Castlebar Credit Union reports ‘strong growth’ despite loss at Anglo Irish Bank

Castlebar Credit Union reports ‘strong growth’ despite loss at Anglo Irish Bank

Áine Ryan

CASTLEBAR Credit Union experienced ‘strong growth and consolidation’ during 2013 despite a significant investment loss in the former Anglos Irish Bank, its recent Annual General meeting was told. Its chairman, Sean McCann said that ‘despite the continuing challenging economic climate’ the county town’s branch had issued over €11 million in loans on foot of just over 2,500 applications, ‘the vast majority of which were spent in the local economy’.
He confirmed the total assets of the Credit Union were €132m, with total reserves of over €22m, while the annual surplus was up on 17% on last year.   
“Despite six years of recession, including severe budgets and the demands of numerous additional financial, regulatory and legislative commitments, our Credit Union remains financially strong,“ Mr McCann said.
He said ‘this strength was a testament to the loyal members, the committed board and volunteers, and to the ethos of the cooperative model which underpins credit unions’.
“We want to take this opportunity to thank all our loyal members for their support throughout the years. This is your credit union, your financial institution for savings, for loans and more. You are the owners, the shareholders. With your continued loyalty our credit union can continue to make a valuable and very positive contribution to the local social and economic community in the years ahead,” he continued.
Treasurer, Jack Loftus, repeated to shareholders that the majority of the loans issued to members last year, which totalled just over € 11,324,000, were spent directly in local businesses and on local services’.
“Credit Unions continue to be the best value personal loans in the market at present with free loan protection insurance and I urge both members and non-members to contact their local credit union in the first instance if they are considering any borrowing,” Mr Loftus said.
He added  that despite the difficult climate, the credit control section had worked successfully with members to find solutions to debt repayment difficulties, and, as a result, €227,802 had been collected on charged off loans in the past year.
Referring to ‘a heavy loss sustained by the Credit Union on an investment in the former Anglo Irish Bank’, Mr. Loftus said: “It was originally stated that IBRC would be wound down in an orderly fashion over the coming years. However the Government, through emergency legislation,liquidated the IBRC overnight. This resulted in our Credit Union sustaining a loss of € 900,000 on an investment which had been lodged with Anglo when it was an A rated bank, and which had been due to mature in September, 2013.”
“All Credit Unions effected by this liquidation have pursued, andwill be exhausting all legal and political avenues, with regard to this matter, he told the meeting.
New banking facilities at the branch were also outlined to shareholders. They include Debit Cards, online banking, ATM, BillPay, Home, Car and Travel insurance, direct debit  payments of bills for phone, electricity and mortgages, and the facility to have wages, social welfare payments, child benefit, pensions to be paid directly into the member’s account.