The sub-prime credit card segment remained the top performing segment for 1999 in the US. London-based RAM Research Group Ltd. reports this morning the sub-prime segment, as a group, grew 36% in receivables between 4Q/98 and 4Q/99. Providian, the leading sub-prime issuer, grew an astonishing 61%. Other top sub-prime performers include SD-based First Premier Bank, up 93%, and OR-based First Consumers National Bank, up 55%. RAM’s ‘Bankcard Barometer’ also shows that credit unions increased receivables by 14% last year compared to an industry average of 7%.
SECTOR MONITOR (4Q/99 vs 4Q/98 Receivables)
Co-branded/Affinity: +6% Sub-Prime/Secured: +36
Low Rate (>$3 B): +3% Low-Rate (www.ramresearch.com)
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