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Q1 2023/24 Credit Union Quarterly results show exceptionally strong lending performance

Posted on: 19 Feb 2024

The Irish League of Credit Unions (ILCU), which represents 92% of the total active credit unions in the Republic of Ireland, has released Q1 2023/24 quarterly performance results on behalf of its member credit unions.

The results for the quarter (Octoberto December 2023) highlight a continued upward growth trajectory in loans, with a significant increase in mortgages and business loans. Arrears remain close to all-time lows.

Savings & Loans

The assets of ILCU affiliated credit unions stood at €18.0 billion at the end of December 2023. This has increased by over 40% over the last 10 years reflecting the continued growth of credit union activity. Similarly, savings in ILCU affiliated credit unions have increased to €15.0 billion.

Q1 2023/24 showed an exceptionally strong performance in terms of an overall increase in lending across all areas of 2.2%, when compared to a growth of 0.9% in the same quarter last year. In total, there were over 112,000 new loans issued in the quarter, this is up 4% on the same quarter last year which equates to over 1,200 loans issued every day in Q1 2023/24.

Overall, there has been a significant increase in credit union mortgage lending up 15% for the quarter and the mortgage loan book is now over the €500m milestone.

The increases in lending are in the context of exceptionally low arrears of 2.7%. This compares to a current 90-day mortgage arrears ratio of 4.1% (CBI Residential Mortgage Arrears report published December 2023[1]).

David Malone, CEO of the Irish League of Credit Unions commented; “These strong results come at an exciting time for Credit Unions with the imminent partial commencement of the Credit Union (Amendment) Act 2023 and the Central Bank’s review of the lending framework. They clearly illustrate the existing scale and future potential of credit unions, and opportunities that they offer members all across Ireland.

“Credit unions delivered over 110,000 loans in the quarter which is over 8,000 loans per week. To put that into context that’s €631 million per quarter of lending to people or over €48 million per week. What these latest quarterly results show is that not only are people availing of credit union services but that there is a growing pipeline of demand for loans which our members are ready to facilitate.”

Mr Malone continued, “Looking to the future and building on this continued growth, the Central Bank’s review of the lending framework is crucial. This is in the context of the dramatic increase in mortgage lending as changes are needed to meet customer demand, increase flexibility, allow credit unions compete on a level playing field and provide real competition in mortgages and business lending. We have engaged with the Central Bank on its lending review but are now looking for targeted changes to allow more choice for consumers and to reduce the dominance of the retail banks. The changes we are looking for will allow more mortgages, remove crisis era restrictions and allow more business loans thereby enhancing competition in a safe and prudent manner.

“Credit unions are in every community in Ireland, with over 400 locations, 3,000 staff and 3,000 volunteers, and trust placed in us is reflected in the ongoing growth in demand for services.”


Notes to Editor

Q1 2023/24 Summary of results for ILCU member credit unions.
  12 Months to 31 Dec 2023 Quarter to 31 Dec 2023
Assets - €17.99 billion Up €451 million, +2.6%, year on year Up €78 million, +0.4% this quarter
Loans - €5.41 billion Up €631 million, +13.2% year on year Up €117 million, +2.2% this quarter
Capital – 10% is regulatory requirements Up 4.4% to 15.85% Up 0.6% to 15.85%
Liquidity (regulatory minimum is 20%) Up to 25.4% Up to 25.4%
Savings - €15.02 billion Up €310 million, +2.1% year on year Up €52 million, +0.4% this quarter
Loans/Savings ratio Up to 36% Up to 36%