Credit union membership rose by 0.33% to 2.16 million adults in 2025 Q1, according to figures from the Bank of England.
Total assets held by UK credit unions went up by 0.14% to £4.89bn, following a dip in 2024 Q4.
Both income and expenditure came down from last quarter’s highs.
Income dropped 12.98% to £99.62m, and expenditure fell 15.76% to £86.83m compared to the previous quarter.
Interim profit increased by 12.24% to £12.77m, mainly due to higher profits in England and Scotland as falling income was offset by a bigger fall in spending.
Paul Matthews, senior director of risk at Broadstone, said: “Credit Unions continued to build members and assets through the first quarter of the year, capitalising on the gap left on one side of the consumer credit market by a tightening of mainstream lending criteria and on the other from borrowers turning away from traditional banks.
“Demand for borrowing remains high given the financial pressures that many households face, which is another key growth driver for the Credit Union market and expected to remain elevated as we head into winter.
“Credit Unions can offer members a more personalised service with greater flexibility in underwriting which can be more accommodating for borrowers with limited credit history or irregular incomes.”
Matthews added: “However, Credit Unions will need to ensure that this growth is controlled and measured with well-understood risk and the appropriate levels of customer care.”
