Total revenue jumps 12.8 percent year-over-year at U.S. credit unions

Largely a result of rising loan demand and interest rate trends, the amount of income generated at credit unions expanded throughout 2018.

Total revenue in 2018 for U.S. credit unions grew 12.8 percent to $74.4 billion, a 3.2-percentage-point acceleration from 2017. Annual income at credit unions has increased 37.4 percent, or $20.2 billion, since the Great Recession. Largely a result of rising loan demand and interest rate trends, the amount of income generated at credit unions has expanded throughout 2018.

Buoyed by interest rate hikes, interest income rose 13.9 percent year-over-year to $54.7 billion at year-end 2018. Interest income, which consists of income from investments and loans, comprised 73.5 percent of credit union revenue. The Federal Reserve issued four rate hikes throughout the year, which subsequently pushed up interest rates on both sides of the balance sheet. Gaining more per dollar loaned and invested, credit unions increased loan income (less interest refunded) 13.1 percent annually to $47.6 billion as of Dec. 31, 2018. Investment income increased 20.3 percent to $7.1 billion. .

Interest income, which makes up 73.5 percent of total income at U.S. credit unions, increased 13.9 percent year-over-year in 2018.

Non-interest income, made up primarily of fee income and other operating income, accounted for the remaining 26.5 percent of credit union revenue. Total non-interest income reached $20.0 billion, a 9.4 percent bump from year-end 2017. Fee income in 2018 increased 5.7 percent to $8.9 billion.

Other operating income increased at the fastest rate, 14.1 percent, of any non-interest income component and reached $10.8 billion. Propped up by the National Credit Union Share Insurance Fund (NCUSIF) rebates, this income component made up 14.6 percent of total revenue at U.S. credit unions.

Source: CreditUnions.com