Mutuals boost housing loans

By Andrea Cornish | 2/09/2010 4:30:00 AM | 0 comments

Credit union and building society housing loans grew by 10% to $50bn for the year to June 2010, according to figures released by the country’s regulator.

The Australian Prudential Regulation Authority confirmed credit unions and building societies made a combined net profit after tax of 53.7%, while total assets increased by 8.2% to a total of $73bn.

“The APRA statistics confirm that credit unions and mutual building societies have recorded impressive results in a market dominated by the major banks. It shows that consumers are responding to the difference offered by a mutual banking institution,” said Abacus CEO Louise Petschler.

CUBS are the fifth-largest holder of household deposits and have 9% of the new home loan market.

“These results follow on from the RBA’s latest Financial Stability Review that showed that credit unions and building societies hold higher levels of capital than banks and have much lower non-performing loan ratios.” said Petschler.

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