PORTLAND, Ore. (3/5/10)--Credit union credit card portfolios grew at 6.5%, according to AssetExchange, a credit union credit card portfolio advisory firm that analyzed portfolios of about 2,100 credit unions with portfolios of $1 million or more. From those portfolios, AssetExchange found that:
* Outstanding balances grew at an annual rate of 6.5% between December 2008 and December 2009 to $35 billion, continuing the trend of mid-single digit growth. Total assets at the credit unions grew at an annual rate of 9.7% over the same period; * Card accounts grew at a 2.9% annual rate during the same period to 12.6 million; * The percentage of portfolios that grew more than the rate of inflation during the previous 12 months increased to 70% from 66% in the fourth quarter of 2008. Eighty-four percent of portfolios grew versus 67% for the same time period in 2008; * Cards as a percentage of total assets declined to 4.8% in the fourth quarter, down from 4.9% in the same quarter of 2008 because credit union assets continued to grow faster than card balances; * Credit card penetration continues to trend near 18%; and * Seven card portfolios with about $42 million in balances sold during the fourth quarter. In 2009, 24 portfolios with about $325 million in outstandings were sold, an increase from the $98 million worth of portfolios sold in 2008 but below 2007 levels.
AssetExchange data were taken from National Credit Union Administration call report data. Inflation values at 2.72% between December 2008 and December 2009 were from the U.S. Department of Labor Bureau of Labor Statistics.