New Highs For The Credit Card Portfolio

Credit unions are posting impressive results in credit card numbers, balances, and market share.

 
 

Growing demand and attractive yields are making credit cards an important component of the credit union loan portfolio. More than half of the industry, 57.0%, manages a credit card program, according to the more than 6,400 credit unions reporting second quarter data for Callahan’s FirstLook program. A year ago that number was 55.5%.

Both the number of credit cards and their balances are on the rise. The number of credit cards increased 8.1% annually to reach 16.1 million as of June 2014. Credit card balances at credit unions topped $43 billion. This 8.5% increase over June 2013 marks the highest annual credit card loan growth since the recession began.

CREDIT CARD BALANCES
Data as of June 30, 2014, for all credit unions in the United States.

cc_graph

© Callahan & Associates | www.creditunions.com
Source: Peer-to-Peer Analytics by Callahan & Associates

The percentage of members with a credit union credit card also hit a record-high 16.2% in June 2014. With that bump, credit unions’ national credit card market share rose 25 basis points over second quarter 2013 to 5.2% at midyear 2014.

According to Peer-to-Peer analytics by Callahan & Associates, 20% of credit unions with more than $500 million in assets reported at least 15% annual growth in credit card balances as of June 2014. For example, Quorum Federal Credit Union ($838.6M, Purchase, NY) reported a 95.3% annual increase in total credit card balances, topping $61.3 million at midyear 2014. Its total number of credit card loans also jumped from 15,016 in June 2013 to 25,867 in 2014. That’s an annual growth of 72.3%.