American Express expands Taiwan credit card business

TAIPEI Oct 1 (Reuters) - American Express (AXP.N) is expanding in Taiwan through a tie-up with the island's EVA Airways (2618.TW) as foreign interest in Asia's fourth-biggest banking market heats up.

American Express will issue a co-branded credit card on Monday with EVA, the island's No. 2 carrier, after the U.S. company halted issuing new cards for several months last year due to mounting defaults.

Taiwan's financial sector has become a target for major foreign banks such as Standard Chartered (STAN.L) and private equity funds like Carlyle Group [CYL.UL] seeking acquisitions at lower multiples than elsewhere in Asia as Taiwan lenders return to profit.

Taiwan's domestic banks had a combined pretax profit of T$47.63 billion (US$1.47 billion) from January to July, swinging from T$7.4 billion in losses for the full year of 2006, latest government data showed.

Standard Chartered recently completed its US$1.2 billion merger of a Taiwan lender, while Citigroup (C.N) finished its US$436 million merger of another bank.

($1=T$32.47)