I am pleased to report on behalf of the Board of Directors that the Harp and Crown Credit Union, despite the ongoing economic downturn, has continued a steady level of growth, offering a continuing stability and consistency at a time of a great deal of financial uncertainty.

The balance on our share accounts closed at over £17.9 million, which shows an increase of £2.4 million since this time last year and with our loan accounts closing at £12.9 million, this indicates the extent to which our members continue to make use of this excellent facility.

The loan demand in terms of numbers also increased with a total of over 3,200 loans being issued at a total value similar to last year of over £5.7 million. This level of activity is encouraging and helps to maintain the stability achieved to date, however, as was said last year, it is important that as members, you heed a word of caution: if the share balance continues to grow at a much greater rate than the loan balance there is a potential danger of the Credit Union becoming a savings’ club which would, in the longer term, have a detrimental effect on the dividend payable. In other words the Credit Union needs loan interest as well as bank interest to be able to perform to the maximum for the benefit of all members.

Mindful of these factors and of course the reality that large interest rates are just not available out there, either to individuals or the Credit Union, the Board of Directors put in place last year a couple of measures to help to stabilise and control the future. Firstly, anyone opening an account for the first time can only lodge a maximum of £5000 and save a maximum of £100 per month, a measure which is kept under review. Secondly you will recall we applied and were granted permission by the Registrar to raise the loan limit from £15,000 to £20,000 and being mindful of the rebate on interest paid (12%), which has featured in our goals and objectives now for some years, it really is worthwhile taking any loan you need from the Credit Union, no matter how small, it all helps to keep the Credit Union meeting the demands of the membership.

Membership continues to grow steadily with over 500 new members so please encourage your colleagues within our common bond to join. The more members we have the better for everyone! There is a Starter Loan of £2000 available to new members after a period of six months in the Credit Union with the only requirement being to save a minimum of £10 per month. This loan is not based on savings and must be repaid after 2 years unlike normal loans which can be repaid over 5 years.

With continued close and careful management on a daily basis, which is reflected and supported by the activity reported above, the Board of Directors are delighted to propose a dividend of 4.25% for the second year in a row, which I am not sure is actually available in any other financial institution which is as flexible as our Credit Union. In addition we are pleased to maintain at 12% the rebate of interest paid on loans. Thank you to the Registrar and to Patrick Rice, our auditor, for their help and guidance.

The Credit Union was pleased to be able to make a number of charitable donations as follows: The National Police Memorial Day, Northern Ireland Children’s Hospice and The Foyle Hospice each received £1000, plus P S N I Football Club received £250 towards their Night at the Races. We were delighted to again support the Police Federation Lottery Champion of Champions Golf Event with a cheque for £1000. This is particularly relevant as they, The Police Federation for Northern Ireland, have an inextricable link with us and are so supportive of everything we do to provide this Service.

The Credit Union continues its sponsorship with the PSNI Rugby Team and is pleased with the continued success of the partnership. The Rugby Team is an excellent ambassador for the Credit Union and clearly displays the logo and literature at every event. Thank you to the Rugby Club for also helping us. Good luck for this current season!

If you wish to be contacted by email regarding any offers or promotions please forward your email address to our contact details listed on the back cover of this report.

I would like to thank most sincerely Carol, Elaine and Tori for their commitment, growing knowledge, concentration and hard work, particularly as we move forward in March next year to the FSA Regulation of Credit Unions which will undoubtedly bring with it many challenges to be learnt. I would also like to extend our thanks and acknowledge the support of all the administration staff in the Federation office all of whom assist as necessary with the smooth running of this service and look forward to the incoming year.

Jill Ferguson
Treasurer/Manager.