đź“· Photo: Seychelles News Agency, via Wikimedia Commons, CC BY 4.0
VICTORIA, Seychelles — The Seychelles Credit Union will distribute R9.26 million in dividends to its members, a 6 percent return on shareholdings, after its 55th Annual General Meeting approved the cooperative’s 2025 accounts on Saturday at the International Conference Centre Seychelles.
The dividend, set 1.5 percentage points above the 4.5 percent paid in 2024, will be transferred to members on 15 July 2026, the union confirmed at the meeting. The decision was taken after the union considered its financial position, earnings stability, liquidity, growth requirements, and member interests, in line with prudential standards overseen by the Central Bank of Seychelles.
The cooperative reported a net surplus of R9,653,690 for 2025, down from R10,827,867 in 2024, a decrease of roughly R1.17 million. Total revenue rose to R55,322,823, while expenses reached R45,669,133. Interest income climbed 9 percent, from R48,002,134 in 2024 to R52,325,116 in 2025, with R41.6 million, or 80 percent, generated from advances to members, R8.2 million, or 16 percent, from investments in financial assets, and R2.5 million from other interest-earning activities.
Other income totalled R2,997,707, largely from membership and processing fees. On the expense side, employee benefit costs climbed from R14,470,069 to R18,237,887, becoming the largest single cost category. Amortisation of intangible assets stood at R2,966,007, while depreciation of property and equipment was R1,182,032.
Chief executive Christopher Laurence attributed the results to growth in interest income and a stronger balance sheet, noting that higher operating costs had reduced the annual surplus. The approved dividend rate of 6 percent is 1.5 percentage points higher than the 4.5 percent paid in 2024, and the payout of R9,263,119.83 will leave retained earnings of R20,305,698. The dividend history shows 4.5 percent in 2024, 5 percent in 2023, 5.5 percent in 2022, and 6 percent in 2021, with no payment in 2020 under Central Bank instructions during the Covid-19 pandemic.
Total assets grew 11 percent, from R702,488,491 in 2024 to R782,294,579 in 2025. Advances to members rose 10 percent to R400,049,657, while investments in financial assets increased 34 percent to R190,046,674. Cash and cash equivalents fell 4 percent to R158,329,942. Property and equipment rose 5 percent to R14,773,121, and intangibles declined 22 percent to R10,444,239.
Total liabilities increased to R536,730,237, with customer deposits up 8 percent to R512,662,152. Members’ equity grew nearly 19 percent to R245,564,342, with ownership shares up 26 percent to R171,158,913. The general reserve increased 9 percent to R43,770,614, and the surplus fund rose 7 percent to R23,946,190.
Chief operating officer Nigel Hoareau outlined strategic projects to modernise operations, strengthen digital capabilities, and enhance member and staff experience, with renovations at the head office nearing completion, including a redesigned banking hall, a relocated loan office, upgraded staff facilities, and improvements to the building’s exterior. The cooperative is also replacing its Internet Banking platform with a more reliable system, and is upgrading its core banking system with Temenos T24.
The presentation also addressed loan delinquency, identified as a key financial health indicator. As of 31 December 2025, the cooperative’s delinquency ratio stood at 8.93 percent, above the 5 percent benchmark recommended by the World Council of Credit Unions. The cooperative reported 200 loan accounts in default, representing R11.5 million in arrears and R37.2 million in outstanding capital, with 37 cases entering legal proceedings.
Sey Auditors and Associates were appointed to audit the cooperative’s accounts for 2026 and 2027. Members also approved the merger of the Electoral General Meeting with the Annual General Meeting to reduce costs, with one AGM to be held in June starting this year. Internet banking is expected to go live this week.
Sources cited: Seychelles Official Gazette, Non-Bank Credit Granting Institutions Act, 2025. World Council of Credit Unions, Global Reach. Seychelles Credit Union.
Source: SN
