UK Card Spending Rose in Run-Up to Holiday Season, FICO Data Reveals

LONDON — December 19, 2012 — FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today released its quarterly UK cards data showing that average total sales per “classic” card hit a two-year high in September. The latest data from the FICO^® Benchmark Reporting Service showed that average total sales on classic cards — which exclude premium cards, student cards and Irish cards — hit £550, a 14 percent increase over September 2011. However, sales on premium cards fell, driven by lower spending among newer accounts.

FICO’s data also revealed strong payment performance. The percentage of payments to balance was up 19 percent over September 2011, and the percentage of accounts that were one cycle (30 days) or two cycles delinquent hit two-year lows. Classic, premium and student cards all hit a two-year low in the average amount overlimit, and classic and student cards both hit a two-year low in the percentage of accounts that were over their credit limit.

“While the gains here may be modest, the higher card spending suggests consumers have more confidence in their financial outlook,” said Frans Labuschagne, managing director for FICO in Europe, the Middle East and Africa. “They also continue to demonstrate the good repayment habits that protect their ability to spend. On the other hand, the lower-than-usual spending over the past six months on premium cards — which comprise about 24 percent of all UK cards — seems to be the result of lower credit lines on new premium cards.”

The card performance figures are part of the data shared with subscribers of the FICO^® Benchmark Reporting Service, which compares overall market performance in the UK cards market with individual card issuers’ performance. The data sample studied represents 26 million accounts, or about half of all credit cards issued in the UK, and comes from client reports generated by the FICO^® TRIAD^® Customer Manager solution in use by most UK card issuers.

Card issuers that subscribe to the FICO^® Benchmark Reporting Service receive a quarterly review of their portfolio compared to the industry, with 24 months’ worth of data. For greater insight, subscribers can explore the data by vintage of accounts. For information on the FICO Benchmark Reporting Service, contact Stacey West at staceywest@fico.com.

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