Community and Workers of Jamaica Cooperative Credit Union Limited (C&WJCCUL) , for the nine months ended September 30, 2020, reported total comprehensive income of JM$251.54 million, up from JM$220.77 million at September 2019.
Earnings per share unit was JM$0.58, up from JM$0.44 in the similar period in 2019.
The credit union, meanwhile, generated a significant increase of over 32 per cent in net surplus to JM$262 million for the nine-month period ended September 30, 2020, when compared to JM$197.17 million earned in the corresponding period in 2019.
For the September quarter, surplus was 13 per cent above the corresponding quarter for 2019, moving from JM$77.3 million to JM$88.9 million.
Interest income recorded significant growth of over 15 per cent for the nine months in 2020 to JM$1.48 billion, moving from JM$1.29 billion in 2019.
Management said the performance was driven mainly by interest on loans to members of JM$1.38 billion; interest on liquid assets of JM$36.95 million; and interest on investments of JM$62 million.
Interest expenses declined by five per cent during the nine months when compared to the corresponding period in 2019.
“Despite COVID-19, the credit union experienced growth in all areas of its operations.”
C&WJCCUL’s management also said that, based on the judicious management, the credit union was able to achieve an overall reduction in the total cost of funds, moving from JM$268.99 million in 2019 to JM$256.4 million in 2020.
Non-interest income showed a significant decline in 2020 compared to the corresponding period in 2019 as a result of the fall-off in fees from lower loan disbursements; decline in bad debts recovered; as well as one-off items in the 2019 income category such as the sales of properties, which were not repeated in the 2020 financial year.
Non-interest income declined from JM$343.7 million in 2019 compared to the JM$248 million earned in 2020.
Management noted that growth in operating expenses was contained to a five per cent increase in 2020 when compared to the corresponding nine-month period of 2019.
Expenses grew from $1.094 billion in 2019 to $1.145 billion over the corresponding period in 2020.
Management commented, “Despite COVID-19, the credit union experienced growth in all areas of its operations.”
Total assets grew by 8.9 per cent during the nine months to September 30, 2020, moving from $17.76 billion to $19.34 billion; an increase of over $1.58 billion for the nine months.
Loans to members was subdued for the period to September 30, 2020, as a result of the negative impact from the pandemic, management outlined.
The credit union achieved an increase of three per cent in the portfolio balance, moving from JM$12.84 billion in December 2019 to $JM13.24 billion as at September 30, 2020.
Management said that despite the significant decline in personal disposable income in Jamaica, the credit union continued to support members by providing innovative products that are designed to improve their well-being. They noted that at the end of June 2020, C&WJCCUL remained the largest credit union in Jamaica based on total assets, with a market share of over 14 per cent.