Half Year result and reduction in banking fees

Credit Union Auckland

PRESS RELEASE

Credit Union Auckland announces Half Year result and reduction in banking fees

TUESDAY 30TH JANUARY 2007 – Credit Union Auckland has today announced its unaudited financial results for the half year ended 31st December 2006. The Chairman, Mr. Greg Carll reported a net operating surplus before Dividends to Members of $354,839 compared with $157,679 for the corresponding period last financial year. This represents a 23.10% return on Total Members’ Equity at the beginning of the period. A total of $235,149 has been set aside or already paid to Members as Dividends in the period which represents 18.11% of all income.

“This is a very good result for the Credit Union which comes after 18 months of hard work and consolidation of our business,” said Mr. Carll.

Income was up 3% over the six months compared to the previous financial period and expenses had been tightly controlled to produce a 12% reduction. “This clearly reflects the hard work put in by management and staff,” said Mr. Carll. “The all important area of Bad and Doubtful Debts has been reduced by 50% reflecting efficient credit control and better lending practices. The future looks very bright for the Credit Union.”

To mark the half year result, Credit Union Auckland has announced a reduction in some of its transactional and banking fees to Members. “It is important to us that the benefits of this result are passed on to Members,” commented the General Manager, Rob Collins. “At a time when most financial institutions are increasing fees and charges, it is significant that we are eliminating some and reducing other fees. We can now say that all transfers between a Member’s accounts are free of any transaction fee. This is just the start and we plan to review all fees again at the end of the financial year once the full result is known.” he said. “Our aim is to make banking and borrowing from Credit Union Auckland as low cost as possible for our Members. We know that we are already one of the cheapest options in the marketplace and we want to be an even better option for Aucklanders,” says Rob.

Established in 1965, Credit Union Auckland has been providing finance and banking services to the people of Auckland for over 40 years. As a registered Credit Union - not a registered bank - it has assisted individuals and community groups in many ways.

Credit Unions are run to give the best possible value in financial services to Members while supporting the communities they operate in. They are owned and controlled by their Members to provide banking, savings, loans, and insurance products. They also aim to promote saving, budgeting and the wise use of credit. Profits belong to Members - not corporates, overseas shareholders or the Government.

ENDS

Credit Union Auckland

Credit Union Auckland was established in 1965. It now serves thousands of people living or working within the greater Auckland area. Credit Union Auckland provides a comprehensive range of transactional banking, savings, loans and insurance products and services to it Members. It is a Member of the New Zealand Association of Credit Unions which is the main trade association representing 39 Member Credit Unions nationwide serving over 173,000 New Zealanders.

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