Loans Up, But Profitability Slides
The National Credit Union Administration (NCUA) has released an analysis of financial trends among federally insured credit unions for the first half of 2004. Among the highlights:
* Assets increased $25.4 billion, or 4.17%.
* Net worth increased $2.8 billion or 4.22%. The net worth to assets ratio increased from 10.71% to 10.72%.
* Loans increased $18.7 billion, or 4.98%. The loan-to-share ratio increased from 71.19% to 71.84%.
* Shares increased $21.3 billion, or 4.03%.
* Long-term investments increased $5.3 billion, or 4.90%.
* Profitability decreased from 0.99% to 0.92%, but remains strong.
* Delinquent loans, as a percentage of total loans decreased from 0.76% to 0.67%.
The financial trends covered the Jan. 1 to June 30, 2004 period. Areas of discussion include capital, asset quality, earnings, and asset/liability management.