American Express · 10-Q · Item 2 MD&A

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

Business Introduction

American Express is a global payments and premium lifestyle brand powered by technology. 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.

Our range of products and services includes:

•Credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services

•Banking and other payment and financing products and services, including deposits and non-card lending

•Merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services

•Network services

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.

We compete in the global payments industry with networks, issuers, acquirers and other payment service providers and methods of payment, including paper-based transactions (e.g., cash and checks) and electronic transfers (e.g., wire transfers and Automated Clearing House (ACH)), as well as evolving and growing alternative mechanisms, systems and products that leverage new technologies, business models and customer relationships to create payment, financing or banking solutions. The payments industry continues to undergo changes in response to evolving technologies, business dynamics and competition for premium customers.

Beginning in the first quarter of 2026, we have updated our presentation and disclosure of Card Member loans and Card Member receivables to present them on a combined basis as Card balances. Prior period amounts have been reclassified to conform to the new presentation. Previously, Card Member loans represented balances on our credit card products and revolve-eligible balances on our charge card products, which included balances that Card Members paid in full as well as balances that Card Members paid over time with interest, and Card Member receivables represented balances on our charge card products that need to be paid in full on or before the Card Member’s payment due date.

The updated Card balances presentation includes both revolve-eligible balances and balances that need to be paid in full, reflecting the evolution of our card products over time, primarily due to the expansion of lending features on our charge card portfolio, and is more consistent with industry convention. This presentation change has no impact on the recognition or measurement of outstanding Card balances and associated reserves for credit losses.

Forward-Looking Statements and Non-GAAP Measures

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

Bank Holding Company

American Express is a bank holding company under the Bank Holding Company Act of 1956 and the Board of Governors of the Federal Reserve System (the Federal Reserve) is our primary federal regulator. As such, we are subject to the Federal Reserve’s regulations, policies and minimum capital standards. See “Certain Legislative, Regulatory and Other Developments” for further information. We are also subject to evolving and extensive government regulation and supervision in jurisdictions around the world.

1

Table of Contents

Table 1: Summary of Financial Performance

As of or for the Three Months Ended

Change

As of or for the Six Months Ended

Change

(Millions, except percentages, per share amounts and where indicated)

Selected Income Statement Data

Total revenues net of interest expense

$

$

$

%

$

$

$

%

Total revenues net of interest expense (FX-adjusted) (a)

Provisions for credit losses

(9)

Total expenses

Pretax income

Income tax provision

Net income

8

Earnings per common share — diluted (b)

$

$

$

%

$

$

$

%

Selected Balance Sheet and Common Share Data

Cash and cash equivalents

$

$

$

%

$

$

$

%

Total Card balances and Other loans

8

8

Total Card balances and Other loans (FX-adjusted) (a)

9

9

Average Card balances and Other loans

8

%

8

Customer deposits

5

5

Long-term debt

$

$

$

(2)

$

$

$

(2)

Average common shares outstanding — diluted

(3)

(3)

Cash dividends declared per common share

$

$

$

%

$

$

$

%

Selected Metrics and Ratios

Network volumes (billions)

$

$

$

9

%

$

$

$

%

Billed business (billions)

$

9

$

Billed business (billions) (FX-adjusted) (a)

$

$

9

%

$

$

9

%

Net interest yield (c)

%

%

%

%

Card balances

Net write-off rate — principal, interest and fees (d)

%

%

%

%

Net write-off rate — principal only — consumer and small business (d)(e)

%

%

%

%

30+ days past due as a % of total — consumer and small business

%

%

%

%

90+ days past billing as a % of total — corporate (f)

%

%

%

%

Effective tax rate

%

%

%

%

Return on average equity (g)

%

%

%

%

Common Equity Tier 1

%

%

%

%

(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency conversion 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 Total revenues net of interest expense and Total Card balances and Other loans are non-GAAP measures. 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.

(b)Reflects net income, less (i) earnings allocated to participating share awards of $20 million and $18 million for the three months ended June 30, 2026 and 2025, respectively, and $39 million and $36 million for the six months ended June 30, 2026 and 2025, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2026 and 2025, and $29 million for both the six months ended June 30, 2026 and 2025.

