U.S. credit card issuers are expected to generate $39.6 billion in fee income this year, a 6.5% increase over last year. Penalty fee income is expected to reach $10.7 billion, while the largest category of fee income, interchange income, will hit $19.8 billion. Other fee income this year will include cash advance fee income of $5.1 billion, annual fees income of $3.2 billion, and fee income from enhancements of $800 million. According to R.K. Hammer Investment Bankers, total card income (including interest and all fees) will be $119.5 billion for the year, before expenses. Roughly one-third of that is fee income based; and approximately two-thirds of the total revenue stream is for interest income on balances that revolve and incur finance charges. After expenses, the card companies are expected to earn over $27 billion, pre-tax in 2003.