Major jump in mortgage lending helps credit union sector boost loan book to new record 

Publishing its year-end results, the Irish League of Credit Unions (ILCU), which represents 90% of active credit unions in Ireland, said the figures reflect continuing growth in the sector. File photo

Ireland's credit union sector has seen its loan book grow 10% to a record €6.5bn, with a sharp increase in mortgage lending.

Publishing its year-end results, the Irish League of Credit Unions (ILCU), which represents 90% of active credit unions in Ireland, said the figures reflect continuing growth in the sector. Mortgage lending continues to be a key driver of growth. 

The total mortgage loan book among ILCU-affiliated credit unions reached €713m by the end of September, representing an 8% increase on the previous quarter and a 28% rise year-on-year. Mortgages now represent 11% of the overall loan portfolio, up from 9.5% in September 2024.

Credit unions issued more than 109,000 loans in the most recent quarter with €780m in new lending issued during the period. The credit union loan book now stands at €6.48bn, up 10% on the September 2024 figure. This surpasses last quarter’s record total (€6.24bn) and the previous historical record of €6.21bn set in 2008.

The average loan outstanding also rose to a new high of €11,044, up from €10,833. At the same time, the overall loan arrears ratio fell to a new record low of 2.20%, down from the previous low of 2.30%.

“These are a hugely positive set of results for credit unions and testament to the enduring trust and loyalty which members place in credit unions," David Malone, CEO of the Irish League of Credit Unions said.

"The recent changes to the credit union lending framework, which took effect on 1 October 2025 effectively triple the combined lending capacity for housing and business loans from €2.9bn to €9.9bn, present a further opportunity for credit unions to expand their lending in a phased and prudent manner.”

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As well as the growth in lending, there has been continued growth in savings in ILCU-affiliated credit unions. Savings now stand at €16.13bn, an increase of 5.6% since Sept 2024.

Membership continues to expand across the credit union movement and Ireland continues to have the highest level of credit union membership per capita worldwide. There are now 3.3 million credit union members in ILCU-affiliated credit unions. This represents a growth of 49,300 in the last quarter and 74,700 across the past 12 months.

In terms of electronic payments, credit unions processed in excess of 21 million payments in the last quarter (up 13% on the same quarter last year). Of these payments, 44% were card-based and 56% SEPA transfers. 

Of the card-based transactions, 95% were point of sale or online with 5% ATM withdrawals. Contactless was by far the preferred method for point-of-sale transactions, representing 60% of all such transactions.