MCCU Annual Report - page 38

MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
38
increase of 10% over the previous year, as indicated in the Table 6. This was above the average
growth of 7% for the Credit Union Movement. The portfolio stood at $2,468 million at year
end. We commend you the members for this achievement and assure you that our Credit
Union will continue to offer very competitive returns on its range of savings products. You are
therefore urged to make the Manchester Co-operative Credit Union your choice for savings
and investment.
Institutional Capital Reserve
Our Credit Union was able to strengthen its capital base during the year. Total Institutional
Capital stood at $582 million at the end of the period. This represented a $71 million or 14%
growth. The capital to asset ratio improved from 16.8% in 2012 to 17.3% at the end of the
2013 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. This crucial reserve will be further
strengthened with an additional allocation from the surplus of the 2013 financial year.
Key Financial Indicators
Our organization produced improved results in most of the key financial indicators. An excerpt
of these indicators is outlined in Table 7.
Loan to Asset Ratio
The loan to asset ratio for the year under review was 53.2%. This was an improvement over the
51.5% achieved in 2012 and was closer to the minimum standard of 60% set by our League.
Your Credit Union will continue to carry out regular reviews of the relevant polices to ensure that
the desirable growth in loans is achieved while bearing in mind prevailing market conditions.
Other key indicators such as the provisions for loan loss, operating expenses and non-earning
assets ratios were ahead of the League’s standards.
Table 7
Key Financial Indicators (%)
Provision for Loan Loss
2013
Actual
157
17.3
53.2
Target
Standard
100
8
60-80
Institutional Capital:
Total Assets
Net Loans: Total Assets
2012
Actual
175
16.8
51.5
Delinquent Loans:
Total Loans
5.3
6
7.3
< or = 5
7
8
Non-Earning Assets:
Total Assets
Operating Expense:
Total Assets
4.58
6.5
7.5
Membership Growth
5.1
10.4
14.3
5
11
20
Asset Growth
Institutional Capital Growth
3.9
10.6
14.5
I...,28,29,30,31,32,33,34,35,36,37 39,40,41,42,43,44,45,46,47,48,...126
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