Cara Credit Union -AGM Notice & Annual Report 2025

seán Roche hon secretar y

Tugtar fógra leis seo go dtionólfar

Cruinniú ginearálta Bliantúil

Chomhar Creidmheasa Cara Teo. in Óstán an Róis, Trá lí, dé luain, 8 nollaig 2025 ar 7.00pm

seán Roche rúnaí Oinigh

BOARD OF DIRECTORS & BOARD OVERSIGHT COMMITTEE

As of 30th september 2025

BOARD OVERSIGHT COMMITTEE

eddie enright Chairperson

sean roche

Caroline sugrue John O’Connor

John O’regan Vice Chairperson

Danny Kerins Tom Lawlor

John Welch Dermot Cahill Lily Tangney

John Lyons

eimear sugrue

Clare Lucid Martina flynn

Mary Cahillane nicole O’ sullivan

AGM AGENDA | CLÁR AN CGB

Monday 8th December 2025

The Rose Hotel 7.00pm

The agenda for the annual general Meeting is as follows:

invocation - Credit union Prayer

1. acceptance of Proxies (if any) by the Board of Directors

2. ascertain that a Quorum is present

3. adoption of standing Orders

4. reading and approval of the Minutes of 2024 agM

5. appointment of Tellers

6. election of auditor, Board Oversight Committee and Directors (please refer to page 44)

7. report of the Chairperson

8. report of the auditors

9. report on accounts

10. Declaration of 0.25% dividend

11 report of the Board Oversight Committee

12. report of CeO

13. approval of the League affiliation fees - €1.00 per member automatically deducted from members’ accounts

14. approval to amend the standard rules (please refer to rules on page 6)

15. agM Members’ Draw

16. announcement of election results

17. any other Business

18. Close of Meeting

Dé Luain, 8 Nollaig 2025 Óstán an Róis, 7pm

seo a leanas clár an chruinnithe ghinearálta bhliantúil:

Paidir an Chomhair Chreidmheasa

1. glacadh le seachvótaí (más ann) ag an mBord stiúrthóirí

2. Córam a chinntiú

3. glacadh le Buanorduithe

4. Léamh agus faomhadh Miontuairiscí CgB 2024

5. áiritheoirí a cheapadh

6. iniúchóir, Coiste formhaoirseachta an Bhoird agus stiúrthóirí a Thoghadh (déan tagairt do leathanach 44)

7. Tuairisc an Chathaoirligh

8. Tuairisc na niniúchóirí

9. Tuairisc maidir leis na Cuntais

10. Dearbhú na díbhinne 0.25%.

11 Tuairisc Choiste formhaoirseachta an Bhoird

12. Tuairisc an Phríomhfheidhmeannaigh

13. faomhadh Tháillí Cleamhnaithe an Chonartha - €1 00 an comhalta bainte go huathoibríoch as cuntais na mball

14. faomhadh chun na rialacha Caighdeánacha a leasú (féach na rialacha ar lch 6)

15 Tarrac CgB na mBall

16. Torthaí an Toghcháin

17. aon ghnó eile

18. Clabhsúr

RESOLUTIONS

standard Rules

There were two amendments to the standard rules for Credit unions (republic of ireland) (‘the standard rules’) arising from League agM 2025

Rule 14(1)

That this annual general Meeting agrees to amend rule 14(1) of the standard rules for Credit unions (republic of ireland) by the insertion of the word ‘natural’ to read as follows:

rule 14. Person under age 16

1. a natural person under the age of sixteen:

a) may be a member of the credit union, and b) subject to paragraph (2) may enjoy all the rights of membership, other than voting rights, and can give all necessar y receipts.

Rule 109

That this annual general Meeting agrees to amend rule 109 of the standard rules for Credit unions (republic of ireland) by the deletion of rule 109(3) (a) to (f )1 inclusive and replacing it with the following:

3. all complaints under this rule shall be decided in the following manner:

a) for the purposes of this rule the complaining party or parties described under paragraph (1) shall be referred to as the complainant.

b) The board of directors shall appoint a complaints officer who is suitably qualified and authorised to investigate, and wherever possible resolve complaints, received from complainants.

c) in the event that a complaint is not resolved to the satisfaction of the complainant, the complainant may refer the complaint to the financial services & Pensions Ombudsman, or other adjudication body as appropriate.

d) nothing in this rule shall prevent the financial ser vices & Pensions Ombudsman from investigating and adjudicating a complaint made against a credit union about the provision of, or failure to provide, a financial service, so long as the complaint: a) falls within the jurisdiction of that Ombudsman, and b) does not relate to a matter that involves only the governance of the credit union.

CHAIRPERSON’S REPORT

eddie enright

On behalf of the Board of Directors, it is my privilege to share with you our annual report for the year ending 30th september 2025. in doing so, i also invite you to attend our agM in The rose hotel on 8th December at 7pm.

a year of Record performance

This past year has been one of record performance for Cara Credit union. for this, i want to first and foremost thank you - our Members. Your trust and loyalty are the foundation of ever ything we do and achieve a credit union is only as strong as the Members who own it, and Cara Credit union continues to thrive and grow because of your continued support and engagement.

as you will see in the detailed accounts, your credit union is performing ver y well. i am ver y happy to report a record surplus of €3.429 million - our best ever. This reflects strong lending performance, prudent cost management , and responsible financial governance.

Our assets now stand at €369 million, up from € 3 4 1 m i l l i o n , a n d l e n d i n g to m e m b e rs h a s g ro w n s i g n i f i ca n t l y to € 1 3 9 m i l l i o n , u p f ro m

€ 1 3 1 million last year. This demonstrates the confidence our Members place in us and our continued commitment to supporting households, businesses, and community needs.

