American Express’ Loans by Segment (2015-2022)

This statistic highlights American Express’ Loans by Segment, split across Global Consumer Services Group and Global Consumer Services, reported annually from 2015 onwards.

American Express’ Loans by Segment

(All figures are in millions, except percentages)

The total amount of American Express’ Loans fell from $87,381 million in 2019 to $73,373 million in 2020, indicating a (16.03%) fall on a year-on-year basis. When compared to the same period in 2018, this amount increased by 6.75% in 2019.

American Express’ Loans by Segment are further bifurcated into the following:

Global Consumer Services Group (GCSG)

Globally, GCSG primarily issues a variety of proprietary consumer cards. GCSG also oversees certain international joint ventures, the company’s partnership agreements in China, and loyalty coalition operations in certain countries, as well as providing travel and lifestyle services, along with non-card financing solutions to consumers.

The major component of 82% to the company’s loans was made by GCSG. American Express’s Loans owing to the Global Consumer Services Group segment decreased from $73,266 million in 2019 to $60,084 million in 2020, indicating a fall of 17.99% on a year-on-year basis. From 2016 to 2018, the loaned amount was growing at a slow pace but in 2019, in a flash, it touched the roof almost by 670% from $9,536 million in 2016 to $73,266 million in 2019.

Global Consumer Services (GCS)

Global Consumer Services specializes in producing a wide selection of customized corporate and small business cards for clients all over the world. Payment, spending management, and business financing are all services offered by GCS. In 2019, Discount revenue, Other fees, commissions, and net card fees indicated a growth, resulting in larger non-interest revenues. These factors contributed to a decrease in the loaned amount of this particular segment.

American Express’s loans for the Global Consumer Services segment increased from $11,115 million in 2019 to $13,289 million in 2020, marking an almost 20% increase on a year-on-year basis. In 2020, a 18% of the company’s total loaned amount could be attributed to activities by the GCS segment. The loans from GCS were at their peak during the year 2016-2018, following which, they decreased by almost 84%.

Impact of the Pandemic

Card Member loans and Card Member receivables are created as a result of American Express’ lending and card charing products. Through non-card financing solutions, American Express extends credit to consumers and businesses, resulting in other loans.

In 2020, the net cash provided by investing activities was primarily driven by a decline in Card Member loans and receivable balances, partially offset by net purchases of investment securities. The decline in Card Member loans and receivable balances was due to the ongoing pay down of outstanding balances by Card Members, combined with significant decline in spending that occurred due to the COVID-19 pandemic.

About the Company

The American Express Company (AmEx) is a worldwide firm specializing in payment card services with headquarters at 200 Vesey Street in New York City’s Battery Park City area. Established in 1850, this company makes one of the 30 components of the Dow Jones Industrial Average. The company offers various innovative and safe digital solutions in the payments field.

The company believes in increasing its consumers’ financial confidence by providing the best possible globally integrated payment services. With this, the company is taking commerce to new heights and encouraging its client base to explore the world with the confidence that they will be able to conduct seamless transactions with American Express all around the globe.

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