Credit cards continued to be solid assets for credit unions in the second quarter of 2009 and about three credit unions sold their credit card portfolios to agent bank issuers, according to an analysis of NCUA data.
Asset Exchange, a leading broker of CU credit card portfolios and card consultancy owned by Fidelity National Information Services, reported that its analysis of credit union data showed that the three card portfolios represented $4.5 million in outstanding balances that were purchased for the quarter ending June 30. This was down from the roughly $20 million in balances that were purchased in the second quarter of 2008 and the $190 million last quarter.
The firm's analysis only includes credit unions with card portfolios worth more than $1 million in outstanding balances.
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NCUA data also showed that credit union cards outstanding balances grew 6.3% in the year between June 2008 and June 2009, slightly faster than the first quarter's rate of 5.9%. Credit card accounts grew as well by 2.2% to 12.3 million.
But the percentage of overall CU assets represented by credit cards dropped a bit compared to last year. In the second quarter of 2008, credit cards accounted for 4.80% of overall CU assets, the firm said, but that percentage dropped to 4.57% in the second quarter of 2009. However, the second quarter 2009 figure was still marginally higher than the first quarter's 4.52%.
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