Credit Unions – What We’ve Seen and What We Expect

Credit Unions

By: Brian Sullivan, CPA, | email

What We Have Seen in 2012:

  • Credit unions have been more profitable in 2012, compared to 2011. Through the first six months of 2012, credit unions increased their return on assets 0.84%.
  • The number of credit unions in the nation has been declining, but they are still seeing steady growth in number of members and total assets.
  • Current economic conditions and increasing competition has resulted in minimal loan growth in 2012.
  • Due to continued growth in member shares, credit unions have continued to accumulate capital. Through the first six months of 2012, credit unions have maintained a very healthy 10.20% capital ratio.

What We Expect to See in 2013:

  • More time and effort dealing with increasing regulatory pressures and high competition will force financial institutions to explore new business ideas.
  • Consumer demand for financial services expected to increase in 2013.
  • Technology advances will completely change the member outlook on financial services.
  • Addition of more value added services to better serve the needs of members in the changing technology-driven environment.
Topics