Bankcard origination volumes increased by 21 percent from the same quarter one year ago

Bankcard origination volumes increased by 21 percent from the same quarter one
                                   year ago

Q2 2013 trends analysis points to a steady recovery of the bankcard market

PR Newswire

COSTA MESA, Calif., Sept. 18, 2013

COSTA MESA, Calif., Sept.18, 2013 /PRNewswire/ -- An Experian analysis of
bankcard trends from Q2 2013 showed a 21 percent year-over-year increase in
bankcard origination volumes, equating to $12 billion increase in new bankcard
limits issued. Other insights offered by Experian, the leading global
information services company, include record lows in early-stage bankcard
delinquencies.

To view the multimedia assets associated with this release, please click:
http://www.multivu.com/mnr/60907-experian-analysis-shows-bankcard-origination-volumes-increasing-21-percent

(Photo: http://photos.prnewswire.com/prnh/20130918/MM72460 )

"Bankcard originations continue to track with the recovery in terms of steady
growth," said Linda Haran, senior director of product management and strategy
for Experian Decision Analytics. "While we may never hit the volumes we saw in
2007, the consistent growth rates that we are currently seeing in bankcard
originations signal that the market is coming back online."

http://www.experian.com/assets/decision-analytics/images/ow-q2-2013-bankcard-origniation-volume.jpg

In looking at bankcard originations by Experian VantageScore^®, the
year-over-year growth in originations has largely been driven by the prime and
near-prime segments, comprising almost the entire $12 billion increase in new
credit limit dollars originated. This trend points to the fact that prime and
near-prime consumers are accepting the offers being extended to them and that
lenders are continuing to lend a little deeper to drive bankcard growth.

http://www.experian.com/assets/decision-analytics/images/ow-q2-2013-bankcard-origination-volume-by-vantagescore.jpg

"Equally important is that prime and near-prime bankcard utilization rates
are not as high as they were a year ago," said Haran. "This is a positive
trend, because it shows that despite an increase in new bankcard users,
consumers are managing their credit wisely."

The analysis of bankcard delinquency and overall risk exposure also continues
to support the steady recovery of the bankcard market. Charge-off rates are
significantly down, to an annualized rate of 3.9 percent, with early-stage
delinquencies coming in at historic lowsof 0.9 percent of balances for the
quarter. Additionally, total risk exposure has dropped $3 billion from the
previous quarter in 2013. These trends are a positive sign for overall
economic recovery and evidence that the postrecession growth in the bankcard
market is not coming at the expense of increased delinquencies.

About the data
The data for this insight and analysis was provided by Experian's
IntelliView^SM product. IntelliView data is sourced from the information that
supports the Experian-Oliver Wyman Market Intelligence Reports and is easily
accessed through an intuitive, online graphical user interface, which enables
financial professionals to extract key findings from the data and integrate
them into their business strategies. This unique data asset does this by
delivering market intelligence on consumer credit behavior within specific
lending categories and geographic regions.

About Experian
Experian^® is the leading global information services company, providing data
and analytical tools to clients around the world. The Group helps businesses
to manage credit risk, prevent fraud, target marketing offers and automate
decision making. Experian also helps individuals to check their credit report
and credit score, and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a
constituent of the FTSE 100 index. Total revenue for the year endedMarch
31,2013 was US$4.7 billion. Experian employs approximately 17,000 people in
40 countries and has its corporate headquarters in Dublin, Ireland, with
operational headquarters in Nottingham, UK; California, US; and Sao Paulo,
Brazil.

For more information, visit http://www.experianplc.com.

Experian and the Experian marks used herein are service marks or registered
trademarks of Experian Information Solutions, Inc. Other product and company
names mentioned herein are the property of their respective owners.

VantageScore^® is a registered trademark of VantageScore Solutions, LLC.

Contact:
Michael Troncale
Experian Public Relations
1 714 830 5462
michael.troncale@experian.com

SOURCE Experian

Website: http://www.experian.com
 
Press spacebar to pause and continue. Press esc to stop.