These results allow the Board of Directors to propose a dividend of 0.25%, subject to approval at the agM. it also enables us to reinvest in member services, community initiatives, and the long-term sustainability of your credit union.

supporting Members Through challenging Times

We are all acutely aware of the pressures facing

individuals, families, and businesses todayrising living costs, interest rate volatility, and economic uncertainty. access to fair, affordable, and responsible finance has never been more important. Cara Credit union continues to stand for the values that define the credit union movement : people helping people, financial wellbeing, and community support. While others prioritise profit, we prioritise our members.

improving Member services and looking ahead

This year, we continued to improve and modernise our ser vices while maintaining the personal, relationship-based approach that sets us apart. One of the most exciting developments ahead is the launch of our new fixed-rate mortgage. This will provide our members with greater choice, flexibility, and long-term certainty - something many families have been seeking in the current rate environment. We will continue to invest in innovation, digital ser vices, and product development - always with the goal of putting Members first.

our people and governance

strong results don’t happen by accident ; they come from strong leadership, collaboration, and a shared commitment to our mission.

Therefore, i wish to express my sincere thanks to the following:

• My fellow Directors for their dedication, time, and strategic guidance. We met a total of 15 times, and in addition, Directors participated

chAirperson’s report contd.

in various sub-committees and attended mandator y training courses. it’s a pleasure working with them, and their sole focus is what’s best for Cara Credit union

• The Board Oversight Committee for their diligence and continuous focus on accountability and governance. They did an excellent job.

• Our Management Team, led by CeO Pa Laide, for their leadership, vision, and continuous support throughout the year. Their commitment to innovation and change will ensure Cara Credit union remains a leading provider of a full range of financial ser vices to our members.

• Our staff across all branches for their commitment to ser vice, professionalism, and care for our members. Their work ensures that Cara Credit union remains compliant and trusted, while offering a welcoming, friendly ser vice to our members

our future

The credit union movement in ireland has a proud heritage - but more importantly, it has a bright future. in a marketplace increasingly dominated by large financial institutions and digital-only providers, people are looking for something more meaningful: a financial partner they can trust . Credit unions offer that connection, that trust , and that sense of community. We must continue to evolve, innovate, and grow - without losing sight of the values that make us different.

There is enormous opportunity ahead for Cara C re d i t u n i o n to e x pa n d o u r i m pa c t , rea c h m o re members, and be a leading example of what a modern, community-focused financial institution can and should be. That is our aimand with your continued support , we will achieve it.

conclusion

as this agM marks the end of my three -year term as Chair of Cara Credit union, i want to say it has been an honour to serve in this role i wish to thank my fellow directors, past and present, for their confidence and trust in electing me as Chair. ser ving alongside you has been a pleasure. We haven’t always agreed on ever ything - and that’s a good thing. honest discussion and diversity of opinion are what make us stronger. What we have always shared is a commitment to doing what is best for our members. as i step down as Chairperson, i do so with full confidence in the continued strength and future of Cara Credit union.

Best wishes to the incoming Chairperson - they can be fully assured of my continued support and i ver y much look for ward to working with them as, together, we ensure our credit union continues to thrive i intend to remain fully supportive as a director and look for ward to contributing as part of the team. Our success comes from working together - and that will continue.

i started with our members, and i finish with our members. Thank you - Cara Credit union exists because of you. it has been a privilege to ser ve as Chair on your behalf. i am proud of what we have achieved together and excited for what lies ahead for Cara Credit union. Looking forward to seeing you at the agM in The rose hotel, on 8th December at 7.00pm.

go raibh míle maith agaibh.

eddie enright, chairperson

BOARD OVERSIGHT COMMITTEE REPORT

The Board Oversight Committee (BOC) is pleased to submit its annual report in accordance with section 76O(7) of the Credit union act 1997 (as amended), to you, the members of Cara Credit union.

The functions of the Board Oversight Committee, as set out in the Credit union and Co-operation with Overseas regulators act 2012 (as amended), may be briefly summarised as follows:

• To assess whether the Board of Directors has operated in accordance with Part iV of the act.

• To assess whether the Board of Directors has operated in accordance with any other matters prescribed by the Central Bank in respect of which they are to have regard.

We are satisfied that, as far as we can ascertain in carr ying out our checks, the Board of Directors has complied with and operated in accordance with Part iV and Part iVa of the Credit union acts 1997 and amendments

Over the course of the year, at least one member of the BOC attended ever y board meeting and special board meeting held by Cara Credit union, either online or in person. having regularly reviewed the procedures of these meetings, the Board Oversight Committee is satisfied that the actions and decisions of the Board of Directors were compliant with current rules and legislation. We commend them for

maintaining strong and consistent governance. We have presented reports to the Board, and all BOC members attended mandator y training and other workshop sessions throughout the year.

We extend our thanks to the Directors and the Management Team for their courtesy, assistance, and co-operation during the year.

John lyons chairperson of the board oversight committee

CEO REPORT 2025

it is my privilege to present this year’s over view of our operational progress, key achievements, and strategic developments, along with updates from several of our committees.

This report reflects the dedication and resilience of our Board of Directors and entire Team, and i’m proud to share the milestones we’ve reached together

a year of growth and progress

The past year has been exceptionally positive for Cara. Over the last 12 months, we’ve expanded our lending book by 6.3% and issued 8,622 loans to our members. Our membership base continues to grow steadily, with increasing numbers embracing our enhanced digital ser vices.

improving the member experience - particularly around loan applications and account openingsremains a key strategic priority for 2026. We are committed to streamlining these processes to ensure a more seamless and accessible journey for all.

as climate change emerges as one of the most pressing global challenges, i’m proud to highlight the proactive steps Cara is taking to lead in sustainability. This report outlines our initiatives and ambitions in this critical area.

financially, i’m pleased to report a surplus of €3.4 million. as a result , the Board of Directors is proposing a dividend of 0 25% - a reflection of our strong performance and continued commitment to delivering value to our members.

our Team

Cara Credit union is proud to have a dedicated team of almost ninety members, each delivering outstanding ser vice to you, our valued members, ever y day. We’re also delighted to welcome the

new colleagues who have joined us over the past year and extend our best wishes for their continued success with Cara.

Our people are our most valuable asset. That’s why we place a strong emphasis on their development and invest significantly in training and education

Over the past year, many team members successfully completed professional exams, with several earning the esteemed Qualified financial advisor designation - a remarkable achievement we warmly applaud.

Beyond professional development , we’re equally committed to fostering a supportive and engaging workplace culture. This year marked the launch of our inaugural staff recognition awards, celebrating outstanding contributions across the team. We also hosted dedicated events such as Workplace Wellbeing Day and World Mental health Day to promote holistic wellness, ensuring our people continue to grow both personally and professionally.

