The Central Bank of Ireland has published its annual Financial Conditions of Credit Unions Report, pointing to continued sector growth and accelerating consolidation, as the number of credit unions with assets exceeding €100m more than doubled over the past decade.

Co-op News reported that total sector assets increased 5% to €22.5bn, gross loans outstanding rose 8% to €7.7bn, and member savings grew 5% to €18.7bn, while new loans issued in the year held steady at €3.3bn, matching the 2024 figure.

The number of credit unions fell to 172 from 369 over the same period, with 71 institutions now holding balance sheets above €100m, up from 32 in the previous report.

Personal loans continue to dominate, totalling €6.54bn or 85.4% of total loans outstanding, with an average personal loan size of €6,000. House lending accounted for 12% of loans outstanding, up from 10% in 2024, with a total value of €900m, while business loans rose to €190m from €180m.

The sector average return on assets increased for the third consecutive year, from 0.98% to 1.05% — the highest year-end figure since September 2017 — driven primarily by growth in interest income.

Registrar of credit unions Elaine Byrne said longer term sustainability challenges remain, citing in particular the continuing low (although marginally increasing) loan to asset ratios, and warning that the global macro-environment presents high levels of uncertainty and potential risks including to credit quality and investment valuations.

Byrne confirmed that targeted changes to the regulatory lending framework, effective from 30 September 2025, provide credit unions with increased scope for house and business lending, but stressed that credit unions are expected to implement such changes in a phased, prudent and sustainable manner.

Access the full Central Bank of Ireland credit union conditions report here.