You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Treasurer’s <strong>Report</strong> (Cont’d)<br />
LIQUID ASSETS & FINANCIAL<br />
INVESTMENTS ($M)<br />
Fixed Assets increased by a net<br />
$2.3M or 2% over the previous year.<br />
The most significant increases were<br />
in the area of computer software and<br />
equipment.<br />
Members’ voluntary shares increased<br />
by $53.85M or 6% moving from<br />
$893.7M in 2014 to $947.6M in<br />
<strong>2015</strong>. The compulsory savings<br />
requirement attached to some loan<br />
products, contributed to the growth<br />
in this category. Other savings<br />
deposits, however, decreased by<br />
$43.08M or 2.3%, as economic<br />
constraints forced a limitation on<br />
members’ ability to save.<br />
MEMBERS' SAVINGS<br />
DEPOSITS ($M)<br />
Loan delinquency for <strong>2015</strong><br />
decreased from 4.89% at the end of<br />
2014 to 2.33% of the portfolio, a<br />
move in the right direction and well<br />
within the international Credit Union<br />
standard of 5%. We will remain<br />
vigilant in our efforts to maintain low<br />
levels of delinquency in the coming<br />
year while increasing the rate of<br />
growth of the portfolio. Management<br />
continues to provide financial<br />
counselling to members and, when<br />
necessary, to utilize all avenues for<br />
recovering the amounts owed by<br />
delinquent borrowers.<br />
PEARLS RATIO ANALYSIS<br />
The Credit Union continues to<br />
perform well against the universal<br />
credit union standard PEARLS ratios.<br />
Institutional Capital stands at 16.22%<br />
of Total Assets in comparison with<br />
the minimum standard of 10%, a<br />
measure of the strong capital base of<br />
the Society. The favourable Operating<br />
Expense and Gross Margin ratios of<br />
6.66% and 7.78% respectively, are<br />
evidence of the continued prudent<br />
management of the credit union’s<br />
resources.<br />
We continue our efforts to meet the<br />
targets with respect to loans and<br />
savings. Loans/Total Assets improved<br />
to 55.98%, up from 53.25% in 2014.<br />
However we are still behind the<br />
benchmark of 60-80%. Savings<br />
deposits decreased by $43.1M, a<br />
2.3% reduction, resulting in a<br />
reduction in the Savings/ Total Assets<br />
ratio from 51.74% for 2014 to<br />
50.22% at the end of <strong>2015</strong>.<br />
PEARLS Ratios<br />
Standard <strong>2015</strong> 2014 2013 2012 2011<br />
% % % % % %<br />
Net Loans /Total Assets 60-80 55.98 53.25 51.45 49.23 46.27<br />
Savings Deposits/Total Assets 70-80 50.22 51.74 54.14 59.74 61.65<br />
Members Voluntary Shares/Total Assets =10 16.22 16.11 15.62 13.02 12.11<br />
Total Delinquency/Gross Loans Portfolio
Change language