(c)Represents net interest income, computed on an annualized basis, divided by average Card balances, Card balances held for sale (HFS) and Other loans.

(d)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(e)A net write-off rate based on principal losses only is not available for corporate Card balances due to system constraints.

(f)For corporate Card balances, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card balance is classified as 90 days past billing. Corporate Card balances delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.

(g)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders’ equity for the period.

2

Table of Contents

Business Performance

We delivered strong results for the second quarter of 2026, reflecting the strength of our premium customer base, success of our product refresh strategy and power of our differentiated Membership Model. The combination of Card Member spend and revenue momentum, excellent credit performance and disciplined expense management together drove net income for the second quarter, which was $3.1 billion, or $4.53 per share, compared with net income of $2.9 billion, or $4.08 per share, a year ago.

Billed business grew 9 percent year-over-year, reflecting broad-based growth across both Goods & Services (G&S) and Travel & Entertainment (T&E) spend categories. G&S spend grew 9 percent, driven by continued momentum in retail spending. T&E spend grew 10 percent, driven by sustained strength in restaurant spend and further acceleration in airline spend. Overall transaction growth of 10 percent for the quarter reflected continued strong engagement from our customers.

T1U.S. Consumer Services billed business grew 11 percent, driven by our premium card portfolios, including the acceleration in the U.S. Platinum portfolio following the refresh last year. We continue to see strong engagement from our younger customers, with continued momentum in spending by Millennial and Gen-Z Card Members, our largest and fastest-growing cohort. Commercial Services billed business grew 5 percent, reflecting an acceleration in growth from U.S. small and mid-sized enterprise (SME) Card Members. We expect a moderation in spend growth as we exit small business cobrand held-for-sale portfolios. T2Billed business for International Card Services, our fastest-growing segment, grew 13 percent (12 percent FX-adjusted), driven by continued strong growth in spend across geographies and customer types.1

Total revenues net of interest expense increased 10 percent. Growth in billed business drove a 9 percent increase in Discount revenue, our largest revenue line. Net card fees grew 15 percent, reflecting high levels of new card acquisitions, strong Card Member retention and our ongoing cycle of product refreshes. Net interest income grew 11 percent, primarily reflecting growth in balances and net yield expansion, partially offset by the impact from the exit of one of the small business cobrand held-for-sale portfolios, as mentioned above.

Card balances and Other loans increased 8 percent, in line with billed business. T3Provisions for credit losses decreased, primarily driven by a reserve release in the current period compared to a reserve build in the prior period, reflecting further strengthening of portfolio credit performance. The net write-off rate — principal only of 2.0 percent remained stable while the delinquency rate declined to 1.2 percent, reflecting our strategy to invest in the value propositions of our premium products that attract customers with high credit quality.

Growth in Card Member rewards, Card Member services and Business development expenses (collectively, variable customer engagement expenses) were driven by Card Member spending, including in categories like airlines where customers earn and use rewards, enhancements we made to the value propositions of our refreshed U.S. Platinum cards last year and usage of Card Member benefits. Marketing expense increased 6 percent year-over-year as we continued to invest to acquire, engage and retain high-spending, high credit-quality customers. We continue to invest in and enhance our Membership Model of premium payment products, differentiated membership services and partnerships, including our proposed acquisition of TheFork, an online restaurant reservation and management platform in Europe.

Operating expense growth continues to reflect our investments in our colleagues and technology to support business growth. We remain focused on driving marketing and operating expense efficiencies over time.

T4During the second quarter, we maintained our Common Equity Tier 1 (CET1) capital ratio within our target range of 10 to 11 percent and returned $2.9 billion of capital to our shareholders in the form of share repurchases and common stock dividends. We plan to continue to return to shareholders the excess capital we generate while managing our CET1 capital ratio within our target range and supporting balance sheet growth. T5Our robust capital, funding and liquidity positions provide us with significant flexibility to maintain a strong balance sheet.

