Significant Credit Concentrations

12 Months Ended

Dec. 31, 2017

Disclosure Text Block Abstract

Concentration Risk Disclosure [Text Block]

NOTE 24

Significant Credit Concentrations

Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to American Express’ total credit exposure. The Company’s customers operate in diverse industries, economic sectors and geographic regions.

The following table details the Company’s maximum credit exposure of the on-balance sheet assets by category as of December 31:

(Billions)	2017		2016
On-balance sheet:
Individuals(a)	$	112	$	98
Institutions(b)		20		18
Financial Services(c)		35		28
U.S. Government and agencies(d)		3		3
Total on-balance sheet		170		147

• Primarily reflectsloans and receivables from global consumer and small businessCard Members,which are governed by individual credit risk management.
• Primarily reflectsloans and receivables from global corporate Card Members, which are governed by institutional credit risk management.
• Represents banks, broker-dealers, insurance companies and savings and loan associations.
• Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities.

As of December 31, 2017 and 2016, the Company’s most significant concentration of credit risk was with individuals, including Card Member loans and receivables. These amounts are generally advanced on an unsecured basis. However, the Company reviews each potential customer’s credit application and evaluates the applicant’s financial history and ability and willingness to repay. The Company also considers credit performance by customer tenure, industry and geographic location in managing credit exposure.

The following table details the Company’s Card Member loans and receivables exposure (including unused lines-of-creditavailable to Card Members as part of established lending product agreements) in the United States and outside the United States as of December 31:

(Billions)	2017		2016
On-balance sheet:
U.S.	$	102	$	93
Non-U.S.		25		20
On-balance sheet		127		113
Unused lines-of-credit:(a)
U.S.		224		203
Non-U.S.		49		39
Total unused lines-of-credit	$	273	$	242

Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Because the Company’s charge card products generally have no preset spending limit, the associated credit limit on charge products is not quantifiable, and therefore is not reflected in unused credit available to Card Members.