MADISON, Wis.–The CU industry loan-to-share is expected to hit an eight-year-low, and yield-on-assets ratio should hit an all-time low by year end, according to a new forecast from CUNA Mutual. ROA is also expected to decline.
Meanwhile, lending at credit unions is projected to grow just 5% in 2021.
One bright spot: new-auto loan balances rose at a 0.1% pace in February, the first positive growth number since July 2019, according to CUNA Mutual’s April Trends Report, which is based on CU data through February 2021.
Just 221,000 new members were added during the first two months of the year, down from 641,000 reported in the first two months of 2020, the Trends Report added.
Another bright spot: The CUNA Mutual forecast sees a much stronger economy ahead.
Overall, CUNA Mutual’s economists said they expect the U.S. economy to grow at a “remarkable” 6% in 2021. That would be the fastest annual growth since the 7.2% reported in 1984, which followed on the heels of the severe recession in 1982.
“Looking farther down the road we expect 4% growth in 2022. The last time the economy grew at 4% or above was way back in 2000, right before the stock market crash in 2001,” CUNA Mutual stated.
Here’s a look at how credit unions performed by category during the first two months of the year: READ MORE CUToday