MADISON, Wis. – "Credit union financial performance results were a mixed bag in November as earnings increased but loan growth waned," said CUNA Senior Economist Steve Rick. Rick was commenting on statistics released Thursday in CUNA's Monthly Credit Union Estimates report.
"Credit unions reported annualized earnings as a percent of assets (return on assets) of 93 basis points in November, higher than the 81 basis points reported over the last 12 months," Rick told CUNA News Now. "But credit union loan balances fell 0.03% in November, down from last November's pace of a 0.7% increase."
"Falling consumer confidence as a result of the fiscal cliff uncertainty kept many potential borrowers and spenders on the sidelines," he said.
What does this mean for credit unions? Rick says to "expect faster loan growth in 2013 (5%) now that households have more certainty regarding their tax bill because of the recent passage of the fiscal cliff legislation.
In November, credit union loans outstanding totaled $610 billion, up from $584.3 billion in November 2011. According to the report, loans for this past November fell by less than 0.1% from October's 0.4% growth.
More information on the report and commentary from Steve Rick is available here.