The Financial Services Regulatory Authority of Ontario (FSRA) published its Q1 2025-26 Sector Outlook Report, indicating that Ontario credit unions continued to grow assets, with expansion led by residential mortgage and commercial lending. Total sector assets increased to CAD 100.32 billion, up CAD 3.26 billion (3.26%) versus Q1 2024-25. Year over year, residential mortgage loans rose by CAD 1.11 billion (2.06%) and commercial loans increased by CAD 1.94 billion (7.68%), while cash and investments fell by CAD 292.23 million (-2.57%). Profitability, measured by return on average assets, was 28 basis points in 1Q 2025, up 4 basis points from Q4 2024, driven mainly by a 22 basis point reduction in interest expense on deposits and a 9 basis point decline in other interest expense; lower loan yields and investment income year over year were more than offset by lower deposit funding costs. The over 30-day delinquency rate on residential mortgages, covering CAD 54.99 billion (54.81% of sector assets), was 0.83% in 1Q 2025, up 19 basis points year over year but down 4 basis points from the prior quarter. FSRA noted the Sector Outlook is published quarterly and provides analysis and commentary on economic conditions and financial results in Ontario’s credit union sector.
Financial Services Regulatory Authority of Ontario 2025-10-09
Financial Services Regulatory Authority of Ontario publishes Q1 Sector Outlook showing Ontario credit union assets rise to CAD 100.32 billion
The Financial Services Regulatory Authority of Ontario reported that Ontario credit unions' assets grew to CAD 100.32 billion in Q1 2025-26, driven by increases in residential mortgage and commercial lending. Profitability improved with a return on average assets of 28 basis points, aided by reduced interest expenses. The delinquency rate on residential mortgages was 0.83%, reflecting a year-over-year increase but a quarterly decrease.