R. K. Hammer - Investment Bankers
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Card Portfolio Valuation Examples

Example 1
Example 2
Example 3
  • Branch Sourced

  • Mature, but Has Potential for Line Increase and Additional Usage

  • 70% of Portfolio Greater than 4 Years
  • Direct Mail Sourced

  • High Percent of Non-Customers

  • 50% of Portfolio Less than 2 Years
  • High Proportion of Transactors

  • Liquidating File

  • Repayment Rate Very High

PORTFOLIO SIZE $40,000,000

A.P.R. 16.8% (Variable)
Annual Fee $15.00

 
Example 1
Example 2
Example 3
 
Total Accounts
57,143
57,143
80,000
Average Balance
$1,000
$1,000
$700
 
Interest Income
13.76%
13.76%
10.0%
Interest Expense
3.50%
3.50%
3.50%
 
Net Interest Income
10.26%
10.26
6.50%
Charge-Offs
4.90%
5.90%
3.90%
Other Income
4.50%
4.80%
5.50%
 
Total Revenue
9.86%
9.16%
8.10%
Operating Expense
4.40%
4.60%
4.00%
 
Pre-Tax Income
5.46%
4.56%
4.10%
 
Estimated Premium
24.2%
14.0%
16.5%
(on good accounts)

 

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