Operating cash flow turned negative in Q3 2024 primarily because of a **significant shift in working capital components**. In Q3 2024, the company experienced a marked decrease in **accounts payable and other liabilities**—moving from an increase of **+1,832 million** in the previous period to a decrease of **(3,749) million**—which adversely impacted cash flows. This change outweighed the positive contributions from an increase in net income and improvements in deferred taxes, ultimately resulting in a **net operating cash flow of (1,812) million USD** for Q3 2024.  **[0000004962-24-000068_axp-20240930.htm:50]** 

Why did operating cash flow turn negative in Q3 2024?

The turnaround in operating cash flow in Q1 2024 was driven by **higher net income**, a shift in **accounts payable and other liabilities** from negative to positive cash impact, increased **stock-based compensation**, higher **provisions for credit losses**, and an improvement in **deferred taxes** compared to Q1 2023.  **[0000004962-24-000031_axp-20240331.htm:43]** 

What drove the turnaround in operating cash flow in Q1 2024?

In **FY 2024**, the lower full‐year operating cash flow was mainly due to changes in working capital. Although **net income** increased from **$8,374 million** in FY 2023 to **$10,129 million** in FY 2024, the overall cash flow was negatively impacted by a significant reversal in **accounts payable & other liabilities** (from an increase of **$5,065 million** in FY 2023 to a decrease of **$(2,897) million** in FY 2024) and a shift in **other assets** (from a decrease of **$(1,244) million** to an increase of **$1,007 million**), with a minor offset from a slightly less negative **deferred taxes** adjustment (improving from **$(1,329) million** to **$(990) million**).  **[0000004962-25-000016_axp-20241231.htm:134]** **[0000004962-25-000016_axp-20241231.htm:100]** 

What factors contributed to the lower full‐year operating cash flow in FY 2024?

The documents do not provide a definitive explanation for the sharp decline in the net increase in cash and cash equivalents for Q3 2024. However, it is noted that American Express follows a comprehensive liquidity management strategy that includes maintaining diversified funding sources, projecting cash inflows and outflows under various scenarios, and ensuring regulatory compliance. These elements could have contributed to the negative movement in cash flow, but specific causal factors for Q3 2024 are not detailed in the provided documents.  **[0000004962-24-000068_axp-20240930.htm:49]** **[0000004962-24-000068_axp-20240930.htm:29]** 

What caused the sharp decline in the net increase of cash and cash equivalents in Q3 2024?

1c8d962d61a2a4fd8bcc7b01a892ece7a097ccbd4d2655c574b5bf5ea65ba892

The **Basic EPS** jump in Q2 2024 was driven by several factors. **Net income increased by 39% year-over-year**, fueled by record **total revenues of $16.3 billion** up 8% year-over-year and a **$0.66 per share gain from the sale of Accertify**.  **[0000004962-24-000052_axp-20240630.htm:3]** **[0000004962-24-000051_q224exhibit991.htm:1]** **[AXP_3393633_3]**  In addition, **controlled expenses** (total expenses growing only by 1% year-over-year) and a **3% decrease in the average diluted common shares outstanding** further amplified the EPS growth, with even the core business showing a **21% adjusted EPS growth** when excluding the one-time gain.  **[0000004962-24-000052_axp-20240630.htm:3]** **[0000004962-24-000051_q224exhibit991.htm:1]** **[AXP_3393633_3]** 

Why did Basic EPS jump in Q2 2024?

The increase was driven by **revenue growth** (an 8% increase in total revenues net of interest expense), a notable **gain from the sale of Accertify** (adding **$479 million** after-tax, significantly impacting EPS), and effective **expense management** (expenses rose only 1%, partly offset by lower operating costs due to the gain). Additionally, there was a slight uptick in **provisions for credit losses**. These factors together resulted in the **39% increase** in net income in Q2 2024.  **[0000004962-24-000051_q224exhibit991.htm:1]** **[0000004962-24-000052_axp-20240630.htm:48]** **[0000004962-24-000052_axp-20240630.htm:3]** 

What drove the increase in Net Income in Q2 2024?

The **drop in Other, Net Expenses** in **Q2 2024** was primarily driven by a **gain on the sale of Accertify**, which contributed **$531 million** to the reduction in expenses as it was treated as a one-time item on the financial statements.  **[0000004962-24-000052_axp-20240630.htm:77]** **[0000004962-24-000052_axp-20240630.htm:8]** 

What led to the drop in Other, Net Expenses in Q2 2024?

