Annual Report 2020

JPS & PARTNERS CO-OPERATIVE CREDIT UNION LIMITED
Treasurer’s Report
not in congruence with their strategic budgets, radical
shifts also had to be made in the operational strategies
set for the financial year. Individuals also experienced
some amount of variability in their levels of disposable
income due to:
(i) Loss of job or reduced working hours;
(ii) Increasing cost of utilities and some basic items,
brought about by the general changes in oil prices;
(iii) Devaluation of the Jamaican dollar.
The outturn for inflation at the end of the year was
6.20%. Interest rates remained at an all-time low of
0.5% due primarily to the Bank of Jamaica’s policy of
growth stimulation and inflation targets.
COVID-19 PANDEMIC
Deborah Campbell, Treasurer
It is with pleasure that I present the Treasurer’s Report
of the JPS & Partners Co-operative Credit Union Limited
(JPS& PCU) for the year ended December 31, 2020.
ECONOMIC OVERVIEW
For 2020, your Credit Union operated in a market
environment where the economic variables were
dictated by the global fallout from the COVID-19
pandemic.
The economy was characterized by fluctuating levels of
business and consumer confidence. Businesses had to
contend with fluctuating profitability levels, which were
The COVID -19 pandemic underscored the importance of
embracing change, proactiveness and being innovative.
Measures implemented by the Government of Jamaica
to curtail the spread of the virus negatively affected most
businesses. The economic outlook reflected a degree of
uncertainty and the period for the commercial impact
remains unpredictable. The Board and Management have
assessed the risks and opportunities associated with the
economic outlook and are closely monitoring the situation
while executing strategies designed to reduce the
potential negative impact on the JPS&PCU. As a result,
an adjustment was made to the forward-looking indicators
for expected credit loss. This adjustment resulted in an
increase in the loan loss provision.
Vaccine approvals have raised hopes of an economic
turnaround. The speed of recovery is conditional to: (i)
the accomplishment of the vaccine program and (ii)
repeated waves and new variants of the virus. Despite
these challenges, the Jamaican economy is expected to
grow by 5.2% in 2021.
Notwithstanding the pandemic and the competitive
nature of the financial landscape, your Credit Union
performed well in comparison to the Movement.
Your Financial Partner for Life 35 2020 Annual Report