The lending book of the Irish League of Credit Unions (ILCU) members has reached a record €6.24bn, its third quarter results show.
The current level has surpassed the previous lending record from 17 years ago of €6.21bn prior to the financial crash. Mortgage lending was described as being "a key driver" of the growth in the loan book.
The ILCU represents 90% of active credit unions in the Republic of Ireland, its latest figures are for the period from April to June.
Over the quarter, credit unions issued more than 104,000 loans, representing a 17% growth in the number issued from the previous quarter, and a total of €734m in new lending.
Mortgage lending was up 5%, showing a 28% year-on-year growth, reaching €663m by the end of June 2025.
Mortgages now make up just over 10.6% of the overall credit union loan book portfolio, up from 9% in June 2024 and just 6.3% in June 2023.
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 €6.24bn 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," said Malone.
"Credit unions are clearly meeting the evolving needs of their members while maintaining the strong ethical and community-based principles that define our movemen."
The growth in mortgage lending in recent months and since regulatory changes in 20023 paved the way for all credit unions to offer mortgages.
The ILCU is anticipating further growth following New Central Bank lending rules effective from 30 September.
In August, the Central Bank of Ireland announced lending capacity would be adjusted for all credit unions for home and business lending.
A new limit of 30% of total assets would be placed on house lending and 10% of total assets on business lending.
In future credit, unions would not need to receive a comprehensive business plan and detailed financial projections for business loans of €25,000 or more, community loans or loans to other credit unions.
The Central Bank said the adjustments would lead to significant growth in the overall capacity for house and business lending, which would rise from €2.9bn to €8.6bn.
Speaking about the changes, 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.”
(Pic: Sam Boal/Photocall Ireland)
