Significant Credit Concentrations

12 Months Ended

Dec. 31, 2022

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)	2022		2021
Individuals: (a)	$	156	$	131
United States	129		108
Outside the United States (b)	27		23
Institutions:
Financial services (c)	36		24
Other (d)	17		15
U.S. Government and agencies (e)	4		2
Total on-balance sheet	$	213	$	172

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

(b)The geographic regions with the largest concentration outside the United States include the United Kingdom, Japan, the European Union, Australia, Canada and Mexico.

(c)Represents banks, broker-dealers, insurance companies and savings and loan associations, which are governed by institutional credit risk management.

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

(e)Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities. Risk management for these balances is governed by our Asset and Liability Management Committee.

As of December 31, 2022 and 2021, our most significant concentration of credit risk was with individuals. 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.

As of December 31, 2022 and 2021, we had approximately $350 billion and $327 billion, respectively of unused credit, primarily available to customers as part of established lending product agreements, of which approximately 80 percent was related to customers within the United States in both periods. Total unused credit 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.