Latest news with #DavidMalone
Irish Times
4 days ago
- Business
- Irish Times
Mortgage lending by credit unions up 34% on foot of homebuyers seeking alternatives to banks
Mortgage lending by credit unions increased by 34 per cent to €632 million in the three months to the end of March compared with the same period last year as consumers increasingly turn to finance buying a home. The Irish League of Credit Unions (ILCU), representing 90 per cent of credit unions, has published its quarterly results which show continued growth by credit unions, with further expansion in mortgage lending. Credit unions issued loans to the value of €685 million in the period, which was up 11 per cent on the previous quarter. Yet new lending in the year to the end of March was up just 0.3 per cent to €2.75 billion compared to the previous 12-month period. The total credit union loan book now stands at €6.08 billion, which is its highest point since 2008. That figure was up 2.1 per cent on the previous quarter and 9.3 per cent year-on-year. READ MORE The results show mortgage lending continues to be a growing part of the sector's loan book, increasing to €632 million, which represents a 5 per cent increase on the previous quarter and growth of 34 per cent over the previous 12 months. [ Credit union mortgages jump more than 40% by value as sector eyes new lending rules Opens in new window ] Mortgages represented 10.4 per cent of the credit union loan book at the end of the quarter, a figure that was up from 8.5 per cent on the same period a year earlier and 5.7 per cent on March 2023. ILCU chief executive David Malone said the group was 'eagerly awaiting' changes to the Central Bank's lending rules, which could see credit unions expand their mortgage loan portfolios to more than €5.5 billion from the current cap of €1.9 billion. 'This would enable credit unions to meet the growing demand from members for credit union mortgages and ultimately help more people achieve home ownership,' he said. The average loan outstanding is now at a record high of €10,617, up from €10,387 in the previous quarter. The growth in overall lending is in the context of close to record low arrears of just 2.37 per cent. 'Surpassing the €6 billion mark in our loan book 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,' said Mr Malone. As well as the growth in lending, there has been continued growth in savings, which now stand at €15.7 billion, which represents growth of 1.6 per cent in the quarter and 3.6 per cent since March 2024. There are now 3.3 million credit union members, up more than 15,000 in the quarter and 37,000 across the past 12 months. In addition, more credit union members are applying for their loans digitally, with more than half of all member loan applications originating online. Credit unions processed in excess of 8.8 million debit card payments in the three-month period, which was an increase of 10 per cent on the same period last year. Of these payments, 59 per cent were contactless. Looking at the data on an annual basis to March, debit card payments totalled 33 million, which was a 13 per cent increase. 'Credit unions now provide digital services on par with larger financial institutions,' said Mr Malone, who added they are continuing to invest in technology.
Irish Independent
4 days ago
- Business
- Irish Independent
Credit unions' total loans top €6bn on back of demand for mortgage products
Lending levels have been boosted by credit unions issuing more mortgages to members. In the last year alone, mortgage lending is up by more than a third. Mortgages now make up 10pc of the overall credit union loan books, according to the Irish League of Credit Unions, the representative group for the sector. The league released financial details for the April to June period outlining the performance of its members. Overall, the results showed continued growth among credit unions, with continued expansion in mortgage lending and in the adoption of digital services, the league said. Credit unions issued loans to the value of €685m the second quarter, an 11pc increase on the first three months of the year. The total credit union loan book now stands at €6.08bn. This is the first time since 2008, the peak of the Celtic Tiger, that the loan book of credit unions has topped the €6bn figure, according to Irish League of Credit Unions chief executive David Malone. He said mortgage lending was a growing part of the sector's lending. The loan books of credit unions, which are members of the league, increased to €632m at the end of March, a 5pc increase on the first quarter. This is a growth of 34pc over the year. At the end of the second quarter of this year, mortgages represented 10.4pc of the loan books, up from 8.5pc in March 2024 and 5.7pc in March 2023. The average loan outstanding is now at a record high of €10,617. ADVERTISEMENT The growth in overall lending is in the context of close-to-record-low arrears of just 2.37pc. Recent legislative changes, which are due to come into effect by the end of the summer following Central Bank changes to its rules, mean credit unions will be allowed to almost triple their mortgage lending. Credit unions are now coming together to take on the banks on mortgages. They are to jointly offer mortgages in a move that will deepen the sector's penetration in the home-loans market. A number of larger credit unions already offer mortgages, but each has a different interest rate. The new product, Credit Union Mortgage, will mean there will be a standardised national mortgage, with a set interest rate. Initially, there will be a single mortgage product with a variable interest rate of 3.85pc. The launch of the product for new buyers and existing homeowners is due on a phased basis from next month. Mr Malone said: 'These results reflect the continued trust that communities across Ireland place in their local credit unions. 'Surpassing the €6bn mark in our loan book 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.' He said the sector had achieved near record-low arrears and growing membership. Mr Malone said the sector was eagerly awaiting the finalisation of the Central Bank's 'Consultation on Proposed Changes to the Credit Union Lending Regulations'. With these proposed changes, credit unions could potentially expand their mortgage loan portfolios to more than €5.5bn, he said.
