sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 13
13 Credit Union AGM Booklet 2024
9.3
b)
Operating expenses increased by 25%, mainly due to additional staff and the application
of a revised salary scale based on a market survey. Additionally, computer expenses
increased due to strengthening the Credit Union’s information technology environment.
c)
Total assets amounted to $570 million, an increase of 12% compared to the Prior Financial
Year, which was attributed to an increase of 29% in new loans to members. Total loans, net
of provisioning, were $424 million, which increased by 17% compared to the Prior
Financial Year. Loans disbursed amounted to $136 million, an increase of 29%, mainly due
to the demand for land home ownership and the competitive interest rates offered by the
Credit Union.
d)
The total loan provision of $364,000 was reduced by $311,000 in written-off loans. This
reduction was due to a robust credit risk policy and procedures.
e)
Total member deposits of $485 million grew by 5%, evidencing the continued con昀椀dence
in the Credit Union. Member shares grew by 3%, and member savings increased by 18%
due to increased membership and online transfers from commercial banks. Member 昀椀xed
deposits increased by 368% due to the competitive interest rates offered by the Credit
Union. Pursuant to Rules 5 and 17, the Credit Union started accepting deposits from nonmember core employers, and as of 31 July 2023, total non-member deposits amounted to
$32 million.
Looking ahead to the 昀椀nancial year 2023/24, the Treasurer listed the following expectations:
a)
Further increases in interest rates at commercial banks would enhance the Credit Union’s
competitive position and help it grow its loan book.
b)
Increased return on deposits not loaned to members and placed with banks offering
higher interest rates.
c)
Continued growth in membership by extending the membership to employees of health
care and education facilities licensed to operate in the Cayman Islands, members of the
Farmers’ Co-operative and the registered Agro-Processors.
d)
Diversi昀椀cation into other investments to increase return on investments.
9.4
The MC opened the 昀氀oor to questions about the Treasurer’s Report and the report from the
independent auditor, Ernst & Young (the “Audit Report”), which were published on the Credit
Union’s website and Whova before the meeting.
9.5
There were no questions concerning the Treasurer’s Report or the Audit Report.
9.6
Eziethamae Bodden moved a motion to accept the Treasurer’s and Audit reports, as presented.
The motion was seconded by Elaine Williams and carried unanimously.
9.7
The First Vice Chairperson referred to the current delinquency rate, and she extended a vote of
thanks to the CEO, the Credit Union’s staff, and the Credit Committee for the monumental
achievement of reducing and maintaining a delinquency rate below 1%.
9.8
Osbert Smith asked if written-off loans contributed to the marked reduction in delinquency.
The CEO explained that while writing off bad debt was a part of doing business, improved policies
and procedures, diligent staff, strict management of the credit process and timely recovery and
collection processes were signi昀椀cant contributors to the reduction in delinquency at the Credit
Union.
