The total value of the mortgage book of Irish League of Credit Unions-affiliated grew 51% or €189m in the 12 months to September.
The ILCU, which represents 90% of active credit unions in the Republic of Ireland, saw its mortgage loan book grow from €371m to €560m.
Mortgages now account for more than 10% of the total credit union loan book, which increased 11.2% in value year-on-year to €5.89bn.
For the period of October 2023 to September 2024, credit unions issue new loans of €2.78bn, up 7.2% from €2.58bn the previous year, although the number of loans issues declined from 422,451 to 419,246.
"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," said David Malone, CEO of the ILCU.
"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 €1bn 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”.
The total assets of credit unions increased 2.4% or €423m from €17.91bn to €18.34bn and have now increased 50% over the last 10 years. Savings, meanwhile, rose 2% from €14.97bn to €15.28bn.
The digital transition of credit unions has continued apace, with digital transactions up 21% over the past 12 months and four-fold over the past five years.
Some 56% of loan applications are now made online, up from 9% five years ago.
Approximately 36,000 new credit union current accounts were opened in 2023/24, and credit unions processed in excess of 31m electronic payments during the year, of which 60% were contactless.
"Credit unions are community-based, not-for-profit institutions that deliver an authentic omnichannel experience," said Malone.
"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 membercentric solutions, credit unions are well-positioned to play a pivotal role in addressing Ireland's evolving financial landscape."
The figures show credit unions' total capital increased 4.2% from €2.84bn to €2.95bn, and that the the loans-to-savings ratio increased from 35% to 39%.
Credit unions now have 3.27m members, up 33,000 year-on-year.
(Pic: Getty Images)
