Ontario Credit Unions grow assets in Q4
FSRA's Q4 2024-25 Sector Outlook Report, which is a snapshot in time, showed that Ontario’s credit unions grew their assets. As of December 31, 2024, total sector assets reached $99.61 billion, reflecting a year-over-year increase of $3.25 billion or 3.37%.
The Report highlights several key developments within Ontario's credit union sector during the quarter.
- Year-over-year, residential mortgage loans grew by $551.84 million or 1.02%, remaining below historical growth rates as housing prices and transaction volumes remained subdued. Commercial loans increased by $1.42 billion or 5.66%, while cash and investments rose by $1 billion or 9.44%.
- Profitability, as measured by Return on Average Assets (ROAA), stood at 24 basis points in 4Q 2024, reflecting an increase of 3 basis points from Q3 2024, mainly driven by a decrease of 4 basis points in interest paid to depositors. Year-over-year, higher loan yields and investment income were offset by increased interest expenses paid to depositors in the last quarter of 2024.
- The over 30-day delinquency rate on residential mortgages — representing $54.65 billion or 54.86% of sector assets — stood at 0.87% in 4Q 2024, marking an increase of 31 basis points year-over-year and 15 basis points from the previous quarter.
- According to Statistics Canada, the Canadian household debt-to-disposable income ratio continued to improve on an annual basis, declining to 170.1% in Q3 2024 from 175.0% in Q3 2023.
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.
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