Credit Union ANNUAL REPORT 2021TREASURER’S REPORTI am pleased to report another profitable financial yearending 31 July 2021. The Credit Union is strong andprofitable despite challenges faced during the year.The low interest rate environment continued throughoutthe financial year and resulted in a loss of some existingloans to predatory pricing by other financial institutions.However, the Credit Union was able to reduce the outflowby being flexible with interest rates to members, and byemphasising our low borrowing fees and interest rebate toour members.During the financial year, the first six months were impactedby uncertainty as members held off on borrowing to build/buy homes and lending was primarily for vehicles and landpurchases as well as within-share-loans for consumerpurposes.The second half of the financial year saw a significantincrease in mortgage applications to build and purchasehomes. While the quantity of loans was not as high as theprevious year, the amount per loan for home purchaseand home construction increased materially due to therobust seller’s real estate market and cost of constructionmaterials.Our strong Credit Policy and Procedures aided in keepingdelinquency below 2%, at 1.90% (2020:1.91%) and our strongliquidity facilitated the disbursement of loans, resulting in a10% growth in the loan book.PERFORMANCE SUMMARYOur Credit Union achieved a Net Income of $10.62M (2020:$10.56M), which was just above results from the previousyear by 1%.Net Income ($000)Shakira Gourzong, Treasurer202110,626202010,563201911,52620187,61120177,97413
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