Cavan Credit Union AGM to host virtual AGM
BOOKS Lending €1M a month to members
Cavan Credit Union has confirmed that it will not be paying a dividend to its members for 2020, instead opting to use its reserves to strengthen its position amid continued Covid uncertainty and Brexit concerns.
The confirmation comes as all local credit union members are being invited to attend the 2020 Annual General Meeting (AGM) of the financial institution. It will be held remotely next Monday, April 26, at 7pm.
Manager Therese Conway said that the online AGM is necessary amid current Covid restrictions.
"The COVID-19 pandemic has meant that the credit union, like the whole country, has faced many challenges this past year. Early on in the Pandemic, credit unions were deemed an essential service and Cavan Credit Union, in response to this, adapted its offices and improved the online services it offers. The Credit Union remains committed to safely and conveniently providing members with all necessary services," she told the Celt.
Despite the challenges posed by the pandemic, Ms Conway is please to report a positive overall performance by Cavan Credit Union for its members in 2020.
"The level of reserves, which are a key indicator of the strength of the credit union, grew marginally from €7.4 million to €7.5 million," she revealed.
Overall, surplus was down from €782,409 to €142,459. "However, this was primarily due to the Credit Union prudently adding the sum of €765,671 to its bad debt provision. This is in light of the current high level of unemployment in the country and the possible negative impacts, yet to be fully realised, of the COVID-19 Pandemic and Brexit," explained Ms Conway.
The Credit Union grew its loan-book in 2020 by 10% to just under €24 million, with the local credit union lending on average €1million a month to its members. 2020 also saw Cavan Credit Union grow to €56 million in asset size.
"The Board of Directors is not proposing a dividend or interest rebate this year. The surplus is being retained to strengthen the Credit Union’s capital position in these uncertain times," confirmed Ms Conway.
It was another success story as far as members' savings were concerned. During 2020, savings grew overall by approximately five per cent to €48 million.
"Cavan Credit Union, like all financial institutions in the country, saw a high level of growth in savings in 2020 and in order to maintain the statutory levels required by the Credit Union, members who had savings in excess of the Credit Union’s savings cap of €20,000, were requested to reduce their savings to the cap amount. Cavan Credit Union is grateful for the co-operation of the members affected by this measure. This reflects the general trend in savings growth in Ireland, as people continue to save both in response to the uncertainty generated in the economy due to the COVID-19 Pandemic and their inability to spend due to the restrictions in place," Ms Conway commented.
Over the financial year Cavan Credit Union welcomed 514 new members bringing the total membership to over 19,000.
During 2020, the credit union’s services were improved with a wide range of enhancements, from installing a sliding door for easier accessibility and installing a kiosk in the branch for lodgements and withdrawals, to a better online experience.
The credit union’s CU Mobile App has been upgraded and now allows members fast and secure access to all online services using biometric login. The secure CUOnline+ also allows registered members to operate their account online. Members can use this to check account balances, transfer money to another financial institution, pay bills, upload documents, print e-statements and make lodgements using a debit card.
Members can now complete a fully online application for membership or for a loan, without the need to visit the credit union. "Cavan Credit Union, while adapting to everchanging 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," emphasised Ms Conway.
Cavan Credit Union’s lending rates remain competitive. Pledged savings of 5% of the loan amount are required. The maximum loan amount is €50,000 and loan terms are up to 10 years. Repayment plans are tailored to suit members’ needs and interest is calculated daily on the reducing loan balance, meaning you can pay off your loan earlier or more quickly without incurring any fees, interest costs or penalties.