During the second quarter, we announced that we will sell our approximately 30 percent equity interest in Global Business Travel Group, Inc. pursuant to its pending acquisition. Upon closing, we expect to recognize a sizable pre-tax gain, which will be reflected in Other expense.

Our results for the quarter demonstrate the strength of our differentiated business model and give us confidence in our ability to drive sustainable growth. While we recognize the uncertainty of the geopolitical and regulatory landscape, we continue to manage the company for the long term, focusing on backing our customers and colleagues, continuing to strengthen our risk management capabilities and strategically investing in our business.

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 and “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” for information on potential impacts of macroeconomic, geopolitical and competitive conditions and certain litigation and regulatory matters on our business.

1 The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency conversion 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.

3

Table of Contents

Results of Operations

The discussions in both “Consolidated Results of Operations” and “Business Segment Results of Operations” provide commentary on the variances for the three and six months ended June 30, 2026 compared to the same periods in the prior year, as presented in the accompanying tables.

Consolidated Results of Operations

Table 2: Total Revenues Net of Interest Expense Summary

Three Months Ended

Change

Six Months Ended

Change

(Millions, except percentages)

Discount revenue

$

$

$

9

%

$

$

$

9

%

Net card fees

Service fees and other revenue

7

Total non-interest revenues

Total interest income

5

7

Total interest expense

(6)

(3)

Net interest income

Total revenues net of interest expense

$

$

$

%

$

$

$

%

Total Revenues Net of Interest Expense

Discount revenue increased for both the three and six month periods, driven by increases in billed business of 9 percent and 10 percent, respectively, partially offset by lower average merchant discount rates primarily due to shifts in spend mix by geography and merchant categories. See Tables 5 and 6 for more details on billed business performance.

Net card fees increased for both the three and six month periods, primarily driven by growth in our premium card portfolios. See Table 5 for more details on proprietary new card acquisitions, proprietary cards-in-force and average fee per card.

Service fees and other revenue increased for both the three and six month periods, primarily driven by increases in network partnership revenues, foreign-exchange related revenues associated with Card Member cross-currency spending, loyalty coalition-related fees and travel commissions and fees from our consumer travel business.

Interest income increased for both the three and six month periods, primarily driven by growth in revolving Card balances, partially offset by lower interest rates.

Interest expense decreased for both the three and six month periods, primarily driven by lower interest rates paid on customer deposits, partially offset by growth in customer deposits.

4

Table of Contents

Table 3: Provisions for Credit Losses Summary

Three Months Ended

Change

Six Months Ended

Change

(Millions, except percentages)

Card balances

Net write-offs

$

$

$

8

%

$

$

$

6

%

Reserve build (release) (a)

#

#

Total

(7)

Other

Net write-offs — Other loans

Net write-offs — Other

4

(6)

9

(4)

Reserve build (release) — Other loans (a)

(2)

#

#

Reserve build (release) — Other (a)

—

(3)

3

#

(8)

#

Total

Total provisions for credit losses

$

$

$

%

$

$

$

(9)

%

# Denotes a variance of 100 percent or more

(a)Refer to the “Glossary of Selected Terminology” for a definition of reserve build (release).

Provisions for Credit Losses

Provision for Card balance credit losses decreased for both the three and six month periods, primarily due to reserve releases in the current periods versus reserve builds in the prior periods, partially offset by higher net write-offs. The reserve releases in the current periods were primarily driven by lower delinquencies, partially offset by sequential increases in Card balances. The reserve builds in the prior periods were primarily driven by sequential increases in Card balances and reflected the macroeconomic outlook, partially offset by the release of a reserve upon the reclassification of a small business cobrand portfolio to Card balances HFS.

Provision for other credit losses decreased for both the three and six month periods, primarily due to reserve builds for Other loans in the prior periods, partially offset by higher net write-offs in the current periods. The reserve builds in the prior periods were primarily driven by sequential increases in Other loans.

