14Credit Union ANNUAL REPORT 2021Net Income was mainly impacted by:ANALYSIS OF CHANGES IN INCOME & EXPENSES• 14% increase (2020: 12%) in total($000)expenses mainly due to:20212020%17,57017,834-2%273414-52%17,84318,248-2%589640%62-200%649835%17,77918,150-2%Dividends on equity investments1261196%in other income due mainly to anRealised loss on repossessed collateral-320increase in loan application fees inChange in unrealised loss in fair value ofsecurities-44-23281%Unrealised loss in fair value ofrepossessed collateral-97-21254%in calculating bad debt provision inOther income58347419%2020 were revised after a robustTOTAL NON-INTEREST INCOME53614972%18,31518,2990.1%8,1437134-14%10,17211,165-9%454-602175%10,62610,5631%o 11%increaseexpensesasinpersonnelaresultofadditional staff, 7% increase inhealth insurance premiums, andretirement benefits for two longserving employees.o 54%increasebenefitspaidINTEREST INCOMEMembers’ loansDepositsTOTAL INTEREST INCOMEinbeneficiarytodeceasedmembers beneficiaries.• Net interest income declined by 2%INTEREST EXPENSEMembers’ deposits(2020: down 9%) which was due toLease liabilitythe impact of lower interest ratesTOTAL INTEREST EXPENSEfor the financial year, offset by the10% growth in the loan book;Interest on fixed deposits withNET INTEREST INCOMEbanks declined by 52% due to lowinterest rates at banks; the yield onNON-INTEREST INCOMEfixed deposits declined from 1% toFees0.4% over the previous year;• 24% increase (2020: 43% down)the second half of the financial year.• The recovery of bad debt expenseof $453.5K as the assumptions usedassessment;• A-$97Kunrealisedrepossessedlosscollateralon(2020:-$212K) which represents a 54%improvement in the decline of thefair value of repossessed collateralover the previous year; and,• A -$44K loss (2020: -$232K) infairvalueofrepresents ansecuritiesGross margin before provision andexpensesLess operating expensesSURPLUS FOR THE YEAR BEFOREPROVISIONwhich81% improvementover the previous year.See Table of Analysis of Change inIncome and Expenditure 2021 vs 2020.Provisions:Allowance for loan lossesTOTAL SURPLUS
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