NCCU recorded growth in 2012, will pay dividends to members
CHARLESTOWN, NEVIS (September 11, 2013) — The year 2012 was an extremely challenging one for the Nevis Cooperative Credit Union (NCCU), but according to President Mr Andy Liburd it recorded growth in all of the major performance areas with the exception of loans. The society will therefore pay a five percent dividend to its members, after it failed to do so last year.
Addressing NCCU’s 40th Annual General Meeting, held at the Methodist Church Conference Hall in Charlestown on Monday September 9, Mr Liburd revealed that the society generated a surplus of $290,530 compared to $49,390 in 2011.
“The improved performance over the previous year was due mainly to a reduction in expenditure rather than an increase in income, which remained relatively constant,” observed Mr Liburd. “Due to the continuing downturn in global economic activity and its negative impact on Nevis’ economy, the amount of loans that fell into delinquency remained above the acceptable prudential level of 5% of the total portfolio.”
The meeting which was well attended was chaired by a director of the NCCU, Mr Greg Phillip. It received reports from the Secretary, Mr Jervan Swanston; Treasurer, M Collin Walwyn; chairman of the Credit Committee, Mr Oriel Hanley; Secretary of the Supervisory and Compliance Committee, Ms O’Larry Lescott; Chairperson of the Nomination Committee, Mrs Cherrill Barrett-Field; and Chairman of the Building Committee, Mr McLevon Mackie Tross.
Also addressing the Annual General Meeting was Mr Franklin Maitland of the St. Kitts-based Maitland Maitland and Associates (MMA), Chartered Certified Accountants who audited the society. Present at the meeting was Mr Ralph Wharton, General Manager of the Caribbean Confederation of Credit Unions (CCCU).
Due to low profitability experienced in the year 2011 by the NCCU, no dividends were paid to the members in 2012. However it was different this year as General Manager Mr Sydney Newton was called on by President Liburd to explain to the general membership the status on payment of dividends.
“Sometime in the past it was mentioned that there were certain restrictions based on the law, one of them being your level of capital which should be attained before a dividend is declared,” advised Mr Newton. “The new law which was passed in 2011 requires that it should be no less than five percent.
“I am happy to report that the institutional capital presently stands at 5.04% and as such the Board has decided to offer a five percent dividend to you the members, if you would accept it.”
The offer to pay dividends was unanimously accepted after member Ms Charlene Huggins moved the motion to accept, and was seconded by member Ms Judith Dasent.
In making his presentation, Treasurer, Mr Collin Walwyn said that in spite of the Euro zone financial crisis, the slow recovery of the US economy, and the IMF-sanctioned austerity measures imposed on St. Kitts and Nevis, NCCU experienced positive growth in most areas of its operation.
“In spite of the high loan delinquency that severely reduced interest income, the NCCU recorded a net income of $290,530” said Mr Walwyn. “During the year, your board continued to take proactive measures to protect the society’s assets against the negative actions of defaulting borrowers, including some homeowners.”
Chairman of the Building Committee, Mr McLevon Mackie Tross, told the membership that the former British American Insurance Company unfinished two-storey building adjacent to the NCCU office complex was bought at $2.56 million, and the society borrowed $2 million from FINCO to complete it.
He told cheering members that the building is complete and a number of businesses are interested in renting some of the office space available, and that the loan borrowed from FINCO last year, which was supposed to have been repaid in 15 years, was already paid in full. The building will be commissioned on Thursday September 26, and expected to grace the occasion will be directors of the Caribbean Confederation of Credit Unions (CCCU).
Director Ms Andrea Bussue conducted a quiz on knowledge of the Nevis Cooperative Credit Union where those who gave the correct answers were presented with gift tokens by Administrative and Human Resource Officer Ms Julet Chiverton.
Retiring member of the Credit Committee Mr Lester Liburd was presented with a plaque; Treasurer Mr Collin Walwyn won a trip to the Bahamas to attend the Caribbean Confederation of Credit Unions convention; while winning the ‘Early Bird’ award was Mrs Iona Rogers.