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When it comes to understanding the auto lending industry, I’m a numbers guy. Data weaves the story that allows me to keep my pulse on the market and make informed business decisions. One of my go-to resources is CU Data’s quarterly statistics and trends report. In this blog post, I’d like to share some highlights and notable KPIs from the Q2 2021 report.
Key Q2 2021 Stats and Performance Trends for Credit Unions
Last year was a challenging year for the credit union industry, but 2021 has fared better as a recovery year than originally anticipated. Here are a few highlights identified in CU Data’s report:
- Credit unions continue to see an influx of new deposits from members with excess cash on hand.
- With slightly slower YOY loan growth, Loan-to-Deposit ratios continue to fall.
- Net Income surged in Q2, driving ROAs higher as delinquencies remain low and less money is being diverted to Loan Loss Reserves.
- Auto loan growth remains steady, tempered by available dealer inventory. According to Black Book data, August new car sales were down 17% due to the continued microchip shortage depleting dealers’ inventory.
- With last year’s dramatic increase in loan loss provisions and delinquencies remaining low, credit unions currently have $2.19 reserved for every $1 of delinquent loans.
As mentioned earlier, 2021 is shaping up to be a better year for credit unions than originally anticipated. Interest rates should remain low with marginal increases possible later in the year, but hopefully, loan demand will gain momentum as consumer confidence builds.
Toyota, Volkswagen, and Honda announced last quarter that their forecast for September production would be significantly impacted by the microchip shortage. Mercedes-Benz is the latest in the string of announcements warning that their Q3 sales will be impacted due to the downtime caused by the shortage.
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