Core Credit Union pays dividend of 0.3% for 2023

[WizardDr]

Many Credit Unions have not paid a dividend for a number of years because of reduced investment income and reduced loan demand.

Both of these have reversed and whilst CBI still carries on with CUs requiring off the wall reserves, Core Credit Union had their dividend of 0.3% approved by members at AGM.

Apparently its paid already.

 

[PeeBee]

A derisory sop

 

[Harvard]

First South in Cork also paid a dividend. Just under 0.3% I believe.

 

[WizardDr]

@PeeBee you should note that the Credit Unions have to seek approval from Central Bank of Ireland to make dividend payments and whether you agree or disagree the CBI probably restricted the payment.

Additionally as 90% of consumer deposits are in notice accounts the majority don't seem to be chasing notice accounts which pay a lot more or moving to different EU country with even better rates.

So it marks a return to paying dividends which is better than many on demand deposits.

 

[Tickle]

the CBI probably restricted the payment.

Interesting, could you elaborate?

 

[WizardDr]

@Tickle
There is a statutory requirement for a 10% Regulatory Reserve.

[Despite this being adjacent to 3 times the equivalent for Banks particularly considering the asset profile of Credit Unions - investments are dominant - see previous postings ad nauseam]

CBI 'encourage' CUs to maintain a ratio well in excess of this c. 14%.

CBI will not therefore be happy to see large dividends if CU is hovering around 14%.