Lithuanian credit unions start operating at profit

“This year credit unions of the LCKU system made a huge progress – in the first six months they substantially reduced losses, while profits were recorded after the third quarter. It was mostly due to effective management of credit risks and the accelerating secondary risk assessment by the LCKU. Profitability was also determined by the increase of non-interest income,” Chairman of the Board of the LCKU Fortūnatas Dirginčius said in a statement.

It is estimated that in the three quarters loan portfolio of LCKU members grew by 5.2 percent compared with 2013 and stood at LTL 806 million (EUR 233.4 million) by the end of the third quarter. Deposit portfolio by the end of the third quarter amounted to LTL 1.15 billion (EUR 0.33 billion), or by 5 percent more than a year ago.

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Assets of the 63 LCKU credit unions by the end of September amounted to LTL 1.39 billion (EUR 0.40 billion), i.e. by 5.6 percent more compared to the relevant period of 2013.

The number of customers using the services of the LCKU credit unions increased by 5 percent per year to 138,000. Throughout the relevant period the number of legal persons using their services increased by 22 percent and reached 4,900.

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