Annual Report 2006

Treasurer's Report

FINANCIAL YEAR ENDED DECEMBER 31^ST 2006

Fellow members of The Communal Co-operative Credit Union Limited it is my pleasure to present the Treasurer’s report on the financial performance of our Credit Union for the year ended December 31^st, 2006.

The year 2006 again proved to be most challenging and demanding for all financial institutions within the OECS currency union.

Competitive interest rates as well as greater member/shareholder expectations caused most Credit Unions to re-examine their policies and procedures so as to give members more benefits.

However, despite the economic and competitive challenges, your Credit Union was able to return a surplus of $578,786 before appropriations and to show financial growth and strength.

Financial Indicators	2006	2005	Increase/Decrease	Percentage
Total Assets	37,215,339	33,343,921	3,871,418	11.61
Loans (net)	28,245,632	23,855,254	4,390,378	18.4
Deposits	29,509,230	26,630,246	2,878,984	10.81
Shares	4,205,625	3,502,720	702,905	20.07
Gross Income	3,329,662	3,055,784	273,878	8.96
Surplus and Reserves	3,308,050	3,000,379	307,671	10.25

The above indicates that there was growth in all critical areas of the operation.

The attached “Members Statement of Net Assets Owned” provides more details of the strength of the Credit Union.

Historical Extracts:

We are pleased to present the growth statement of your Credit Union for the last five (5) years.

	Membership	Shares	Deposits	Loans	Reserves	Total Assets	Income
2002	5,291	2,196,009	14,979,195	13,733,913	1,913,560	20,381,867	1,876,256
2003	6,376	2,717,102	18,048,295	16,600,709	1,994,586	23,663,142	2,260,600
2004	7,359	3,166,685	22,634,187	18,061,045	2,398,255	28,452,420	2,226,881
2005	8,658	3,502,720	26,630,246	23,855,254	3,000,379	33,343,921	3,055,784
2006	9,654	4,205,625	29,509,230	28,245,632	3,308,050	37,215,339	3,329,662

Income/Expenses:

There was an overall increase of $273,878 in gross income; due mainly to increase in loan interest income.

The income and expenditure account – “Members’ Perspective” provides details of the respective areas of growth. The net income for the year before Statutory Reserves and Development Fund is $578,786 (2006), $762,248 (2005) – a decrease of $183,462.00.

The operating expenses for the year was $1,911,727 (2006) - $1,568,257 (2005) an increase of $343,470 over 2005. This is due mainly to salary increases as a result of union negotiations, increased insurance costs on members’ loans and savings.

Advertising and promotion had been increased to maintain our image and to continuously promote our products and services. The growth in membership and assets do indicate that.

You deposited approximately $3,000,000 more to your savings throughout the year; therefore you were paid more interest of $113,870 in 2006.

There is a high level of efficiency and control of costs in the Credit Union’s operations. The Board of Directors has insisted that tight controls be put in place to manage the operational costs.

Conclusion:

The financial year 2006 was an encouraging one for the Credit Union despite the competitive environment in which we operate. We will continue to provide you with excellent services and so endeavour to build our reserves, institutional capital and assets.

We recognize that there is a strong possibility that there will be factors which will affect the Credit Union under the CSME, so we will be committed to provide our members with information and services to mobilize all our stakeholders to continue to do business with the Credit Union to ensure our viability.

The success of the Credit Union over the years could not have been possible without the support of you the members, the management committees and the staff.

I thank you very much for giving me the opportunity to offer my services as Treasurer.

Year End Comparisons

Total Assets

__________________
Tarlie Francis

TREASURER

Income & Expenditure Account ->