DUBLIN, Ireland–What one report referred to as a “mini-bank” could be created if a merger between two credit unions is approved.
St Patrick's Credit Union is in early stage talks to take over the RTE Credit Union in a move that would create the largest credit union in the country, according to The Independent.
If approved, the merged institution “would end up being like a mini bank, with assets of close to €420 million,” the Independent reported.
St. Patrick’s CU has been aggressive in merging in other CUs, having absorbed five in the inner Dublin area over the past year. RTE Credit Union, which has 4,000 members, serves the staff and families who work for Ireland’s national broadcaster.
RTE CU is profitable, having paid a dividend of 1.75% to members to go with a loan rebate. It has €63 million in assets.
According to The Independent, the board of St Patrick's has ambitious expansion plans, having recently acquired offices in the Docklands in Dublin. It is also spending €4 million on an IT system to allow it offer current accounts and debit and credit cards.
“It is understood it has adopted the mission statement of ‘banking without a bank’ to promote its plans to offer its members a full banking service,” The Independent stated. “The organization is aiming to get its members to use it to have their pay or pensions paid into its accounts, and have debit cards and payments coming out of the accounts.”
St Patrick's CU has 21,000 members and reported 2015 net income of almost €9 million. It has assets of €356 million.
The Independent reported that more than 100 credit unions are expected to have merged by the end of the year. There are now around 315 separate credit unions, down a quarter since before the financial collapse.