AMERICAN EXPRESS CO (AXP) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that AMERICAN EXPRESS CO surfaced in its latest filing.

• Exited business operations in Russia and Belarus as a result of the Russian invasion of Ukraine.
• Cobrand portfolios accounted for approximately 26 percent of worldwide billed business for the year ended December 31, 2025, and Card Member loans related to cobrand portfolios accounted for approximately 36 percent of worldwide Card Member loans as of December 31, 2025.December 31, 2025
• Partnerships for cobranded cards include Delta, Marriott, British Airways, and Hilton.
• Amazon and Lowe's small business cobrand portfolios have been reclassified to held for sale.
• The two largest redemption partners are Amazon and Delta.
• American Express entered into agreements in 2025 to resolve governmental investigations related to historical sales practices for certain U.S. small business customers.2025
• Proposed Visa and Mastercard settlement agreement in November 2025 that would require reductions and caps on interchange fees and provide merchants with greater options to impose surcharges on credit transactions.November 2025
• Subject to a U.S. federal income tax audit of transfer pricing arrangements between U.S. and foreign subsidiaries.
• Challenged in a number of countries regarding application of value-added taxes to certain transactions.
• Global minimum tax of 15 percent on global profits introduced by OECD guidelines increased tax liability in 2025 and is expected to continue to increase tax liability in 2026.2025
• Net interest income was approximately $17.4 billion for the year ended December 31, 2025.December 31, 2025
• As of December 31, 2025, held approximately $1.0 billion of investment securities, primarily debt securities, and equity investments totaling approximately $2.4 billion.December 31, 2025
• Exited network licensing businesses in the EU and Australia as a result of regulation.