Credit Union set to return €1.9m to local economy

Tullamore Credit Union is proposing to plough some €1.9m back into the local economy through dividends and loan interest rebates in the coming weeks.

On the back of what its chairperson Liam O'Callaghan described as a “tremendous year financially”, the credit union is proposing to a dividend of 0.5% for the financial year ending September 30 last, and a loan interest rebate of 15% on all loans with an interest rate of 9.5% and above.

The dividend, if agreed by members at an AGM on Monday next, would see some €1,533,292 paid to members, whilst the loan interest rebate would result in €362,019 being returned.

In his introduction to the credit union's annual report, Liam O'Callaghan said the success had been based on two factors: increased lending and greater investment income earned.

The credit union's loan book increased by some €13m this year, to €105m, and almost 6,000 loans, totalling €44m were issued in the last twelve months.

The dividend, if agreed by members at an AGM on Monday next, would see some €1,533,292 paid to members, whilst the loan interest rebate would result in €362,019 being returned.

In his introduction to the credit union’s annual report, Liam O’Callaghan said the success had been based on two factors: increased lending and greater investment income earned.

The credit union’s loan book increased by some €13m this year, to €105m, and almost 6,000 loans, totalling €44m were issued in the last twelve months. CEO Paul Shaw noted that the level of growth in members’ shares in 2024 was lower than previous years. Although there was a similar amount of lodgments to members accounts, the level of withdrawals and spending was up, which he attributed to “a higher level of general consumer confidence in the local area”.

Head of Finance Darragh Corbett outlined that the annual report showed an excess of income over expenditure of €3.9 million – a 35% increased on the €2.9m reported the previous year.

The annual report also revealed that a major technology project to install a new IT platform which the credit union has committed “significant resources” to since 2019, was paused during 2024.

The union is now to commission an external review of the “key decisions made during this project” and share summary findings of the review with members.

Chairman Liam O'Callaghan said the project is currently on hold and is expected to remain that way indefinitely.

CEO Paul Shaw explained that the project to replace the current IT platform was originally a joint venture with two other credit unions. One of those partners pulled out in early 2023 and when the other partner went live on the system in January 2024 “it did not function as expected or required and they were forced to switch back to the original system.”

As a result Tullamore Credit Union paused its work on the project until it fully understood the cause of the issues at the partner credit union.

“Unfortunately, despite numerous requests, this information has not been provided by the supplier of the system and we have been unable to progress the project,” he said, in the report.

"We will not take any actions that put services to our members at risk... However, we have spent significant time and money on this project since 2019 so it is very disappointing that we do not have anything to show for it”.

The AGM takes place on Monday at 8pm in the Esker Arts Centre.