MEMBERSHIP of credit union movement in Northern Ireland has increased by another four per cent this year as lending continues on the up.
Nearly three quarters of the north's 93 credit unions (67 branches) recorded growth in their loan books as loans overall were up three per cent on last year (lending has grown by 11 per cent since late 2012).
And assets within the organisation here increased by six per cent and now stand at more than £1.3 billion - up £78 million year on year and a sixth successive year rising.
The figures, contained in The Irish League of Credit Unions (ILCU) end-of-year report, show that total credit union membership in Northern Ireland is now 477,000, up four per cent over this year (approximately 75,000 new members joined).
ILCU credit unions are significantly bigger than UK or other non-ILCU credit unions in Northern Ireland. The average asset size of ILCU credit unions in Northern Ireland is now £15 million, while the average is £3 million for UK credit unions and £2 million for non-ILCU credit unions.
Savings were also up – there was an increase of 7 per cent to over £1.1 billion.
The 2016 results once again show that the credit union movement is extremely well capitalised. Capital reserves increased by £11 million (6 per cent) and now stand at £184 million.
It is expected that credit unions will pay out a dividend broadly in line with the 2015 average of 1 per cent.
In recent years, many credit unions have paid a loan interest rebate instead of a high dividend in order to reward borrowers as well as savers.
The average loan interest rebate paid in 2015 was 18.58 per cent and early indications from 2016 year end accounts show that the trend is for credit unions to pay higher loan interest rebates than in previous years.
ILCU president Brian McCrory said: “These figures are hugely encouraging, especially with the healthy upward trend in lending.
"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 rise in membership, which has now reached 477,000."
He added: "With the modernisation of credit union legislation finalised earlier this year, credit unions in Northern Ireland head into 2017 from a very positive position, and the opportunity to offer their services to local businesses and community organisations stands to further bolster the growth of the movement across the province. Credit unions will continue to succeed because we continue to change to meet members’ needs.”
