Brendan Burgess
Founder
- Messages
- 53,694
Here are the figures for Tralee Credit Union
Members' shares and deposits| €106m
Members' Reserves|€19m
Total Members' funds|€125m
|
|
Loans to members|€ 46m
Less bad debt provisions|€5m
Net loans to members|€41m
As a percentage of funds|32%
Net loans|€41m
Member's reserves|€19m
Shares required to fund loans| €22m
Amount of shares which could be returned|€84mWhat does the p&l look like
Income|
Interest on €46m loans|€3.8m |8.2%
Interest on €84m investments|€2.7m|3.2%
Total income|€6.5m
|
|
Management expenses|€2.6m
Bad debts written off|€0.4m
|
Surplus before dividend |€3.4m
Proposed dividend 1.5% of €109m = €1.5m
They have reduced a return of 3.5% to 1.5%. (They could have paid 3% if they had distributed the whole surplus)
How protected are they against bad debts?
Loans to members|€46m
|
|
Provisions for bad debts|€5m
Members' reserves|€19
Total |€24
Percentage of loans|52%
They could lose up to 50% of all loans and they would still be solvent.
Again, the biggest risk to this credit union is that one of the banks in which it has its money on deposit might go bust.
Overall, though it faces the problem that the deposit markets have normalised. I don't think that they will be able to earn 3.2% on their deposits with banks this year.
Members' Reserves|€19m
Total Members' funds|€125m
|
|
Loans to members|€ 46m
Less bad debt provisions|€5m
Net loans to members|€41m
As a percentage of funds|32%
Member's reserves|€19m
Shares required to fund loans| €22m
Amount of shares which could be returned|€84m
Interest on €46m loans|€3.8m |8.2%
Interest on €84m investments|€2.7m|3.2%
Total income|€6.5m
|
|
Management expenses|€2.6m
Bad debts written off|€0.4m
|
Surplus before dividend |€3.4m
Proposed dividend 1.5% of €109m = €1.5m
They have reduced a return of 3.5% to 1.5%. (They could have paid 3% if they had distributed the whole surplus)
How protected are they against bad debts?
|
|
Provisions for bad debts|€5m
Members' reserves|€19
Total |€24
Percentage of loans|52%
They could lose up to 50% of all loans and they would still be solvent.
Again, the biggest risk to this credit union is that one of the banks in which it has its money on deposit might go bust.
Overall, though it faces the problem that the deposit markets have normalised. I don't think that they will be able to earn 3.2% on their deposits with banks this year.