sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 41
41 Credit Union AGM Booklet 2024
Loan Provision
•
The total loan provision of $290K (2023: $364K) was reduced by loans written off in the amount of $325K (2023: $311K)
as of 31 July 2024 and increased by an additional bad debt expense of $251K (2023: $115K). Overall, the $251K in new
bad debt expense substantially replaced the loans written off of $325K during the year, as there was no deterioration in
the speci昀椀c or expected credit loss provision.
•
The total provision of $290K includes a speci昀椀c provision and an expected credit loss provision based on IFRS 9. The
speci昀椀c loan loss provision on non-performing loans decreased by 49%, bringing the total speci昀椀c provision to $80K
(2023: $158K). The expected credit loss on the performing loan book increased by 2% to $210K (2023: 206K), mainly
due to revised assumptions based on the nature and complexity of the loan book, the quality of the loans, and the
movement in the delinquency rate.
•
Loans written-off totalled $325K (2023: $311M). These loans were written off after careful consideration by the Board of
Directors because they had been delinquent for a signi昀椀cant period, and all efforts to secure repayment were
exhausted and proved unsuccessful. The members involved have been recorded in the Register of Loans Written Off,
and these members will not be eligible for future lending facilities by the Credit Union until their previously outstanding
indebtedness is repaid. See the table on loan provision below:
Loan Provisions ($000)
2024
290
2023
364
2022
560
2021
1,431
2020
2,449
Legal Matters
# of Matters
Referred to
Legal
Value of Matters
Referred to
Legal
# of Matters
Formalised by
Legal
Value of Matters
Formalised by
Legal
# of Matters
Cancelled
Value of Matters
Cancelled
Fiscal 2023
11
$1,346
6
$643
5
$704
Fiscal 2024
5
$1,255
3
$479
2
$126
Change
-6
-$91
-3
-$164
-3
-$578