Our commitment to ser ving you remains at the heart of ever ything we do. Whether you engage with us in person, by phone, or online, our team is here to support you in the way that suits you best. We are continually working to enhance the ser vice we provide, and we take great pride in the personal connection we maintain with our members - a hallmark of Cara Credit union that truly sets us apart.

i would also like to acknowledge the colleagues who have moved on from Cara Credit union over the past 12 months to pursue new opportunities.

We sincerely wish them ever y success in their future endeavours. i would like to take a moment to recognise and celebrate the contributions of four long-ser ving team members - sharon hickey, Jacqui O’Callaghan, una Brosnan, and neasa O’flaherty - who have recently moved on to new opportunities. Collectively, they brought over 70 years of dedicated ser vice to Cara Credit union.

Throughout their tenure, sharon, Jacqui, una, and n ea s a d e m o n s t ra te d u n wa v e r i n g co m m i t m e n t a n d worked tirelessly. Their professionalism, compassion, and deep understanding of our community made a lasting impact . On behalf of ever yone at Cara Credit union, i extend our deepest thanks for their ser vice and wish them all the ver y best in the future.

Membership committee & Member service it was another dynamic and productive year for the Members ser vices Teams at Cara Credit union, marked by several key milestones and ser vice enhancements.

We welcomed 1,718 new members over the past year and over 6,000 members now have their current account with Cara Credit union. Our ongoing partnership with irish Life continues to provide members with access to expert financial advisor y ser vices, reinforcing our ability to meet the full spectrum of their financial needs.

among the year’s highlights were the rollout of sePa instant receive in Januar y 2025 and sePa instant send in October 2025, enabling members to receive funds into their Credit union accounts within just 10 seconds of transfer. We also launched our general insurance offering through allianz, providing cover for car, home, and pet insurance, and introduced fixed Term Deposit products to expand our savings options.

across our branch network, we continue to support members with their day-to -day financial needs,

complemented by our Member ser vice Centre, which handles an average of 240 calls daily - both inbound and outbound.

Our Tralee branch remains a hub of activity, offering saturday ser vices including kiosk access, new account openings, and current account support . Looking ahead, we have exciting developments planned for our Tralee branch. While we’ll share more details in the coming months, our commitment remains firmly rooted in delivering exceptional ser vice and support to our members right across our Branches.

financial performance

Cara delivered a robust financial performance for the year ending september 2025, posting a surplus of €3 4 million The global rise in interest rates contributed to a notable uplift in our investment income. While rates have begun to ease slightly in recent months, we continue to benefit from positive returns on our cash holdings - an encouraging shift from the period when negative interest was applied.

Despite these gains, the structure of our investment portfolio means that a significant portion of funds remain committed to longer-term investments at lower rates, limiting the full impact of rising interest rates. nevertheless, total investment income increased to €4.3 million for the year.

as reported by the CfO last year, our exposure to Blackbee investments - brokers for one of our holdings - was affected by their liquidation in May 2023. We are pleased to confirm that the process has now concluded, and our €2 million investment has been successfully recovered.

Loan income rose by 7.2%, reaching just over €9.5 million. Our loan products continue to be competitively priced, and we’re proud to offer members attractive rates and free insurances.

ceo report contd.

Lending activity remains strong, and while repayment levels are healthy, we remain mindful of the financial pressures many members face due to the rising cost of living. in response, we have prudently increased our bad debt provision by €613,000, which has naturally impacted the final surplus figure.

Cara is not immune to inflationar y pressures, and we continue to manage our operating costs with care. Total assets at year-end stood at €369 million - an increase of €28 million compared to the previous year. Our reser ves prior to distributions were at a healthy 14.28%, reinforcing our financial resilience.

in line with our commitment to sustainability, we are proud to support members who invest in making their homes more energy efficient . Our greener home improvement Loan offers preferential rates to encourage eco -friendly upgrades, helping members reduce their carbon footprint while enhancing their living spaces.

This strong reser ve position ensures we are wellequipped to navigate future challenges and affirms our standing as one of the safest and most stable credit unions in the countr y

Management credit committee and loan performance

Cara Credit union continues to advance its transformation in lending operations. Our automated lending platform - built to provide a streamlined, efficient application experience, has continued to develop and improve. This system enables members to apply for loans, receive approval, and access funds without ever needing to visit a branch Member feedback has confirmed strong demand for this type of digital ser vice, and in a competitive lending environment, offering this channel has been essential to staying relevant and responsive.

While we encourage members to explore the simplicity and convenience of our digital loan process, we remain fully committed to traditional service options. Members can still apply for loans in person or over the phone - whichever method suits them best

We are delighted to announce that our loan book now stands at €139 million, with €55.8 million in new funds issued - most of these funds are reinvested directly into our communities. The most significant growth occurred in the personal lending segment, where we issued €49.5 million in loans.

although the launch of our fixed rate Mortgage product was deferred due to unforeseen delays, we successfully issued 30 secured loans totalling just over €2.67 million. additionally, we provided over €3.5 million in funding to local businesses and farmers, reinforcing our commitment to supporting enterprise and economic development in our region.

Looking ahead, Cara Credit union is excited to announce the launch of a fixed-term competitive mortgage. This new offering will position Cara as a significant player in the mortgage market , expanding our reach and impact We look forward to introducing this product shortly and continuing to support our members in achieving their homeownership goals.

We remain deeply committed to supporting local communities - not only through direct lending, but by ensuring that the funds we provide circulate through local economies, helping sustain jobs, strengthen small businesses, and foster long-term growth.

credit control committee

The Credit Control Committee meets monthly to oversee the recover y of member loans in a manner that is both empathetic and professional, ensuring strict adherence to established policies and

report contd.

procedures. Over the past 12 months, our credit control team successfully recovered more than €534,000 in non-performing loans - an amount consistent with previous years.

however, the continued rise in living costs has led to an increase in bad debts written off, which totalled €653,000 for the year. in response to these economic pressures, we have prudently increased our bad debt provision by €613,000, bringing total provisions to 7.60% of our gross loan book.

