JPS & Partners 2017 Annual Report

Minutes of the 62nd AGM (Continued)
Union received. She added that the Credit Union’s
investments for the most part were with government
instruments and as such any decrease in interest rates
had a negative impact on the income the Credit Union
received from these investments.
On the matter of technology, the Treasurer stated that that
this was the path that the Credit Union had to embark on.
She said that such a move would foster faster
transactions online for the members and will allow them
to have access to their business anywhere in the island.
In her review of the past year, she highlighted that the
Credit Union continue to promote attractive products. She
cited the Triple Combo Loan as the main one, which was
a product combined with Mortgage, Home Equity and
Salary Enhancer Loans. She noted that the Credit Union
rebranded its motor vehicle loan product - “Sign and
Drive”. Members benefitted from several attractive revised
benefits and features eg lower interest rates and longer
loan repayment period. The Treasurer told the members
that the Credit Union continued to manage its delinquency
portfolio and that there was improvement in the portfolio.
The ratio moved from 2.3% in 2015 to 2.07%.
In terms of the revenue sources of the Credit Union for
2016, she stated that loan interest accounted for the
largest portion of income. She noted that there was
growth in this area over the period as the ratio moved
from 70.5% to 73.8%. The remaining portion of the
income came from investment -16.8%, fees 4.6% and
rental income 3.2%.
On the expense side, she reported that the major factor
for consideration was interest expense. She stated that
the interest paid on deposits was $106 Million, and
represented a slight reduction by 12.9%. Over the
previous year, Operating Expenses increased by 11%,
moving from $245 Million to $273 Million. She highlighted
that personnel expenses of 11% represented the
greatest chunk of the increase in operating expenses.
The Collective Labour Agreement benefits awarded to
staff was the main contributory factor. The Treasurer
stated that inflation was mainly responsible for the
increase in Representation and Administrative Expenses.
The financial performance continues to be measured
against the universal Credit Union PEARLS Standard.
The Treasurer indicated that Net Loans/Total Assets
moved from 55% in 2015 to 59%. She noted however,
that the Credit Union was a little below the standard of
60%. She reported that savings was at 76%. She noted
that Institutional Capital was very strong and that
Delinquency/Gross Loan had decline. She noted that
the Credit Union was in good stead with regards to all
the other ratios.
The Treasurer indicated that by virtue of the merger with
the CG Credit Union, the Credit Union benefitted
tremendously as the Voluntary Shares increased by $261
Million in 2016. At this juncture she paused for questions
from the floor.
Natoya Mighty-Smith receives the gate prize from General
Manager, Joydene Jarrett.
Mr. Charles Hendricks pointed to the fact that the
Financial Report stated that operating costs was rising
and questioned what single factor led to the increase.
He also asked whether any particular initiative was
implemented on the part of the Board to control the
growth in operating expenses in order to increase the
profitability of the operation. The Treasurer said that it
Pushing you Beyond All Limits!
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JPS & Partners Co-operative Credit Union