Card Programs Growing in Assets, Falling as Percentage of Charge-Offs
ARLINGTON, Va. - As the economy starts to slow, credit unions with credit card assets worth more than $1 million saw their value as assets rise over all as their portion of overall charge offs drops, according to an analysis of NCUA data from 2003 until the end of 2007 conducted by Asset Exchange.
Asset Exchange is noted broker of CU card portfolios as well as a consultant on CU card performance. It is owned by card processor Fidelity National Information Services.
CU credit card charge offs have generally outperformed other types of loans which have generally risen as overall credit union assets have grown. Credit union credit card charge off rates are roughly 66% less than charge off rates in the overall industry. Roughly half of the 4200 CUs which issue credit cards as of the end of 2007 have card portfolio's worth more than $1 million, according to NCUA data.