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Ontario Credit Unions grow assets and profitability in Q1

FSRA's Q1 2026-27 Sector Outlook Report, which is a snapshot in time, showed Ontario’s Credit Unions continued growing assets and increasing profitability during an ongoing period of global economic uncertainty.

Q1 highlights include:

  • Total sector assets reached $105.04 billion, reflecting a year-over-year increase of $4.71 billion or 4.70%. 
  • In terms of profitability, Return on Average Assets (ROAA) increased by 19 basis points (bps) to 47 bps year-over-year based on an overall drop in interest expense on deposits of 36 bps outpacing the decrease of loan interest income of 16 basis points. (Note: 100 basis points equals 1 percentage point.)
  • Q1 ROAA was 20 bps higher than Q4. Reductions in loan interest income of 14 bps was offset by a 10 bps increase in investment income and a 20 bps decrease in interest expense on deposits. 
  • Year-over-year, residential mortgage loans grew by $2.45 billion or 4.46% remaining near historical growth rates, while commercial loans increased by $216.22 million or 0.79%.
  • Borrowings have decreased 31.85% year-over-year, indicating that Credit Unions continue to pay down existing commitments. 
  • The total over 30-day loan delinquency rate (personal, commercial and mortgage) stood at 1.66%, reflecting an increase of 54 basis points year-over-year and up 14 basis points from the previous quarter.

FSRA is actively looking to deliver benefits from the Enhanced Data Collection (EDC) initiative back to the Ontario Credit Union sector. The upcoming Q2 Credit Union Sector Outlook Report, coming in the fall, will contain additional content based on data from sector submissions.

FSRA publishes Sector Outlook reports for the Credit Union sector every quarter. They provide an analysis and commentary on the economy and financial results in Ontario’s Credit Union sector.

Learn more

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.

Learn more at www.fsrao.ca.
 

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