Credit Union Loan Book Grows to Highest Ever Level, with Mortgage Lending Continuing to Grow

Posted on: 12 Sep 2025

The Irish League of Credit Unions (ILCU), which represents 90% of active credit unions in the Republic of Ireland, has published its Q3 2025 results (April–June 2025) on behalf of its affiliated credit unions. The figures show continued positive momentum across the sector, with the credit union loan book reaching its highest level ever and mortgage lending continuing on a strong upward trajectory.
 
Credit unions issued more than 104,000 loans in Q3 2025, representing a 17% increase on the previous quarter. In total, €734 million in new lending was issued during the period. This strong performance has driven the total credit union loan book to €6.24 billion, surpassing the previous record of €6.21 billion set in 2008 and marking a significant milestone for the sector.
 
Mortgage lending continues to be a key driver of this growth. The total mortgage loan book among ILCU-affiliated credit unions reached €663 million by the end of June 2025, representing a 5% increase on the previous quarter and a 28% rise year-on-year. Mortgages now represent 10.6% of the overall loan portfolio, up from 9.0% in June 2024 and just 6.3% in June 2023.
 
The average loan outstanding also rose to a new high of €10,833, up from €10,617 in Q2. Importantly, this growth in lending is underpinned by strong credit quality. The overall loan arrears ratio fell to a new record low of 2.30%, down from the previous low of 2.36% in Q3 2024.
 
Commenting, David Malone, CEO of the Irish League of Credit Unions said:
"These results reflect the continued strength, trust and relevance of credit unions within communities across Ireland. Reaching a record loan book of €6.24 billion is a major milestone, but what’s even more encouraging is the quality of this growth. It’s driven by responsible lending, increasing demand for credit union mortgages and the lowest arrears we’ve ever recorded. Credit unions are clearly meeting the evolving needs of their members while maintaining the strong ethical and community-based principles that define our movement."
 
As well as the growth in lending, there has been continued growth in savings in ILCU affiliated credit unions. Savings now stand at €15.87bn, a growth of 1.1% this quarter, and an increase of 3.8% since June 2024.
 
Membership continues to expand across the credit union movement and Ireland continues to have one of the highest levels of credit union membership per capita worldwide. There are now 3.3 million credit union members in ILCU affiliated credit unions. This represents a growth of 8,700 in the last quarter and 33,000 across the past 12 months.
 
In Q3 2025, ILCU-affiliated credit unions paid out over €8.6 million in Life Savings benefits. This important cover, provided to members at no direct cost, offers crucial financial support by paying a benefit upon an eligible member’s death, helping to ease the immediate financial burdens faced by loved ones. In Q3, this supported around 3,600 families during a very difficult time.
 
Credit unions also provide Loan Protection cover at no direct cost to eligible members, ensuring that any outstanding loan balance is cleared in the event of the member’s death. In Q3 2025, loan protection cover cleared almost €4 million in outstanding loans relieving over 650 families of the burden of repaying a deceased member’s loan.
 

Changes in Lending Limits bring Added Potential

Recent changes to the credit union lending framework signal strong opportunities for credit unions to expand their mortgage and business lending activities. In August, the Central Bank of Ireland announced significant reforms to the credit union lending framework which increases the total lending capacity, for credit union house and business lending, from €2.9 billion to €9.9 billion.  This landmark development presents unprecedented opportunities for credit unions to better serve their members and support their local communities.
 
Speaking on the changes to the lending framework, David Malone said:
“The revised lending framework marks a transformative moment for the credit union sector, unlocking significant potential to support housing and small business development across Ireland. It empowers credit unions to provide meaningful alternatives in a market where choice has often been limited. As credit unions embrace these unprecedented opportunities to better serve our members, prudent and responsible lending will remain a core principle of our growth.”

ENDS 

Please note that the FY2025 Credit Union Financial Calendar is as follows:

• Q1 - October 2024 to December 2024

• Q2 - January 2025 to March 2025

• Q3 - April 2025 to June 2025

• Q4 - July 2025 to September 2025

Summary of Quarter-on-Quarter Financial Performance

The table below shows a comparison of the quarters ended March 2025 and June 2025 financial results.
 

Summary of Annual 12 Months Financial Performance

Note: ILCU data includes data from 90% of active CUs in the Republic of Ireland.