Sixty five credit unions with credit card portfolios of $1 million or more sold those portfolios during 2005, according to analysis by Brookwood Capital, which consults on such sales. Total balances sold during the year were approximately $481 million. The sale of 65 portfolios nearly eclipsed the 67 sold during 2004, although the actual total balances involved in 2005 were $22 million above the 2004 mark. On average, the size of the portfolios sold in 2005 was $7.4 million, also an all-time high, Brookwood said.
While these portfolios are nearly always profitable, many smaller issuers are trying to find ways to issue a stronger product set while lowering their institutional risk profile and increasing the bottom line," the company said.
For info: www.brookwoodcapital.net.
PORTFOLIO SALES 2002-05
Year Portfolios Total Average
Sold Outstandings Size
2002 41 $285M $7.0M
2003 59 $419M $7.1M
2004 67 $459M $6.9M
2005 65 $481M $7.4M