Profits on the increase.(Brief Article)(Statistical Data Included)

US BANKERS improved their credit card profitability last year for the first time since 1994, but warning clouds are looming.

The after-tax return on card assets rose to 1.86 per cent from 1.50 per cent, according to an annual industry survey by R.K. Hammer Investment Bankers.

Cards continued their historical pattern of besting the aggregate commercial banking ROA - 1.42 per cent in the third quarter, according to the most recent Federal Deposit Insurance Corp report - though the gap has narrowed in recent years.

Before taxes, the credit card ROA r