Central Bank publishes Financial Conditions of Credit Unions Report

The Central Bank of Ireland today published the annual Financial Conditions of Credit Unions Report (PDF 871.18KB), which provides an update on the financial performance and position of the sector for the financial year ended 30 September 2025.  

The publication provides sectoral data and commentary and aims to inform credit union boards and management in carrying out their own strategic analysis and decision-making.

The report identifies key trends for 2025, including:                           

Overall Balance Sheet

• Total sector assets increased 5% to €22.5bn.
• Gross loans outstanding increased 8% to €7.7bn.
• Member savings increased 5% to €18.7bn.

Lending

• New loans issued in the year were €3.3bn - the same as for 2024.
• Personal loans continue to make up the majority of credit union loans, totalling €6.54bn or 85.4% of total loans outstanding. The average personal loan size issued in 2025 was €6k.
• Credit unions have continued to diversify their loan portfolios, primarily by increasing house lending:
• House loans accounted for 12% of loans outstanding, up from 10% in 2024, with a total value of €900m.
• The average house loan issued in 2025 was €146k.
• Business loans increased to €190 million in 2025, up from €180 million in 2024, with the average loan size issued of €28k.

Savings – Growth in member savings has continued, increasing to €18.7bn, up from €17.9bn in 2024.

Reserves – Average sector total realised reserves as a percentage of total assets have remained steady at 16.8% (required regulatory minimum is 10 per cent of assets).

Return on assets (RoA) –The sector average RoA while still low, increased for the third year in a row, from 0.98% to 1.05%, the highest year-end RoA reported for the sector since September 2017. The increase in 2025 was driven primarily by an increase in interest income.

Commenting on the report, Registrar of Credit Unions Elaine Byrne said “Targeted but significant changes introduced to the regulatory lending framework for credit unions (effective from 30 September 2025) provide credit unions with increased scope to provide house and business lending to members.  It is our expectation that credit unions planning to avail of these changes do so in a phased, prudent and sustainable manner and continue to develop the skills and expertise necessary for these types of lending.”

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