Value of credit unions' mortgage book rises 34%
The total value of the mortgage loan book held by credit unions across the country has increased by 34% over the last year as the value of all loans surpasses €6bn for the first time in 17 years, new data shows.
During the period January to March this year, credit unions issued loans valued at €685m - an 11% increase compared to the previous quarter.
This increased the value of credit unions' loan book to just over €6bn. This is the first time since 2008 that the credit union loan book has reached this figure.
The data comes from the Irish League of Credit Unions (ILCU) which represents 90% of the total active credit unions in Ireland.
A large part of the growth in credit union loans is the increasing number of mortgages being approved. The ILCU credit union mortgage loan book increased to €632m as of the end of March this year - a 34% increase compared to the same month last year.
As of the end of March, mortgages represented 10.4% of the entire credit union loan book - up from 8.5% in March 2024 and 5.7% in March 2023.
David Malone, chief executive of the ILCU, said surpassing the €6bn loan book value mark for the first time since 2008 'is a significant milestone' and the consistent growth in mortgage lending 'shows that members are increasingly turning to credit unions for long-term financial needs'.
Mr Malone added that his members 'eagerly await' the finalisation of Central Bank's new lending regulations for credit unions which 'could potentially expand their mortgage loan portfolios to more than €5.5bn, a significant increase from the current cap of €1.9bn'.
'This would enable credit unions to meet the growing demand from members for credit union mortgages and ultimately help more people achieve home ownership'. The size of the average outstanding credit union loan is now €10,617 with the rate of arrears at just 2.37%.
Savings with credit unions also grew by 3.4% over the last year to €15.7bn.
According to the ILCU there are now 3.29 million members of ILCU-affiliated credit unions representing an increase of 37,000 year-on-year.
Other credit union services
The ILCU said there has been a sustained increase in members using electronic payments as well as their member unions' digital channels.
Credit unions processed in excess of 8.8 million debit card payments in the three months to the end of March - an increase of 10% on the same period last year. Of these payments, 59% were contactless.
On an annual basis, debit card payments totalled 33 million - a 13% increase compared to 2024.
On loan protection and life savings coverage offered by credit unions, Mr Malone said these supports are 'offered at no direct cost to our members and can make a real difference when it matters most'.
The ILCU said that in the most recent financial quarter, credit unions paid out over €10m in life savings benefits to approximately 4,400 families coping with the loss of a loved one.
Over the same period, loan protection cover cleared just under €5m in outstanding loans.
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Irish Times
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Letters to the Editor, June 21st: On public service, the cost of living and sunscreen
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