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Credit Union Non-Interest Income Surged to $10.7 Billion in 3Q 2012

WASHINGTON, D.C. — Total credit union non-interest income in the third quarter reached $10.7 billion, according to credit union consulting firm Callahan & Associates. This is the highest total since 2009 and 18.0% over the first nine months of 2011.  

Other operating income increased to $4.9 billion, a 30.3% increase from year-to-date numbers last September. As a percentage of non-interest income, other operating income jumped from 39.8% in 2009 to 45.8% in 3Q 2012. Credit unions in Massachusetts and Missouri are notable examples of this trend, with growth in other operating income of 60.3% and 41.3% respectively.

“The fact other operating income is primarily responsible for the overall increase in non-interest income reflects the cooperative spirit of the credit union industry,” says Jay Johnson, executive vice president of Callahan & Associates. “Instead of taking extreme cost-cutting measures, credit unions found other ways to return value to the member.”

Credit unions also increased fee income — which is mainly composed of overdraft, ATM, and credit card fees — to $5.5 billion from $5.1 billion one year ago. Despite the total dollar amount of fee income increasing, fee income for the average member as of September was at its second-lowest level of the past five years.

Visit CreditUnions.com for up-to-date analysis of performance trends and analysis of the credit union industry.

Callahan & Associates is a Washington, DC,-based firm that delivers in-depth analysis of credit union quarterly performance through its proprietary software and financial publications. As a financial consultant, it also offers strategic planning and investment management for credit unions. Visit www.callahan.com to learn more.

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