What is American Express Co Capital Adequacy Tier - Tier 1 Ratio %?
Capital Adequacy Tier - Tier 1 Ratio % is the ratio of a bank’s core tier 1 capital, which includes its equity capital and disclosed reserves, to its total risk-weighted assets. It is a key measure of a bank's financial strength and should not fall lower than 6% as per Basel III rules.
American Express Co's Capital Adequacy Tier - Tier 1 Ratio % for the quarter that ended in Mar. 2024 was 25.30%
, which is higher than
24.80% for the pervious quarter ended in Dec. 2023.
American Express Co's Capital Adequacy Tier - Tier 1 Ratio % for the annual that ended in Dec. 2023 was 24.80%
, which is higher than
21.60% for the pervious year ended in Dec. 2022.
The historical rank and industry rank for American Express Co's Capital Adequacy Tier - Tier 1 Ratio % or its related term are showing as below:
AXP's Capital Adequacy Tier - Tier 1 Ratio % is not ranked *
in the Credit Services industry.
Industry Median: * Ranked among companies with meaningful Capital Adequacy Tier - Tier 1 Ratio % only.
American Express Co Capital Adequacy Tier - Tier 1 Ratio % Historical Data
The historical data trend for American Express Co's Capital Adequacy Tier - Tier 1 Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
American Express Co Capital Adequacy Tier - Tier 1 Ratio % Chart
Competitive Comparison of American Express Co's Capital Adequacy Tier - Tier 1 Ratio %
For the Credit Services subindustry, American Express Co's Capital Adequacy Tier - Tier 1 Ratio %, along with its competitors' market caps and Capital Adequacy Tier - Tier 1 Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Express Co (NYSE:AXP) Capital Adequacy Tier - Tier 1 Ratio % Calculation
Capital Adequacy Tier - Tier 1 Ratio % is calculated as
Capital Adequacy Tier - Tier 1 Ratio %
=
Tier 1 Capital
/
Total Risk Weighted Assets
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Express Co (NYSE:AXP) Capital Adequacy Tier - Tier 1 Ratio % Explanation
Tier 1 capital, or core capital, consists of a bank's common stock, retained earnings, accumulated other comprehensive income, noncumulative perpetual preferred stock and any regulatory adjustments to those accounts. The tier 1 capital ratio is the ratio of a bank’s core capital vs. its total risk-weighted assets (RWAs). The risk-weighted assets are calculated by multiplying the assets that the company holds by their corresponding weights for credit risk (the weight is usually developed by the central bank).
The tier 1 capital ratio is the basis for the Basel III international capital and liquidity standards. The standard is used to force banks to increase capital buffers and ensure they can withstand financial distress before they become insolvent. Basel III rules stipulate that the Tier 1 capital ratio has to be at least 6% and the equity component of Tier 1 capital has to have at least 4.5% of RWAs. A higher Tier 1 ratio suggests that the company has more capital to pay down deposits and is less likely to become insolvent.
American Express Co Capital Adequacy Tier - Tier 1 Ratio % Related Terms
Thank you for viewing the detailed overview of American Express Co's Capital Adequacy Tier - Tier 1 Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
American Express Co (American Express Co) Business Description
American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.
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