Magazine article American Banker

Credit Union Assets Up 7% in 3Q, but Return on Assets of Bigger Groups Slip

Magazine article American Banker

Credit Union Assets Up 7% in 3Q, but Return on Assets of Bigger Groups Slip

Article excerpt

Assets of the country's largest credit unions grew to $214 billion in the third quarter, up 7% from the year-earlier period.

However, a trade group analyst said call reports from the largest institutions indicate the industry is continuing to retreat from the highs of the early 1990s.

"We're continuing on the road to normal if you consider the world before 1992 to be normal," said Keith Peterson, an economist for the Credit Union National Association.

According to call report data collected by the National Credit Union Administration, pre-reserve return on assets for the 1,160 credit unions exceeding $50 million in assets slipped to 1.1% in the third quarter from 1.2% a year earlier.

Mr. Peterson predicted the return on assets could decline to a hair above 1% before the year is out. Such a figure is the industry's historic average despite higher showings in the early 1990s, he said.

The rising cost of funds will help pull down the group's returns through next year, Mr. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.