PORTLAND, Ore. -
Data released by AssetExchange here and Brookwood Capital, Peterborough, N.H., two companies that offer card portfolio advisory and brokerage services, shows a dozen credit unions with portfolios of more than $1 million sold their cards during the third quarter of this year, which is down slightly from earlier periods, according to data from both firms.
Among the findings from AssetExchange from the 2,100 CUs with portfolios of $1 million or more:
* Credit union cards are gaining strength in the market, the company said, noting that in addition to more cards in the market, card balances have increased. Since Sept. 2006, the average balance per account has grown by about 11% to $2,347 in Sept. 2007.
* The percentage of portfolios that grew more than the rate of inflation during the previous 12 months increased to 70% in September of 2007 from 60% in September 2006.
* Total card assets for portfolios over $1 million increased to $27.5-billion in September 2007 from $24.2 billion in September 2006, a 13.8% increase.
* Total card assets for portfolios over $1 million increased as a percentage of total assets, increasing to 4.67% in September 2007 from 4.34% one year earlier.
* The combined dollar value of card portfolios sold during the third quarter was roughly $40 million, a 37% decrease in the number of sales and a 70% decrease in sales volume compared with the 3rd quarter of 2006. Year-to-date portfolio sales volume has decreased 15% relative to 2006, dropping to $330 million from $280 million.
In its analysis, Brookwood Capital reported that to date in 2007, 47 credit unions with credit card portfolios of over $1 million in outstanding balances sold their portfolios. Total balances sold for the year stand at approximately $273 million, the company said, noting that on average, the size of the portfolios sold in the first half were $5.8 million. "This figure is lower than in previous periods, mostly driven by relatively small portfolios being sold in the third quarter," Brookwood Capital reported.
"Since 2002, more than 14% of all credit union credit card issuers with credit card portfolios of over $1 million in receivables have outsourced their card programs to third party partners, a figure that has been increasing steadily," according to Brookwood Capital. "Overall, year-to-date results put credit union portfolio sales slightly below the results of the past several years, though last year's fourth quarter saw heavy sales volume."
CU Credit Card Portfolio Sales
Total Average
Year Portfolios Sold Outstandings Size
2002 41 $285 million $7.0 million
2003 59 $419 million $7.1 million
2004 67 $459 million $6.9 million
2005 65 $481 million $7.4 million
2006 69 $466 million $6.7 million
Sep 2007 47 $273 million $5.8 million
