What Percentage Of Total Income At Credit Unions Comes From Fees?

Take this industry performance pop quiz from Callahan & Associates to learn about trends in income.

Credit union income consists of interest income and non-interest income. Interest income comes mainly from loans and investments; non-interest income comes from outside of a credit unions core activities. This includes fee income and other operating income.

Based on early performance data released by the NCUA, and available in Callahan & Associates Peer-to-Peer, Callahan projects a large increase in overall income in the first quarter of 2018. Answer the questions in the quiz below to test your knowledge of income composition.

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Click on the question to view the answer.

Question 1: (True or False) Total income is set to reach a record high for the first quarter?

True. Callahan projects total income will grow 14.3% year-over-year in the first quarter of 2018, jumping to $17.6 billion from $15.5 billion in 2017.

Question 2: Which interest income or non-interest income post the largest year-over-year growth?

Non-interest income: Callahan expects non-interest income to grow 18.1% year-over-year, whereas interest income will grow 13.2% year-over-year. In each quarter of 2017, interest income growth outpaced non-interest income growth.

Question 3: What percentage of total income comes from fees? How does this composition compare to 2013?

Callahan projects fee income will total $2.1 billion 11.8% of total income in the first quarter of 2018.

In the first quarter of 2013, fee income totaled $1.8 billion and accounted for 14.5% of total income. This quarters performance demonstrates how credit unions continue to develop member-friendly ways to increase the bottom line.

TOTAL REVENUE AND ANNUAL GROWTH

FOR U.S. CREDIT UNIONS | DATA AS OF 03.31.18

Interest income has increased 13.2%, or $1.5 billion, since first quarter 2017, but at 28.0%, other operating income has the larger growth.

Source: Callahan & Associates.

Callahan expects total income to increase 14.3% year-over-year. The bulk of this growth comes from other operating income, which Callahan projects will hit $2.8 billion in the first quarter, a 28.0% increase from 2017.

 

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May 21, 2018

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