Credit Union Annual Report 2021 V2 - Flipbook - Page 16
14
Credit Union ANNUAL REPORT 2021
Net Income was mainly impacted by:
ANALYSIS OF CHANGES IN INCOME & EXPENSES
• 14% increase (2020: 12%) in total
($000)
expenses mainly due to:
2021
2020
%
17,570
17,834
-2%
273
414
-52%
17,843
18,248
-2%
58
96
40%
6
2
-200%
64
98
35%
17,779
18,150
-2%
Dividends on equity investments
126
119
6%
in other income due mainly to an
Realised loss on repossessed collateral
-32
0
increase in loan application fees in
Change in unrealised loss in fair value of
securities
-44
-232
81%
Unrealised loss in fair value of
repossessed collateral
-97
-212
54%
in calculating bad debt provision in
Other income
583
474
19%
2020 were revised after a robust
TOTAL NON-INTEREST INCOME
536
149
72%
18,315
18,299
0.1%
8,143
7134
-14%
10,172
11,165
-9%
454
-602
175%
10,626
10,563
1%
o 11%
increase
expenses
as
in
personnel
a
result
of
additional staff, 7% increase in
health insurance premiums, and
retirement benefits for two long
serving employees.
o 54%
increase
benefits
paid
INTEREST INCOME
Members’ loans
Deposits
TOTAL INTEREST INCOME
in
beneficiary
to
deceased
members beneficiaries.
• Net interest income declined by 2%
INTEREST EXPENSE
Members’ deposits
(2020: down 9%) which was due to
Lease liability
the impact of lower interest rates
TOTAL INTEREST EXPENSE
for the financial year, offset by the
10% growth in the loan book;
Interest on fixed deposits with
NET INTEREST INCOME
banks declined by 52% due to low
interest rates at banks; the yield on
NON-INTEREST INCOME
fixed deposits declined from 1% to
Fees
0.4% over the previous year;
• 24% increase (2020: 43% down)
the second half of the financial year.
• The recovery of bad debt expense
of $453.5K as the assumptions used
assessment;
• A
-$97K
unrealised
repossessed
loss
collateral
on
(2020:
-$212K) which represents a 54%
improvement in the decline of the
fair value of repossessed collateral
over the previous year; and,
• A -$44K loss (2020: -$232K) in
fair
value
of
represents an
securities
Gross margin before provision and
expenses
Less operating expenses
SURPLUS FOR THE YEAR BEFORE
PROVISION
which
81% improvement
over the previous year.
See Table of Analysis of Change in
Income and Expenditure 2021 vs 2020.
Provisions:
Allowance for loan losses
TOTAL SURPLUS