Credit Union Annual Report 2021 V2 - Flipbook - Page 17
Credit Union ANNUAL REPORT 2021
DELINQUENCY MANAGEMENT
The delinquency ratio of 1.90% (2020: 1.91%) improved by
0.5% due to the continued efforts of our Team. See graph
below:
Delinquency Rate
2021
1.90%
2020
1.91%
2019
2.77%
2018
5.43%
2017
5.44%
Total loans ($000)
2021
323,229
2020
294,271
2019
263,219
2018
195,954
2017
174,167
PROVISIONS
Total loan provision of $1.43M (2020: $2.44M) reduced by
recovery of provision of $454K (2020: increased by $602K)
and decreased further by $564K (2020: $213K) for loans
written-off as of 31 July 2021.
ASSETS
Total provisions include a specific provision and an expected
credit loss provision based on IFRS9. The specific loan
Total assets of $468M (2020: $410M), increased by 14%
loss provision on non-performing loans decreased by 38%
(2020: 26%). Total assets increased due to a 28% increase
bringing the total specific provision to $1.2M (2020: $1.9M).
in cash and cash at banks and 10% growth in loans to our
The expected credit loss on the performing loan book
members, which was driven by 15% increase in member
decreased by 49% to $260K (2020: $506K) mainly due to
deposits.
revised assumptions based on the nature and complexity
of the loan book.
Total Assets ($000)
Loans written-off totaled $564K (2020: $213K). These
loans were written off after careful consideration by the
2021
468,571
2020
410,445
a significant period, and all efforts to secure repayment
2019
325,256
involved have been recorded in the Register of Loans
2018
293,210
lending facilities of the Credit Union, until such time as their
Board of Directors because they had been delinquent for
were exhausted and proved unsuccessful. The members
Written Off, and these members may not avail of future
previous outstanding debt is repaid.
2017
265,147
See graph below on loan provisions:
LOANS
Total loans, net of provisioning of $323M (2020: $294M)
increased by 10% (2020: 12%).
Loans disbursed for the financial year of $88M (2020: $69M),
increased by 73% mainly due to the increased demand for
Loan Provisions ($000)
2021
1,431
2020 2,449
land, home, vehicle, and within-share loans.
2019
2,134
Gross loans approved (internally and by the Credit
2018
2,668
2017
2,720
Committee) for the year was $97M (2020: $59M); loans
committed, but not disbursed as of 31 July 2021 of $20.5M
(2020: $20M) will be booked in the financial year 2021/22.
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