The Central Bank of Ireland has published its annual Financial Conditions of Credit Unions Report, which points to sector resilience against the economic shocks of recent years.
Key trends in the report include overall growth in terms of assets and loans, and a fall in the number of credit unions has declined as consolidations continue.
The rapid pace of mergers, coupled to growth rates, means the number of credit unions in the country with at least €100m of assets has more than doubled in the past decade.
There were 71 credit unions with balance sheets above this threshold at the end of September, up from 32 in the previous report. The number of credit unions fell to 172 from 369 over the same period.
Total sector assets increased 5% to €22.5bn, the report says, while gross loans outstanding increased 8% to €7.7bn, and member savings increased 5% to €18.7bn.
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.
The report also notes that credit unions have continued to diversify their loan portfolios, primarily by increasing house lending – this 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.
Meanwhile, business loans increased to €190m in 2025, up from €180m in 2024, with the average loan size issued of €28k.
Growth in member savings has continued, increasing to €18.7bn, up from €17.9bn in 2024.
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In terms of reserves, the average sector total realised reserves as a percentage of total assets has remained steady at 16.8% (required regulatory minimum is 10% of assets).
The sector average return on assets, while still low, increased for the third year in a row, the report adds – from 0.98% to 1.05%, the highest year-end since September 2017. The increase in 2025 was driven primarily by an increase in interest income.
“Longer term sustainability challenges remain,” said registrar of credit unions Elaine Byrne, “in particular the continuing low (although marginally increasing) loan to asset ratios.
“More broadly, the global macro-environment presents high levels of uncertainty and potential risks including to credit quality and investment valuations.
“We introduced targeted but significant changes to the regulatory lending framework for credit unions (effective from 30 September 2025), which 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. Credit unions are expected to continue to develop the skills, expertise and risk management, including Asset Liability Management, necessary for these types of lending.
“In the above context, maintaining and building strong reserves and liquidity, and strengthening operational resilience, should remain a key focus for credit union boards and management.”
Last month, a survey of consumer confidence in Ireland by the Irish League of Credit Unions (ILCU) found it had dropped to a three-year low.
The ILCU warned of “a material downgrade by Irish consumers of their economic and financial prospects. The March reading is some significant distance below the thirty-year survey average of 83.4, and also clearly below the latest five-year average of 66.1, a period of significant geopolitical shocks.
“It also marks a significant turnaround from a tentative and limited improvement of late that resulted in an eleven-month high in the February 2026 sentiment survey.
“That said, the March reading remains well above the mid-2008 survey low-point of 39.8 or the more recent cyclical low of 42.1 seen when cost of living pressures were escalating sharply in Autumn 2022.”
David Malone, CEO of the ILCU, said: “The recent fall in consumer sentiment reflects very real concerns among Irish households in the face of ongoing global uncertainty. In challenging times, credit unions stand ready to support members with financial guidance, education and practical assistance, to help people feel more confident in managing their money. That consistency of support is at the heart of what credit unions do every day.”
