CHURCHES Co-operative Credit Union (CCCU) reported a three per cent decrease in net profits to $113.3 million in 2011, during what the company said were challenging economic conditions.

Interest income fell by two per cent to $711.6 million over the period, reflecting a 33 per cent drop in interest income from investments to $60.4 million and a two per cent increase in interest earned from loans to $651.1 million.

Net interest income though was two per cent higher at $602.2 million over the period under review and non-interest income jumped by 50 per cent to $126 million.

“The financial year 2011 was even more challenging than the previous year both locally and internationally but amidst the many challenges, Churches Credit Union still achieved net (comprehensive) income of $114.7 million and a return on asset of 2.53 per cent which compared favourably with the general standard for financial institutions. We also generated growth in the most critical aspects of our business such as customer satisfaction,” said CCCU CEO Basil Naar in a press release.

“Although our Investment Income fell, we continued to build three businesses namely, our pension business, micro and small business loans, and our investment and fund management company, CCU Investments Limited. These businesses will rebound to provide greater benefits to our members in the long run,” Naar continued. “Additionally, we continued to devise innovative products and services and to provide exceptional customer service for our members which enabled us to continue performing admirably despite the prevailing conditions.”

CCCU reported growth in its assets, deposits and loan portfolio.

The company’s audited financial results showed total assets increasing to $4.54 billion at December 31, 2011. This increase was slightly below the inflation rate and represented growth of 5.4 per cent or $232.5 million over the previous year.

Through rigorous sales and marketing initiatives, CCCU reported that it grew its loan portfolio to $3.33 billion, an increase of $346.3 million or 11.6 per cent over 2010. The financial institution’s loan portfolio also showed an accelerated rate of growth, increasing at a rate that was three per cent higher than the rate of growth in 2010.

In 2011, CCCU issued loans valued at $1.98 billion, exceeding its loan disbursement target by $58.4 million. The total disbursements for 2011 were also $258 million more than loans issued in 2010. In addition, the company’s Past Due loan portfolio was 4.75 per cent for 2011, which the company reported is an “excellent rate when measured against the Bank of Jamaica’s standard of 10 per cent.”

CCCU said it continues to drive to expand its offerings to members with compelling new products while consistently improving its delivery of services.

In 2011, the Credit Union signed a deal with a bill payment agency which immediately gave its members an additional 280 locations islandwide to make deposits and loan payments. Last year, CCCU also forged a partnership with the Jamaica Mortgage Bank, which provided $100 million in financing to make mortgage loans available to members at competitive rates.

Total Revenue for the Credit Union was $832 million reflecting an increase of $23 million or 2.73 per cent compared to $809 million for 2010.