MoBay Credit Union offers $4.8M in dividends
WESTERN BUREAU — For the first time in 15 years, the Montego Cooperative Credit Union (MCCU) has been able to pay its members dividends amounting to $4.8 million, according to general manager, Ornel Bedasse. This accounts for five per cent of the record $25.8 million the institution posted in 2002.
“Business has been growing immensely. We have become more efficient and we expect to continue growing,” Bedasse told the Observer.
He said profits have steadily increased from $3.2 million in 2000 to $11.7 million in 2001. And last year, the institution more than doubled the 2000 figure, posting $25.8 million in profits.
The MCCU has also seen its assets steadily increase from $281.9 million in 2000, to $361.6 million in 2001 and $453.4 million in 2002.
Membership also increased by 6.5 per cent during 2001, moving from 26,124 at the beginning of the year to 27, 813 by year-end.
This trend continued in 2002, jumping to 30,551 by the end of the year which represents an increase of 9.8 per cent.
Bedasse commented that the increase in the credit union’s fortunes could be attributed to the $22 million sale of their property at 8 Sam Sharpe Square, which formerly housed Singer furniture store.
And their property at 20 Church Street is leased to Cable and Wireless, from which they earn additional income.
In addition, Bedasse explained, the popularity of MCCU’s family indemnity plan is one of their major accounts. Under the plan, claims can be settled within 24 hours; and it is the insurance policy that most insurance agents use.
Of the $25.8 million earned, Bedasse said $16 million will be used to strengthen their capital base; $4.8 million will be paid out in dividend to members; $100,000 will be available for donations and $100,000 will be given to the Bayley Haye scholarship. The scholarship is awarded annually to five successful GSAT students of MCCU members.
He also said that $4.7 million would be used to expand the MCCU. This expansion will include the building of an upper floor, as well as the expansion of the customer service area to better serve the needs of their growing customer base.
The credit union, unlike other financial institutions, is a co-operative and as a result its members have more voice in the institution than main stream financial institutions.
“Whether you have $1 or $10 million dollars, you both have equal say,” said Bedasse. “That is the beauty of a credit union. It is very democratic.”
