The National Co-operative Credit Union (NCCU) is reporting $38.8 million revenue for the year 2021 constituting a net value increase of $2.5 million (6.9%) as compared to 2020 which recorded $36.2 million.
Treasurer of the NCCU, Euan James, made the disclosure during the company’s 12th Annual General Meeting held at the Public Service Union (PSU) building on Wednesday.
“The major sources of revenue for the year came from interest from loans with $31.7 million and income from Investment with $5.7 million followed by Other Income with $1.3 million,” he said.
James continued, “Investment income recorded the highest percentage change with 54.39%, due to prudent management of the portfolio with increased investment in the Government of Grenada, St Lucia and Antigua Treasury Bills and Fixed Deposit investment in the First Federal Credit Union in St. Kitts.”
The interest earned from loans increased by a meager $247,731 of 79%, moving from $31.4 million in 2020 to $31.7 million in 2021 and, according to James, this can be attributed to the impact of the Covid-19 Pandemic which decreased the availability of gainful employment and disposable income to its membership.
“This ultimately resulted in a decreased demand for loans and increased competition amongst financial institutions on island for the declining available lending market,” he stated.
James also announced that expenditure for the year 2021 totaled $36.4 million as compared to $31.7 million in the previous year (2020).
“This constitutes a net value increase of $4.5 million or 14.4 %,” he revealed. “A major aspect of expenses includes the amount of $6.3 million recorded for Expected Credit Losses on loans due to provisioning in accordance with IFRS 9.,” he noted.
James acknowledged, as “a reality” the probability that some of the loans granted to members will not be recovered and said the society must provide for the expected credit loss.
“In this current financial year, Expected Credit Losses increased by $2.6 million over the previous year which reflects a $68.2% increase,” he said.
The total cost of the institution’s operation increased by $1.4 million to $15.7 million, an increase of (10%) over the year 2020 figure of $14.3 million, primarily in the categories of Personal Expenses, Computer Services and Expenses, Computer Services and Expenses, Occupancy expenses and Security services.
Meanwhile, the NCCU Treasurer reported a surplus for the organization, before appropriation, of $2.39 million, showing a significant decrease of $2.11 million or 46.93% when compared to 2020.
“The amount of Net Surplus was heavily impacted by a slow revenue growth due to decrease in loan demand creating a more competitive market,” James explained.
According to James, the Society’s assets grew of $693.1 million grew by $31.4 million or 4.7% compared with last 2020 figures of $661.6 million increase in Cash and Bank balances. There was also a $4.6 million or a 3.2% increase, in investments such as Commercial Paper, Fixed Deposits, Treasury Bills, and Government bonds.
“Loan to members, less allowance for Expected Credit Losses which is our core business, grew moderately by $5.4 million or $1.4% over last years’ total,” James indicated.
He said this is reflective of the impact of the Covid-19 pandemic and competitive financial market.
In terms of the liabilities, James indicated that during the period under review, total liabilities grew to $621.9 million showing $29.2 million or a 4.9% increase over the previous year.
“The main contributing factors were Members Savings and Deposits which stood at $429.8 million with a growth of $30.9 million or 7.76% compared to the previous year,” James noted. “This is an indication of the confidence placed in your credit union as a safe and secure institution to deposit your funds.”
He continued, “Members’ Equity for the year 2021 was $71.2 million, an increase of $2.2 million or 3.26% when compared with $68.9 million reported for the previous year.”
Below is a list of the 10 newly-elected members of the NCCU Board of Directors for 2022.
Clement Marcelin
Yasmin John
Glenworth Ducreay
McDowill Paul
Shon Savarin
Juliana Toussaint Williams
Marjorie Carleen Roberts
Sonia Williams
Wendel Gregoire
Ingrid Prosper Bruno
The thirteen-member NCCU Board will be complete with the inclusion of three other directors whose terms have not yet expired.
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