The spike in **Total Interest Expense** in **Q1 2024** is primarily due to a combination of **higher interest rates** on both customer deposits and long-term debt, a significant increase in **customer deposits** (up by **11%**), and an increase in **long-term debt** (up by **19%**) compared to Q1 2023.  **[0000004962-24-000031_axp-20240331.htm:3]** **[0000004962-24-000029_q124exhibit992.htm:0]** 

What is causing the spike in Total Interest Expense in Q1 2024?

74ce9e128d100bdc9686dd90a8b215b35f1c381681501822294c3fb402d604cc

The documents note that short-term investment securities jumped from **$710 million in Q2 2023** to **$84,307 million in Q3 2023**.  **[0000004962-23-000028_axp-20230630.htm:47]** **[0000004962-23-000038_axp-20230930.htm:47]**  While the reasons for this spike are not explicitly stated, it could be due to a reallocation of cash or other liquid assets into short-term investments as part of liquidity management or investment strategy adjustments.  **[0000004962-23-000038_axp-20230930.htm:47]** **[0000004962-23-000028_axp-20230630.htm:47]** 

Why did Short-term investment securities spike in Q3 2023?

The documents show that short-term investment securities increased from **84,307** in Q3 2023 to **166,307** in Q4 2023.  **[0000004962-23-000038_axp-20230930.htm:47]** **[0000004962-24-000013_axp-20231231.htm:131]**  However, they do not explicitly state the reasons for this doubling. Generally, such changes might result from adjustments in investment strategy, liquidity management, or reallocation of funds, but no definitive explanation is provided in the documents.  **[0000004962-24-000013_axp-20231231.htm:131]** **[0000004962-24-000008_q423exhibit992.htm:2]** 

What drove the doubling of Short-term investment securities in Q4 2023?

The documents do not provide specific details on what contributed to the significant increase in total cash and cash equivalents in Q4 2023. However, they note that such increases are commonly attributed to factors like **increased cash flows from operations**, **changes in investment strategies**, or **adjustments in financing activities**.  **[0000004962-24-000013_axp-20231231.htm:131]** **[0000004962-24-000008_q423exhibit992.htm:2]** 

What contributed to the significant increase in Total cash and cash equivalents in Q4 2023?

The documents indicate that while there is no specific explanation for the increase in long-term debt, such changes are generally associated with actions like funding business growth, managing liquidity, or refinancing existing debt. In American Express’s case, the observed increase—from **$40,495 million** in Q2 2022 to **$46,725 million** in Q2 2023 (a **15% increase**)—may be related to its growth in **Card Member loans (+20% YOY)** and **Customer deposits (+27% YOY)**, which could require additional funding to support its operations and growth initiatives.  **[0000004962-23-000028_axp-20230630.htm:3]** 

Why did Long-term debt increase sharply in Q2 2023?

The jump in Q4 2023 total assets was driven primarily by **increased Card Member Loans** (up by **$17 billion** or **16%**), **increased Cash & Cash Equivalents** (rising by **$13 billion** or **38%**), and a **growth in Other Assets** (an increase of **$3 billion** or **11%**), which together more than offset a **decline in Investment Securities** (down by **$3 billion** or **60%**). This overall performance resulted in a **14% increase** in total assets compared to Q4 2022.  **[0000004962-24-000008_q423exhibit992.htm:2]** 

What factors drove the jump in Total assets in Q4 2023?

262199b4444e2499b28a8af8a39ff8c16411cb2beea5e467ac37750654b035c9

Net income (USD, millions)

Provisions for credit losses (USD, millions)

Depreciation and amortization (USD, millions)

Stock‑based compensation (USD, millions)

Other items (a) (USD, millions)

Net cash provided by operating activities (USD, millions)

Sale of investments (USD, millions)

Maturities and redemptions of investments (USD, millions)

Purchase of investments (USD, millions)

Net increase in loans and Card Member receivables (USD, millions)

Purchase of premises and equipment, net of sales (USD, millions)

Net cash used in investing activities (USD, millions)

Net increase in customer deposits (USD, millions)

Net increase in short‑term borrowings (USD, millions)

Proceeds from long‑term debt (USD, millions)

Payments of long‑term debt (USD, millions)

