CUNA Says Bank Profits‘Invalidate’ Banker Complaints

WASHINGTON - (08/26/05) Banker accusations that credit unionsare hurting profits are “invalidated” by theindustry’s performance during the second quarter, accordingto CUNA. The nation’s banks and thrifts posted profits of$33.1 billion during the second quarter of 2005, and also raisedtheir equity capital to the highest level in 67 years - 10.38%(mainly through retained earnings of $14.8 billion), according tofigures released by the FDIC. Bank assets since the second quarterof 2004 have risen $800 billion, more than all assets of creditunions combined, CUNA noted. And assets at banks rose by more than$800 billion since the second quarter of last year- growth thatexceeds the asset totals of all credit unions. “Banks andthrifts are seeing healthy growth, they are richer than they havebeen in nearly seven decades, and they consistently post record ornear-record profits,” said CUNA CEO Dan Mica. “Thesehistorical achievements invalidate any banker threats, complaintsand arguments that credit unions are hurting theirbusiness.”