CREDUT UNION REPORT 2013.pdf April 2013 | Page 20

Tied to our vision, anchored by our values, building on our strengths Preliminary reports of Gross Domestic Product (GDP) showed that Grenada was projected to record one of the strongest growth of the ECCU for 2013, a growth of 2.7% surpassing initial projection of 1.7%. According to the Prime Minister in the presentation of the budget 2014, 2013 marked Grenada’s best growth performance since 2007 and ranked as one of the top performers of the ECCU. 1.2 Credit Union Sector Performance The Credit Union sector continued to show positive growth during the year. The sector grew by 8.5% in Loans, 8.1% in deposits, 9.7% in total assets and 10.6% in shares. Membership continued to grow within the sector at a rate of 7.0%. All Credit Unions All Credit Unions % GPSCCU GPSCCU % As at Dec. 2012 as at Nov. 2013 Change as at Dec. 2012 as at Nov. 2013 Change Deposits $289,770,257.69 $313,090,958.79 8.05% $130,992,062.00 $139,455,607.00 6.46% Loans $300,079,204.93 $325,564,804.10 8.49% $145,332,804.00 $158,986,940.00 9.40% Total Assets $374,577,473.72 $410,722,820.17 9.65% $174,337,709.00 $187,460,984.00 7.53% Shares $24,580,495.05 $27,183,125.33 10.59% $5,473,453.00 $6,450,048.00 17.84% 44,928 48,031 6.91% 8,677 9,352 7.78% Members 2.0 GPSCCU’S Performance 2.1 Financial Performance The GPSCCU realized its best financial performance to date in the year 2013 with an operating surplus before provisions for risk assets and appropriations of $3.1M. This represents an increase of 574K or 22.2% over 2012 and resulted in a Return on Assets of 1.6%. Tight controls over expenses and increase in interest income through growth in the loans portfolio were major contributors to this performance. Prudence dictates that adequate provisions be made for identified risks in the loans portfolio given the depressed economic circumstances within which we continue to operate. An above-normal provision for bad debts of $1.2M was therefore made resulting in a surplus before appropriations of $1.8M. 19