Significant Credit Concentrations

12 Months Ended

Dec. 31, 2019

Risks and Uncertainties [Abstract]

Significant Credit Concentrations

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. Our customers operate in diverse industries, economic sectors and geographic regions.

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

(Billions)	2019		2018
Individuals(a)	$	131	$	123
Financial Services(b)	26		30
Institutions(c)	20		20
U.S. Government and agencies(d)	8		4
Total on-balance sheet	$	185	$	177

(a)Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management.

(b)Represents banks, broker-dealers, insurance companies and savings and loan associations.

(c)Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management.

(d)Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities.

As of December 31, 2019 and 2018, our 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, we review each potential customer’s credit application and evaluate the applicant’s financial history and ability and willingness to repay. We also consider credit performance by customer tenure, industry and geographic location in managing credit exposure.

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

(Billions)	2019		2018
On-balance sheet:
U.S.	$	115	$	111
Non-U.S.	30		27
On-balance sheet	145		138
Unused lines-of-credit:(a)
U.S.	245		249
Non-U.S.	61		53
Total unused lines-of-credit	$	306	$	302

(a)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. Our charge card products generally have no pre-set spending limit, and therefore are not reflected in unused credit available to Card Members.