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Tipperary Credit Union Year in Review 2009 Tipperary Credit Union held there AGM on the 1st of December 2009 in the Ballykisteen Hotel. Over 100 members attended and below is a report from Pat Shanahan CEO Tipperary Credit Union Limited. The year in question was a difficult and challenging period. However, we are glad to report that our Credit Union has emerged relatively unscathed from the turbulence in financial markets and the downturn in the economy generally. We are very much ‘open for business’. We have money to lend, and are prepared and willing to deal with all of our member’s requests. Our Credit Union achieved a surplus of €2.14 million for the year to the 30th September 2009. The Board of Directors proposed a 1.75% Dividend on member’s savings. This is an excellent return on ‘demand’ savings, when compared to the return the Banks are offering. The Board also proposed a 7.5% rebate on loan interest paid. Total Assets of the Credit Union reached €91.6 million at the year end, up €1.7 million, or 1.9% on last year. Total membership has grown to 18,534, up 1.2% on last year. A total of 439 new members joined our Credit Unions during the year. Members continue to use and trust the Credit Union. We lent out €16 million in new loans during the year. Loan demand across all categories was sluggish, however, with car lending alone dropping by 37% on last year. The vast majority of our members are honouring their loan repayment commitments and repaying their loan as agreed. We are acutely aware that the recession is hurting many people and strongly encourage members who find themselves in financial difficulty to contact the Credit Union. The key requirements in getting a loan from Tipperary Credit Union are (A) Purpose of loan (B) Level of income and ability to repay (C) Credit worthiness and record, and (D) Security, if required. Tipperary Credit Union constantly reviews and updates its credit policy in line with changing expectations and increased financial regulation. Our members are saving more, with total savings now in excess of €77 million, up €1.3 million, or 2% on last year. We would strongly encourage members to continue saving and leave their money in the Credit Union. Member’s savings are totally safe. Not only are all savings individually guaranteed by the Government’s guarantee deposit scheme up to €100,000 per member, but all Credit Unions are covered by the ILCU ‘Savings Protection Scheme Fund’, currently standing in excess of €110 million. The Credit Unions’ investments in Irish Financial Institutions are also fully guaranteed under the Governments Bank guarantee scheme Our loan book is performing reasonably well considering the very adverse economic circumstances and our bad debt provisions are more than adequate. Except for the write-down in one Investment Bond, we did not experience any investment losses, as the vast majority of our investments are in guaranteed Bank deposit accounts. We did anticipate and warned members last year that investments would come under pressure in 2009 as the markets remain depressed and Investment rates continue to fall due to lower ECB wholesale rates. We do not expect much change in 2010. Tipperary Credit Union is monitored by the Financial Regulator. Early in the year, the Financial Regulator carried out a detailed inspection in our Credit Union, concentrating specifically on Investments. The regulator was very pleased with our performance, policies and procedures, and complemented the board, management and staff on a job well done. We report on a quarterly basis to the Regulator by way of ‘prudential reporting’. Staff with more than three years relevant experience in financial services can be assumed to have a certain minimum competence. All new staff must undertake the qualified Financial Advisor (QFA) course and / or an Advanced Certificate in Credit Union Practice course (ACCUP). Existing staff and volunteers are also encouraged to do the QFA and / or ACCUP. Tipperary Credit Union currently has eight people sitting these courses. Three staff members have achieved Qualified Financial Advisor (QFA) status to date – Pat Shanahan CEO, Brendan Ryan and DJ O’Connell. More than anything else, 2009 thought us the importance of stability in our lives. As the recession deepens people are becoming more uncertain of their future. Unemployment is looming for many people. It has become a reality for others. People have seen their take-home pay reduce significantly. Many have lost heavily on property values, shares and investments. Financial commitments do not go away. People still need to live. Children still need to be educated. People are looking for leadership, stability and a return to relative normality. This will take time, however. Recessions do end. Confidence will return. Remember also that your Credit Union is there to help where it can. We have survived for over forty years, through good times and bad times and hopefully we will continue to be there for our members for many years to come The next few years will be difficult for all of us. The challenge for Tipperary Credit Union is to continue to satisfy our member’s financial requirements, be financially sound, and continue to grow and prosper. We welcome all of our new members and encourage you to participate fully in Tipperary Credit Union.
Pat Shanahan CEO Tipperary Credit Union
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