We understand that financial difficulties can arise, and we encourage any member experiencing challenges with loan repayments to reach out to our credit control team. They are here to help and can work with you to establish a manageable payment plan tailored to your circumstances.

Risk and compliance

Cara Credit union remains fully compliant with all regulator y and legislative changes introduced during the year. Key updates included new lending limits under the Credit union (amendment) act , changes to current account ser vices, and ongoing sector regulation updates. Our dedicated team ensures policies and procedures are regularly reviewed and updated, maintaining the highest standards of governance and member protection.

We are supported by a robust governance framework, which includes a risk Committee and audit Committee, both of which meet at least quarterly. These committees play a critical role in overseeing risk management , internal controls, and regulator y compliance. Our internal auditor, Moore ireland, reports directly to the audit Committee, ensuring independent and objective assurance across all areas of our operations

During the year, we responded proactively to new requirements, including updates to the Minimum Competency Code, the reclassification of current account ser vices as an exempt activity, and

enhancements to complaints handling and data protection policies. We have also monitored developments in broader legislation, such as the eu ai act and the accessibility act , ensuring our systems and member ser vices remain secure, ethical, and accessible to all

staff training and ongoing monitoring are in place to ensure Cara Credit union continues to operate in line with best practice and regulatory standards. We remain committed to transparenc y, member protection, and maintaining a strong culture of compliance as the regulator y landscape evolves.

information Technology and systems

in an ever-evolving digital landscape, our iT team plays a critical role in adapting Cara Credit union’s ser vices and deliver y channels to meet the needs of our members. They lead the implementation of process improvements and are at the forefront of protecting our systems against c ybersecurity threats.

To ensure we remain compliant with all regulator y and legal requirements, the senior Management Team meets weekly to review our digital infrastructure and governance. We have robust controls and systems in place to safeguard our members, their money, and their personal data.

as cyber threats become more sophisticated, we continue to strengthen our cybersecurity measures - ensuring your account and finances remain safe and secure. Our approach is both responsive and forward-thinking, positioning Cara Credit union to embrace digital innovation while maintaining the highest standards of protection and trust.

awards for a record-breaking 10th consecutive year, credit unions topped the league table for best customer experience in ireland, according to the 2024 Customer experience insight (CXi) report . furthermore, credit unions are also the only brand

ceo report contd.

to have maintained a constant presence in the top ten since the sur vey began ten years ago

Credit unions also claimed first place position in the ireland reputation index 2025. This index evaluates 100 of the countr y’s largest and most recognisable organisations across more than 100 factors, including brand purpose, environmental impact, trust, respect, and social responsibility.

at a local level, we’re delighted to announce that our Corca Dhuibne branch has once again been recognised for its bilingual excellence with a QMark award. adding to this achievement , the overall Cara Credit union brand has been awarded a bronze medal at the gradaim gnó na hÉireann awards. This honour reflects our ongoing commitment to promoting the irish language throughout our marketing and branding initiatives.

in the community

Cara Credit union remains steadfast in its dedication to supporting the local community through a wide range of impactful initiatives in the past year, the Credit union contributed over €80,000 in general sponsorships and awarded €14,000 to four outstanding projects through the Lauri healy Community sponsorship awards. additionally, €10,500 is distributed annually in educational scholarships, helping students pursue and achieve their academic aspirations.

Our commitment to youth development is reflected in our school programmes, such as ‘Cu Through Your inter view’. This initiative equips students with essential life skills through workshops focused on CV writing, inter view techniques, and budgeting The programme culminates in a mock inter view conducted by a member of Cara Credit union’s management team, offering students invaluable real-world experience. We also foster creativity and learning through our annual schools Quiz and the Credit union art

Competition, encouraging young minds to explore and express their talents

We love meeting our members where they are - in their workplaces, canteens, meetings, and community events. We’re incredibly grateful to all the companies and organisations who have welcomed us to share insights into how Cara Credit union can support their teams and members. These visits allow us to build stronger relationships and highlight the many ways we can help - from financial wellbeing to community engagement . if you would like a visit from your local credit union, please email info@caracreditunion.ie or call us on 066 712 2373.

our sustainable Journey

Cara Credit union continued our commitment in fostering a culture of esg (environmental, social and governance) leadership in embedding a sustainable and responsible approach into ever y aspect of our business. recognising the importance of esg ensures our long-term success and contributes positively to the well-being of our members, employees, and the communities we ser ve. We made significant improvements on our sustainable journey this year by focusing on three key areas: Climate Change (healthy Planet) investing in our People (healthy People) and connecting with our members and local communities (healthy Partnerships).

This year we reduced our greenhouse gas emissions (Carbon footprint on water, waste, heating and electricity) by 35%, this is in addition to the 7% reduction reported last year. This was achieved through the adoption of environmentally responsible practices including energy-efficient technologies, a retrofit to our Killorglin branch, ongoing education and staff training on energy use and the segregation of waste management . for many years we had experienced severe issues with the heating infrastructure in our Killorglin branch

ceo report contd.

that was outdated, oversized and heavily reliant on fossil fuels from september to December 2024, we undertook an ambitious project in our Killorglin branch of installing 68 solar panels and investing in a new heating and cooling and a building management system. in availing of this grant aid for our Killorglin retrofit, Cara Cu also participated in the seai’s Community energy grant scheme that enabled grant support to other community-based projects from around the countr y. in addition to investing in energy efficienc y, a number of staff training sessions was held on energy management, waste management and circular economy and green procurement.

Once again, we partnered with our local communities and participated in a number of s t re et c l ea n u p i n i t i a t i v e s w i t h o u r l o ca l T i d y

To w n s Committees throughout our towns and villages. furthermore, our biodiversity programme for primar y schools introduces children to environmental stewardship. students receive engaging talks on biodiversity and participate in planting apple trees and fruit bushes on school grounds - an experience that connects them with nature and allows them to enjoy the fruits of their labour in the years to come To support our members on their sustainability journey, we’re offering a special green Loan rate designed to make eco-friendly choices more affordable.We’ve also partnered with local companies who provide renewable energy solutions - together, we’re helping members and communities take meaningful climate action.

it’s not just about the environment, its also social (housing and education) and economic (employment) that for a person to thrive they need access to financial ser vices that can drive their social and economic development. We continue to be an invested shareholder in ireland’s Cu ahB’s a credit union approved housing body set up as a not-for-profit entity formed for the purpose of

relieving housing needs. The role of the approved housing Body is critical in the context of addressing ireland’s housing challenges and are central to the government’s ‘housing for all’ plan.

