ECU on track for success
Director retires after 42 years with credit union
CAIRNS- BASED credit union ECU Australia has recorded an operating profit of $910,000 despite a fall in income, loans and deposits.
Its net profit was $602,000 after tax from a net income of $9.3 million.
Total loans of $255.68 million fell by 1.32 per cent and total deposits by 3.8 per cent to $273.05 million. Total assets were $302.23 million, down 3.75 per cent. Total reserves of $20.13 million rose 3.08 per cent.
In the annual report- chairman Greg Nucifora (pictured) and chief executive e Colin Daly said the e ECU “achieved solid results while completing a number of significanti changes to transform the organisation and ensure it is well positioned for the future”.
“The year was characterised by significant competition within the financial services industry and against a backdrop of low interest rates and an intensely competitive market for lending,” the report said.
“Like the previous year, 2014-15 was typified by a suppressed economic environment.
“Low credit demand throughout Australia, apart from the flats and units markets in Sydney and Melbourne, resulted in intense competition and reduced margins for the year.
“In order to attract growth in an otherwise depressed market, many lenders resorted to lowering credit assessment standards that led to public concern by regulators and the Reserve Bank of Australia.”
The report said “within this challenging environment ECU Australia maintained credit quality, trimmed costs a and improved profitability on the previous year.
“Total loans funded e in the year increased from the previous year but many investors took advantagea of more favourable house prices to sell long-held property and pay down existing debts.
“Other homeowners continued to take advantage of the low interest rates and pay additional repayments.”
The report said capital adequacy – the measure of total capital expressed as a percentage of risk weighted assets – was 16.05 per cent, up from 15.65 per cent.
“This is considered to be a key measure of financial strength and is more than double the statutory requirement of 8 per cent,” he said. LONG-TIME board member and senior ECU Australian executive Clive Skarott has been farewelled after 42 years with the credit union.
He was a founding member in 1973 and company secretary and later chief executive for 42 years.
Also bowing out at the annual meeting was fellow long-term board member and ex-chairman Chris Turnbull.
ECU chairman Greg Nucifora said the ECU would not be what it was today without the commitment and dedication that both men had shown to the organisation and to business in Cairns.
“Clive was a trailblazer in the finance world, not only in the far north but in Australia,” he said.
“After 15 years as company secretary on a voluntary basis, in 1989 he took up the appointment of chief executive.
“Under his guidance over the next two decades the number of branches expanded from five to 14, with 21 member service centres throughout Queensland.
“Assets increased from $12.3 million to $302 million and reserves from $493,000 — $17.29 million,” Mr Nucifora said.
In 1988, Mr Turnbull became a director for 27 years, including five as chairman.
“While we are thankful to the solid foundations that ECU was built on, we are confident and excited about our continued growth as we introduce new and innovative products and initiatives, refresh our branches and establish a greater online presence for all our customers,” Mr Nucifora said.
John Gilbert was welcomed back on board as a director and deputy chairman.