Ireland’s Progressive Credit Union and Drogheda Credit Union are discussing a possible transfer of engagements that would create the largest lender in the sector, with 120,000 members.
It is hoped the move – still at the early discussion stage – would create a large credit union with assets of €615m.
After a report on the meger in the Irish Independent, both credit unions told members in a statement on their websites: “We wish to inform you that Drogheda Credit Union and Progressive Credit Union have entered discussions regarding a potential transfer of engagements. Preliminary discussions have taken place, and the Central Bank of Ireland has been notified.
“The process is at a very early stage and would involve full regulatory oversight, due diligence, and independent assessment”.
Both credit unions added that the priority throughout the process would be to ensure that any future decision is in the best interests of their members.
“We remain committed to supporting our members and local communities with transparency and care, and we will keep you updated as further developments arise.
“In recent years, credit unions throughout Ireland have merged to strengthen member services and benefit from increased economies of scale.”
The Irish Independent report on the merger says the goal is to create a credit union that could challenge mainstream banks in the mortgage market. It says the resulting entity would be the largest credit union in Ireland in terms of asset size.
The credit unions have around 60,000 members each. Progressive, which grew out of a series of mergers and has seven offices covering Fairview and north county Dublin, has over €230m in assets, while Drogheda, which has five offices in Drogheda, Trim, East Meath and Dunleer, has €385m.
Drogheda is also in separate merger talks with Slane Credit Union.
The news follows several years of consolidation in the the Irish credit union sector, with the encouragement of the government and Central Bank. In 2013, the government launched the Credit Union Restructuring Board, which ran until 2017 and supported a total of 117 merger projects involving 212 credit unions.
Ministers hoped the consolidations would enhance member services, achieve scale efficiencies and consolidate strength in reserves.
More credit unions in Ireland are now offering mortgages to their members, says the Irish League of Credit Unions.
A credit union service organisation, Credit Union Mortgages, has been set up to help the sector drive its growth in the Irish mortgage market. Owned by its member credit unions, it works on developing a standardised product offering, building a national brand through branding and marketing, and supporting its member credit unions.
