CUNA Mutual Group’s April trends report on credit union financials showed slowing growth in a number of key metrics.
Credit union loan balances moved up by 7.7% for the 12-month period that ended in April, well below the 9.8% pace recorded for the year that ended in April 2018, according to the data. Auto loans climbed by 7.6% for the year that ended in April, down from the 10.8% growth reported in April 2018.
Nonetheless, CUNA Mutual stated that “improving consumer fundamentals” are driving “strong auto loan growth,” citing such factors such as a strong labor market, fast wage growth, low interest rates, improving construction activity and better household balance sheets.
Total real estate loan volume increased by 7.2% for the same period, well below the 10.2% pace recorded in the year that ended in April 2018. Assets at credit unions grew by 6.1%, above the 5% rate for the yearlong period that ended in April 2018.
Membership at credit unions gained by 3.6% for the 12 months ending in April, slower than the 4.2% rate for the same period a year earlier. CUNA Mutual attributed the latest membership increase to “robust demand for credit, solid job growth and credit unions having comparatively lower fees and loan interest rates.”
At the end of April, there were 5,567 credit unions in operation, 157 fewer than a year earlier.
The report also indicated that savings balances grew by 5.8% for the 12 months that ended in April, up from 5.2% for the same period a year earlier.
The delinquency ratio at credit unions edged up to roughly 0.68% in April from 0.66% a year prior.
