MCCU Annual Report - page 17

The surplus for the year was $79 million. While this was 4% below what was earned in 2011,
this achievement should be viewed in the context of the unfriendly economic conditions and
the fierce competition.
Interest from loans contributed $234 million or 61% of total income. Income generated from
investments was $102.6 million. This was $4.7 million or 4% less than the amount earned in
2011. A total of $50.3 million or 13% of the overall income was earned from other sources
such as fees, commissions and service charges.
Asset Growth
The Credit Union was able to increase total assets from $2.76 billion in 2011 to $3.05 billion
at the end of the 2012 financial year. This represented a growth of 10.6% for the period. This
was better than the 9% increase achieved the previous year.
The growth in the asset base was driven by a strong increase in loans during the year. A total
of $384 million or 32% was added to the net loans portfolio in 2012. This was the highest
dollar amount increase in any one year and was in line with your Board’s commitment to
make loans more accessible to the members.
Loan to Asset Ratio
The loan to asset ratio for the year under review was 52%. This was a noticeable improvement
over the 43% achieved in 2011 and was closer to the minimum standard of 60% set by our
A total of $188 million was added to the savings portfolio during the year. This resulted in
an increase of 9% over the previous year. The portfolio stood at $2,244 million at year end.
The Treasurer again applauded our members for this encouraging growth which came under
trying economic conditions and fierce competition.
Institutional Capital Reserve
One of the key achievements during the year was our Credit Union’s ability to strengthen its
capital base which stood at $511.3 million at the end of the period. The capital to asset ratio
improved from 16.1% in 2011 to 16.8% at the end of the 2012 financial year. This was well
above the minimum 8% standard prescribed by our League and surpassed the capital ratio
set by the Bank of Jamaica.
Permanent Shares
Permanent Shares experienced a 20% growth during the year to settle at $68.7 million. This
accounted for 13% of total institutional capital. All members on record met the Permanent
Shares requirement at the end of the year.
National Debt Exchange
The Board of Directors approved the Credit Union’s participation in the National Debt Exchange
(NDX) in February 2013. A total of $535 million or 44% of investments was impacted by the
NDX. This resulted in a lowering of the earnings expectations for the 2013 financial year. In
addition, there was a significant extension of the maturity periods of the investments.
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