Amid the turmoil in financial markets, building societies and credit unions have reported another good set of results in the 2007-08 financial year. Profits increased by 6.2 percent for credit unions and decreased by a small 2.9 percent for building societies. This solid result was built on a foundation of asset growth and continued low bad debts.
Importantly, funding from customer deposits largely matched asset growth, with growth of approximately 10 percent for both building societies and credit unions.
In summary it has been a year in which the mutual sector has again performed well, largely by operating conservatively in the markets it knows well.