Economic volatility continues to impact Ontario’s credit unions

Sector assets grew in the third quarter, but profitability is down and loan delinquencies are up

FSRA’s Q3 2023 Sector Outlook report found that there was year-over-year growth in sector assets. However, ongoing inflationary pressures and high interest rates continue to impact credit unions. The report also shows profitability decreased and loan delinquencies increased year over year. 

Here are some key findings: 

  • Profitability in this quarter was 20 basis points (bps), 26 bps below last year and unchanged from last quarter.
  • Over 30-day delinquency on residential mortgages was 43 bps, up 20 bps year over year and 5 bps from last quarter.
  • 30-day delinquency on commercial loans was 83 bps, up 37 bps year over year and 36 bps from last quarter.
  • Total loan delinquency was 55 bps, up 23 bps year over year and 14 bps quarter over quarter.
  • Sector assets totaled $94.4 billion at the end of the quarter, reflecting a year-over-year increase of $5.1 billion (up 5.7%). 
  • Liquidity ratio was at 10.6%, down 59 bps from last year. 

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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