VILNIUS – Lithuanian credit union has witnessed double growth in its earnings in 2018. This simply signifies that the improving profitability of credit unions and growing sustainable equity would lead to the growth of the capital base of this sector. Initially, it was estimated that the growth would be around 1.7 million Euros but the outcome stands at 3 million Euros. This was one of the goals pursued by credit unions to ensure their reforms.
Due to a significant value of higher income than costs, 48 credit unions have witnessed a profit of 4.1 million since the inception of the year and 17 credit unions witnessed a profit of 1.7 million Euros in the year 2018. There was a decrease in the share capital of 5.2 million Euros in 2018 which took the final value to 49.6 million Euro. It was basically due to the bankruptcy of two credit unions. The growth of credit unions was 26% and the equity capital stood at 90 percent in comparison to 2017’s 69 percent.
Also, there was a growth of 8.3% in the assets of 2018 which took the value to 741.4 million Euros. This growth was due to the increment in the time deposits in the credit unions operating in the major cities. Not only this, the increase in the indebtedness to the credit unions and the increased borrowing of credit unions also contributed to the asset growth of credit unions. Due to the availability of so many online credit facilities such as kreditus.It, it has become easier for everyone to grant credit for various purposes. Almost every credit formality can be done online and this is why there is an increase in the growth of credit unions on a large scale.