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Credit and Charge Cards
Statistics below are based on data published by the Reserve Bank of Australia in the monthly Bulletin Table C01. While all data relate to credit and charge cards, for simplicity, this will be referred to by the term credit cards. Also note that the word ‘transaction’ covers both cash advances and new purchases unless otherwise stated.
Results are presented below on a gross basis and a per card basis.
1. Summary
Summary of GROSS aggregates
• On an annual basis, repayments have exceeded the value of transactions for the past 79 months (over six and a half years). Over the most recent 12 month period, to the end of September 2011, repayments exceeded the value of new transactions by $4.61 billion. That is, the value of customer transactions on credit cards was $247.7 billion while repayments were $252.3 billion.
• The gross balance outstanding at the end of September 2011 was $49.2 billion. This is an increase of 2.9% ($1.4 billion) over the past year. For the first time, the balance outstanding has fallen for three consecutive months, falling by an amount of $583 million over the three months to the end of September 2011.
• The gross amount accruing interest at the end of September 2011 was $36.2 billion, increasing by $1.3 billion (3.6%) over the past year. This month, the amount accruing interest fell by the largest amount on record, $588 million, for a given month.
• The gross credit limit as at the end of September 2011 was $136.4 billion. This is an increase of $4.1 billion (3.1%) over the previous year. The annual growth rate is the lowest since February 1995.
• Over the 12 months to the end of September 2011, there were 1.67 billion credit card transactions. This is 87 million (5.5%) more transactions than for the previous year.
• Over the 12 months to the end of September 2011, there were 26.6 million cash advances. This is 1.7 million or 6.0% less than for the previous year. On an annual basis, the number of cash advances remains around the lowest levels since May 1997.
• At the end of September 2011, there were 14.94 million credit and charge card accounts. The number of accounts grew by 229,000 over the past year, an increase of 1.6%.
Summary of PER CARD aggregates
• the average balance outstanding per card was $3,293, an increase of $44 or 1.3% per card over the past year.
• the average amount accruing interest per card was $2,423 a rise of $48 or 2.0% over the past year.
• the average credit limit per card as was $9,127. This is an increase of $138 or 1.5% over the past year and is the slowest growth rate on record.
The summary statistics below relate to the end of September 2011.
2. Gross aggregates - more details
Repayments ratio
Over the 12 months to the end of September 2011, repayments exceeded the value of new transactions by $4.61 billion. That is, the value of customer transactions on credit cards was $247.7 billion while repayments were $252.3 billion. The repayments ratio below ‘standardizes’ these $-values.
On an annual basis, repayments have exceeded the value of transactions for the past 79 months, since March 2005.
The chart below shows the difference between the value of transactions and repayments for the 12 months to the end of that month (i.e. annual difference). This shows that repayments exceeded transactions by $4.61 billion for the 12 months to the end of September 2011.
Balance outstanding
The gross balance outstanding at the end of September 2011 was $49.2 billion. This is an increase of 2.9% ($1.4 billion) over the past year. Annual growth reached 7.2% in mid-2010 but has since fallen to 2.9%. Throughout 2009, annual growth rates were the lowest since 1991, falling as low as 1.7%. It is rare that annual rates of growth fall below 3.0% as is now the case.
The balance outstanding has fallen over the past three consecutive months by a total of $583 million. This is the first time that three consecutive monthly falls have occurred.
Amount accruing interest
The gross amount accruing interest at the end of September 2011 was $36.2 billion, increasing by $1.3 billion (3.6%) over the past year. Annual growth reached a three year high of 9.3% in May 2010 and from April 2009 to December 2009, were around the lowest on record. Over the past month, the amount accruing interest fell by the largest amount on record, $588 million, for a given month.
Credit limits
The gross credit limit as at the end of September 2011 was $136.4 billion. This is an increase of $4.1 billion (3.1%) over the past year. The annual growth rate is the lowest since February 1995.
Number of accounts
At the end of September 2011, there were 14.94 million credit and charge card accounts on issue by Australian banks, building societies, credit unions, foreign banks and certain non-bank providers. The number of accounts grew by 229,000 over the past year, an increase of 1.6%, the second slowest rate of growth on record. This is far from the growth of 1 million accounts over the year to the end of April 2006.
Number and value of transactions
Over the 12 months to the end of September 2011, there were 1.67 billion credit card transactions. This is 87 million (5.5%) more transactions than for the previous year.
Annual growth in new transactions picked up in the first half of 2010 and has remained reasonably stable (around 5.5% to 6.5%) over the latter half of 2010 and into 2011.
Over the 12 months to the end of September 2011, $247.7 billion of transactions were made on credit cards. This is $11.2 billion (4.7%) more than for the previous year. Annual growth was at a low of 1.5% over the year ending October 2009 and then climbed throughout 2010 to reach 6.5% over the year ending October 2010.
Number and value of cash advances
Over the 12 months to the end of September 2011, there were 26.6 million cash advances. This is 1.7 million or 6.0% less than for the previous year.
On an annual basis, the number of cash advances remains around the lowest levels since May 1997. The number of cash advances peaked in July 2006 at 38.5 million.
Over the 12 months to the end of September 2011, a total of $10.4 billion in cash advances were made. This is $798 million or 7.1% less than for the previous year. The value of cash advances peaked at $12.9 billion over the year ending December 2008.
3. Per card aggregates
Balance outstanding per card
At the end of September 2011, the average balance outstanding per card was $3,293, an increase of $44 or 1.3% per card over the past year. This growth is well below the change in CPI.
Amount accruing interest per card
The average amount accruing interest per card at the end of September 2011 was $2,423 a rise of $48 (2.0%) over the past year. Over the year ending May 2010 annual growth reached a three year high of 7.1% but has fallen significantly since then.
Average credit limit per card
The average credit limit per card as at the end of September 2011 was $9,127. This is an increase of $138 (1.5%) over the past year, the slowest rate of growth on record.
For over two and a half years, since February 2009, annual growth rates have been below 3.0%.
4. Ratios
Ratio: Outstanding balance to credit limit per card
As at the end of September 2011, the outstanding balance per card was at 36.1% of the credit card limit per card.
Over the years, this series has been in a tight range around 36%-37%. Note the seasonality of this data series.
Ratio: Amount accruing interest to outstanding balance per card
As at the end of September 2011, the amount accruing interest per card was 73.6% of the outstanding balance per card.
Over the years, this series has been in a very tight range (in the low 70% region). Note that seasonality affects this data series.
5. Annual data (calendar year)
The following table presents credit card data on a calendar year basis except for the number of Accounts which reflects the number of accounts at the end of the year.
The following table shows that growth rates for the amount accruing interest, balance outstanding and credit limits have been low over the most recent three years (2008, 2009 and 2010.)
Updated November 2011
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