DUBLIN, Ireland–The Irish League of Credit Unions (ILCU) reported that 2016 figures show demand for loans across credit unions in the Republic increased steadily.
Loans were up by a significant €216 million (6.1%) with 192 credit unions growing their loan books, compared with 141 for the same period last year, and 80 the previous year, the ILCU said. In Q3, loans grew by a substantial €94 million. Lending has now been on the rise for five out of the last six quarters, the league said.
The increase in loans is being attributed to an overall increase in demand, proactive credit union advertising and marketing, and in some cases an easing of lending restrictions.
On the other side of the ledger, savings increased by 7% and stood at €12 billion through the third quarter. In addition, assets also grew significantly, by over 7%, and stood slightly over €14 billion – up almost €1 billion (€999m) in the year to end September 2016.
Capital reserves increased by €179 million (8.4%) and were at at €2.3 billion, the league said. According to the league, credit unions now have €880 million in excess capital above the 10% minimum capital requirement. 62% (173 credit unions) have capital ratios in excess of 15%. Delinquencies are also down.
“These figures are hugely encouraging, especially with the healthy upward trend in lending,” ILCU CEO Ed Farrell said. “Credit unions have been very proactive in growing lending over the past year and this has been demonstrated by the fact that the vast majority are now reporting lending increases. The figures are reflective of a movement that continues to grow and strengthen, while confidence continues to be expressed by the steady growth in membership, which has now reached three million in the Republic alone. We are going into 2017 from a very positive position and will continue to succeed because we continue to change to meet members’ needs.”