PORTLAND, Ore.-More credit unions chose to hold onto their credit card portfolios rather than sell them off in the third quarter of this year compared to the same time last year, according to an analysis of card portfolio trends by AssetExchange.
Additionally, credit union credit card assets grew faster than total assets in the third quarter, the credit card advisory and brokerage firm noted.
AssetExchange looked at 2,100 credit union credit card portfolios of $1 million and larger, and its preliminary analysis indicates five credit unions with portfolios greater than $1 million sold their portfolios in the third quarter of 2007 with about $13 million in combined balances. Compare that to the third quarter of 2007, when 14 credit unions sold their portfolios representing $40.3 million balances.
Not only are credit unions holding on to their credit card portfolios, but those assets are growing faster than total assets. Between September 2007 and September 2008, credit card assets grew 12%, compared with 7% growth in total assets, AssetExchange reported.
Among other findings:
* The number of card accounts grew by about 2% from September 2007 to September 2008.
* The percentage of portfolios that grew more than the rate of inflation during the previous 12 months decreased from 75% to 56% on increased inflation. "This trend is unlikely to continue as inflationary pressure subsides," AssetExchange predicted.
* Total card assets for portfolios over $1 million continued to increase as a percentage of total assets, increasing from 4.67% in September 2007 to 4.86% in September 2008.
* The average balance per account increased 9% from September 2007 to September 2008 to $2,566.
