Credit Union reports £2.3m trading surplus

Derry Credit Union has reported a trading surplus of over £2.3m for the year ending September 30, 2014.

The figures, which have been welcomed by the Credit Union Committee, were revealed at the recent Annual General Meeting of Derry Credit Union Ltd. held in the Millennium Forum.

John Bradley FCA, Senior Statutory Auditor, Moore Stephens Bradley McDaid, Auditors, told members that despite existing difficult economic conditions the excellent results achieved by the credit union over the past year were highly commendable by any standards and asked the members to show their appreciation. He also went on to praise the excellent internal auditing work carried out by the Supervisory committee.

Treasurer Gerry McMonagle said: “Although the members are still experiencing the harsh austerity measures and

cuts to benefits imposed by the present government, your loyalty to your credit union remained undiminished. This, he said, combined with the wise and prudent decisions of your Board of Directors and Management during the year

made this healthy surplus possible.”

It was also revealed at the 54th AGM that since the founding of Derry credit Union members have borrowed over £520 million and repaid over £479 million. In addition, members have received dividends of over £42 million and interest rebates of over £10 million.

Those figures, said this year’s Credit Union President Patricia Doherty, represented “a tremendous injection into the local economy.”

The President thanked the General Manager and her staff on their commitment, professionalism, expertise and hard work over the past twelve months as well as the members for their continuing loyalty and support.

In presenting the Board of Directors, Secretary Rosemary O’Doherty pointed out that Derry Credit Union remains the largest credit union in Northern Ireland. This year 766 new members were admitted. The adult membership is now 29,149 and the minors 5,284.

She also pointed out that this autumn a new IT system had been installed. This, she said, was the culmination of

two years’ work by the IT committee.

The Credit Committee report showed that 94% of the 21,085 loans applied for had been approved and the total amount of the loans outstanding was over £32million. Members were advised to examine their income and outgoings realistically and only apply for loans they can afford to repay.

The Credit Control committee reported that again this year there were a number of members who did not repay their loans and made no contact to explain why. Some of these members set out with the deliberate intention of

defaulting on their responsibility. It was emphasised that these defaulters will be “vigorously pursued”

and “affirmative action” will be taken to recover the members’ money.

The report showed that the amount of bad debt charged off had reduced by over £260K compared to 2013 and over £250K of previous charged off debt had been recovered in the current year. 22 members had also been successfully taken to court.

A declaration of a 25% rebate on all interest paid by members on all loans in the current year and a 1.75% dividend on all members’ savings, by Derry Credit Union Treasurer Gerry McMonagle, was accepted by those members present at the recent AGM.