BTCCUL Reports Record Income, Addresses Delinquent Loans in 2023-2024 Annual Report

The Barbados Teachers’ Co-operative Credit Union Limited (BTCCUL) is reporting its highest total income since before the COVID-19 pandemic.

However, BTCCUL officials are concerned about delinquent loans and have hired a bailiff and “legal professionals” to help reduce the problem.

This is detailed in the credit union’s 2023-2024 annual report financial year ended March 31, 2024, published head of the annual meeting to be held on June 29 at the Garfield Sobers Gymnasium.

The board of directors led by president Ronald Jones said that the BTCCUL “achieved its highest total income of $4 285 836 in the financial year ending March 31, 2024, for the six financial years 2019-2024”.

“The increase was higher than the previous financial year, when total income reached $3 580 740, indicates strong financial performance and growth for the credit union,” the directors said.

“The highest total income of $4 285 836 in the financial year 2024 not only demonstrates the credit union’s financial strength and stability but also positions it well for continued growth and success in the future. It is a testament to the dedication and efforts of the BTCCUL’s leadership, staff, and members in achieving this milestone.”

The credit union has been lending more money to its members, as the report pointed to “a clear upward trend in gross loan disbursements from 2019 to 2024, indicating that the BTCCUL has been expanding its lending activities over the years”.

“This trend suggests growing demand for loans among members and potentially reflects the credit union’s efforts to meet their financial needs,” the directors said.

“The gross loan disbursements in 2024 saw a notable increase compared to the previous year, rising from $63 346 102 in 2023 to $67 019 828 in 2024.”

Financial health

There is concern, however, about delinquent borrowers. PEARLS is a standardised and comprehensive tool to measure the financial health of credit unions.

BTCCUL had a gross loan portfolio of $67 million at the end of March and of this total $5.2 million are delinquent loans. This was eight per cent of the loan portfolio, above the five per cent PEARLS benchmark.

“The BTCCUL has been actively addressing its delinquency profile with determined efforts to mitigate outstanding accounts. Throughout the year, the credit union took proactive measures to confront delinquency, including the hiring of a bailiff to pursue overdue accounts,” Jones and other directors said.

“Additionally, the credit union allocated resources to engage legal professionals to address delinquencies related to mortgages and vehicle loans, particularly those that were significantly overdue.”

The report said that these initiatives “underscore the BTCCUL’s commitment to maintaining financial health and ensuring the integrity of its lending portfolio”.

“By taking decisive action to address delinquent accounts, the credit union demonstrates its dedication to responsible lending practices and protecting the interests of its members,” the report stated.

“Furthermore, these efforts serve to safeguard the financial stability of the credit union, allowing it to better serve its members and fulfil its mission of promoting financial well-being within the community.

“Through proactive measures and strategic allocation of resources, the BTCCUL aims to effectively manage delinquencies and uphold its reputation as a trustworthy financial institution,” the report added.

(SC)