5

Table of Contents

Table 4: Expenses Summary

Three Months Ended

Change

Six Months Ended

Change

(Millions, except percentages)

Card Member rewards

$

$

$

9

%

$

$

$

%

Business development

7

Card Member services

Marketing

6

3

Salaries and employee benefits

9

Other, net

3

(4)

Total expenses

$

$

$

%

$

$

$

%

Expenses

Card Member rewards expense increased for both the three and six month periods, driven by increases in Membership Rewards and cash back rewards expenses, collectively, of $277 million and $630 million, and cobrand rewards expense of $155 million and $315 million, respectively, all of which were primarily driven by higher billed business. The increases in Membership Rewards expense for the three and six month periods were also driven by changes to the Membership Rewards program for U.S. Business Platinum cards, partially offset by a benefit from enhancements to the models that estimate future redemptions of Membership Rewards points by U.S. Card Members.

The Membership Rewards Ultimate Redemption Rate (URR) for current program participants was 96 percent (rounded down) as of both June 30, 2026 and 2025.

Business development expense increased for both the three and six month periods, primarily due to increased partner payments and higher client incentives, driven by higher network volumes. The increase for the six month period was partially offset by a reserve release related to the allocation of revenue to a joint venture partner as a result of a final arbitration award.

Card Member services expense increased for both the three and six month periods, primarily due to higher usage of Card Member benefits and the new U.S. Platinum benefits.

Marketing expense increased for both the three and six month periods, primarily driven by higher levels of spending on customer acquisition and other growth initiatives.

Salaries and employee benefits expense increased for both the three and six month periods, primarily driven by higher compensation and incentive costs.

Other expenses increased for the three month period and decreased for the six month period. The increase for the three month period was primarily driven by an increase in legal reserves and higher technology costs, partially offset by gains on Amex Ventures investments and a gain on the sale of a small business cobrand portfolio previously classified as Card balances HFS. The decrease for the six month period was primarily driven by gains on Amex Ventures investments, a release of a reserve associated with international non-income tax, a gain for the remeasurement of our ownership interest in our Switzerland joint venture (Swisscard AECS GmbH) resulting from our purchase of the remaining share of the joint venture and the previously-mentioned gain on the sale of a small business cobrand portfolio, partially offset by an increase in legal reserves and higher technology costs.

6

Table of Contents

Income Taxes

The effective tax rate was 23.6 percent and 18.7 percent for the three months ended June 30, 2026 and 2025, respectively, and 22.5 percent and 20.5 percent for the six months ended June 30, 2026 and 2025, respectively. The higher effective tax rates for the three and six month periods primarily reflected discrete tax benefits in the prior periods related to the resolution of certain prior-year tax items.

Table 5: Selected Card-Related Statistical Information

As of or for the

Three Months Ended

Change

vs.

As of or for the

Six Months Ended

Change

vs.

Network volumes (billions)

$

$

9

%

$

$

%

Billed business

$

$

9

$

$

Cards-in-force (millions)

4

4

Proprietary cards-in-force

3

3

Basic cards-in-force (millions)

4

4

Proprietary basic cards-in-force

3

3

Average proprietary basic Card Member spending (dollars)

$

$

6

$

$

7

Average fee per card (dollars) (a)

$

$

%

$

$

%

Proprietary new cards acquired (millions)

Discount revenue as a % of billed business

%

%

%

%

(a)Average fee per card is computed on an annualized basis based on proprietary Net card fees divided by average proprietary total cards-in-force.

Table 6: Network Volumes-Related Statistical Information

Three Months Ended

Six Months Ended

Year over Year Percentage

Increase (Decrease)

Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a)

Year over Year Percentage

Increase (Decrease)

Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a)

Network volumes

9

%

9

%

%

9

%

Total billed business

9

9

9

U.S. Consumer Services

Commercial Services

5

5

4

4

International Card Services

Merchant industry billed business metrics

G&S spend (71% of billed business for both the three and six months ended June 30, 2026)

9

9

9

9

T&E spend (28% and 29% of billed business for the three and six months ended June 30, 2026, respectively)

%

%

%

%

(a)The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of conversion 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).

7

Table of Contents

Table 7: Selected Credit-Related Statistical Information

As of or for the

Three Months Ended

Change

vs.

As of or for the

Six Months Ended

Change

vs.

