Credit Union Revenue Hits $89 Billion

Higher interest rates in 2023 underpinned an increase in total revenue, which hit a record high in the third quarter.

TOTAL REVENUE
FOR U.S. CREDIT UNIONS | DATA AS OF 09.30.23
© Callahan & Associates | CreditUnions.com

  • Total revenue at U.S. credit unions has consistently grown year-over-year. This year, annual revenue growth surged 30.0%, smashing previous industry records.
  • Substantial increases in both loan and investment incomes — which posted growth of 34.5% and 79.4%, respectively, thanks to interest rate hikes and repricing portfolios — underpinned this surge.
  • Higher interest rates are generally a boon for credit union revenues, but they also drive greater interest expense costs. Year-to-date interest expenses for the industry reached $17,594,675,707 as of Sept. 30, 2023. That’s up 223.2% from one year ago. Accordingly, the industry net interest margin grew 25 basis points year-over-year to 3.03%, despite the significant rise in interest revenue.
  • Although interest expenses are suppressing margins, the surge in gross revenue surpassed the growth in total operating expenses. Annual operating expenses rose by 9.4% in the third quarter, which is historically substantial but only one-third of revenue growth.
  • With this upswing in revenue, credit unions can reinvest earnings to better serve members or improve operations.

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Ampersand
December 11, 2023
CreditUnions.com
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