Thank you

Our achievements this year are a true reflection of the dedication and hard work of our Board of Directors, Management Team, staff, and - most importantly - you, our members. Your trust and continued support mean everything to us, and i am sincerely grateful.

as we look ahead to 2026, we do so with optimism and confidence. With a clear vision, a focused strategy, and the right resources in place, we are well positioned to meet any challenges and embrace new opportunities. Our commitment remains unwavering: to deliver exceptional financial services to our members while supporting the social and economic development of our community.

We are proud to be your Credit union and excited for the journey ahead. With your ongoing support, we will continue to innovate, grow, and make a meaningful difference in the lives of our members and the wider community.

as we celebrate over 57 years of ser vice, we remain dedicated to sponsoring initiatives and developing projects that align with sustainable goals - ensuring the long-term strength and resilience of Cara Credit union.

Thank you for being an essential part of our stor y. i wish you and your families a happy, healthy, and prosperous 2026 here's to another successful year together.

pa laide, ceo

DIRECTORS’ REPORT

FOr the FinanCiaL year ended 30th SepteMber 2025

The directors present their annual report and the audited financial statements for the financial year ended 30 september 2025.

principal activity

The principal activity of the business continues to be the operation of a credit union.

authorisation

The credit union is authorised as follows:

• entitled under the european union (Payment ser vices) regulations 2018 to provide payment ser vices.

business review

The directors acknowledge the results for the year and the year-end financial position of the credit union The directors expect to develop and expand the credit union’s current activities and they are confident of its ability to continue to operate successfully in the future.

dividends

The directors are proposing a dividend in respect of the financial year ended 30 september 2025 of €660,846 (0.25%) (2024: €652,269 (0.25%)).

principal risks and uncertainties

The principal risks and uncertainties faced by the credit union are:

Credit risk

Credit risk is the risk that a borrower will default on their contractual obligations relating to repayments to the credit union, resulting in financial loss.

Lack of loan demand

Lending is the principal activity of the credit union and the credit union is reliant on it for generating income to cover costs and generate a surplus.

Market risk

Market risk is the risk that the value of an investment will decrease. This risk can arise from fluctuations in values of, or income from, assets or changes in interest rates.

Liquidity risk

Liquidity risk is the risk that the credit union will not have sufficient cash resources to meet day to day running costs and repay members’ shares when demanded.

Operational risk

Operational risk is the risk of loss resulting from inadequate or failed processes or systems of the credit union, any failure by persons connected with the credit union or from external events.

Global macro-economic risk

There is an economic and operational risk relating to disruption to global supply chains and a general uncertainty in the markets as a result of the changing geopolitical landscape.

directors’

These risks and uncertainties are managed by the board of directors as follows:

Credit risk

in order to manage this risk , the board of directors regularly reviews and approves the credit union’s credit policy. all loan applications are assessed with reference to the credit policy in force at the time. subsequently loans are regularly reviewed for any factors that may indicate that the likelihood of repayment has changed

Lack of loan demand

The credit union provide lending products to its members and promote these products through various marketing initiatives.

Market risk

The board of directors regularly reviews and approves the credit union’s investment policy and funds are invested in compliance with this policy and regulator y guidance.

Liquidity risk

The credit union’s policy is to maintain sufficient funds in liquid form at all times to ensure that it can meet its liabilities as they fall due.

Operational risk

The operational risk of the credit union is managed through the employment of suitably qualified staff to ensure appropriate processes, procedures and systems are implemented and are further supported with a robust reporting structure.

Global macro-economic risk

The board of directors and management closely monitor the disruption to global supply chains and markets and continue to take appropriate actions to mitigate any possible adverse effects on the credit union.

accounting records

The directors believe that they comply with the requirements of section 108 of the Credit union act, 1997 (as amended) with regard to books of account by employing accounting personnel with appropriate expertise and by providing adequate resources to the finance function. The books of account of the credit union are maintained at the credit union's premises at 4547 ashe street, Tralee, Co. Kerr y.

events after the end of the financial year

There have been no significant events affecting the credit union since the year end

auditors

in accordance with section 115 of the Credit union act , 1997 (as amended), the auditors grant Thornton offer themselves for re-election.

This report was approved by the board and signed on its behalf by:

eddie enright chairperson of the board of directors

Tom lawlor Member of the board of directors

date: 21st november 2025

DIRECTORS’ RESPONSIBILITIES STATEMENT

FOr the FinanCiaL year ended 30th SepteMber 2025

The directors are responsible for preparing the financial statements in accordance with applicable irish law and regulations. The directors have elected to prepare the financial statements in accordance with frs 102 (as amended) ‘The financial reporting standard applicable in the uK and republic of ireland’ (frs 102). The directors are also responsible for preparing the other information included in the annual report . The Credit union act , 1997 (as amended) requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the credit union and of the income and expenditure of the credit union for that period.

in preparing those financial statements the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and reason for any material departure from those standards; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the credit union will continue in business.

The directors are responsible for ensuring that the credit union keeps or causes to be kept adequate accounting records which correctly explain and record the transactions of the credit union, enable at any time the assets, liabilities, financial position and income and expenditure of the credit union to be determined with reasonable accurac y, enable them to ensure that the financial statements comply with the Credit union act, 1997 (as amended) and enable the financial statements to be audited. They are also responsible for safeguarding the assets of the credit union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.The directors are responsible for the maintenance and integrity of the corporate and financial information included on the credit union’s website.

