Credit Union Annual Report 2021 V2 - Flipbook - Page 15
Credit Union ANNUAL REPORT 2021
TREASURER’S REPORT
I am pleased to report another profitable financial year
ending 31 July 2021. The Credit Union is strong and
profitable despite challenges faced during the year.
The low interest rate environment continued throughout
the financial year and resulted in a loss of some existing
loans to predatory pricing by other financial institutions.
However, the Credit Union was able to reduce the outflow
by being flexible with interest rates to members, and by
emphasising our low borrowing fees and interest rebate to
our members.
During the financial year, the first six months were impacted
by uncertainty as members held off on borrowing to build/
buy homes and lending was primarily for vehicles and land
purchases as well as within-share-loans for consumer
purposes.
The second half of the financial year saw a significant
increase in mortgage applications to build and purchase
homes. While the quantity of loans was not as high as the
previous year, the amount per loan for home purchase
and home construction increased materially due to the
robust seller’s real estate market and cost of construction
materials.
Our strong Credit Policy and Procedures aided in keeping
delinquency below 2%, at 1.90% (2020:1.91%) and our strong
liquidity facilitated the disbursement of loans, resulting in a
10% growth in the loan book.
PERFORMANCE SUMMARY
Our Credit Union achieved a Net Income of $10.62M (2020:
$10.56M), which was just above results from the previous
year by 1%.
Net Income ($000)
Shakira Gourzong, Treasurer
2021
10,626
2020
10,563
2019
11,526
2018
7,611
2017
7,974
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