Credit Union ANNUAL REPORT 2021DELINQUENCY MANAGEMENTThe delinquency ratio of 1.90% (2020: 1.91%) improved by0.5% due to the continued efforts of our Team. See graphbelow:Delinquency Rate20211.90%20201.91%20192.77%20185.43%20175.44%Total loans ($000)2021323,2292020294,2712019263,2192018195,9542017174,167PROVISIONSTotal loan provision of $1.43M (2020: $2.44M) reduced byrecovery of provision of $454K (2020: increased by $602K)and decreased further by $564K (2020: $213K) for loanswritten-off as of 31 July 2021.ASSETSTotal provisions include a specific provision and an expectedcredit loss provision based on IFRS9. The specific loanTotal assets of $468M (2020: $410M), increased by 14%loss provision on non-performing loans decreased by 38%(2020: 26%). Total assets increased due to a 28% increasebringing the total specific provision to $1.2M (2020: $1.9M).in cash and cash at banks and 10% growth in loans to ourThe expected credit loss on the performing loan bookmembers, which was driven by 15% increase in memberdecreased by 49% to $260K (2020: $506K) mainly due todeposits.revised assumptions based on the nature and complexityof the loan book.Total Assets ($000)Loans written-off totaled $564K (2020: $213K). Theseloans were written off after careful consideration by the2021468,5712020410,445a significant period, and all efforts to secure repayment2019325,256involved have been recorded in the Register of Loans2018293,210lending facilities of the Credit Union, until such time as theirBoard of Directors because they had been delinquent forwere exhausted and proved unsuccessful. The membersWritten Off, and these members may not avail of futureprevious outstanding debt is repaid.2017265,147See graph below on loan provisions:LOANSTotal loans, net of provisioning of $323M (2020: $294M)increased by 10% (2020: 12%).Loans disbursed for the financial year of $88M (2020: $69M),increased by 73% mainly due to the increased demand forLoan Provisions ($000)20211,4312020 2,449land, home, vehicle, and within-share loans.20192,134Gross loans approved (internally and by the Credit20182,66820172,720Committee) for the year was $97M (2020: $59M); loanscommitted, but not disbursed as of 31 July 2021 of $20.5M(2020: $20M) will be booked in the financial year 2021/22.15
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