NI Credit Unions Report Strong Lending Growth at Year End
Posted on: 18 Dec 2024
The Irish League of Credit Unions (ILCU), which represents 80 credit unions across Northern Ireland, has released the year end 30 September 2024 results on behalf of its affiliated credit unions. Overall, the results show comprehensive and sustained growth across the entire lending portfolio.
Year ended 30 September 2024 - Performance Overview (Oct 2023-Sep 2024)
Key performance indicators and highlights for the year showed the following:
- The loan book now totals £698m up 8.3% on the previous year. More than 86% of credit unions reporting positive loan growth over the past 12 months.
- The total loan book has increased by more than 50% over the last 10 years.
- The average loan outstanding in Northern Ireland is up to £4,923 as at Sept 2024. This is up from £4,670 at the end of Sept 2023.
- The strong growth in lending is in the context of very low arrears. In Sept 2024, the overall arrears ratio was down to 3.3%
- Total assets of credit unions now stand at £1.9 billion, up from £1.87 billion. This represents an 1.7% increase year on year. Assets have increased by over 58% over the last 10 years reflecting the continued growth of credit union activity
- Savings have increased to £1.62bn million for the year, an increase of 0.8% within the last 12 months.
- Membership in Northern Ireland credit unions now stands at 571,000 and continues to rise steadily. Membership has increased by 30% over the past 10 years.
Martin Fisher, Head of Northern Ireland with the Irish League of Credit Unions commented: “It has been another really strong year for credit unions across Northern Ireland. These year-end financial results highlight the continued impressive momentum with the 14th straight quarter of growth across our lending products.
“Behind these impressive figures are the stories of a multitude of ordinary people across Northern Ireland who have been supported by their local credit union to make ends meet and to plan for the future.”
Financial Inclusion
Credit unions play a critical role across Northern Ireland when it comes to providing access to affordable finance. The ILCU estimate that credit unions issue 50,000 loans annually for amounts under £1,000. No other financial institutions offer low-value loans within Northern Ireland of this scale. These loans have been vital to help so many people navigate challenges arising from the cost-of-living crisis.
In October, a new Financial Inclusion Commission (FIC) report[1] highlighted that Northern Ireland, lags behind other parts of the UK in terms of access to financial services and general levels of economic hardship. According to the report, almost 82% of adults in Northern Ireland report being under some level of financial distress; 20% higher than in Wales (62%) and 13% higher than Scotland (69%).
Despite this stark finding, there is no representation from Northern Ireland on the UK Government’s recently announced Financial Inclusion Committee [2], which aims to address barriers to individual and households’ ability to access affordable and appropriate financial products and services.
According to Martin Fisher, Head of Northern Ireland with the ILCU: “Given the unique challenges and opportunities faced within Northern Ireland’s financial landscape, it is particularly disappointing that Northern Ireland is not represented in the development of the UK-wide financial inclusion strategy.
“Credit unions and other support organisations across Northern Ireland will continue to do what we can to support those who are financially excluded. However, this a missed opportunity to develop an inclusive approach that benefits all regions of the UK.”
View the full analysis of Northern Ireland credit unions' performance here.
-ENDS-
[1] https://financialinclusioncommission.org.uk/wp-content/uploads/2024/10/Financial-Inclusion-in-the-UK.pdf
2 https://www.gov.uk/government/publications/financial-inclusion-committee