Day: July 14, 2014

Credit Union’s annual surplus triples as members’ savings grow and lending activities increase.

2013/14 was a landmark year for East Sussex Credit Union as the organisation saw its surplus jump to £24,200; more than three times its projected budget for the year. Members’ savings grew 27% and lending activities again exceeded £1 million.

At the end of the financial year in April the credit union saw its asset base approach £2 million for the first time as business performance accelerated and the organisation took another important step on its journey towards sustainability.

East Sussex Credit Union’s President, Richard Priestman, said: “This has been a very significant year for our business.

“Given the challenging economic environment we have performed very strongly, demonstrating the real attraction to customers of our ethical, local brand.”

East Sussex Credit Union also delivered another good performance in terms of lending activities which rose 13% over the financial year with both loan numbers and loan size growing. The ongoing development of a policy to offer competitive larger loans to members was a highlight and now contributes significantly to the credit union’s success as these transactions tend to be for longer periods, offer improved returns and generate regular income in future years.

In 2013-14, larger loans represented almost 20% of total lending and aside from attracting a wider customer base, returns have allowed the provision of a greater volume of smaller loans which tend to be higher risk and can be loss making.

During the previous financial year East Sussex Credit Union was awarded significant grants from Brighton & Hove City Council to enable an increase in the scale of business operations in the city and allow online applications and servicing.

These changes have been made during 2014 with strategic additions to the workforce and the necessary upgrade to systems. In addition, the grant funds have supported an ongoing pilot for the provision of much smaller loans, reinforcing work with community money advice agencies to combat financial exclusion.

A similar large grant has very recently been agreed by East Sussex County Council to offer the credit union an even greater ability to extend its reach and develop business activities beyond Brighton & Hove so as to deliver services across the county. Work is now in hand on the development of an increased regional presence that is likely to be based in Eastbourne.

East Sussex Credit Union Ltd (ESCU) is a not for profit savings and loans co-operative, which has been operating locally since 2000 and is located at Community Base, 113 Queens Rd, Brighton, BN1 3XG.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, ESCU is one of the leading credit unions in the UK. The organisation has recently enjoyed rapid growth, with membership at an all-time high and almost £2 million in member savings.

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