CREDIT UNION PAYS 1% DIVIDEND
Members of Fermoy Credit Union will receive 1% dividends in a year that has, it is reported, been very positive for the organisation despite all the turbulence in the financial markets and the economic downturn.
The tone at the Fermoy Credit Union AGM meeting, held on Tuesday night, was upbeat and positive and it seems as if the organisation has ridden the storm and come out at the other end stronger and ready for any other challenges that it might face in the future.
The positives abounded from the total income recognised for the year, €3,828,608 – an increase of 30% on the previous year - to the reduction in many of the expenses incurred as a result of cost cutting measures introduced.
On a less positive note, “The lending is down. People are not looking for loans as much and the criteria for getting them is stricter,” stated Pat Morrissey, manager of Fermoy Credit Union.
“The reduction in our loan book over the 12 months indicates that in these difficult economic times members are taking a more prudent approach to borrowing,” according to the report of the Credit Committee.
The report of the board of directors also states, “Credit control and credit risk has been one of our main focuses over the last year. Unfortunately, due primarily to the increase in unemployment, a number of our members have found it difficult to repay their loans.”
Despite the smaller demand, the committee sanctioned 2,045 loans to a value of €7,759,462.28 during the year.
The report concluded, “The fact that our members continue to borrow from us in these difficult times reflect the excellent terms and conditions available through the credit union, for example, there are no hidden fees or charges, repayment terms can be agreed to suit members’ individual circumstances, loans may be repaid early without any penalty being incurred and loans are insured at no extra cost to the borrower.”
Thursday 10th December 7:32pm