Ontario Credit Unions grow assets in Q2 and Q3
FSRA's Q2 and Q3 2025-26 Sector Outlook Reports, which are snapshots in time, showed that profitability at Ontario’s Credit Unions remained strong and assets continued growing during a period of global economic volatility and uncertainty.
Q2 Highlights
As of the end of Q2 2025, total sector assets reached $102.14 billion, reflecting a year-over-year increase of $4.04 billion or 4.12%.
The Report highlights several key developments within Ontario's credit union sector during the quarter:
- Profitability was at 30 basis points (bps) in Q2 2025, an increase of 2 bps over Q1 2025 (100 basis points equals 1 percentage point). The increase was driven by a reduction in interest expense on deposits, while interest income decreased in tandem with interest rate cuts.
- Year-over-year, residential mortgage loans grew by $1.90 billion or 3.48%, remaining near historical growth rates, while commercial loans increased by $1.69 billion or 6.68%.
- The total over 30-day loan delinquency rate stood at 1.18%, reflecting an increase of 28 basis points year-over-year and 6 basis points from the previous quarter.
Q3 Highlights
Profitability remained strong at 31 bps in Q3 2025, slightly increasing from Q2 2025 by 1 bps. The increase was driven by an increase in loan interest income, while expense on deposits fell 2 bps.
- Borrowings continue to decrease 3.0% year-over-year and 4.5% quarter-over-quarter, indicating that credit unions are actively paying down on existing commitments, and look to less expensive forms of capital.
- As of the end of Q3 2025, total sector assets reached $102.83 billion, reflecting a year-over-year increase of $4.07 billion or 4.12%.
- Year-over-year, residential mortgage loans grew by $2.56 billion or 4.69%, remaining near historical growth rates, while commercial loans increased by $1.90 billion or 7.39%.
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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Note: FSRA gathers information from multiple sources for its Sector Outlook Reports. There was a delay in gathering information which has resulted in FSRA’s Q2 and Q3 reports being distributed later than usual. We apologize for the inconvenience.
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.