Ontario Credit Unions grow assets in Q1
FSRA's Q1 2025-26 Sector Outlook Report, which is a snapshot in time, showed that Ontario’s credit unions continued to grow their assets.
Total sector assets increased to $100.32 billion, up $3.26 billion or 3.26%, compared to Q1 2024-25, primarily driven by strong demand for mortgages and commercial loans.
The Report highlights several key developments within Ontario's credit union sector during the quarter.
- Year-over-year, residential mortgage loans grew by $1.11 billion, an increase of 2.06%, despite an unstable housing market. Commercial loans increased by $1.94 billion or 7.68%, while cash and investments decreased by $292.23 million or -2.57% compared to the same quarter last year.
- Profitability, as measured by Return on Average Assets (ROAA), stood at 28 basis points in 1Q 2025, reflecting an increase of 4 basis points from Q4 2024, mainly driven by interest expenses on deposits decreasing by 22 basis points and other interest expense falling 9 basis points. Year-over-year, lower loan yields and investment income were more than offset by decreased interest expenses on deposits in the first quarter of 2025.
- The over 30-day delinquency rate on residential mortgages—representing $54.99 billion or 54.81% of sector assets—stood at 0.83% in 1Q 2025, marking an increase of 19 basis points year-over-year and a decrease of 4 basis points from the previous quarter.
- According to Statistics Canada, the Canadian household debt-to-disposable income ratio has returned to near Q1 2024 levels. It declined from 189.3% in Q1 2024 to 184.6% in Q1 2025, but has increased 14.4% since Q4 2024, and 14.6% since Q3 2024.
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.
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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.