Overall balance sheet of credit unions tops €22.5bn amid new lending limits 

House loans now represent 12% of total loans outstanding across the sector, the regulator said, with the average house loan issued in 2025 coming in at €146k. Photo: Leah Farrell/Rollingnews.ie

The overall balance sheet of Irish credit unions continues to grow despite a steady decline in branch numbers, with total sector assets growing by 5% last year to €22.5bn.

Publishing its Financial Conditions of Credit Unions Report 2025 on Wednesday, the Central Bank of Ireland said gross loans outstanding across the sector rose by 8% in the year to €7.7bn, with member savings rising by 5% to €18.7bn.

The report also showed robust lending in the year, with new loans issued in 2025 remaining unchanged at €3.3bn.

Meanwhile, house loans saw significant growth, rising by 23% to €900m last year. The notable rise follows changes to credit union lending limits approved by the Central Bank 

The new limits saw the sector’s total lending capacity for home and business loans rise from €2.9bn to €9.9bn, an increase of more than 340%.

House loans now represent 12% of total loans outstanding across the sector, the regulator said, with the average house loan issued in 2025 coming in at €146k.

There were 172 credit unions active and reporting as of September 2025, the Central Bank found, which was down from 228 in the same period in 2020. Of those still operating, 71 credit unions had total assets greater than €100m, representing 76% of the sector's total assets.

Personal loans continue to make up the majority of credit union loans, totalling more than 85% of overall loans outstanding. The average personal loan size issued in 2025 was €6,000.

The Central Bank also reported that total investments for the sector remained relatively steady, at just below €14bn in September 2025. 

It added that credit unions continue to invest an increasing share of their investments in shorter-term Irish and European government bonds, as well as bonds issued by credit institutions. Investments in Irish and EEA government bonds and bank bonds made up 43% of sector investments in September 2025, with the average return on investments for the sector remaining steady at 1.7%.

The report also noted a continued improvement in the credit union's sector average cost-income ratio, which stood at 71.5% for September 2025. Total costs for the sector remained flat on an annual basis, with the improvement in the cost-to-income ratio driven by an increase in total interest income in the 12 months.

Commenting on the report, registrar of credit unions Elaine Byrne said: “Targeted but significant changes introduced to the regulatory lending framework for credit unions provide credit unions with increased scope to provide house and business lending to members. 

“Maintaining and building strong reserves and liquidity, and strengthening operational resilience, should remain a key focus for credit union boards and management.”