Credit Union loan books enjoyed growth through 2018 though there is significant disparity between the best and worst performing Credit Unions.

That's according to RBK’s ninth annual Credit Union Benchmarking Survey, which canvassed 60 Credit Unions with total assets of €4.3 billion, representing 25% of the total asset size of Credit Unions in the state.

Respondents ranged from Credit Unions with assets under €10m to those with assets of over €400m. The latest financial data in the report is for the period ended 30 September 2018. Financial data was sourced from Credit Union annual reports.

RBK notes that one in four credit unions have concerns about viability despite the mergers that have taken place over the last five years.

RBK's Ronan Kilbane (pictured) commented: “A myriad of factors, including a tightening labour market, low investment returns and an increasingly more complex and regulated business model, is putting pressure on credit unions to grow the income base. The loan to asset ratio is improving but there is still plenty of scope to increase this.”

In Association with

Credit Union loan books continued to show show strong levels of growth, though slightly less than in 2017, with the annual average loan book growth being 9% for community credit unions and 12% for industrial credit unions.

The number of Credit Unions declined from 396 in 2013 to 263 in 2018 due to mergers.

Home loans and car loans continue to top the lending categories, with home loans accounting for 41% of lending and car loans 25%.

Kilbane is presenting the results of its benchmarking survey at a Credit Union seminar today taking place at Johnstown Estate in Enfield.