Credit Union sector achieves record financial results over past 12 months

The Irish League of Credit Unions (ILCU), which represents 92% of the total active credit unions in the Republic of Ireland, has released the 2023 full year financial results for its member unions and broader analysis of the sector. The results show that credit unions have continued to deliver for members with a strong performance headlined by annual growth in the loan book of 12% while arrears fell to historic lows illustrating prudent management by credit unions.

For the full year to September 2023, loans were up €555 million, and the total ILCU credit union loan book now stands at €5.3 billion (up from €4.7 billion a year ago).

ILCU Credit Union Members – Financial Performance

The results for the year ended September 2023 show the highest new lending total since 2009 and the highest average new loan size. Credit unions have continued to increase their market leading share to over 40% of the unsecured personal loan market. Loans are typically used to help with household improvements, to retrofit homes, buy a car, pay for a wedding, cover medical costs etc. Over 420,000 loans were issued in the year to end September 2023. This equates to over 8,100 new loans per week, 35,000 loans per month to the value of €49.6 million per week or €215 million per month.

In the year to end September 2023, the overall arrears ratio is down to 2.7%. The ratio is now at a new record low, down from 2.8% recorded in September 2022 and is the lowest across the financial services sector.

ILCU member credit union capital reserves stand at 15.8% at end September 2023, comfortably ahead of regulatory requirements and are up from 15.6% at end September 2022.

ILCU member credit union assets are up 2.8% to €17.9 billion in the year to end September 2023 up from €17.4 billion at end September 2022. The asset size of the credit union sector in Ireland has grown at a phenomenal rate and has more than doubled over the last 20 years.

Loan to savings ratio has climbed to over 35% at the end of September 2023, the highest level since 2013 and compares to 32% at end September 2022.

Membership of ILCU affiliated credit unions also continues to increase. It currently stands at 3.2 million members in the Republic of Ireland and is increasing steadily at a rate of 1,000 new members per week.

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