(Millions, except percentages)

Card balances

$

$

8

%

$

$

8

%

Credit loss reserves:

Beginning reserves

$

$

6

$

$

4

Provisions — principal, interest and fees

(7)

Net write-offs — principal, interest and fees, less recoveries

8

6

Other (a)

(9)

#

(8)

#

Ending reserves

$

$

(2)

$

$

(2)

% of Card balances

%

%

%

%

% of past due — consumer and small business

%

%

%

%

Average Card balances

8

%

8

%

Net write-off rate — principal, interest and fees (b)

%

%

%

%

Net write-off rate — principal only — consumer and small business (b)(c)

%

%

%

%

30+ days past due as a % of total — consumer and small business

%

%

%

%

90+ days past billing as a % of total — corporate (d)

%

%

%

%

# Denotes a variance of 100 percent or more

(a)Other includes foreign currency translation adjustments.

(b)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(c)A net write-off rate based on principal losses only is not available for corporate Card balances due to system constraints.

(d)For corporate Card balances, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card balance is classified as 90 days past billing. Corporate Card balances delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.

8

Table of Contents

Business Segment Results of Operations

U.S. Consumer Services

Table 8: USCS Selected Income Statement Data

Three Months Ended

Change

Six Months Ended

Change

(Millions, except percentages)

Revenues

Non-interest revenues

$

$

$

%

$

$

$

%

Interest income

7

7

Interest expense

(3)

(2)

Net interest income

9

Total revenues net of interest expense

Provisions for credit losses

Total revenues net of interest expense after provisions for credit losses

Expenses

Card Member rewards, business development and Card Member services

Marketing

2

1

Salaries and employee benefits and other operating expenses

Total expenses

Pretax segment income

$

$

$

%

$

$

$

%

U.S. Consumer Services (USCS) issues a wide range of proprietary consumer cards and provides services to U.S. consumers, including travel and lifestyle services as well as banking and non-card financing products. USCS also manages our reservation and dining platform that provides digital tools for restaurants and venues and reservation bookings for diners and other registered users.

Total Revenues Net of Interest Expense

Non-interest revenues increased for both the three and six month periods, primarily driven by higher Discount revenue and Net card fees.

Discount revenue increased 11 percent and 10 percent for the three and six month periods, respectively, primarily driven by increases in U.S. consumer billed business. See Tables 5, 6, and 9 for more details on billed business performance.

Net card fees increased 17 percent for both the three and six month periods, primarily driven by growth in our premium card portfolios.

Service fees and other revenue increased 9 percent for the three month period and was relatively flat for the six month period, primarily driven by higher travel commissions and fees from our consumer travel business. The six month period was offset by a prior-year discrete revenue adjustment related to certain cash advance fees.

Interest income increased for both the three and six month periods, primarily driven by growth in revolving Card balances, partially offset by lower interest rates.

Interest expense decreased for both the three and six month periods, primarily driven by lower interest rates, partially offset by higher cost of funds due to segment net asset growth.

9

Table of Contents

Provisions for Credit Losses

Provision for Card balance credit losses decreased for the current three month period, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Provision for Card balance credit losses decreased for the current six month period, primarily due to a reserve release in the current period versus a reserve build in the prior period and lower net write-offs. The reserve releases in the current periods were primarily driven by lower delinquencies, partially offset by a sequential increase in Card balances in the current three month period. The reserve build in the prior three month period was primarily driven by a sequential increase in Card balances and reflected the macroeconomic outlook, partially offset by lower delinquencies. The reserve build in the prior six month period was primarily driven by the macroeconomic outlook, partially offset by lower delinquencies.

Provision for other credit losses decreased for the current three month period, primarily due to a reserve release in the current period versus a reserve build in the prior period, partially offset by higher net write-offs. Provision for other credit losses decreased for the current six month period, primarily due to a lower reserve build in the current period, partially offset by higher net write-offs. The reserve build in the current six month period was primarily related to partner obligations, a portion of which was released during the current three month period. The net reserve builds in the prior periods were primarily driven by sequential increases in Other loans.

Expenses

Total expenses increased for both the three and six month periods, primarily driven by higher Card Member services, Card Member rewards and Salaries and employee benefits and other operating expenses.

