sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 11
11 Credit Union AGM Booklet 2024
7.
BOARD OF DIRECTORS’ REPORT
7.1
In a pre-recorded message, James Watler, the Chairman of the Board, presented the Board of
Directors Report to the membership.
7.2
The Chairman provided a high-level overview of the Board’s achievements and strategic objectives
for the 昀椀nancial year ended 31 July 2023 (the “Financial Year”). In doing so, he expounded on the
importance of the Board’s governance function during these in昀氀ationary times, where the focus was
to help members by effectively managing the Credit Union’s assets, providing lower and consistent
borrowing costs, and encouraging saving.
Achievements
7.3
In relation to the Credit Union’s notable achievements for the Financial Year, the Chairman reported
that:
a)
The Credit Union realised a net surplus of $16.7 million, which was an increase of 36% over
the 昀椀nancial year ended 31 July 2022 (the “Prior Financial Year”). Total assets grew by 12%,
member deposits increased by 4.5% and total loans increased by 17%. The delinquency
rate fell to 0.5%, a record low for the Credit Union.
b)
The growth in net income positively impacted the Credit Union’s key performance ratios, as
the return on assets was 3.1%, an increase of 24% over the Prior Financial Year, and the
return on equity of 35.2% represented an increase of 21%.
c)
Based on the above results, the Board of Directors recommended a dividend of 3.0%,
which represented an increase of 30% over the Prior Financial Year. The Board also
approved the payment of an interest rebate of 2% of interest paid for the Financial Year to all
eligible borrowers.
Strategic objectives
7.4
The Chairman provided a detailed explanation of the strategic objectives implemented for the
Financial Year, and while doing so, it was noted that:
a)
The high demand for low-cost loans impacted the Credit Union’s strategy to maintain
昀椀nancial health by increasing its loan portfolio. Additional loan appointments were made
available so members could switch their high-interest-rate loans from other 昀椀nancial
institutions and achieve signi昀椀cant monthly savings. In addition, new borrowers bene昀椀tted
by making the Credit Union the 昀椀rst choice for their 昀椀nancial needs.
b)
The Credit Union’s strategy also included building deposits to meet the borrowing needs of
its members while maintaining the required liquidity ratio. In 2023, the Credit Union ran a
successful 昀椀xed deposit campaign to promote its competitive product and demonstrate its
ability to compete with the market. The Credit Union also utilised its non-member deposit
strategy to successfully bid for and win 昀椀xed deposits from the Cayman Islands
Government, the largest employer of Credit Union members.
c)
The Credit Union Rules (2023 Revision) (the “Rules”) were updated and approved by the
Registrar of Cooperative Societies on 7 July 2023. The Rules focused on enhancing
governance by revising and updating the Board and committees' roles, size, tenure,
responsibilities, and expertise. In addition, policies were updated and created to support
the revisions in the Rules.
