Higher interest means higher member returns for 2018

Total dividends are on track to increase 30.5% as credit unions take advantage of the rising interest rate environment.

Analysts from Callahan & Associates project total dividends at credit unions totaled $8.4 billion at the end of 2018. This $2 billion increase over last year represents an annual growth rate of 30.5%, the highest since 2006 and 18.2 percentage points stronger than credit unions reported in 2017. Dollar for dollar, credit unions haven’t given back this much since 2010, when they returned almost $10 billion.

DIVIDENDS

FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.18
© CALLAHAN & ASSOCIATES | CREDITUNIONS.COM

Analysts at Callahan & Associates project total dividends in 2018 reached $8.4 billion, which is nearly $2.0 billion more than credit unions returned in 2017.

For the past decade, the year-over-year change in dividends per member has not exceeded $4.0; however, Callahan analysts predict it jumped $14 in 2018 as the average dividend per member increased to $71. The increase in this metric is the result of expected dividend growth, at 30.5%, outpacing expected member growth of 4.5%.

 

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