On behalf of the Board:

eddie enright chairperson of the board of directors

Tom lawlor Member of the board of directors

21st november 2025

The Credit union act, 1997 (as amended) requires the appointment of a board oversight committee to assess whether the board of directors has operated in accordance with part iv, part iv(a) and any regulations made for the purposes of part iv or part iv(a) of the Credit union act, 1997 (as amended) and any other matter prescribed by the Central Bank of ireland in respect of which they are to have regard to in relation to the board of directors

on behalf of the board oversight committee

John lyons, chairperson

21st november 2025

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CARA CREDIT UNION LIMITED

opinion

We have audited the financial statements of Cara Credit union Limited for the financial year ended 30 september 2025, which comprise:

• the income and expenditure account;

• the statement of other comprehensive income;

• the Balance sheet;

• the statement of changes in reser ves;

• the statement of cash flows; and

• the related notes 1 to 30, including a summar y of significant accounting policies as set out in note 2.

The financial reporting framework that has been applied in the preparation of the financial statements is irish law including the Credit union act , 1997 (as amended) and accounting standards issued by the financial reporting Council including frs 102 (as amended) ‘The financial reporting standard applicable in the uK and republic of ireland’ (generally accepted accounting Practice in ireland).

in our opinion, Cara Credit union Limited’s financial statements:

• give a true and fair view in accordance with generally accepted accounting Practice in ireland of the state of the credit union’s affairs as at 30 september 2025 and of its income and expenditure for the year then ended; and

• have been properly prepared so as to conform with the requirements of the Credit union act, 1997 (as amended).

basis for opinion

We conducted our audit in accordance with international standards on auditing (ireland) (‘isas (ireland)’) and applicable law. Our responsibilities under those standards are further described in the ‘auditor’s responsibilities

for the audit of the financial statements’ section of our report. We are independent of the credit union in accordance with the ethical requirements that are relevant to our audit of the financial statements in ireland, including the ethical standard for auditors (ireland) issued by the irish auditing and accounting super visor y authority (iaasa), and the ethical pronouncements established by Chartered accountants ireland, applied as determined to be appropriate in the circumstances for the entity We have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

conclusions relating to going concern in auditing the financial statements, we have concluded that the director’s use of going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that , individually or collectively, may cast significant doubt on the credit union’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

other information

Other information comprises information included in the annual report , other than the financial statements and our auditor’s report thereon. The directors are responsible for the

independent Auditor’s report to members contd.

other information Our opinion on the financial statements does not cover the other information and, except to the extent other wise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

in connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge o b ta i n e d i n t h e a u d i t , o r o t h e r w i s e a p p ea rs to b e materially misstated. if we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information if, based on the work we have performed on the other information, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by the credit union act, 1997 (as amended)

Based solely on the work undertaken in the course of the audit, we report that:

• we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessar y for the purposes of our audit;

• in our opinion proper accounting records have been kept by the credit union;

• the financial statements are in agreement with the accounting records of the credit union;

• the financial statements contain all primar y statements, notes and significant accounting policies required to be included in accordance with section 111(1)(c) of the act.

Responsibilities of directors for the financial statements

as explained more fully in the Directors’ responsibilities statement , the directors are responsible for the preparation of the financial statements which give a true and fair view in accordance with generally accepted accounting Practice in ireland, including frs 102 (as amended), and for such internal control as they determine necessar y to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

in preparing the financial statements, the directors are responsible for assessing the credit union’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the credit union or to cease operations, or has no realistic alternative but to do so.

auditor’s

responsibilities for the audit of the financial statements

The auditor’s objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes their opinion. reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with isas (ireland) will always detect a material misstatement when it exists Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

independent Auditor’s report to members contd.

auditor’s responsibilities for the audit of the financial statements

a further description of our responsibilities for the audit of the financial statements is located on the irish auditing and accounting super visor y authority’s website at: http://www.iaasa.ie/getmedia/b2389013-1cf6458b-9b8f-a98202dc9c3a/Description of audit ors responsibilities for audit.pdf. This description forms part of our auditor’s report.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the credit union’s members, as a body, in accordance with section 120 of the Credit union act, 1997 (as amended). Our audit work has been undertaken so that we might state to the credit union’s members those

matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the credit union and the credit union’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael nolan fca for and on behalf of grant Thornton Chartered accountants & statutor y audit firm Cork 21st november 2025

INCOME & EXPENDITURE ACCOUNT

STATEMENT OF OTHER COMPREHENSIVE INCOME

FOr the FinanCiaL year ended 30th SepteMber 2025

BALANCE SHEET

aS at 30th SepteMber 2025

STATEMENT OF CHANGES IN RESERVES

FOr the FinanCiaL year ended 30 SepteMber 2025

• The regulator y reser ve of the credit union as a percentage of total assets as at 30 september 2025 was 12.35% (2024: 12.50%).

• The operational risk reser ve of the credit union as a percentage of total assets as at 30 september 2025 was 0.60% (2024: 0.63%).

The notes on pages 26 to 42 form part of these financial statements.

STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

FOr the FinanCiaL year ended 30 SepteMber 2025

1. legal and RegulaToRy fRaMewoRK

Cara Credit union Limited is registered with the registr y of Credit unions and is regulated by the Central Bank of ireland. The registered office of the credit union is located at 45-47 ashe street, Tralee, Co. Kerr y.

2. accounTing policies

2.1 basis of preparation of financial statements

The financial statements have been prepared in accordance with applicable irish accounting standards, including financial reporting standard 102, the financial reporting standard applicable in the united Kingdom and the republic of ireland and irish statute comprising of the Credit union act, 1997 (as amended) The financial statements have been prepared on the historical cost basis

The financial statements are presented in euro (€) which is also the functional currency of the credit union.

The following principal accounting policies have been applied:

2.2 statement of compliance

The financial statements have been prepared in accordance with frs 102 (as amended) “The financial reporting standard applicable in the uK and republic of ireland” (frs 102).

2.3 going concern

after reviewing the credit union’s projections, the directors have a reasonable expectation that the credit union has adequate resources to continue in operational existence for the foreseeable future. The credit union therefore continues to adopt the going concern basis in preparing its financial statements.

2.4 income

interest on Members’ loans

interest on members’ loans is recognised on an accruals basis using the effective interest method.

deposit and investment

income

Deposit and investment income is recognised on an accruals basis using the effective interest method.

other income

Other income is recognised on an accruals basis.

