CU Year End Results show significant Overall Growth

Posted on: 25 Nov 2024

The Irish League of Credit Unions (ILCU), which represents 90% of the total active credit unions in the Republic of Ireland, has released the quarter end and year end 30 September 2024 results on behalf of its member credit unions. Overall, the results on behalf of ILCU affiliated credit unions 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 €5.89 billion up 11.2% on the previous year.
• The value of new loans issued increased by 7.2% on the previous year, up from €2.58 billion to €2.78 billion.
• The total value of the mortgage loan book for ILCU affiliated credit unions has increased by 51% compared to September 2023, up from €371 million to €560 million. Mortgages now make up more than 10% of the total credit union loan book.
• Total assets of credit unions were up €423 million for the year, from €17.91 billion to €18.34 billion, a 2.4% increase when compared to the previous year, and are up over 50% in the last 10 years.
• Savings with credit unions increased by €305 million for the year, an increase of 2% from €14.97 billion to €15.28 billion.
• Over the past 12 months, there has been a 21% increase in digital transactions. Even more impressively, this represents a fourfold increase in digital transaction volume over the last 5 years. In addition, 56% of loan applications are now online up from 48% last year and from 9%, 5 years ago.
• With regard to current accounts, in FY 2023/24, approximately 36,000 new credit union current accounts were opened.
• Credit unions processed in excess of 31m electronic payments in the year, of which 60% were contactless demonstrating a continuing shift in consumer behaviour towards the use of mobile wallet payments.

Quarter ended 30 September 2024 - Performance Overview (July to Sept 2024)

• The assets of credit unions stood at €18.3 billion at the end of the fourth quarter while savings in credit unions have increased to €15.3 billion. In total, there were 107,000 new loans issued in the quarter, which equates to 1,200 loans issued every day. In addition, the average loan outstanding is up to a record high of €10,300.
• The overall increases in lending are in the context of record low arrears of 2.36%.
• The ILCU affiliated credit union mortgage loan book increased by 8% in the quarter to €560m at end Sept 2024.
• Credit unions processed in excess of 8.2 million electronic payments in Q4 2024, of which 60% were contactless.

David Malone, CEO of the Irish League of Credit Unions commented:

“These year-end financial results highlight the continued impressive momentum of credit unions with the 14th straight quarter of growth across our lending products. We have seen a continued increase in lending over the course of the last twelve months, combined with all time low arrears as well as an overall increase in the size of the loans we are offering. These indicators are reflected in our dominance of the personal lending market, with a 53% market share and illustrative of the work being undertaken by credit unions across the country for, and on behalf of members.

“The credit union sector’s mortgage loan book has climbed to more than €700 million, almost doubling over two years, with clear momentum toward a €1 billion milestone over the next two years. In this context, we eagerly await the outcome of the Central Bank review of the credit union lending framework, and we would be hopeful of an easing of mortgage lending limits, further empowering credit unions to support homebuyers”.

Mr Malone continued, "Credit unions are community-based, not-for-profit institutions that deliver an authentic omnichannel experience. Members benefit from personalised, in-person service, immediate phone support, and a rapidly expanding suite of digital offerings. Digital engagement continues to grow significantly, with 56% of loan applications now submitted online, marking a steady shift toward more convenient, member-focused services.

“Looking forward to 2025, the Credit Union (Amendment) Act brings an exciting opportunity for credit unions to further develop and expand their services in 2025 and beyond. By leveraging the enhanced provisions of this legislation, credit unions in Ireland can continue to evolve. With a focus on innovation, collaboration, and member-centric solutions, credit unions are well-positioned to play a pivotal role in addressing Ireland's evolving financial landscape”.

ENDS

A summary report of the Year End Results can be found here.
 

Notes to Editor

Please note that the 2023/24 Credit Union Financial Calendar is as follows:

• Q1 - October 2023 to December 2023
• Q2 - January 2024 to March 2024
• Q3 - April 2024 to June 2024
• Q4 - July 2024 to September 2024

Summary of Annual 12 Months Financial Performance

The table below shows a comparison of the 12 months ended Sept 2023 and Sept 2024 financial results.

Summary of Quarter-on-Quarter Financial Performance

The table below shows a comparison of the quarters ended June 2024 and Sept 2024 financial results.

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