Credit Unions boost dividends amid economic pressures

A new report shows that Credit Unions are demonstrating improved efficiency with declining wages-to-income ratios and stronger loan book growth.

RBK Chartered Accounts’ 13th Annual Credit Union Benchmarking report reveals that Credit Unions saw particular growth in home improvement and car loans last year.

Bad debt provisions decreased to all-time lows, while reserves remain strong with all Credit Unions exceeding the minimum regulatory requirement of 10%.

RBK said the trend of increasing dividend payments continued, with nearly two-thirds of Credit Unions paying dividends in 2024, a substantial increase on the previous year.

The report shows good progress in operational resilience frameworks, but RBK said that testing remains the main barrier to full implementation and cybersecurity concerns have intensified.

RBK Partner Ronan Kilbane said that financial indicators showed considerable improvement across the sector last year.

“Investment portfolios are trending downward as a percentage of assets, aligned with the shift towards increased lending. This is a positive development for Credit Unions whose primary mission is providing financial services to members,” Mr Kilbane said.

He also noted that human resource management has emerged as a key focus area, with nearly all Credit Unions expecting to maintain or increase hiring in 2025/2026, addressing structural gaps will be important for sustainable growth.