2.5 cash and cash equivalents

Cash and cash equivalents comprise cash on hand and deposits and investments with a maturity of less than or equal to three months

2.6 deposits and investments

held at amortised cost

investments designated on initial recognition as held at amortised cost are measured at amortised cost using the effective interest method less impairment . This means that the investment is measured at the amount paid for the investment, minus any repayments of the principal; plus or minus the cumulative amortisation using the effective interest method of any difference between the amount at initial recognition and the maturity amount, minus, in the case of a financial asset, any reduction for impairment or uncollectability.

central bank deposits

Credit unions are obliged to maintain certain minimum deposits with the Central Bank but may also hold an excess over the regulator y minimum. The regulator y minimum deposits are technically assets of the credit union but to which the credit union has restricted access. The regulator y minimum portion will not ordinarily be returned to

notes to the finAnciAl stAtements contd.

the credit union while it is a going concern and is separately identified in note 7, Deposits and investments - other. funds held with the Central Bank in excess of the regulator y minimum requirements are fully available to the credit union and are therefore treated as cash equivalents and are separately identified in note 7, Deposits and investments – cash equivalents. The amounts held on deposit with the Central Bank are not subject to impairment reviews.

investments at fair value investments designated on initial recognition as non basic are recognised at fair value. They are subsequently measured at fair value (market value) at the year-end date and all gains and losses are taken to the income and expenditure account

2.7 financial assets - loans to Members

Loans are financial assets with fixed or determinable payments. Loans are recognised when cash is advanced to members and measured at amortised cost using the effective interest method.

Loans are derecognised when the right to receive cash flows from the asset has expired, usually when all amounts outstanding have been repaid by the member.

2.8 provision for bad debts

The credit union assesses if there is objective evidence that any of its loans are impaired with due consideration of economic factors The loans are assessed collectively in groups that share similar credit risk characteristics individually significant loans are assessed on a loan by loan basis. in addition, if there is objective evidence that any individual loan is impaired, a specific loss will be recognised. Bad debt provisioning is monitored by

the credit union, and the credit union assesses and approves its provisions and the adequacy of same on a regular basis. Loans are written off when there is no reasonable expectation of recover y.

any bad debts/ impairment losses are recognised i

To p r o v i d e more meaningful information about the performance of the credit union loan portfolio, it presents the net impairment movement on loans to members in the income and expenditure account, which includes both:

• the movement in bad debts provision during the year, and

• the loans written off during the year.

This presentation is considered to offer more transparent insight into the credit quality of the portfolio and the effectiveness of credit risk management.

if there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carr ying amount does not exceed what the carr ying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the income and expenditure account.

2.9 Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessar y for it to be capable of operating in the manner intended by management.

notes to the finAnciAl stAtements contd.

T h e c re d i t u n i o n a d d s to t h e ca r r y i n g a m o u n t o f

an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the credit union. The carr ying amount of the replaced part is derecognised. repairs and maintenance are charged to the income and expenditure account during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

freehold premises

2% straight line per annum

fixtures and fittings 10% to 20% straight line per annum

Leasehold improvements Over the lesser of the useful economic life and the remaining term of the lease

Computer equipment 25% straight line per annum

The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. gains and losses on disposals are determined by comparing the proceeds with the carr ying amount and are recognised in the income and expenditure account.

2.10 impairment of assets at each reporting date assets are reviewed to d ete r m i n e w h et h e r t h e re i s a n y i n d i ca t i o n t h a t t h o s e assets have suffered an impairment loss. if there is an indication of possible impairment , the recoverable amount of any affected asset is estimated and compared with its carr ying amount. if the estimated recoverable amount is lower, the

carr ying amount is reduced to its estimated recoverable amount , and an impairment loss is recognised immediately in the income and expenditure account . if an impairment loss subsequently reverses, the carr ying amount of the asset is increased to the revised estimate of its recoverable amount , but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. a reversal of an impairment loss is recognised immediately in the income and expenditure account.

2.11 investments in associates

investments in associates are accounted for at cost less impairment.

2.12 other Receivables

O t h e r r e ce i va b l e s s u c h a s p r e p a y m e n t s a r e i n i t i a l l y measured at transaction price including transaction costs and are subsequently measured at amortised cost using the effective interest method.

2.13 financial liabilities – Members’ savings

Members’ savings are redeemable and therefore are classified as financial liabilities. They are initially recognised at the amount of cash deposited and subsequently measured at amortised cost.

2.14 Members’ deposits

interest on members’ deposits is recognised on an accruals basis using the effective interest method.

2.15 Members’ current accounts

Credit balances on members’ current accounts are recognised as financial liabilities when funds are received from members. These balances are repayable on demand. They are initially measured at the amount deposited and subsequently measured at amortised cost.

notes to the finAnciAl stAtements contd.

Debit balances on members’ current accounts represent amounts advanced to members, which are classified as financial assets measured at amortised cost . These balances are assessed for impairment at each reporting date. any impairment losses identified are recognised in the income and expenditure account.

2.16 other payables

short term other liabilities, creditors, accruals and charges are measured at the transaction price.

2.17 pension

The credit union operates a defined contribution plan for its employees. a defined contribution plan is a pension plan under which the credit union pays fixed contributions into a separate entity. Once the contributions have been paid the credit union has no further payments obligations

The contributions are recognised as an expense in the income and expenditure account when they fall due. amounts not paid are shown in accruals as a liability on the balance sheet. The assets of the plan are held separately from the credit union in independently administered funds. The amount payable at the year end in respect of same was €41,743 (2024: €37,770).

2.18 holiday pay

a liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried for ward to future periods. This is measured at the undiscounted salar y cost of the future holiday entitlement so accrued at the balance sheet date

2.19 Termination benefits

Termination benefits are included in employment costs where applicable and are expensed to the income and expenditure account on an accruals basis.

2.20 operating leases

rentals payable under operating leases are charged to the income and expenditure account on a straight line basis over the lease term.

2.21 derecognition of

financial liabilities

financial liabilities are derecognised when the obligations of the credit union specified in the contract are discharged, cancelled or expired.

