The reporting period is 1 July 2008 to 30 June 2009. mecu’s fourth Sustainability Report covered the 2007/08 reporting period and was made publicly available in November 2008. This year, mecu continued the process of reporting movements in performance using a range of indicators to compare 2008/09 performance with 2004/05 baseline data.
a message from mecu's chairman
What we're most proud of: our achievements
In the past year mecu has experienced a further significant strengthening of its mutually owned banking business. Despite challenging market conditions, mecu achieved a record level of surplus and strong growth and continued to deliver exceptional levels of member value and satisfaction. At the same time staff engagement remains at world's best practice, providing further clear evidence that our values-based approach to banking truly delivers value to our many stakeholders.
What truly sets us apart from other financial institutions is that mecu recognises the need for a broader measure of business progress and common prosperity than economic growth alone. At the heart of mecu is a belief that both our long-standing cooperative principles and the strong synergies that exist between economic, social and environmental responsibility represent the future for all businesses.
Despite the impact of the global financial crisis on markets and economies across the world and in contrast to many other financial institutions, mecu has performed strongly proving the value of being a prudently managed, mutually owned financial institution with an unwavering commitment to sustainable development as a way of conducting our business of banking.
This financial year:
- after tax surplus was $18.3m - up 4.6%
- assets grew 22% to $1.848b
- loan portfolio grew 27% to $1.398b
- member deposits grew 24% to $1.608b
- member reserves are now $209.9m increasing by 16%
- member benefit dividend was $24.047m
- overall average member business support value increased 13% to $26,259; and
- member net satisfaction levels remained high at 93%.
Looking to the future: key risks and opportunities
mecu members and other key stakeholders continue to guide the Credit Union's approach to ethical and socially responsible banking. Together with them we see opportunities for mecu to continue to innovate and define our approach to banking by:
- continuing to understand our members' economic, social and environmental interests, values, attitudes, needs and expectations
- investing members' funds in ways that create positive economic, social and environmental outcomes; and
- seeking to identify and understand those emerging economic, social and environmental risks and issues that are relevant to our business of banking and determining appropriate responses.
At the same time we recognise the potential impacts that a deteriorating national and global economy may have on mecu and so we understand the importance of maintaining our conservative approach to managing risk, ensuring effective cost management and maintaining a highly engaged and productive workplace culture responsive to satisfying the needs of our members.
Once again, I trust this year's report will provide you with an insight into our performance, and how we go about the process of creating member value.
Peter Crocker,
Chairman.