ESB staff credit union votes on three mergers in Dublin

Members of the ESB staff credit union will vote on Friday on whether to pursue mergers with three other credits unions in Dublin.

St Patrick’s is proposing a so-called transfer of engagement with Ringsend & District, East Wall, IndoGroup credit unions, the latter of which was formed in 1964 for staff of Independent Newspapers.

Collectively, the credit unions have assets of €43.6 million, equating to 14 per cent of the assets of St Patrick’s.

In his note to members in St Patrick’s annual report, president George O’Driscoll said the three credit unions were of “significance” given their close geographical proximity to its offices at Herbert Place, in Dublin. The potential growth opportunity also “fits comfortably” with St Patrick’s strategic objectives.

A spokesman for Independent News & Media said it had no involvement at a corporate level in IndoGroup and “any formal approach” would be a matter for the credit union’s members.

St Patrick's will seek permission from members at its AGM at the Aviva Stadium to pursue these transfers subject to satisfactory due diligence and approval from its regulator, the Central Bank.

Upturn of loans

In May 2015, St Patrick’s merged with Pearse Street and St Laurence O’Toole credit unions. Mr O’Driscoll said early indications were that these transfers resulted in an “upturn of loans” issued following the integrations.

The accounts for the year to the end of September 2013 show St Patrick’s had a 4.6 per cent increase in total assets to €309 million, but its net income declined by almost 8 per cent to €8.4 million.

Its bad-debt provisions rose 15.5 per cent to €4.3 million. Its loan book rose 10.7 per cent to €48.5 million.

The accounts also show the amount in loans written off reduced to €4,126 from €48,207 in 2013, and 95 members availed of financial counselling.