PORTLAND , Ore. , February 24, 2009 –AssetExchange, the credit union community’s leading credit card portfolio advisory and brokerage firm, has analyzed 4th 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.  Q4 2008 data suggests 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 billion.  Card accounts grew 2% over the same period to 12.2 million.

•   The percentage of portfolios that grew 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 slightly to 66% from 69% in 2007.

•   Total card assets as a percentage of total assets held steady at 4.9%.

•   Credit card penetration remained approximately flat in the fourth quarter of 2008 at 18%.

Data provided in this press release is for credit card portfolios larger than $1 million in each time period and is based on NCUA 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).

AssetExchange is the credit union community’s leading credit card advisory and brokerage firm.  In addition to providing performance assessments and representation in portfolio sales, we help our clients compare and negotiate card processing contracts and evaluate outsourced card management opportunities.  Our services enable our clients to make sound financial and strategic decisions about the future of their credit card programs.  For additional information, please visit www.AssetExchange.com or call (877) 220-0001.