Irish Credit Unions Scale Up Mortgage Lending with New Centralized Treasury Function

Ireland’s credit union sector is aggressively expanding its footprint in the mortgage market, moving to challenge traditional banks for a larger share of home lending. In a strategic shift to enhance their competitive edge, twenty-six credit unions have received board approval to establish a services organization that will create a centralized treasury function for the sector.

This move comes as the overall credit union mortgage book edges toward a significant milestone, currently standing at €992 million, according to data from the Irish League of Credit Unions (ILCU).

The Strategic Pivot: Centralized Treasury and Regulatory Compliance

The push toward a centralized treasury function is not merely an operational preference but a regulatory necessity for growth. The Central Bank has indicated that credit unions can increase their mortgage lending to 30% of their total assets. However, reaching this threshold requires a more sophisticated approach to asset and liability management.

To meet these requirements, five credit unions led the initiative to create the centralized treasury function, receiving support from the Credit Union Development Association and the ILCU. The project remains open to all credit unions across Ireland. To lead this new initiative, John Webb, a former Treasurer of Ulster Bank, has been appointed as acting CEO.

Beyond residential mortgages, this new infrastructure will also enable credit unions to increase their lending capacity for slight and medium-sized enterprises (SMEs), diversifying their portfolios further.

By the Numbers: Record-Breaking Loan Growth

The sector is currently experiencing an unprecedented growth trajectory. The combined assets of the twenty-six credit unions involved in the new services organization total €9 billion. On a broader scale, the total credit union loan book has reached an all-time high of €6.54 billion, surpassing previous peaks from September 2025 and the historic high of €6.21 billion set in 2008.

Key Mortgage and Lending Statistics

• Total Mortgage Book: €992 million, nearly reaching the €1 billion mark.
• ILCU-Affiliated Mortgage Book: €754 million as of December 2025, marking a 26% increase year-on-year.
• Portfolio Share: Mortgages now represent 11.5% of the overall loan portfolio, up from 10.1% in the first quarter of 2025.
• New Lending: Between October and December, €659 million in new lending was issued, a 7% increase over the same period the previous year.
• Credit Quality: Growth is supported by a low arrears figure of 2.25%.

A New Era of Competition

While credit unions have only been substantively involved in the mortgage market for the last three years, the acceleration is rapid. This growth was further catalyzed by a change in the lending framework that effectively trebled the amount available for housing loans.

David Malone, CEO of the ILCU, notes that mortgage lending continues to be a primary driver of the sector’s expansion. By professionalizing their treasury functions and leveraging combined assets, credit unions are positioning themselves as viable, sophisticated alternatives to commercial banks for Irish homeowners.

Looking Ahead

The establishment of the centralized treasury function marks a turning point for the movement. By optimizing how they manage assets and liabilities, Irish credit unions are removing the primary regulatory ceiling that previously limited their growth. As they move past the €1 billion mortgage milestone, the focus will likely shift toward sustaining credit quality while continuing to scale their presence in the competitive Irish housing finance market.