Card Member rewards expense increased for both the three and six month periods, primarily driven by increases in Membership Rewards and cobrand rewards expenses, both of which were driven by higher billed business. The increases in Membership Rewards expense were partially offset by the previously-mentioned benefit from enhancements to the U.S. URR models.

Business development expense increased for both the three and six month periods, primarily due to increased partner payments driven by higher billed business.

Card Member services expense increased for both the three and six month periods, primarily due to new U.S. Platinum benefits and higher usage of Card Member benefits.

Marketing expense was relatively flat for both the three and six month periods.

Salaries and employee benefits and other operating expenses increased for both the three and six month periods, primarily due to increases in allocated service costs.

Table of Contents

Table 9: USCS Selected Statistical Information

As of or for the

Three Months Ended

Change

vs.

As of or for the

Six Months Ended

Change

vs.

(Millions, except percentages and where indicated)

Billed business (billions)

$

$

%

$

$

%

Proprietary cards-in-force

4

4

Proprietary basic cards-in-force

5

5

Average proprietary basic Card Member spending (dollars)

$

$

6

$

$

5

Total segment assets

$

$

8

$

$

8

Total Card balances

$

$

8

$

$

8

Average Card balances

$

$

8

%

$

$

7

%

Net write-off rate — principal, interest and fees (a)

%

%

%

%

Net write-off rate — principal only (a)

%

%

%

%

30+ days past due as a % of total

%

%

%

%

(a)Refer to Table 7 footnote (b).

Table of Contents

Commercial Services

Table 10: CS Selected Income Statement Data

Three Months Ended

Change

Six Months Ended

Change

(Millions, except percentages)

Revenues

Non-interest revenues

$

$

$

5

%

$

$

$

5

%

Interest income

8

Interest expense

(4)

(2)

Net interest income

Total revenues net of interest expense

7

7

Provisions for credit losses

(7)

(2)

6

Total revenues net of interest expense after provisions for credit losses

8

7

Expenses

Card Member rewards, business development and Card Member services

Marketing

3

Salaries and employee benefits and other operating expenses

(2)

1

Total expenses

8

8

Pretax segment income

$

$

$

7

%

$

$

$

3

%

Commercial Services (CS) issues a wide range of proprietary corporate and small business cards and provides services to U.S. businesses, including payment and expense management, banking and non-card financing products. CS also issues proprietary corporate cards and provides services to select global corporate clients.

Total Revenues Net of Interest Expense

Non-interest revenues increased for both the three and six month periods, primarily driven by higher Discount revenue and Net card fees.

Discount revenue increased 4 percent for both the three and six month periods, primarily driven by increases in commercial billed business. See Tables 5, 6, and 11 for more details on billed business performance.

Net card fees increased 12 percent and 11 percent for the three and six month periods, respectively, primarily driven by growth in our premium card portfolios.

Service fees and other revenue increased 7 percent and 8 percent for the three and six month periods, respectively, primarily driven by higher travel commissions and fees.

Interest income increased for both the three and six month periods, primarily driven by growth in revolving Card balances and higher interest rates.

Interest expense decreased for both the three and six month periods, primarily driven by lower interest rates, partially offset by a higher cost of funds driven by segment net asset growth.

Table of Contents

Provisions for Credit Losses

Provision for Card balance credit losses increased for the current three month period, primarily due to higher net write-offs, partially offset by a reserve release in the current period versus a reserve build in the prior period. Provision for Card balance credit losses increased for the current six month period, primarily driven by higher net write-offs and a higher reserve build in the current period. The reserve release in the current three month period was primarily driven by lower delinquencies, partially offset by a sequential increase in Card balances. The reserve build in the current six month period was primarily driven by a sequential increase in Card balances, partially offset by lower delinquencies.

The reserve builds in the prior periods were primarily driven by the macroeconomic outlook, partially offset by the release of a reserve upon the reclassification of a small business cobrand portfolio to Card balances HFS. A sequential increase in Card balances also drove the reserve build in the prior six month period.