Issuance of American Express common shares (USD, millions)

Repurchase of American Express common shares and other (USD, millions)

Dividends paid (USD, millions)

Net cash provided by financing activities (USD, millions)

Effect of foreign currency exchange rates on cash and cash equivalents (USD, millions)

Net increase in cash and cash equivalents (USD, millions)

Deferred taxes (USD, millions)

Other assets (USD, millions)

Accounts payable & other liabilities (USD, millions)

Cash and cash equivalents at beginning of period (USD, millions)

Cash and cash equivalents at end of period (USD, millions)

b4ffbb30bab227ef9deae35acb54a92c3eac6863ec870b2ce3eac7f8725f796d

Cash and due from banks (USD, millions)

Interest-bearing deposits in other banks (USD, millions)

Short-term investment securities (USD, millions)

Total cash and cash equivalents (USD, millions)

Card Member receivables (USD, millions)

Card Member loans (USD, millions)

Other loans (USD, millions)

Investment securities (USD, millions)

Premises and equipment (USD, millions)

Total assets (USD, millions)

Customer deposits (USD, millions)

Accounts payable (USD, millions)

Short-term borrowings (USD, millions)

Long-term debt (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Common shares (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

Total shareholders’ equity (USD, millions)

Total liabilities and shareholders’ equity (USD, millions)

ac0f63d275820841f65cecb6d790d3f626fcce22df1e50c6bc44b2ad1116366c

Total Non-Interest Revenues (USD, millions)

Discount Revenue (USD, millions)

Net Card Fees (USD, millions)

Service Fees and Other Revenue (USD, millions)

Total Interest Income (USD, millions)

Interest on Loans (USD, millions)

Interest and Dividends on Investment Securities (USD, millions)

Deposits with Banks and Other (USD, millions)

Total Interest Expense (USD, millions)

Deposits Interest Expense (USD, millions)

Long-term Debt and Other Interest Expense (USD, millions)

Net Interest Income (USD, millions)

Total Revenues Net of Interest Expense (USD, millions)

Total Provisions for Credit Losses (USD, millions)

Card Member Receivables Provisions for Credit Losses (USD, millions)

Card Member Loans Provisions for Credit Losses (USD, millions)

Other Provisions for Credit Losses (USD, millions)

Total Revenues Net of Interest Expense After Provisions for Credit Losses (USD, millions)

Total Expenses (USD, millions)

Card Member Rewards Expenses (USD, millions)

Business Development Expenses (USD, millions)

Card Member Services Expenses (USD, millions)

Marketing Expenses (USD, millions)

Salaries and Employee Benefits Expenses (USD, millions)

Other, Net Expenses (USD, millions)

Pretax Income (USD, millions)

Income Tax Provision (USD, millions)

Net Income (USD, millions)

Basic Earnings per Common Share (USD)

Diluted Earnings per Common Share (USD)

Average common shares outstanding for earnings per common share: Basic (Millions)

Average common shares outstanding for earnings per common share: Diluted (Millions)

eda90300974b189078d119ef5b5311904dfaac9e92b9b6d5393936df6b921ae8

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

4e25340e7d081be0015c96e75391e5e8e3e84c6d818a5d9a1aba3a520eb80cb9

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Property, Plant, and Equipment (PP&E) [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Long-term Debt [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

ec927fb712882076168c9b5396c3d21784cf76dae72ec2cf7aac74934426c3f7

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

cc3a3e5670ddf99667d1a49f2174db14964dc2ca0cb0ae9bbdd63adaa384d325

d397fd434476a22ad1a82724b7929f2dfdcced3e0aa3a6f915eb8c91b50a508f

U.S. Consumer Services

Global Consumer Services Group (GCSG)

- Total Non-Interest Revenues

- Interest Income

Commercial Services

International Card Services

Global Merchant and Network Services

Global Commercial Services (GCS)

Global Merchant and Network Services (GMNS)

Corporate & Other

U.S. Card Services (USCS)

International Card Services (ICS)

Total Revenue

934601cfcc3515774d43ce3158fd5aded6a66e2fd5b805209e5e9cd0fb470c6f

United States

EMEA

APAC

JAPA

LACC

Other Unallocated

c1a5f448cb257caca2226fb7326e72e445abd0dbde7a8b7f887750b7493f116f

AMERICAN EXPRESS (AXP)

Financials