Average Outstanding Balance

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Average Outstanding Balance

The balance still owed on a portfolio of credit cards divided by the number of credit card accounts represented in the portfolio. Investors considering buying a credit card portfolio may look at the average outstanding balance to measure the potential profitability of the investment.
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The drop in interest income is largely the result of lower yields on outstanding loans, partially offset by slightly higher average outstanding balances (USD 236,867,000 for the second quarter of 2017 vs.
The increase in net interest income was primarily due to a $338,000 increase in interest income, which was primarily attributable to an increase in the average outstanding balance of loans, and a $75,000 decrease in interest expense, which was primarily attributable to a decrease in the average outstanding balances of time deposits and FHLB borrowings during the three months ended March 31, 2016, as compared to the same period one year ago.
When looking at CSCU credit unions' averages, active account percentages were at an all-time high, well in excess of 60%, and average outstanding balances increased a solid 7%.