American Express closed Series E preferred share sale and announced Series D redemption

American Express closed the sale of 1,600,000 depositary shares on August 12, 2026, each representing a 1/1,000th interest in Series E Preferred Shares priced at $1,000,000 per share. The offering, announced five days earlier on August 5, generated proceeds the company intends to use for general corporate purposes, including the full or partial redemption of its outstanding Series D Preferred Shares, which it plans to call on September 15, 2026.

The Series E shares carry a 6.450% fixed rate that resets periodically. The aggregate redemption price for the Series D shares being called will equal $1,000,000 per share, plus any declared and unpaid dividends. American Express also issued €750 million of 3.835% fixed-to-floating rate notes maturing in June 2034 on June 17, 2026.

Second-quarter results showed gains in net income and revenue

American Express reported net income of $3.110 billion for the three months ended June 30, 2026, against $2.885 billion a year earlier. Diluted earnings per common share reached $4.53, compared with $4.08 in the second quarter of 2025. Declared cash dividends per common share grew to $0.95 from $0.82 year-over-year.

Total revenues net of interest expense were $19.637 billion in the second quarter, an increase from $17.856 billion a year earlier. Net interest income grew to $4.649 billion from $4.187 billion. Discount revenue reached $10.163 billion, up from $9.361 billion in the prior-year quarter. Card Member rewards expense rose to $5.051 billion from $4.618 billion.

Billed business grew across consumer and international segments

Billed business expanded 9 percent year-over-year in the quarter. Goods and Services spending grew 9 percent, while Travel and Entertainment spending grew 10 percent. U.S. Consumer Services billed business grew 11 percent, driven by premium card portfolios including acceleration in the U.S. Platinum portfolio. Commercial Services billed business grew 5 percent, reflecting growth in U.S. small and mid-sized enterprise Card Members. International Card Services billed business grew 13 percent, or 12 percent adjusted for currency movements.

Network volumes reached $516.8 billion in the second quarter, up from $472.0 billion a year earlier.

Card metrics from first quarter

American Express proprietary cards-in-force were 67.2 million as of March 31, 2026, an increase of 3 percent from 65.1 million a year earlier. Average fee per card was $127 as of March 31, 2026, compared with $111 a year earlier. Net card fees for the second quarter reached $2.862 billion, an increase of 15 percent from $2.480 billion in the prior-year quarter.

Card balances expanded, but credit losses fell

Total card balances and other loans reached $229.481 billion as of June 30, 2026, compared with $211.976 billion a year earlier. U.S. Consumer Card balances stood at $113.8 billion as of June 30, with 30 days past due at 1.1 percent of total. U.S. Small Business Card balances were $45.9 billion, with 30 days past due at 1.4 percent of total.

American Express's provisions for credit losses were $1.084 billion in the second quarter, a decrease from $1.405 billion a year earlier. Card balances net write-off rate for principal only was 2.0 percent in the quarter, unchanged from the prior-year period. The annualized default rate net of recoveries for the American Express Credit Account Master Trust was 0.7 percent as of June 2026, with the trust holding a total principal balance of $25.2 billion.

Membership Rewards Ultimate Redemption Rate for current program participants held at 96 percent as of June 30, 2026, matching the prior-year level.

Capital ratios and deposit growth

American Express's Common Equity Tier 1 capital ratio was 10.4 percent as of June 30, 2026, compared with 10.6 percent a year earlier. Customer deposits reached $156.973 billion as of June 30, 2026, an increase from $149.386 billion at the same point in 2025. Cash and cash equivalents were $45.243 billion as of June 30, compared with $57.937 billion a year earlier.

Return on average equity was 36.4 percent in the second quarter, marginally up from 36.3 percent a year earlier.

Six-month results and asset disposition

For the six months ended June 30, 2026, American Express reported net income of $6.082 billion, compared with $5.469 billion in the prior-year period. Total revenues net of interest expense were $38.544 billion, an increase from $34.823 billion in the first half of 2025.

During the second quarter, American Express announced it would sell its approximately 30 percent equity interest in Global Business Travel Group, Inc., pursuant to that company's pending acquisition.