THE JPSCO Co-operative Credit Union is boasting of its low delinquency rate on loans offered by the institution.The credit union said that they maintained a below five per cent delinquency level of a loan stock that has grown from $74 million in 1994 to $185.114 million at the end of the financial year ending, December 31, 1999.
The more than 22 per cent increase in the loan portfolio between 1998 and at the end of last year was matched with an increase in net income from $32.367 million in the prior year to $49.350 million last year, a 52.47 per cent growth achievement over the twelve month period.
The gross income generated over the reporting period increased from $124.359 million in 1998 to $147.267 million, an increase of $22.908 million. Revenue accounted for approximately 71 per cent of the total accumulated income.
Derrick A. Tulloch, treasurer, said that "prudential management shown within credit unions has led to a shift of deposits to credit unions and an annual increase in savings of over 20 per cent and as a result the share capital, as at December 31, 1999, rose to $8.002 billion while the loan capital is nesting at $6.629 billion."
Surplus available for distribution increased from $25.894 million in 1998 to $39.475 million in 1999, a 52.47 per cent swell that was made possible as a result of an expansion in interest income.
Operating expenses as a percentage of gross income was reduced to 67 per cent, down by 8 per cent, from the previous year figure. A greater portion of the expense volume was attributed to a financial transaction cost of $71.943 million.
The reserves of the JPSCo Credit Union as a percentage of total assets are currently at 8.47 per cent but the board of the credit union, in accordance with prudential requirements for lending institutions in this category, plans to increase the limit to the desired 10 per cent level in three years time.
However, despite the current need to build a stronger pool of reserves, the asset base grew by 161.38 per cent over a five-year period. Between 1995 and 1999 the dollar figure made a meteoric rise from $274.002 million to $716.199 million.
