Provision for Credit Losses
American Express Provision for Credit Losses decreased by 11.5% to $1.25B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 8.8%, from $1.15B to $1.25B. Over 4 years (FY 2021 to FY 2025), Provision for Credit Losses shows an upward trend with a 37.5% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
An increase suggests management expects higher default rates or a deteriorating credit environment, while a decrease suggests improved borrower quality.
Detailed definition
This represents the non-cash expense set aside by a financial institution to cover potential losses from loans or credit...
Peer comparison
Common in banking and credit card issuers; peers adjust this based on macroeconomic forecasts and portfolio seasoning.
provision_for_credit_losses_cfHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | -$606.00M | -$191.00M | $0.00 | -$33.00M | $410.00M | $778.00M | $1.03B | $1.06B | $1.20B | $1.23B | $1.44B | $1.27B | $1.27B | $1.36B | $1.29B | $1.15B | $1.41B | $1.29B | $1.41B | $1.25B |
| QoQ Change | — | +68.5% | +100.0% | — | >999% | +89.8% | +32.0% | +2.7% | +13.6% | +2.9% | +16.5% | -11.7% | -0.1% | +6.9% | -4.7% | -11.0% | +22.2% | -8.4% | +9.9% | -11.5% |
| YoY Change | — | — | — | — | +167.7% | +507.3% | — | >999% | +192.2% | +58.5% | +39.9% | +20.3% | +5.8% | +10.0% | -10.1% | -9.4% | +10.8% | -5.1% | +9.4% | +8.8% |
Business Segments
| Segment | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|---|---|---|
| USCS | $706.00M | $812.00M | $784.00M | $631.00M | $829.00M | $734.00M | $773.00M | $631.00M |
| CS | $349.00M | $374.00M | $311.00M | $329.00M | $360.00M | $332.00M | $359.00M | $380.00M |
| ICS | $192.00M | $158.00M | $194.00M | $192.00M | $210.00M | $218.00M | $211.00M | $238.00M |
| GMNS | $20.00M | $10.00M | $6.00M | -$2.00M | $5.00M | $5.00M | $70.00M | $4.00M |
| Total | $1.27B | $1.36B | $1.29B | $1.15B | $1.41B | $1.29B | $1.41B | $1.25B |
Provision for Credit Losses at Other Companies
Frequently Asked Questions
- What is American Express's provision for credit losses?
- American Express (AXP) reported provision for credit losses of $1.25B in Q1 2026.
- How has American Express's provision for credit losses changed year-over-year?
- American Express's provision for credit losses increased by 8.8% year-over-year, from $1.15B to $1.25B.
- What is the long-term trend for American Express's provision for credit losses?
- Over 4 years (2021 to 2025), American Express's provision for credit losses has grown at a 37.5% compound annual growth rate (CAGR), from -$1.47B to $5.26B.
- What does provision for credit losses mean?
- The amount of money a lender sets aside to cover expected losses from unpaid debts.