Profitability Plunges At The Nation's CUs

ALEXANDRIA, Va. (05/26/06) -- Profitability at America's credit unions declined again in the first quarter, for the third quarter in a row, to just 0.81% return-on-average assets, the lowest in more than a decade, as the flattening yield curve continued to squeeze profits. That compares to an ROA of 0.85% for the fourth quarter in 2005, 0.92% for the third quarter, and 0.93% for the third and second quarters. Data compiled by NCUA shows that loan growth for the first quarter was a tepid 0.9%, while share growth was strong at 3%. (CU Journal)