BUSINESS MONDAY: UPBEAT PERFORMANCE

THE BWU Co-operative Credit Union Limited has reeled off a number of positive developments from its operations during the last financial year.

Against the background of tough competition in the local financial sector and the impact of COVID-19 pandemic, the credit union has reported an increase in membership, a stronger asset base, investment growth and among other things, a higher net surplus.

The Board of Directors gave this upbeat performance at the recently held credit union’s Annual General Meeting.

It also prompted a call from the Outgoing President Novaline Brewster for the organisation’s staff and other stakeholders to keep up the momentum.

Membership expanded by 1,299 persons to bring overall members to 26,260. Investments grew by $4.0 million or 13 per cent; there was a nine per cent surge in total assets, which now stand at $173.4 million; and the net surplus was $5.8 million at the end of March 31, reporting period.

The Board said that it was another year of growth. It further stated that although investment opportunities in the local financial markets are limited, the credit union was able to increase investments by about 13 per cent.

“These funds were invested mainly in a 13- and 24-month note.

“During the year, there was also an increase in the Co-operators General Insurance Company shares of about $230,000 as a result of their dividend being paid in shares,” the Board stated.

Cash reserves of about $11.9 million were used to finance loan disbursement and to purchase investments.

Brewster said in a message that early strategizing and planning helped the organisation to strengthen its financial position.

She recalled that the national debt restructuring, the IFRS 9 Accounting Standards and the revaluation of the credit union building impacted their equity negatively last year.

“I can report that we studied this impact and adopted a new IFRS model that considered a more comprehensive range of factors,” said the credit union official.

She noted further that they were able to adjust the expected credit losses by $3.7 million. “This adjustment pushed our surplus to $5.8 million for the year under review,” Brewster added.