JPS & Partners 2017 Annual Report

Board of Directors Report (Continued)
institutions that charges minimal fees on its products
and services.
During the year a number of objectives were pursued, to
ensure the continued growth and viability of the Credit
Union. Some of the objectives pursued included but
were not limited to:
• Growth in the Loans portfolio
• Formation of Strategic alliances to grow
membership
• Product promotional days
• Ongoing Interest rate reviews
Below is a summary of the Credit Union’s performance
for 2017.
JPS & Partners Co-operative Credit
Union Limited
Financial Performance
2017 2016 GROWTH
$M $M +/- %
Shares 1,247.13 1,205.92* 3,42
Deposits 1,964.16 1,918.02* 2.41
Loans 2,655.58 2,445.36 8.60
Total Assets 4,223.63 4,110.37 2.76
Surplus 41.96 30.61 37.10
Institutional Capital 681.05 672.77 1.25
Membership 14,196 13,796 3
*Reclassified
Shares and deposits recorded modest growth. Diversification
of their investment portfolio by some members
and some levels of dis-savings by others have
contributed to the recorded growth.
During the year a number of loan initiatives were
instituted. This led to the achievement of the growth in
loans. The “Go Ahead” promotion which saw the Credit
Union offering reduced rates, repayment periods and
share requirement on our Home Equity Loans, Mortgage
facilities, Motor Vehicle and our unsecured Salary
Enhancer facility. Overall, rates were reduced to as low
as 8% on motor vehicle loans and 8.88% and 9.49%
on mortgage and Home Equity loans respectively. No
share or as little as 3% share requirement was also
offered to our members during the promotion.
The Credit Union also extended its loan amnesty on
charged off loans. During this promotion, members
got the benefit of a reduction in accrued loan interest.
This initiative gave our members the opportunity to
liquidate their debts and improve their credit ratings at
the same time.
Our members also continue to benefit from our Loyalty
Programme which allows them to benefit from a 1%
reduction in interest paid and a 1% increase in interest
earned on some investment and loan products.
Risk based lending was also introduced in 2017. Our
members with high debt ratios are still able to access
loans from their Credit Union based on assessment.
We planned strategically and through the efforts of our
various stakeholders, provided improved products and
services and enhanced the level of member care.
These efforts culminated in our achieving a surplus of
$41.96M.
Our Institutional Capital is the reserve set aside to
cushion the Credit Union against internal and external
shocks. The present position represents approximately
1.25% increase over the 2016 figure of $672.77M It
also represents a relatively strong position of 16.12%
of total assets and remains as one of the highest in the
Movement.
MEMBERSHIP
Our Foundation
Considering all the financial options that are
available, an amazing level of support was
provided by our members who remained
loyal and faithful to their credit union despite
being enticed by traditional deposit taking
institutions who have become more
Pushing you Beyond All Limits!
22
JPS & Partners Co-operative Credit Union