Tuesday, December 4, 2012

Impact of 2013 Assessments on CU Net Worth and Profitability

During the November NCUA Board meeting, the agency announced that premium assessments for 2013 could range from 8 basis points to 16 basis points.

An assessment of 8 basis points is expected to lower the net worth ratio for credit unions by 3 basis points and credit union return on assets by 7 basis points. NCUA anticipates that this assessment would cause 300 credit unions to report a loss.

However, an assessment of 16 basis points would reduce the net worth ratio by 9 basis points and lower the return on assets by 13 basis points. NCUA expects 604 credit unions would report a loss based upon this assessment.


Posted by at
Labels:

1 comment:

  1. AnonymousDecember 4, 2012 at 7:16 PM

    What the hell does the NCUA care? They still get their 7.50% pay raise. Social Security and VA Cost Of Living Adjustment (COLA) is 1.90% As it should be.

    ReplyDelete

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.