PORTLAND, Ore. - Credit card balances among CU members grew by nearly 10% at the end of the first quarter of 2008 over the same period one year earlier, while credit unions continue to gain strength in the overall card market.
AssetExchange, a provider of credit card portfolio advisory and brokerage firm, examined the 2,100 credit unions with credit card portfolios of $1 million and larger. Among the findings:
* Credit card balances have increased 9% since March 2007 to nearly $2,450 in March 2008.
* The percentage of portfolios that grew more than the rate of inflation during the previous 12 months increased from 70% in March 2007 to 75% in March 2008.
* Total card assets for portfolios of more than $1 million increased from $25.3 billion in March 2007 to $28.7 billion in March 2008, a 9% increase.
* Total card assets for portfolios over $1 million continued to increase as a percentage of total assets, increasing from 4.35% in March of 2007 to 4.66% in March 2008.
Meanwhile, ten credit unions with credit card portfolios of over $1 million in outstanding balances sold their portfolios during the first quarter of 2008, according to analysis by Brookwood Capital, Peterborough, N.H. Total balances sold during the quarter were approximately $62 million, with an average size of $6.2 million, it said.
Brookwood noted the 10 portfolio sales during Q1 was approximately half the number sold during Q1 2007.
Meanwhile, noting it has begun tracking the data for the first time, Brookwood also reported that one credit union began issuing cards themselves, either for the first time or after termination of an agent issuing agreement following a prior portfolio sale (CU Journal, May 19).