Irish Examiner
4 days ago
- Business
- Irish Examiner
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. Read More Credit union offers capped variable interest mortgages
Extra.ie
23-05-2025
- Business
- Extra.ie
One in four Irish 'clinging on' when it comes to finances
One in four people in Ireland are 'clinging on' when it comes to their finances, a survey has found. While just over half of Irish consumers could be regarded as financially 'comfortable' at present, some 20% say they are just 'coping', the latest Credit Union Irish Consumer Sentiment Survey shows. Those who describe themselves as 'coping' would borrow from family or friends, or from a bank or credit union, or by using a credit card, in the event of a financial emergency. People who are 'clinging on' include those who say they could not handle a financial emergency at present as well as those who would resort to borrowing from a lender other than a bank or credit union and those who would sell something. One in four people in Ireland are 'clinging on' when it comes to their finances, a survey has found. Pic: Shutterstock Irish League of Credit Unions chief executive David Malone said: 'While many are reasonably comfortable at present and planning a better future, others would face substantial problems in the event of an unexpected expense or bill. As always, credit union members can rely on their local credit union to support them through both the financial emergencies and opportunities they encounter.' Consumer confidence improved marginally in May as US president Donald Trump's tariff threats eased slightly, but continuing downside risks to the economy and some signs of renewed pressure on household finances mean sentiment remains 'soft and continues to signal a nervous Irish consumer', it was found. One in five said they would not cope with an unexpected bill of €1,000. Economist Austin Hughes, author of the report, said: 'With some roll-back of the scale and timing of increased tariffs in recent weeks and a sequence of largely reassuring domestic economic releases, a very slight pick-up in Irish consumer sentiment in May is not altogether surprising. While just over half of Irish consumers could be regarded as financially 'comfortable' at present, some 20% say they are just 'coping', the latest Credit Union Irish Consumer Sentiment Survey shows. Pic: Shutterstock 'However, the latest survey reading still suggests Irish consumers remain gloomy. 'The weakest elements of the May survey reading related to household finances, likely reflecting a pick-up in grocery bills of late which suggests many consumers continue to experience strains on household finances.' He added: 'While just over half of Irish consumers could weather a financial emergency by drawing on savings or income, around one in five say they would be unable to cope with an unexpected financial outlay of €1,000.' More than a third (37%) of consumers would rely on savings in a financial emergency, 18% would use current incomes to handle such a problem, while15% say they could not deal with an unexpected financial outlay. The latest survey reading still suggests Irish consumers remain gloomy. Pic: Shutterstock About one in four consumers might be seen as 'clinging on', in financial difficulty, it was found. May's sentiment reading of 60.8 was up marginally on April's 58.7 figure but significantly lower than the 74.9 in January. The May reading is also way below the long-term survey average of 84.0. Mr Hughes added: 'While the slight uptick in the May sentiment reading should be seen as positive in that it suggests Irish consumers are both able and willing to see small traces of sunlight in a dark economic sky, the general tone of the of the survey suggests Irish consumers remain nervous about the economic outlook and negative about their own household finances. 'The mixed elements of the survey in May also suggest that good weather didn't drive a broadly based improvement in the mood of Irish consumers.' He added: 'The May survey saw a slight step-back from the particularly negative views formed in the aftermath of the early April announcements of dramatic increases in tariffs on goods going to the US.'
