      0.52       $      0.43       $        0.09             21  %       $      1.04       $      0.86       $        0.18             21
Average common shares
Basic                                           752               801                 (49)            (6) %               755               802                 (47)            (6)
Diluted                                         753               802                 (49)            (6) %               756               803                 (47)            (6)

Selected Metrics and Ratios
Network volumes (Billions)              $     394.8       $     316.1       $          79             25  %       $     745.1       $     585.4       $         160             27  %
Return on average equity (c)               34.4   %          36.5   %                                                36.0   %          37.1   %
Net interest income divided by
average Card Member loans                  10.2   %          10.0   %                                                10.2   %          10.1   %
Net interest yield on average
Card Member loans (d)                      10.4   %          10.6   %                                                10.5   %          10.9   %
Effective tax rate                         22.8   %          22.4   %                                                22.7   %          23.9   %
Common Equity Tier 1                       10.3   %          14.2   %                                                10.3   %          14.2   %

Selected Balance Sheet Data
Cash and cash equivalents               $    26,277       $    30,796       $      (4,519)           (15) %       $    26,277       $    30,796       $      (4,519)           (15) %
Card Member receivables                      56,019            47,585               8,434             18               56,019            47,585               8,434             18
Card Member loans                            95,437            75,610              19,827             26               95,437            75,610              19,827             26
Customer deposits                            96,411            84,905              11,506             14               96,411            84,905              11,506             14
Long-term debt                          $    40,495       $    37,363       $       3,132              8  %       $    40,495       $    37,363       $       3,132              8  %

# Indicates a deviation of 100% or more

(a)Represents net income, less (i) earnings allocated to participating share
awards of $15 million and $16 million for the three months ended June 30, 2022
and 2021, respectively, and $31 million for both the six months ended June 30,
2022 and 2021, and (ii) dividends on preferred shares of $15 million for both
the three months ended June 30, 2022 and 2021, and $29 million for both the six
months ended June 30, 2022 and 2021.

(b) Our common stock trades primarily on The New York stock exchange under the trading symbol AXP.

(c)Return on average equity (ROE) is calculated by dividing (i) annualized net
income for the period by (ii) average shareholders' equity for the period.
Effective for the first quarter of 2022, the interim period calculation
methodology for ROE was modified to present the returns for the period on an
annualized basis rather than the preceding twelve months. Prior period amounts
have been recast to conform with current period presentation.

(d)Net interest yield on average Card Member loans reflects adjusted net
interest income divided by average Card Member loans, computed on an annualized
basis. Adjusted net interest income and net interest yield on average Card
Member loans are non-GAAP measures. Refer to Table 9 for a reconciliation to Net
interest income divided by average Card Member loans.

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Working environment

Our strong results for the second quarter reflect the strength of our global
customer base and business model, as well as the investments we made during the
pandemic while navigating a complex macroeconomic environment. We continue to
invest in our brand, value propositions, customers, colleagues, technology and
coverage which is driving sustainable growth across our businesses.

Our worldwide network volumes for the second quarter increased 25 percent
year-over-year (28 percent on an FX-adjusted basis1) and billed business, which
represented 86 percent of our total network volumes and was the most significant
driver of our financial results, increased 27 percent. Goods & Services spend,
which accounts for the majority of our billed business, grew by 15 percent on a
year-over-year basis. Travel & Entertainment spend increased 80 percent
year-over-year and surpassed pre-pandemic levels, primarily driven by U.S.
consumers and small and medium size businesses as well as a continuing recovery
outside of the U.S.

Total revenues net of interest expense increased 31 percent year-over-year (33
percent on an FX-adjusted basis1) reflecting strong growth in all our revenue
lines. The growth in network volumes drove increases in both Discount revenue,
our largest revenue line, and Processed revenue. Service fees and other revenue
increased year-over-year, driven in part by higher travel-related revenues. Net
card fees grew 15 percent year-over-year, as new card acquisitions increased and
Card Member retention remained high, demonstrating the impact of investments we
have made in our premium value propositions. Net interest income grew by 30
percent year-over-year, primarily driven by growth in loans, partially offset by
higher interest expense due to higher rates.

Card Member loans grew 26 percent year-over-year, driven by ongoing strong
growth in billed business. Provisions for credit losses increased, primarily
driven by reserve builds in the current period, as compared to reserve releases
in the prior year. The reserve builds in the current period reflected the strong
growth in loans and a slightly worse macroeconomic outlook, partially offset by
improved portfolio quality. While delinquency and write-off rates remained near
historic lows, most of these rates continued to modestly increase on a
sequential basis compared to the prior quarter.

Card Member rewards, Business development and Card Member services increased
year-over-year primarily due to network volume growth and higher usage of
travel-related benefits. Card Member rewards expense growth was also driven by a
larger proportion of billed business in categories that earn incremental rewards
such as travel. Marketing expense increased 13 percent year-over-year, due to
higher investments to drive growth momentum and accelerate new card
acquisitions. Operating expenses increased 28 percent year-over-year primarily
due to prior-year net gains on our Amex Ventures investments and higher
compensation costs in the current quarter.

During the quarter, we maintained our capital ratios within our target range and
returned $1.0 billion of capital to our shareholders through share buybacks and
dividends. We plan to continue to return to shareholders the excess capital we
generate while supporting our balance sheet growth.

Our strong performance continues to give us confidence in our business model, although we recognize the uncertainty in the geopolitical and macroeconomic environment. We remain committed to implementing our strategy to build long-term sustainable growth.

See "Certain Legislative, Regulatory and Other Developments" and "Risk Factors"
for information on certain matters that could have a material adverse effect on
our results of operations and financial condition.

1 The foreign currency adjusted information assumes a constant exchange rate
between the periods being compared for purposes of currency translation into
U.S. dollars (i.e., assumes the foreign exchange rates used to determine results
for the current period apply to the corresponding prior year period against
which such results are being compared). FX-adjusted revenues is a non-GAAP
measure. We believe the presentation of information on a foreign currency
adjusted basis is helpful to investors by making it easier to compare our
performance in one period to that of another period without the variability
caused by fluctuations in currency exchange rates.

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                             Results of Operations

The discussions in both the "Consolidated Results of Operations" and "Business
Segment Results of Operations" provide commentary on the variances for the three
and six months ended June 30, 2022 compared to the same periods in the prior
year, as presented in the accompanying tables.

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