The number of credit card accounts at credit unions fell during the second quarter of this year, although average balances per account increased, according to a new analysis.
AssetExchange said its analysis of the 2,100 credit unions with card portfolios of more than $1 million found that the number of cards fell even though the number of members rose during the quarter.
"This results in a continued decline in penetration, dropping from 18.2% of members in June 2005 to 18% in June 2006," said the company.
Among the other findings:
* Average balances per account are increasing, resulting in an increase in total card assets from $21.5-billion in June 2005 to $23.4-billion in June 2006, a 4.3% increase in inflation-adjusted dollars.
* Total card assets for portfolios over $1 million increased slightly as a percentage of total assets, increasing from 4.04% in June 2005 to 4.24% in June 2006.
* The percentage of portfolios that grew faster than the rate of inflation during the previous 12 months was 50.4%, meaning that almost half of all portfolios grew and almost half shrank. In the previous year, 55% achieved real growth.
* Approximately 10 credit unions with credit card portfolios larger than $1 million sold their portfolios during the second quarter, with a combined dollar volume of approximately $97 million.
For info: www.assetexchange.com.
