Significant Credit Concentrations

12 Months Ended

Dec. 31, 2021

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)	2021		2020
Individuals (a)	$	131	$	108
Financial services (b)	24		34
U.S. Government and agencies (c)	2		22
Institutions (d)	15		13
Total on-balance sheet	$	172	$	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)Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities.

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

As of December 31, 2021 and 2020, 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)	2021		2020
On-balance sheet:
U.S.	$	115	$	95
Non-U.S.	27		22
On-balance sheet	142		117
Unused lines-of-credit: (a)
U.S.	261		251
Non-U.S.	66		63
Total unused lines-of-credit	$	327	$	314

(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.