Loans Eclipse Savings in 2003, Says NCUA

Loans Eclipse Savings in 2003, Says NCUA

Federally insured credit unions expanded their loan portfolios in 2003 outpacing strong share and asset growth for the first time in three years, according to preliminary NCUA call report data submitted by the nation’s 9,369 federally insured credit unions.

Following the normal annual lending cycle, 2003 began slowly with 2.16% loan growth in the first quarter and then surged in the last half of the year. Mortgage and auto loans continue to represent the largest loan categories, and tracking the economic market, home mortgage lending continues to yield the most significant increases.

Reflecting the lending market’s low interest rates, first mortgage loans grew 16.6% to $117.48 billion, and used auto loans grew 11.5% to $80.49 billion. New auto loans increased 4.3% reaching $63.08 billion by year-end, and other types of real estate loans grew 7.8% to $50.06 billion.

Unsecured credit card loans grew a slight 0.8% to $21.74 billion, and other types of unsecured loans declined 1.6% to $20.80 billion.

Showing significant growth, member business loans increased 47.7%, up from $6.67 to $8.87 billion in 2003. As loan demand accelerated, investment growth, while still robust, grew at the much slower pace of 14% following two years of 25% plus expansion.

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Copyright Credit Union National Association, Inc. Mar 8, 2004

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