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Steven Cross
Credit unions have hit back at new statistics that show the sector is falling behind.
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According to the quarterly report from the Australian Prudential Regulation Authority (APRA) on credit unions and building societies, net profit is down by $43 million in the last three months.
The December quarter in 2011 showed overall net profit was down by just under $40 million, while the quarter before that was down by $17 million.
However the body representing Australia’s mutual banking sector, Abacus, has claimed the figures are incomplete and don’t show the real story.
“The real story is that the customer-owned banking sector – credit unions, building societies and mutual banks – is in great shape,” said Daniel McDougall, senior adviser at Abacus.
Abacus chief executive Louise Petschler also said credit unions, building societies and mutual banks have delivered strong and sustainable growth in a fluid economic environment.
“The strength of our sector is underlined by our asset growth and solid share of the housing and deposit markets,” Ms Petschler said.
Abacus’s own results show a total asset growth of 4.9 per cent, recorded annual housing loan growth of 6.9 per cent and saw 6.2 per cent growth in deposits.
“APRA’s statistical releases should give the market the capacity to accurately assess the performance of the customer-owned banking sector as a whole,” said Ms Petschler.
“In our view, the APRA release provides only a partial view that could easily lead to an inaccurate view of the performance of the sector.”