Provision for other credit losses decreased for both the three and six month periods, primarily due to a reserve release in the current period versus a reserve build in the prior period and lower net write-offs in the current six month period. The reserve release in the current three month period was primarily related to partner obligations. The reserve release in the current six month period was primarily driven by the performance of small business loans. The reserve builds in the prior periods were primarily driven by sequential increases in Other loans.

Expenses

Total expenses increased for both the three and six month periods, primarily driven by higher Card Member rewards, Card Member services and Business development expenses.

Card Member rewards expense increased for both the three and six month periods, primarily driven by increases in Membership Rewards expense due to changes to the Membership Rewards program for U.S. Business Platinum cards and higher billed business, partially offset by the previously-mentioned benefit from enhancements to the U.S. URR models.

Business development expense increased for both the three and six month periods, primarily due to increased client incentives, driven by higher billed business and contractual rates.

Card Member services expense increased for both the three and six month periods, primarily driven by the new U.S. Business Platinum benefits.

Marketing expense increased for both the three and six month periods, primarily driven by higher levels of spending on customer acquisition and other growth initiatives.

Salaries and employee benefits and other operating expenses decreased for the three month period and was relatively flat for the six month period. The decrease for the three month period was primarily driven by the previously-mentioned gain on the sale of a small business cobrand portfolio, a prior-year increase in legal reserves and higher technology costs, partially offset by increases in allocated service costs and higher professional service fees. The six month period also reflected additional allocated service costs compared to the prior year.

Table of Contents

Table 11: CS Selected Statistical Information

As of or for the

Three Months Ended

Change

vs.

As of or for the

Six Months Ended

Change

vs

(Millions, except percentages and where indicated)

Billed business (billions)

$

$

5

%

$

$

4

%

Proprietary cards-in-force

(5)

(5)

Average Card Member spending (dollars)

$

$

9

$

$

7

Total segment assets

$

$

5

$

$

5

Total Card balances

$

$

7

$

$

7

Average Card balances

$

$

4

%

$

$

4

%

Net write-off rate — principal, interest and fees (a)

%

%

%

%

Net write-off rate — principal only — small business (a)(b)

%

%

%

%

30+ days past due as a % of total — small business

%

%

%

%

90+ days past billing as a % of total — corporate (b)

%

%

%

%

(a)Refer to Table 7 footnote (b).

(b)Refer to Table 7 footnote (d).

Table of Contents

International Card Services

Table 12: ICS Selected Income Statement Data

Three Months Ended

Change

Six Months Ended

Change

(Millions, except percentages)

Revenues

Non-interest revenues

$

$

$

%

$

$

$

%

Interest income

Interest expense

Net interest income

Total revenues net of interest expense

Provisions for credit losses

6

Total revenues net of interest expense after provisions for credit losses

Expenses

Card Member rewards, business development and Card Member services

Marketing

9

Salaries and employee benefits and other operating expenses

(1)

Total expenses

Pretax segment income

$

$

$

3

%

$

$

$

%

International Card Services (ICS) issues a wide range of proprietary consumer, small business and corporate cards outside the United States. ICS also provides services to our international customers, including travel and lifestyle services, and manages certain international joint ventures and our loyalty coalition business.

On January 12, 2026, we acquired our partner’s interest in our Switzerland joint venture, resulting in Swisscard becoming a wholly owned subsidiary with its financial results reflected within the respective report lines across our financial statements. Prior to the acquisition date, we accounted for Swisscard under the equity method, with our share of Swisscard’s net income reported within Service fees and other revenue.

Total Revenues Net of Interest Expense

Non-interest revenues increased for both the three and six month periods, primarily driven by higher Discount revenue and Net card fees.

Discount revenue increased 12 percent and 15 percent for the three and six month periods, respectively (11 percent for both the three and six month periods, on an FX-adjusted basis), primarily driven by increases in billed business.2 See Tables 5, 6, and 13 for more details on billed business performance.

