Net Income Up $1.8 Billion in Q3

Earnings growth slowed in the third quarter for federally-insured credit unions.

Net income at federally insured credit unions increased $1.8 billion in the third quarter, a drop from the $2.2 billion increase recorded in the second quarter and the $2.1 billion increase recorded in the third quarter of 2012.

The credit union industry’s return on average assets ratio stood at an annualized 80 basis points at the end of the third quarter; but down slightly from a year earlier when it was 86 basis points.

Much of the year-over-year decline is due to continued downward pressure on net interest margins created by the current interest rate environment.