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CU card portfolio sales decline
PORTLAND, Ore. (2/26/09)--AssetExchange, a credit card portfolio advisory and brokerage firm, analyzed fourth quarter 2008 credit-union credit-card portfolio trends. For the roughly 2,100 credit unions with credit card portfolios of $1 million and larger:
* Credit card portfolio sales have continued to decline substantially. In 2008, about 22 portfolios with balances of about $100 million sold versus about 70 portfolios with $390 million in outstandings in 2007, representing a roughly 75% reduction in portfolio sales. Fourth-quarter 2008 data suggest that only two credit unions with credit card portfolios larger than $1 million sold their portfolios during the quarter, with a combined balance of roughly $3 million. In the fourth quarter of 2007, about 16 portfolios with about $110 million in combined balances were sold. * Outstanding balances grew 8.5% between December 2007 and December 2008 to $32.3 million. Card accounts increased 2% over the same period to 12.2 million. * The percentage of portfolios that rose more than the rate of inflation during the previous 12 months decreased to 67% in 2008 from 86% in 2007 as inflationary pressures eased. The percentage of portfolios that grew in nominal terms decreased to 66% from 69% in 2007. * Total card assets as a percentage of total assets held steady at 4.9%. * Credit card penetration remained flat in the fourth quarter of 2008 at 18%.
Data provided are for credit card portfolios larger than $1 million in each time period and are based on National Credit Union Administration call report data. Inflation values are from the U.S. Department of Labor Bureau of Labor Statistics--0.09% between December 2007 and December 2008.


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