JPS & Partners 2017 Annual Report

Treasurer’s
Report
I take pleasure in presenting the
Treasurer’s Report for the year 2017 to
this our 63rd Annual General Meeting.
ECONOMIC OVERVIEW
During 2017, the economic reform programmes
introduced by the Jamaican government to satisfy the
International Monetary Fund (IMF) requirements, resulted
in some positive movements in the macroeconomic
indicators.
The inflation rate of 5.2% was in keeping with target, the
Jamaican currency appreciated by 2.7% against its
major trading currencies when compared to a 6.7%
depreciation for 2016. The country recorded its lowest
unemployment rate since 2009 at 11.7%.
The year however, proved to be very challenging for the
financial services industry.
The Bank of Jamaica (BOJ) introduced a more
accommodative monetary policy which resulted in the
lowering of interest rates on two occasions to close
at 4.18%, 4.63% and 5.45% on 90,180 and 270 days
Treasury Bills respectively. Also, by the end of the 2017
there were two (2) new entrants to the commercial
banking sector.
In spite of this fiercely competitive marketplace, our
Credit Union performed well in most areas of its
operations, achieving a Net Surplus of $41.96million
before any adjustments.
All efforts will be made to continue to introduce
strategies to increase market share and implement
specifically designed products to attract our existing and
potential members.
Major developments in 2018 will include satisfying new
regulatory requirements of the BOJ and implementing
the changes in the International Financial Reporting
Standards or IFRS9.
This will lead to additional costs, particularly for loan loss
provisioning, but the initial ‘one off adjustment’ to bring
it into effect as at Jan 1, 2018, will not have an adverse
effect on the Credit Union’s reserves. The Management
Deborah Campbell
and its team have worked diligently to ensure that the
Credit Union becomes compliant with all regulatory
requirements.
FINANCIAL PERFORMANCE
INCOME
Interest income of $414.57M reflected an increase of
$15.09M or 3.64%, over 2016. The modest movement
is a result of the relatively low rates earned on
investments as the government continues with its low
interest rate regime. Despite this limitation, prudent
management ensured that the best available rates were
received on our various investment instruments. Our
Credit Union continues to maintain its investment
portfolio in government instruments, the Jamaica Cooperative
Credit Union League (JCCUL) and other
approved investment houses.
Pushing you Beyond All Limits!
30
JPS & Partners Co-operative Credit Union