American Express Expects Profits Despite Credit Card Debt Risks
Although many are concerned that high credit card debt levels will spark a new consumer debt crisis (read more in this CNBC article), American Express (the largest credit card lender in 2007 by total purchases and cash advances) announced that it expects its earnings per share to grow 4 to 6 percent on the strength of overseas use of credit cards, at the same time that it has increased the amount of cash that it sets aside for uncollectible debt by 50 percent.
