sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 26
26 Credit Union AGM Booklet 2024
an increase of 20% due to a 35% increase in net
income and a 268% increase in permanent shares.
Our Performance
A summary of the 昀椀nancial performance over the 昀椀nancial year
ended 31 July 2024 is outlined below:
Statement of Income
Net income of $22.6M (2023:16.7M) increased by 35% due
mainly to:
•
Total Loans as of 31 July 2024 of $457M (2023:
$423M), an increase of 8%.
Strategic Objectives
Financial Health
•
Net interest income increased by 20% (2023: 36%)
•
Non-interest income increased by 136% (2023: decreased
of 39%), offset by
Our strategic objective to maintain and improve 昀椀nancial
health includes low interest rates and the lowest fees in
the market, improved liquidity, improved capital reserves,
and a delinquency rate below 2%.
•
A 5% (2023: 25%) increase in total expenses.
•
The high demand for our low-cost loans has positively
impacted loan growth. Members continued to switch
their high-interest-rate loans with other 昀椀nancial
institutions to our lower-interest-rate facilities and
achieve signi昀椀cant savings on reduced monthly loan
payments; however, this was reduced by the bank’s
countermeasures, which included matching our lower
interest rate to retain their customers. New borrowers
bene昀椀tted by making our Credit Union the 昀椀rst choice
for their 昀椀nancial needs.
•
We also improved 昀椀nancial health by building
member deposits to meet our members' borrowing
needs while maintaining the required liquidity ratio.
During the year, we ran a 昀椀xed deposit campaign to
promote our competitive product and demonstrate
our ability to compete with the market. We also utilised
our non-member deposit strategy and successfully
bid for and won additional 昀椀xed deposits from the
Cayman Islands Government and Statutory
Authorities and Government Companies.
•
Total reserves grew by 20%, mainly due to the 35%
increase in net income and the $1.2M increase in
permanent shares based on implementing the Credit
Union Rules (Revision 2023); the permanent share
contribution increased from $25 to $100 for existing
and new members.
•
Due to robust policies and procedures, the
delinquency rate was maintained below 2% at 1.49%.
Net Interest Income - The 20% increase was driven by:
•
Interest on loans increased 22% due to an 8% growth in the
loan portfolio.
•
Net interest income from 昀椀xed deposits with banks increased
by 10% due to higher interest rates in the market.
•
Fees earned on cash advances increased by 7%, offset by,
•
An increase of 95% in provision for loan losses of $251K
(2023: $129k),
Non-interest Income - The 136% increase was due mainly to:
•
Change in unrealised gains on fair valued equity investments
of $448K (2023: loss -$697K) during the year due to
increases in the share price of investments, offset by
•
Recovery of loans previously written off $151K (2023:
$186K), a decrease of 19%.
Total expenses increased by 5% (2023: 25%) mainly due to:
•
Personnel expenses increased by 8% (2023: 24%), mainly
due to additional staff and a cost-of-living increase in
January 2024.
Statement of Financial Position
•
Total Assets as of 31 July 2024 were $623M (2023: $570M),
an increase of 9%. This was mainly impacted by an 8%
increase in total loans and applying the Rule on non-member
deposits.
•
Total Member Deposits as of 31 July 2024 were $506M
(2023: $485M), an increase of 4%, and non-member 昀椀xed
deposits, at $53M (July: $32M), increased by 66%.
•
Total Reserves as of 31 July 2024 were $61M (2023: $51M),
