Regulatory Matters and Capital Adequacy

9 Months Ended

Sep. 30, 2018

Disclosure Text Block [Abstract]

Regulatory Matters and Capital Adequacy

16. Regulatory Matters and Capital Adequacy

We are supervised and regulated by the Board of Governors of the Federal Reserve System (the Federal Reserve) and are subject to the Federal Reserve’s requirements for risk-based capital and leverage ratios. Our U.S. bank subsidiary, American Express National Bank (AENB), is the surviving entity that resulted from the conversion of American Express Centurion Bank, a Utah state-chartered industrial bank, into a national banking association, and the subsequent merger of American Express Bank, FSB, a federal savings bank, into the successor entity as of April 1, 2018. AENB is subject to supervision and regulation, including regulatory capital and leverage requirements, by the Office of the Comptroller of the Currency (OCC).

Under the risk-based capital guidelines of the Federal Reserve, we are required to maintain minimum ratios of Common Equity Tier 1 (CET1), Tier 1 and Total (Tier 1 plus Tier 2) capital to risk-weighted assets, as well as a minimum Tier 1 leverage ratio (Tier 1 capital to average adjusted on-balance sheet assets) and a supplementary leverage ratio (Tier 1 capital to both on-balance sheet and certain off-balance sheet exposures).

Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional, discretionary actions by regulators, that, if undertaken, could have a direct material effect on our operating activities.

As ofSeptember 30, 2018 and December 31, 2017, we met all capital requirements to which we were subject and maintained regulatory capital ratios in excess of those required to qualify as well capitalized.

The following table presents the regulatory capital ratios:

(Millions, except percentages)			CET 1 capital		Tier 1capital		Total capital	CET 1 capital ratio		Tier 1capital ratio		Total capital ratio		Tier 1 leverage ratio		Supplementary leverage ratio
September 30, 2018:(a)
	American Express Company	$	16,636	$	18,208	$	20,737	10.8	%	11.8	%	13.4	%	10.1	%	8.6	%
	American Express National Bank	$	11,504	$	11,504	$	13,465	12.5	%	12.5	%	14.6	%	10.0	%	8.3	%
December 31, 2017:(a)
	American Express Company	$	13,189	$	14,721	$	17,142	9.0	%	10.1	%	11.8	%	8.6	%	(b)	%
	American Express Centurion Bank	$	5,954	$	5,954	$	6,547	12.7	%	12.7	%	14.0	%	10.2	%	(b)	%
	American Express Bank, FSB	$	6,065	$	6,065	$	6,653	12.9	%	12.9	%	14.2	%	11.7	%	(b)	%
Well capitalized ratios(c)								6.5	%	8.0	%	10.0	%	5.0	%	N/A
Basel III Standards 2018(d)								6.4	%	7.9	%	9.9	%	4.0	%	3.0	%
Minimum capital ratios(e)								4.5	%	6.0	%	8.0	%	4.0	%	3.0	%

• As a Basel III advanced approaches institution in parallel run, capital ratios are reported using Basel III capital definitions, inclusive oftransition provisions for the capital ratios as of December 31, 2017, and risk-weighted assets using the Basel III standardized approach.
• The minimum supplementary leverage ratio (SLR) requirement of 3 percent became effective January 1, 2018.
• Represents requirements for banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Deposit Insurance Corporation Improvement Act. There is no CET1 capital ratio, Tier 1 leverage ratio or SLR requirement for a bank holding company to be considered “well capitalized.”
• Basel III minimum capital requirement and additional transitional capital conservation buffer as defined by the Federal Reserve and OCC for calendar year 2018 for advanced approaches institutions. The additional capital conservation buffer does not apply to Tier 1 leverage ratio or SLR.
• As defined by the regulations issued by the Federal Reserve and OCC.