Carrick-on-Suir Credit Union has increased its bad debt provision to €1.6m due to loan repayment problems being experienced by some of its members, whose financial circumstances have changed in the recession.
The Credit Union's 48th annual general meeting was informed of this increased provision for bad debs, which exceeds rule requirements by €850,000 but is deemed prudent in the current economic environment. The Credit Union's bad debts in the year ended September 30, 2010 amounted to €622,578 with €78,571 recovered.
Carrick-on-Suir Credit Union Chairperson Marie O'Connor told the agm in the Strand Theatre the financial statements presented to the membership confirm that the Credit Union is safe, strong and secure.
It now boasts a membership of 10,066 with 286 new members joining in the year up to September 30, 2010.
While the same level of savings or demand for loans is marginally down on last year, the Credit Union still retains an overall asset size of almost €60 million.
The year end member's share balance is €52.4 million with loans to members amounting to €19.4 million.
While the bad debt provision has been increased to €1.6 million, the Credit Union's reserves have been strengthened and are in excess of regulatory requirements.
Ms O'Connor said the directors fully appreciate the need to continue to strengthen the balance sheet on an ongoing basis to ensure the Credit Union's stability.
During the year ahead, Carrick-on-Suir Credit Union hopes to expand the products and services available to members and will participate in a national programme to allow access to electronic payments and card services that when introduced will position the Credit Union for continued future success.
The Credit Union's directors reported the audited financial statements for the year ended September 30, 2010 saying Carrick on Suir Credit Union has continued to perform well.
Highlights in the report were that total income decreased year on year by €149,829 and there was a decrease in spending on overheads of €35,351, excluding bad debts, increase in bad debt provision and exceptional costs.
There was a loss on impairment of the former ESB site in Greystone Street of €423,557.
A dividend of 1% was paid and it was proposed not to pay a rebate of loan interest on loans by members during the financial year ended September, 30, 2010.
Independent auditors Raymond Anthony and Co reported that the financial statements give a true and fair view of the state of affairs of Carrick on Credit Union on September 30 and were properly prepared in accordance with Generally Accepted Accounting Practice in Ireland and the requirements of the Credit Union Act 1997.
The various committee reports were presented and approved. Death benefits amounted to €146,250 for 45 members.
Marie O'Connor thanked her fellow directors, committee members and staff for their continued dedication to duties during a most challenging year.
The year past has seen the Irish economy remaining very unstable with continued high levels of uncertainty and speculation about the economic viability of the country. While Credit Unions have not been immune to the turmoil in the global financial system, Marie said the Carrick-on-Suir Credit Union had fared much better than many other financial institutions.