Latest news with #ILCU
Irish Times
5 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 Examiner
5 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
Irish Times
06-05-2025
- Business
- Irish Times
Trade war threat spooks shoppers
April's trade war threat spooked shoppers last month, but there are no indications yet that Irish people plan to rein in spending, a survey indicates. The news comes as a Government report shows that consumers were key to recovery from Covid-19 lockdowns. Global uncertainty sparked by US president Donald Trump 's pledge early in the month to tariff imports led to consumer sentiment here plunging, according to the Irish League of Credit Unions (ILCU). The organisation said on Tuesday that fears that a global trade war would lead to 'markedly weaker economic conditions' at home left confidence at its weakest in two years. READ MORE 'Irish consumers are now altogether more nervous and negative about the economic and financial environment than they were at the start of this year,' said the league in a statement. Irish people are more nervous and negative about the economic and financial environment than at the start of the year, it added. 100 days of Trump: 'It's like The Karate Kid, tax on, tax off, tariffs on, tariffs off' Listen | 42:49 Consumers in other countries share Irish shoppers' nervousness as surveys worldwide last month found similar sentiments, the statement noted. However, the survey carried out by the credit union league with Core Research , most people are not planning to rein in spending yet. Irish League of Credit Unions chief executive David Malone noted that its sentiment survey highlighted that despite 'current economic uncertainty, the majority of Irish consumers are now planning to spend on home improvements'. Meanwhile, a Department of Finance report shows that a rebound in consumer spending aided the economy in recovering from Government-imposed Covid curbs. Families accumulated cash as lockdowns forced them to stay indoors, cutting their opportunity to spend, states the report, The Irish Economy – five years on from the pandemic. 'Once restrictions were formally lifted, healthy balance sheets and the release of pent-up demand triggered a large and fairly rapid rebound in consumer spending,' it notes. The report, due for release on Tuesday, states that this rebound in spending was key to the economy's recovery from Government restraints. However, Irish people ended up paying far more for goods and services after Covid than before, the civil servants in the department's economics division acknowledge. [ Irish consumers nervous about Trump policy shift as sentiment remains subdued Opens in new window ] Several shocks, including Russia's invasion of Ukraine, which came as the Government rolled back the last of its restrictions, drove the most severe bout of inflation in decades. Prices are now about 20 per cent higher than they were before the government locked the State down five years ago, the research indicates. The department claims that businesses have created about 400,000 jobs here over the last five years, keeping unemployment at 5 per cent since 2022. 'Government supports helped maintain the link between employers and employees and prevented long-term 'scarring' effects on the labour market,' the department maintains.
Belfast Telegraph
24-04-2025
- Business
- Belfast Telegraph
Hopes for increases in house prices buoy consumers on both sides of Irish border: report
But there are also concerns about the impact which tariffs and cost of living pressures might have on finances between now and 2030, the Credit Union Consumer Sentiment Survey found. In both Northern Ireland and the Republic, just under 40% of people expect the economy to be weaker in five years time, while just under 30% expect it to be stronger. Overall, consumers in the south had grown more downbeat about the medium term, while NI consumers were slightly less pessimistic. However, Northern Ireland consumers tended to be more pessimistic about the outlook for the jobs market. But in NI, the numbers who were positive about improvements in their household incomes by 2030 did outweigh those who were expecting incomes to drop. And expectations of improved household incomes seemed to be prompted by 'very pronounced' views that house prices would be higher in 2030 than they are now. The survey was commissioned by the Irish League of Credit Unions (ILCU) in partnership with Core Research. Economist Austin Hughes, who wrote the report based on the survey, said: 'With the threat of a trade war highlighting common global concerns and improving domestic activity and incomes of late giving some shared sense of more positive developments, the sentiment survey suggests there are good grounds for more similarities than differences in the views of consumers in the Republic of Ireland and Northern Ireland on their economic and financial circumstances.' David Malone, chief executive of the ILCU, added: While consumers in both the Republic of Ireland and Northern Ireland are understandably concerned about a troubling global economic outlook, the expectation of a modest improvement of incomes and higher house prices suggests many consumers see a future of opportunity as well as challenge.' The research has been released as the All-Island Credit Union Sector Conference takes place on Friday at the ICC in Belfast. The conference will host over 500 credit union leaders.
