MCCU Annual Report - page 35

relevant regulatory standards. This was attained despite the income foregone from our
Organization’s participation in the National Debt Exchange (NDX). The Credit Union also
experienced commendable growth in loans and a steady inflow of savings. There was also
further strengthening of the institutional capital base during the year and a consequent
shoring-up of the Credit Union’s ability to withstand the prevailing economic pressures.
Pro tability
Total income of $429.5 million was earned during the year. This was 11% above the amount
earned in 2012. It cost a total of $339.6 million to carry out the operations of the Organization
in 2013. This was 14% more than what was spent during the previous year.
The surplus for the year was $90 million. This was 10% above the amount earned in 2012.
Interest from loans contributed $283 million or 66% of total income, as is indicated in Table
2. Income generated from investments was $85 million. This was $18 million or 19% less than
the amount earned in 2012. The decline in investment income was as a result of our Credit
Union’s participation in the National Debt Exchange (NDX) during the financial year. Income
from fees contributed 10% of total revenues for the year. This was a reduction from 11% in
the previous year.
Key Pro tability Trends
Table 3 below shows the trends in key profitability ratios over the past five (5) years. The
income to asset ratio measures the extent to which our Credit Union was able to use its assets
to earn revenues. A ratio of 12.8% was achieved in 2013. This was an increase over the 12.7%
achieved in the 2012. The improvement in the income to asset ratio was as a result of the 21%
increase in interest earned on loans during the year. The Credit Union’s return on assets ratio
was 2.7% at the end of the financial year. This was a welcomed improvement over the ratio
of 2.6% a year ago. Every effort will be made to ensure that sustainable growth in this key
earning indicator is achieved.
Income in JMD $ Millions
Table 2
19% (83)
27% (103)
10% (43)
11% (42)
5% (20)
2% (9)
66% (283)
60% (234)
I...,25,26,27,28,29,30,31,32,33,34 36,37,38,39,40,41,42,43,44,45,...126
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