Net card fees increased 14 percent and 18 percent for the three and six month periods, respectively (14 percent and 15 percent, respectively, on an FX-adjusted basis), primarily driven by growth in our premium card portfolios.2

Service fees and other revenue increased 3 percent and 12 percent for the three and six month periods, respectively (2 percent and 7 percent, respectively, on an FX-adjusted basis), primarily driven by higher loyalty coalition-related fees and increases in foreign-exchange related revenues associated with Card Member cross-currency spending, including such revenues from Swisscard.2

Interest income increased for both the three and six month periods, primarily driven by growth in revolving Card balances, partially offset by lower interest rates.

Interest expense increased for both the three and six month periods, primarily driven by higher cost of funds due to segment net asset growth, partially offset by lower interest rates.

2 Refer to footnote 1 on page 3 for details regarding foreign currency adjusted information.

Table of Contents

Provisions for Credit Losses

Provision for Card balance credit losses increased for the current three month period, primarily due to higher net write-offs, partially offset by a reserve release in the current period versus a reserve build in the prior period. Provision for Card balance credit losses increased for the current six month period, primarily due to higher net write-offs, partially offset by a lower reserve build in the current period. The reserve release in the current three month period was primarily driven by lower delinquencies, partially offset by a sequential increase in Card balances. The reserve build in the current six month period was primarily driven by a sequential increase in Card balances.

The reserve build in the prior three month period was primarily driven by a sequential increase in Card balances. The reserve build in the prior six month period was primarily driven by higher delinquencies and a sequential increase in Card balances.

Expenses

Total expenses increased for both the three and six month periods, primarily driven by higher Card Member rewards, Card Member services and Salaries and employee benefits and other operating expenses.

Card Member rewards expense increased for both the three and six month periods, primarily driven by increases in Membership Rewards and cobrand rewards expenses, both of which were primarily driven by higher billed business.

Business development expense decreased for both the three and six month periods, primarily driven by lower partner payments, partially offset by higher loyalty coalition-related costs. The decrease for the six month period was also driven by the previously-mentioned reserve release related to the allocation of revenue to a joint venture partner.

Card Member services expense increased for both the three and six month periods, primarily driven by growth in premium card accounts, contributing to a higher usage of travel-related benefits.

Marketing expense increased for both the three and six month periods, primarily due to higher levels of spending on customer acquisition and other growth initiatives, including such expenses from Swisscard.

Salaries and employee benefits and other operating expenses increased for the three month period and was relatively flat for the six month period. The increase for the three month period was primarily driven by higher compensation costs, allocated service costs and technology costs, including such expenses from Swisscard. The six month period also reflected a release of a reserve associated with international non-income tax and the previously-mentioned gain on acquisition of the remaining share of Swisscard.

Table of Contents

Table 13: ICS Selected Statistical Information

As of or for the

Three Months Ended

Change

vs.

As of or for the

Six Months Ended

Change

vs.

(Millions, except percentages and where indicated)

Billed business (billions)

$

$

%

$

$

%

Proprietary cards-in-force

6

6

Proprietary basic cards-in-force

7

7

Average proprietary basic Card Member spending (dollars)

$

$

5

$

$

Total segment assets

$

$

$

$

Total Card balances

$

$

$

$

Average Card balances

$

$

%

$

$

%

Net write-off rate — principal, interest and fees (a)

%

%

%

%

Net write-off rate — principal only — consumer and small business (a)(b)

%

%

%

%

30+ days past due as a % of total — consumer and small business

%

%

%

%

90+ days past billing as a % of total — corporate (b)

%

%

%

%

(a)Refer to Table 7 footnote (b).

(b)Refer to Table 7 footnote (d).

Table of Contents

Global Merchant and Network Services

Table 14: GMNS Selected Income Statement and Other Data

Three Months Ended

Change

Six Months Ended

Change

(Millions, except percentages and where indicated)

Revenues

Non-interest revenues

$

$

$

9

%

$

$

$

%

Interest income

8

(2)

(4)

Interest expense

(4)

(2)

Net interest income

3

2

8

Total revenues net of interest expense

8

9

Provisions for credit losses

5

5

#

3

#

Total revenues net of interest expense after provisions for credit losses

8

9

Expenses

Business development and Card Member services

Marketing

4

4

(7)

(4)

Salaries and employee benefits and other operating expenses

8