(Australia) – A KPMG survey of Australia’s credit unions and building societies finds that although the sector performed well in 2002, a slowing housing market could force more consolidation in the industry.KPMG found that building societies boosted profit by 16.8 percent in 2002, while credit unions improved their results by more than 12 percent.
Peter Nash, head of KPMG financial services, says he expects the sector will post earnings growth of between 5 and 10 percent in 2002.
A shrinking housing market and the threat of mortgage brokers will slow earnings growth, says Nash.
He says that non-bank institutions tend to lose out in more competitive environments, because they lack the capabilities of major banks in offering an extensive array of products.