National Credit Union Administration (NCUA) financial performance data maintains federally insured credit unions reported net income growth of $11.9 billion in the second quarter of 2021.
Officials indicated the rise in net income is attributed to growth in other operating income and a decrease in provisioning for loan, lease and credit loss expenses — determining insured shares and deposits increased $196 billion, or 14.2 percent, to $1.58 trillion in comparison to the second quarter of 2020.
The number stem from the NCUA’s Quarterly Data Summary Report focusing on the second quarter of 2021.
“During the second quarter of 2021, the credit union system, as a whole, remained on a solid footing,” NCUA Chairman Todd M. Harper said. “While the economic outlook shows signs of improvement, COVID-19 pandemic-relief programs are coming to an end and may result in uncertainty in the months ahead. Additionally, the pandemic’s economic disruptions hit the poorest households hardest. For these households, the recovery could take longer. The top priority for credit unions should be managing their operational and financial risks while continuing to work with members who are struggling.”
The analysis showed federally insured credit unions net income in the second quarter of 2021 totaled $21.3 billion at an annual rate, up $11.9 billion from the second quarter of 2020; total loans outstanding increased $56.6 billion over the year to $1.19 trillion; and the federally insured credit unions delinquency rate was 46 basis points in the second quarter of 2021, in comparison with 58 basis points in the second quarter of 2020.
Read more / Original news source: https://financialregnews.com/ncua-details-financial-performance-data/