An annual loan growth rate of 6.7% is the highest for credit unions in four and a half years, according to CUNA Mutual Group's latest Trends Report.
The budding loan growth translates into an additional $41 billion in loans on the books, according to the November Credit Union Trends Report.
The primary drivers of loan growth continue to be first
The sources of loan growth through September of this year are consistent with figures posted a year ago, but the dollar amount is up 75% on a year-over-year basis and 83% year-to-date through September.
Colby expects stronger member demand and greatly reduced financing subsidies from manufacturers when looking at factors impacting future loan growth. These are positives, he says.
However, the end of the mortgage refinance boom, re-emerging credit card competition, and loan sales due to interest rate risk management, will restrain some growth potential, Colby adds.
"Our forecast shows annual growth of 6.2% in 2013 and annual gains averaging 6.5% through 2015," he predicts.
