Value of mortgages lent by ILCU credit unions up 51%

The total value of mortgages lent by credit unions affiliated to the Irish League of Credit Unions (ILCU) has risen 51% in the past year.

Publishing its annual results for the financial year to September, the ILCU said its mortgage loan book has expanded from €371m to €560m.

That means that mortgages now comprise a total of 10% of the total loan book of ILCU credit unions, which make up 90% of active credit unions in the country.

"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," said ILCU Chief Executive David Malone.

"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," he added.

Overall, the total value of new loans issued by members of the organisation rose 7.2%, to reach €2.78bn.

It left the loan book at €5.89bn at the end of the financial year, up 11.2% on the previous 12 months.

However, the volume of new loans fell 0.8%.

"These year-end financial results highlight the continued impressive momentum of credit unions with the 14th straight quarter of growth across our lending products," Mr Malone said.

"We have seen a continued increase in lending over the course of the last 12 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 unions who are ILCU affiliated saw an increase in total assets of €423m or 2.4% across the period, bringing them to €18.34bn.

Over the past decade, total assets are up over 50%.

Savings climbed €305m, up 2% to €15.28bn and 36,000 new current accounts were opened.

The ILCU said transactions carried out digitally grew 21% and there has now been a fourfold rise in digital transactions over the last five years.

A total of 31m electronic payment were carried out during the year, 60% of which were contactless.

"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," Mr Malone said.

"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."

Those measures will allow credit unions to engage in loan participation and loan syndication.

It will also enable them to refer members to another credit union where they are unable to provide a service.

Boards will also be allowed to review plans and policies every three years instead of annually.

This will allow them to better manage their own governance and to allow each board to concentrate on strategy and development.