sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 37
37 Credit Union AGM Booklet 2024
Credit Committee’s Report
Introduction
Five-Year Highlights of Lending Activities
For the year ended 31 July 2024, the Credit Committee
met in accordance with the Rules to discharge its
functions, which include the following:
•
The Loan portfolio increased by 8% as of 31 July 2024.
This was impacted by $94M (2023: $116M) of new
loans disbursed, offset by natural attrition from loans
maturing and some prepayments from members'
property sales and injection of payments from pension
withdrawals.
•
New loans disbursed declined by 19% due to reduced
new mortgage applications. However, consumer loan
requests increased, leading to a 17% increase in total
applications.
•
Studying and implementing the Credit Policy of the
Credit Union;
•
Recommending amendments to the Credit Policy
and Delinquency Policy, where necessary;
•
Require that loan applications and agreements are
properly completed with all required information
prior to submission to the Committee;
•
Evaluation and decision-making on member loan
requests referred to it by the Chief Executive Of昀椀cer
or designate;
•
Determining the adequacy of security and the
suf昀椀ciency of collections for loans;
•
Promotion of thrift, encouraging the wise use of
credit and providing 昀椀nancial counselling to
members where required;
•
Ensuring that loss prevention delinquency is
effectively controlled through the committee’s
evaluation and approval of loans;
•
Reviewing reports that are submitted to it by the
Chief Executive Of昀椀cer or designate; and
•
Submitting reports to the Board of Directors and the
members at the Annual General Meeting.
Total Loans ($000)
2024
457,209
2023
423,500
2022
362,059
2021
323,229
2020
294,272
•
The delinquency rate was below 2% or 1.49%
(2023:0.51%) despite the 17% growth in the loan
portfolio in 2023 and the 8% growth during the 昀椀nancial
year.
•
The movement in the delinquency rate negatively
impacted the credit risk asset classi昀椀cation; however,
based on sound credit policies and procedures, the
impact was minimal on the loan loss provision.
