Friday, November 30, 2012

Earnings at $6.4 Billion, Surpassing 2011 Total

Net income at federally-insured credit unions through the first three quarters of 2012 exceeded total industry earnings for all of 2011, according to NCUA. Credit unions are reporting almost $6.4 billion in earnings through the first nine months of 2012 compared to $6.3 billion for all of 2011.

Third quarter earnings were $2.1 billion. This was driven by higher fee income and other operating income coupled with declines in interest expenses and provisions for loan and lease losses. The industry’s return on average assets ratio was at 86 basis points for the quarter.

Total assets grew by $5.3 billion to end the third quarter at $1,012.9 billion, while loans increased by $9.4 billion during the quarter to $591.1 billion. This was the sixth consecutive quarterly increase in total loans.

On the other hand, shares (deposits) at credit unions grew by less than $1 billion during the third quarter to 869.7 billion. As a result, the loan to share ratio increased by 101 basis points during the quarter to 67.97 percent.

Industry net worth rose to $104.5 billion, an increase of $2.1 billion for the quarter. The industry’s net worth ratio rose 15 basis points during the quarter to 10.31 percent.

Credit union asset quality continued to improve as both the delinquency rate and net charge-off rate showed modest declines during the quarter.

Read the press release.

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