Irish Post
29-04-2025
- Business
- Irish Post
Credit Unions, An Post and Boots deemed most reputable brands in Ireland
THE Credit Unions has been ranked the most reputable organisation in Ireland in a public vote. The organisations take top sport in the Ireland Reputation Index 2025 study, which was revealed today. An Post takes second place and Boots Ireland takes third place in the annual list which charts the reputation of 100 brands in operation across the country. Aer Lingus and Lidl Ireland took fourth and fifth place, while Bord Bia, Dunnes, Toyota, Bons Secours Health System and St Vincent's Private Hospital completed the top ten, in that order. Tech firms Meta and X found themselves at the bottom of the pile, placing 99th and 100th respectively in the list. RTÉ placed 98th and the FAI (Football Association of Ireland) came just ahead at 97. David Malone, CEO, the Irish League of Credit Unions, Niamh Boyle, CEO, The Reputations Agency, Garrett Bridgeman, Managing Director and COO, An Post; Stephen Watkins, Managing Director, Boots Ireland Úisce Éireann (Irish Water) placed 96th with Ryanair finding itself in 95th place. The annual study is based on the perceptions of over 5,000 members of the public. It measures the level of trust, respect, admiration and esteem the public has for the largest, most familiar and most important organisations in Ireland, alongside 100 reputation, brand, purpose and ESG (environmental, social and governance) indicators. The 2025 study took place between January 3 and March 17, 2025, the report authors confirmed. The Credit Unions topped the annual ranking for the third consecutive year with an 'excellent' reputation score of 82.4 – one of just two organisations to achieve an excellent score this year. 'They were perceived to be the most down to earth, fair, flexible, genuine, sincere and straightforward organisation amongst the 100 studied,' the study explained. Responding to their ranking David Malone, CEO of the Irish League of Credit Unions, said: "We are so proud to once again be named as Ireland's most reputable organisation in this year's Ireland Reputation Index, which reflects the ongoing trust in credit unions all over Ireland, as well as the positive response we have received to innovations in the services we provide. 'This ranking matters as it is built on the consistent work of credit unions across Ireland to provide best-in-class financial services. 'Importantly, it is also a testament to our focus on maintaining an accessible and active presence in communities, while also driving innovation across our digital offering and broader services.' Ranked in second place, An Post also received an 'excellent' reputation score of 80.8 for 2025. It was recognised for 'bringing its purpose to life in acting for the common good, improving the quality of life across every community in Ireland, and for its transformation towards a sustainable business, successfully delivering in a new world of eCommerce and financial services'. In third place, with a 'strong' reputation score of 79.5, Boots was acknowledged for 'meeting customers' needs, demonstrating concern for the health and wellbeing of its employees and offering high quality products and services'. Reflecting on the study, Niamh Boyle, CEO and Founder of The Reputations Agency stressed the importance of investing in understanding, protecting and building reputation. 'From our 2025 study amongst over 5,000 members of the public we found that the public in Ireland is 15 times more willing to buy from an organisation in the excellent reputation tier, than from an organisation whose reputation falls into the poor reputation tier,' she said. 'Understanding the reputational impact of changes in the external environment is critical for organisations,' she added. 'From the wars in the Ukraine and Gaza, extreme weather events, the rise of the far right, a more emboldened manosphere in some jurisdictions, and a volatile US Presidency which has rattled the global economy – the world is in flux. 'Our advice to organisations is to be externally focused, other-oriented and hold firm to their values and sense of purpose while the rest of the world is spinning. See More: An Post, Boots, Credit Unions, Ireland, The Reputation Agency
