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Mutuals endure financial crisis

Staff Reporter 2 minute read

Building societies and credit unions are weathering difficult financial conditions well, KPMG’s 2008 Building Societies and Credit Unions Survey has revealed.

Despite all the turmoil in financial markets, the survey found that building societies and credit unions produced similar profit results in the 2008 financial year to the year prior.

Credit unions reported a 6.2 per cent rise in profits for the period while building societies produced a slight 2.9 per cent decline.

“Amid all the doom and gloom in financial markets, building societies and credit unions in the main have stuck to their knitting and produced another good result,” the report said.

Martin McGrath, KPMG financial services partner, said the results were in “stark contrast” to the “big jump in bad debts” and 22.5 per cent decrease in net profits recorded by the major banks in 2007-08.

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Mr McGrath said the larger building societies and credit unions would be well placed to fill part of the gap left by the recent acquisitions of regional banks by the majors so long as they can convince consumers that they offer the same breadth of services.

Published: 12-11-08

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Mutuals endure financial crisis
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