NMCU assets now more than half a billion euro

Publication of annual report; AGM on Monday 16th

The total assets of North Midlands Credit Union are now more than half a billion euro, at the end of a successful year, the directors state in the annual report.

Ahead of the AGM on Monday next, the directors report that assets increased by €17.6 million during the year, making North Midlands Credit Union one of the largest credit unions in the country. NMCU remains in a strong financial position and the directors are proposing a dividend rate of 0.35% on member shares, giving a distribution to members of €1.4 million.

There are many points of note in this year’s annual report, and among them is that the credit union is not posting a copy of the report to every member. That is a result of a change in legislation, which allows for electronic distribution.

The report is available on the credit union website and members can also pick up copies in any of the branches, or request copies in the post.

Another highlight is the new Elite Sports Fund, which aims to help young sports people who have achieved notable success in their careers to date and have ambitions to excel to international level. To date NMCU has supported four young sports stars in the pursuit of their dreams.

The annual report also states that the surplus generated for the year was €6.6 million, an increase of €1.4 million from the previous year.

Income

Total income was €17.1 million: income from member loans accounted for €8.7 million and investment and other income accounted for €8.4 million.

Total expenditure for the year was €10.5 million, an increase of €1.9 million on the previous year. Cost increased across almost all areas of expenditure, and regulatory fees and levies accounted for close to €1.1m of the total expenses.

Almost 10,000 new loans were issued for a total of €56.3 million during the year, an average of more than €1 million per week.

Loans outstanding to members is at a record high.

Members’ savings now stand at some €430.5 million, an increase of €11.5 million over the 12 months.

The increase is at a lower rate than in previous years as the impact of the withdrawal of Ulster Bank and KBC from the Irish banking sector has diminished.

Total reserves stood at €68 million on September 30, 2024 – an increase of €5.6 million over the year.

The restriction on member savings introduced in December 2022 is being removed from January 1, 2025 in response to the slowdown in savings growth and improving reserve ratios.

Membership of the credit union continues to expand and was approximately 65,500 at the end of September.

During the year, the NMCU continued to invest and expand its online services and products and its in-person branch services.

This year a new reduced rate Community Loan was launched for the purpose of assisting clubs and voluntary organisations in funding projects, particularly those of a capital nature.

During the year, the NMCU also invested in a new Credit Union Mortgage Services company set up by credit unions throughout the country with the intention of providing credit union mortgages on a greater scale than at present.

The monthly car draw remains popular and more than 13,000 members take part. Since the draw began in 2001, there have been 280 draws for 2,697 prizes, and the value of prizes to date is €6.8 million.

The Social and Cultural Fund supported 340 groups throughout the year to the tune of €170,000.

The Credit Union Secondary School Fund supports initiatives of benefit to students, and which would not normally be funded by any other body such as the Dept of Education. The fund was €45,000 in the last academic year and a similar fund will be made available again this year.

• The 2024 annual general meeting of North Midlands Credit Union will be held online on Monday December 16 at 7pm – registration is required to attend.

• For further information, contact the NMCU office on 044 9348817 or: info@northmidlandscu.ie.