The Bank of England has issued its annual statistics for the credit union sector, with income rising 27.5% to record levels in 2023, to £324.3m.
Corporation tax paid by the UK’s credit unions rose by 216.7% to £9.9m, the figures reveal.
Over the same period, total liquid assets fell by 5.1% to £1242.0m, the first time liquidity has fallen since 2018, says the bank.
Total expenditure grew by 28.3% to £250.9m, as bad debt provisions and write-offs increased by 56.6% to £58.7m.
Loans to members increased by 21.4% to £2338.4m, the largest year-on-year change on record, after increasing 15.7% in 2022.
Total membership is 2,239,251, including 2,043,213 adults, 196,038 juveniles and 47,985 non-qualifying members.
Related: Credit unions named the most reputable organisation in Ireland
A study of the figures from analysts Broadstone says lending by UK credit unions has risen 42% over the past four years. It says this was driven by rising demand for affordable loans, the perceived value offered by credit unions during tough times, and the decline of payday lenders.
Tom Cuppello, director of risk at Broadstone, said: “The Bank of England data demonstrates the growing role that credit unions are playing in our financial ecosystem as the cost of borrowing has risen.”
He added: “For members who may feel locked out of the mainstream lending sector, especially as demand for credit has risen following the pandemic and with tightening of lending criteria, these unions offer an attractive alternative.”
