# The numbers behind Newbridge Credit Union



## Brendan Burgess (12 Nov 2013)

The numbers seem absolutely huge. I am reading through the Affidavits which are on the [broken link removed]

41.2 Incentive Structure for ptsb



 Upfront cash incentive| €23m
Integration costs|€4m
Transferring liabilities|€2m
Loss compensation payments| €25m
Total | €54m  41.3        In addition, to the extent that the value of NCU’s loan book is determined (taking into account any recoveries received by PTSB during the previous six months), at the end  of  each  six  month  period  post-transfer  until  the  tenth  anniversary  of completion, to be (i) greater than €49,312,966 (being the estimated current value of those loans), PTSB will make a payment equal to 50% of any excess into the Resolution Fund, or (ii) less than the same amount, the Bank will make a payment of half of any deficit from the Fund to PTSB.


The assets include everything except the premises.


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## Brendan Burgess (12 Nov 2013)

Very few hard figures on assets and liabilities

Here are the Key Figures from the 2010 accounts, the last publicly available accounts (Thanks to moorefield on boards.ie for the numbers) 



Shares and deposits|€163m
Less balances on deposit with banks|€53m
Net liabilities |€110mIn other words, they could have used their cash on deposit to refund shares and they would still owe their members €110m

I am assuming that the building which cost them €15m is worth nothing, just to be conservative. Anyway, ptsb is not buying the building. 



The nominal value of the loan book was €140m 



 % of loan book written off |write off| real value of loan book| shortfall 
20%|€30m|€110m|0 
30%|€40m|€100m|€10m
50%|€70m|€70m|€40m 
60%|€84m|€56m|€54mIn other words
The loan book is €140m
Say that they write off 60% of it.
That means that they only recover €56m
But they owe their members €110m
So they are short €54m 

ptsb has been given €54m, so if they only have to recover 40% of the loan book to break even.



> greater than €49,312,966 (being the estimated current value of those loans),


A loan book which had a nominal value of €110m in 2010 is being valued today at just €49m.


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## Brendan Burgess (12 Nov 2013)

Source for the above figures

Does anyone have the actual accounts?

*Factfile on Newbridge Credit Union (source: Central Bank)*
 §         Assets - €190m (per the audited financial statements 2010)
( loans for €110 + €53 on deposit + €27 other - the building?)

 §         Members savings - €163m (per the audited financial statements 2010)


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## Petermack (12 Nov 2013)

Brendan


Some useful figures in this report

[broken link removed]


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## Brendan Burgess (12 Nov 2013)

Thanks Peter

But it was the actual accounts I would like to see

This sort of reporting is nonsense 



> “The biggest loan granted by NCU was €3.2 million,” said the Registrar,  who added that there were ‘hundreds’ of loans of a similar level granted  by NCU.



The nominal value of the loan book was €140m back in 2010, so there could not have been hundreds of loans of a similar level to €3m.  

There was atypical lending which was reported on the news last night, but I did not catch the figures.


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## Bronte (13 Nov 2013)

Brendan Burgess said:


> In other words, they could have used their cash on deposit to refund shares and they would still owe their members €110m


 
The Irish independant says that they would have owed 1.1 million.  I presume this is after the government guarantee scheme on deposits.  

In relation to their accounts, doesn't the credit union send those to their members before the AGM?


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