Central Bank of Ireland publishes credit union financial conditions report as sector assets rise to EUR 21.5bn and house lending expands

The Central Bank of Ireland published its annual Financial Conditions of Credit Unions Report, setting out sector-level data and commentary on credit unions’ financial performance and position for the financial year ended 30 September 2024. The report highlights continued balance sheet growth, stronger lending volumes and an improvement in returns, alongside a shift toward greater house lending. Total sector assets increased 3% to EUR 21.5bn, gross loans outstanding rose 12% to EUR 7.1bn and member savings increased 3% to EUR 17.9bn. New loans issued grew 8% to EUR 3.28bn, with personal loans remaining the majority of outstanding lending at EUR 6.13bn or 86.8% of total loans, while house loans accounted for 10% of loans outstanding at EUR 733m and 9% of new loans issued at EUR 302m, up from 3.6% in 2022. The average house loan issued was EUR 155k versus an average personal loan size of EUR 6k; average realised reserves remained steady at 16.6% of assets against a 10% regulatory minimum, and sector average return on assets increased from 0.66% to 0.98%, driven primarily by higher investment income. In remarks accompanying the publication, the Central Bank emphasised expectations for proactive management of income and expenditure, asset and liability management and resilience to liquidity stress, including operational resilience. It also pointed to an ongoing review of the lending framework, with proposed targeted changes including amendments to concentration limits for house and business lending and changes to certain conditions on underwriting and loan performance reporting, which it expects will support increased house and business lending activity once implemented.