JPS & Partners 2016 Annual Report

Treasurer’s Report (Continued)
Members' Deposits ($M)
Loan delinquency at 31/12/2016 stood at 2.07% of the
portfolio, a further reduction from 2.33% at the end of 2015.
This measure remains well within the international Credit
Union benchmark of 5%. Management will remain vigilant
in our efforts to maintain low levels of delinquency
throughout the coming year while increasing the rate of
growth of the portfolio. The credit union continues to
provide financial counselling to members and, when
necessary, to utilize all avenues for recovering the amounts
owed by delinquent borrowers.
The Society continues to perform well as measured by the
universal credit union standard PEARLS ratios. At
December 31, 2016 Institutional Capital stands at 16.37%
of Total Assets in comparison with the minimum standard of
10%, an indication of the organization’s strong capital base.
The favourable Operating Expense and Gross Margin ratios
of 6.66% and 7.78% respectively, are evidence of the
continued prudent management of the credit union’s
resources. Loans/Total Assets continue to improve and
that ratio moved from 55.98% at the end of 2015 to
59.49% at 31/12/2016, just shy of the PEARLS standard
of 60-80%. Total Savings deposits increased by 11.33%
during the year and the Savings/ Total Assets ratio,
maintained a positive position, moving up slightly to 76%
within the standard of 70-80%.
DIVIDEND DECLARATION
The Board of Directors is recommending a dividend
payment of 12% on the Permanent Shares balance of each
member on record as at December 31, 2016.
PEARLS RATIO ANALYSIS
PEARLS Ratios Standard 2016 2015 2014 2013 2012
Net Loans /Total Assets 60-80 59.49 55.98 53.25 51.45 49.23
Savings Deposits/Total Assets 70-80 76.00 75.83 76.06 76.58 79.30
Institutional Capital/Total Assets (C) >=10 16.37 16.22 16.11 15.62 13.02
Total Delinquency/Gross Loans Portfolio