Credit Union South yesterday announced an operating profit of $794,766 for the year ended March 31, down 14.3% on the $927,210 reported in the previous corresponding period.
Net interest revenue improved to $8.3 million from $6.3 million and other income, which included transaction, loan application and cost recovery fees, helped lift the combined revenue to nearly $12 million from $8.6 million.
"The market has been challenging for all finance providers. Our profit is down 14% but it remains respectable.
"The rewarding thing for us is the modest growth in difficult times, in particular support from members who continue to deposit funds with us," Mr Leys said.
Total members funds grew to $17.1 million in the reporting period from $16.2 million in 2008. Total assets grew to $107.5 million from $104.4 million.
The co-operative nature of the credit union had helped it through the challenging market and enabled it to put in place plans for growth, he said.
In the coming year, there were changes to regulations that would have an impact on the minimum capital the credit union must maintain and require it to have an inter-national credit rating.
While many of the details were yet to be released, Credit Union South was fortunate to have a sound capital position which exceeded the minimum proposed by the Reserve Bank, he said.
"Even though the recent issues in the finance sector have been as a result of others, such as finance companies, we agree that the safety and security of your funds is of paramount importance," Mr Leys told the annual meeting last night.
"Therefore, we continue to maintain our focus on a sound and strong credit union focused on meeting your needs now and into the future."
The Nelson branch had been the star performer in the past year, moving into new premises and seeing strong growth in business.
This year, Credit Union South would concentrate on growing its Christchurch presence. There was only one branch in Christchurch that accounted for about 1% of business.
There was a huge opportunity in Christchurch that was so far untapped, he said.
Mr Leys told members attending the annual meeting that the more banking and finance needs the credit union could provide to members, the stronger the credit union became. Members played an important role in promoting the credit union to friends and relatives.
Mr Leys paid tribute to the strength of his management team. Between them, the six members of the team, including himself, had 120 years of experience. That had been put to the test in the credit crunch helping the credit union escape many of the issues other financial organisations had been facing.
Chairman Bevan Moreton said the general nervousness in the market had made it harder for the credit union to raise capital.
"With the hard work of our staff, your credit union continues to grow. This has reassured us that the merging of the five South Island community credit unions was a progressive and sound decision."
