St Dominic Credit Union Waterford 2012 Accounts

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unsub

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A look at the 2012 Balance Sheet shows a provision of one sixth (16.66%) of the loan book. Are they on a "sticky wicket" in terms of solvency?
 
unsub said:
A look at the 2012 Balance Sheet shows a provision of one sixth (16.66%) of the loan book. Are they on a "sticky wicket" in terms of solvency?
Click to expand...
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Probably .
Simple maths as follows .
1. Lend money @ 10% , you can have arrears @ 10% provided you have other income. ie ,you carry 1 in 10 accounts being in arrears.
@ 16.66% you can only survive if
A. You have Reserves.
B. You are prepared to use those Reserves.
 
unsub said:
A look at the 2012 Balance Sheet shows a provision of one sixth (16.66%) of the loan book. Are they on a "sticky wicket" in terms of solvency?
Click to expand...

I had a look at the website and note that the AGM for 2012 only took place on May 8th, 2013 (actual accounts do not appear to be up there yet). This signifies a problem alright but that does not mean any savers' funds are at risk, up to €100k ultimately. 16.66% is a high provision but as long as there are doubtful debt reserves in place to cover it, and the CU is not paying excessive dividend, they may be able to trade out of the problems.
 
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