Loan growth revs up – yet again

Mortgage and business lending allows March-to-April gains to outpace 2017.

Credit unions enjoyed faster loan growth from March to April than a year ago thanks to the strength of used car loans, business loans and adjustable-rate purchase mortgages, according to a CUNA Mutual Group report Tuesday.

The Madison, Wis., CUSO’s monthly Credit Union Trends Report shows slower growth in overall car loans, while the real estate sector is picking up. The 5,724 credit unions tracked by CUNA Mutual had just over $1 trillion in total loans as of April 30, up 10.8% from a year ago. The March-to-April gain was 1.1% compared with 0.9% a year earlier.

“However, industry average loan growth rates mask big disparities between large and small credit unions,” the report said.

Credit unions with assets greater than $1 billion increased their portfolios 11% in the 12 months ending March 31, compared with 3.7% for credit unions with assets under $20 million.

 

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