Initiative Aimed At Increasing CU NetIncome

MADISON, Wis. - (08/06/04) -- -CUNA, CUNA Mutual and the AmericanAssociation of CU Leagues are rolling out an initiative aimed atboosting lagging credit union net income. The effort will emphasizeways to train credit unions in cross-selling and other keystrategies to enhance their growth, member satisfaction and levelof service. "The partnership will help address less-than-desirablenet income levels prevalent at many credit unions," its organizerssaid. "Although the nation's 9,554 credit unions ended 2003 with areturn-on-average assets of 98 basis points (0.98%), more than half(5,198 credit unions) had an ROA of less than 70 basis points. Ofgreater concern, more than 3,000 credit unions (3,274) had an ROAof less than 40 basis points, and 1,211 credit unions had anegative ROA."