Cavan Credit Union adopts a prudent stance

Cavan Credit Union continues to hold large reserves as a prudent measure to protect itself against any impacts from COVID-19 pandemic and Brexit, members will be told during their forthcoming Annual General Meeting.

The credit union reports a “very positive” year financially with a substantial surplus and a significant growth in membership, however, the Board of Directors have advised against paying a dividend.

“Despite the challenges faced in 2021, the overall performance of Cavan Credit Union was very positive,” outlines manager Therese Conway.

“Overall, the credit union generated a surplus of €1.1million. The level of reserves, which are a key indicator of the strength of the credit union, grew significantly from €7.5M to €8.6M. The credit union is continuing to prudently maintain a high level of reserves and of bad debt provision. This is in light of the possible negative impacts, yet to be fully realised, of the COVID-19 pandemic and Brexit.”

The Credit Union grew its loan-book by 18% to just over €28million, with the Credit Union lending on average €1M a month to its members. It has now grown to €61.7M in asset size.

“The Board of Directors is not proposing a dividend or interest rebate this year,” adds Ms Conway. “The surplus is being retained to strengthen the Credit Union’s capital position in these uncertain times.”

Cavan Credit Union reports that, like all financial institutions in the country, they saw a high level of growth in savings last year. To maintain the statutory levels required by the Credit Union, members' savings have been restricted to a maximum of €20,000 and a maximum monthly lodgement of €2,000.

“Even with taking these measures, savings grew overall by approximately 10% to just under €53M,” says Ms Conway.

The membership of Cavan Credit Union grew by six per cent in 2021 to over 20,000 members.

“During 2021, the credit union’s services were improved with a wide range of enhancements... The credit union’s mobile app has been upgraded,” says Ms Conway.

“Members can also use the Cavan Credit Union website to register and operate their account online, where they can check account balances, transfer money, pay bills, upload documents, print e-statements and make debit card lodgements. Members can now complete a fully online application for either a loan or membership.

“Cavan Credit Union, while adapting to ever-changing times and an increasingly digital world, aims to ensure that any new services are additional and not a replacement for the personal service its members so highly value.”

Ms Conway says that Cavan Credit Union continues to offer a wide range of loans at “very competitive” rates. Pledged savings of 5% of the loan amount are required. The maximum loan amount is €50,000 and terms are up to 10 years.

Reflecting on the year, Ms Conway noted they had joined the nationwide Cultivate Farm Loan initiative.

“This is a great fit for farmers and the credit union, both of which value tradition and community. The Credit Union looks forward to further improving and extending its service offering to members during 2022.”

Death Benefit Plus

The Credit Union is delighted to be launching, in conjunction with their AGM, a new Whole of Life Protection Product called Death Benefit Plus. The product allows members, for a small monthly premium, to provide a lump sum on their death, to help pay bills and expenses. The Credit Union has included a leaflet with details of this new product with every AGM Booklet sent to members, who can contact the office for any further details they require.

2021 was again dominated by the COVID-19 pandemic. “Cavan Credit Union maintained a high level of service for its members, augmenting its physical service offering with enhanced online services. The credit union remains committed to safely and conveniently providing members with all necessary services,” assured Ms Conway.

“The board and staff of the credit union continue to work hard to ensure that Cavan Credit Union maintains its special place at the heart of the local community and is very grateful to its members for their continued loyalty and support.”

All members are invited to the 2021 AGM, which will be held virtually on Tuesday, January 25 at 7pm. Details on how to register and log on to the AGM are in a booklet sent out to members and on the credit union’s website.