Callahan's Quarterly Scoreboard

Third quarter results indicate that credit unions, banks, and thrifts all posted solid results but with different strengths. Credit unions led all three groups with asset growth of 12.7% over the past 12 months, which is over two times banks' growth rate and three times that of thrifts. Credit unions also maintain the only double-digit capital ratio among the three institutions at 11.4%. All three sectors posted strong profitability as measured by ROA. Despite their tax-exempt status, credit unions recorded the lowest ROA at 1.09%. The year-end numbers should be interesting due to a higher provision for loan losses at many banks.

 
 

Third quarter results indicate that credit unions, banks, and thrifts all posted solid results but with different strengths. Credit unions led all three groups with asset growth of 12.7% over the past 12 months, which is over two times banks' growth rate and three times that of thrifts. Credit unions also maintain the only double-digit capital ratio among the three institutions at 11.4%. All three sectors posted strong profitability as measured by ROA. Despite their tax-exempt status, credit unions recorded the lowest ROA at 1.09%. The year-end numbers should be interesting due to a higher provision for loan losses at many banks.

 

 

 

Jan. 27, 2003


Comments

 
 
 
  • great info,
    Anonymous
     
     
     
  • Great Analysis!
    Anonymous
     
     
     
  • Very useful info! We need more comparative analytics. However, you do need to point out that banks and especially thrifts sell substantial assets to husband capital and keep asset growth down. so asset growth, alone, is no longer an accurate measure of financial "growth" or activity.Credit unions tend to manage a stock of assets rather than a flow of assets (they sell relatively few loans). I know that this comment violates the credit union "feel good" principle, but that's life!
    Anonymous