17 CONSOLIDATED FINANCIAL STATEMENTS 2024 Group. Net growth in mortgages stood at $17.6 million or 2.6 percent while net consumer loans and business loans decreased by $49.7 million or 6.7 percent. The Group remained highly liquid with total cash resources of $424.4 million compared to $392.8 million in the prior year, representing an increase of $31.6 million or 8.1 percent. Asset quality: The Group’s non-performing loans increased by $2.4 million in 2024 compared to the prior year increase of $7.4 million despite an overall decline in the loan portfolio of $35.7 million. This resulted in a marginal increase in the Group’s delinquency ratio from 14.0 percent at the end of March 31, 2023 to 14.6 percent at the end of March 31, 2024. In addition to the Group’s continued focus on strengthening the collection efforts and providing enhanced payment solutions catered to the individual needs of our members, it also anticipated that future reductions to the delinquency ratio will be achieved as the overall growth in the loan portfolio aligns with budgeted targets. In this regard we recognize and acknowledge the efforts of staff, in particular the Collections departments, which resulted in an overall decrease in the growth rate of delinquent loans by 68.0 percent. Options available for members seeking relief includes the following: • extension of loan terms • converting outstanding interest to a separate loan; and • consolidation of debt Liabilities: The Group’s liquidity position continues to be strong and is primarily driven by the continued growth in the Group’s cash resources and the management of its working capital. Deposit growth remained steady over the period, rising marginally by $2.5 million or 0.1 percent. The Group maintains a liquidity buffer which ensures the statutory reserves are fully met, a percentage deposit cover is maintained and a percentage cover for loan commitments is guaranteed. At March 31, 2024 the Group’s cash and cash equivalents of $395.4 million was $65.9 million over the liquidity buffer of $329.5 million. The Group’s operations are 99.9 percent funded by its members and customers to the extent that the only external borrowing is that held by its subsidiary, Capita Financial Services Inc. At the end of the financial year, this external exposure remained at $1.2 million. Equity: As at March 31, 2024, the Group’s total equity rose to $195.4 million, representing an increase of $7.4 million or 3.9 percent compared to an increase of $2.5 million or 1.3 percent in the previous year. This increase included the issuance of $431.6 thousand in additional member shares (2023 - $544.1 thousand), and the distribution of $2.8 (2023- $2.8) million in dividends and interest rebates to members during the year. The Group’s capital adequacy ratios continue to be above the 10 percent regulatory requirements. This ratio is a key measurement relative to the Group’s ability to absorb market shocks and as such is continually monitored on an ongoing basis. Delinquency Ratio 1 Delinquency Ratio Delinquency Ratio 1 Cash and Equivalents
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