Feb. 2, 2009


  • Prudent management of the card portfolio is certainly important in today's environment, and credit unions continue to demonstrate success in this area. Balances have risen at a double-digit pace the past two years to reach an all-time high of $32B as of September. Asset quality also remains sound, with the credit union credit card delinquency rate at 1.6% (60+ days) vs 2.4% (90+ days) for FDIC-insured institutions. Annualized charge-offs show an even wider difference, with credit unions at 2.6% and FDIC institutions at 5.2% as of September.
    Jay Johnson
  • This does NOT show the real issues with Credit Cards at this point. BKO, delinquencies, and Charge-offs are running wild and credit unions do NOT know how to run this type of program effectively. If you want to make money, do what you do well, sell the program off and partner with someone who knows what they are doing ....