JPS & Partners 2017 Annual Report

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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
Treasurer’s Report Continued 3% paid in 2016. This downward adjustment became necessary due to the lower earnings on our Investments over the same period. Operating expenses increased by 6.55% or $19.13M over 2017 moving from $273.17M in 2016 to $292.30M in 2017. Results for 2017 include the operations of the new branch for the entire year when compared to only the last quarter in 2016. Revenue Sources Personnel Expenses increased by $9.81M or 6.79% over 2016. This is comprised of salary and benefits awarded to staff under the Collective Labour Agreement, along with education, training, health and uniform benefits. The chart below highlights the areas in which the Credit Union’s revenues were utilized. That is, 31.41% on personnel expenses, The Interest income derived from loans remains our principal source of income. Whilst the loan portfolio mix remained constant. Interest on loans increased by 2.1% over 2016 to account for 75.73% of Total Revenue. Investment income contributed 14.64%, while 4.38% was earned from fees, 1.6% from property rental and 3.65% from other sources. EXPENSES Interest expense totaled $102.43M, reflecting a reduction of $3.85M or 3.76% when compared to the previous year’s figure of $106.27M. Interest of 2% was paid on voluntary shares in 2017 compared to Pushing you Beyond All Limits! 31 JPS & Partners Co-operative Credit Union
Page 2 and 3: Our Vision To be our members’ pre
Page 4 and 5: Table of Contents NOTICE OF MEETING
Page 6 and 7: Progress Report 2008-2017 YEARS MEM
Page 8 and 9: Minutes of the 62nd AGM (Continued)
Page 10 and 11: Minutes of the 62nd AGM Continued B
Page 20 and 21: Pictorial Highlights Scholarship Lu
Page 22 and 23: Our Directors Alicia Burnett Assist
Page 24 and 25: Board of Directors Report (Continue
Page 34 and 35: Treasurer’s Report Continued 26.0
Page 36 and 37: Treasurer’s Report Continued 5 YE
Page 38 and 39: Treasurer’s Report Continued What
Page 40 and 41: Our Team Members : Half-Way Tree Ro
Page 42 and 43: Our Team Members : Ewarton Janet Ru
Page 44 and 45: Meet Our Location Representatives (
Page 46: Financial Statements as at December
Page 52 and 53: Statement of Comprehensive Income F
Page 54 and 55: Statement of Changes in Equity For
Page 56 and 57: Statement of Changes in Equity For
Page 58 and 59: Statement of Cash Flows For the yea
Page 60 and 61: Notes to the Financial Statements F
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Notes to the Financial Statements F
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Supervisory Committee Report Corine
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Credit Committee Report Diedre Codn
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League Delegates Report Natalie Spa
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League Delegates Report (Continued)
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Nominating Committee Report (Contin
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Notes Pushing you Beyond All Limits
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Editorial Team: Joydene Jarrett, Na
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