2.22 Regulatory Reserve

The Credit union act 1997 (regulator y requirements) regulations 2016 requires credit unions to establish and maintain a minimum regulator y reser ve requirement of at least 10 per cent of the assets of the credit union. This reserve is to be perpetual in nature, freely available to absorb losses, realised financial reser ves that are unrestricted and non-distributable

2.23 operational Risk Reserve

section 45(5)(a) of the Credit union act , 1997 (as amended) requires each credit union to maintain an additional reser ve that it has assessed is required for operational risk having regard to the nature, scale and complexity of the credit union. Credit unions are required to maintain a minimum operational risk reser ve having due regard for the sophistication of the business model.

The directors have considered the requirements of the act and have calculated the operational risk reser ve requirement by reference to the predicted impact of operational risk events that may have a material impact on the credit union’s business

2.24 other Reserves

Other reser ves are the accumulated surpluses to date that have not been declared as dividends returnable to members. The other reser ves are subdivided into realised and unrealised. in accordance with the Central Bank guidance note for

notes to the finAnciAl stAtements contd.

credit unions on matters relating to accounting for investments and distribution policy, investment income that has been recognised but will not be received within 12 months of the balance sheet date is classified as unrealised and is not distributable. a reclassification between unrealised and realised is made as investments come to within 12 months of maturity date. The directors have deemed it appropriate that interest on loans receivable at the balance sheet date be classified as unrealised and therefore not distributable all other income, including the sPs refund receivable, is classified as realised

2.25 distribution policy

Dividends are made from the current year’s surplus or reser ves set aside for that purpose. The board’s proposed dividends to members each year is based on the distribution policy of the credit union. The rate of dividends recommended by the board will reflect:

• the risk profile of the credit union, particularly in its loan and investments portfolios;

• the board’s desire to maintain a stable rather than a volatile rate of dividend each year; and

• members’ legitimate dividend expectations; all dominated by prudence and the need to sustain the long-term welfare of the credit union

for this reason the board will seek to build up its reser ves to absorb unexpected shocks and still remain above minimum regulator y requirements.

The credit union accounts for dividends when members ratify such payments at the annual general Meeting.

2.26 Transfer of engagements

Transfer of engagements are accounted for using the acquisition method of accounting. This involves recognising identifiable assets and liabilities of the

acquired credit unions at fair value. in applying the acquisition method of accounting for these business combinations, the member interests transferred by the credit union represents the consideration transferred for the net assets acquired. This consideration has been estimated as equivalent to the acquisition date fair value of the members’ interests in the transferor credit union (the fair value of the transferor credit union) at the date of the transfer, and is reflected as an adjustment in reser ves

2.27 Taxation

The credit union is not subject to income tax or corporation tax on its activities.

3. JudgeMenTs in applying accounTing policies and Key souRce of esTiMaTion unceRTainTy

Preparation of the financial statements requires the directors to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

determination of depreciation, useful economic life and Residual value of Tangible assets

The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values The directors regularly review these useful lives and change them if necessar y to reflect current conditions. in determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation charge for the financial year. The net book value of tangible fixed assets subject to depreciation at the year end was €2,563,932 (2024: €2,786,382).

notes to the finAnciAl stAtements contd.

provision for bad debts

The credit union’s accounting policy for impairment of loans is set out in note 2.8. The estimation of loan losses is inherently uncertain and depends upon m a n y fa c t o r s , i n c l u d i n g l oa n l o s s t r e n d s , c r e d i t r i s k characteristics in loan classes, local and international economic climates, conditions in va r i o u s s e c to rs o f t h e e co n o m y to w h i c h t h e credit union is exposed, and, other external factors such as legal and regulator y requirements. The provision for bad debts in the financial statements at the year end was €10,591,448 (2024: €9,978,383) representing 7 60% (2024: 7 61%) of the total gross loan book.

investments in associates

The investments in associates represents the credit union’s investment in MetaCu Management Designated activity Company. This investment was made for operational purposes. The credit union holds 6.25% redeemable a Ordinar y shares in the company and through the terms of the shareholders agreement agreed between each of the participating credit unions, the credit union is deemed to have influence over the operations of this company. Therefore the investment has been accounted for as an investment in an associate.

operational Risk Reserve

The directors have considered the requirements of the Credit union act , 1997 (as amended) and established an operational risk reser ve which is separate, distinct and in addition to the reser ves the credit union is required to hold in its regulator y reser ve. The amount held in the operational risk reser ve is the estimated impact of operational risk events that may have a material impact on the credit union’s business. The operational risk reser ve of the credit union at the year end was €2,200,000 (2024: €2,160,000).

adoption of going concern basis for financial statements preparation

The credit union continue to closely monitor developments within the global macro-economic environment . The directors have prepared projections and cash flows for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the credit union’s ability to meet its liabilities as they fall due, and to continue as a going concern On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis accordingly, these financial statements do not include any adjustments to the carr ying amounts and classification of assets and liabilities that may arise if the credit union was unable to continue as a going concern.

4. Key ManageMenT peRsonnel coMpensaTion

The directors of the credit union ser vice on a voluntar y basis and do not receive any remuneration for ser vices performed in that capacity. The compensation for key management personnel is as follows:

5. neT iMpaiRMenT MoveMenT on loans To MeMbeRs

6. cash and cash equivalenTs

The rating category of counterparties with whom the investments were held at 30 september 2025 and 30 september 2024 is as follows:

notes to the finAnciAl stAtements contd.

11. invesTMenTs in associaTes

cosT as at October 2024

additionsas at 30 september 2025

accuMulaTed iMpaiRMenT as at 1 October 2024 and 30 september 2025 -

neT

inTeResTs in associaTe

The credit union has interests in the following associate: associate

Designated activity a Ordinar y Company

registered address: 14 ely Place, Dublin 2, ireland

The above financial information in respect of MetaCu Management Designated activity Company was extracted from the audited financial statements for the year ended 31 December 2024.

The effect of including this investment as if it had been accounted for using the equity method would be as follows:

12. debToRs, pRepayMenTs and accRued incoMe

2025 € 2024

notes to the finAnciAl stAtements contd.

16. oTheR pRovisions

17. financial insTRuMenTs

17a. financial instruments - measured at amortised cost

financial assets measured at amortised cost comprise of cash and balances at bank, deposits and investments, loans, members’ current accounts overdrawn, investments in associates, accrued income on investments and other debtors.

financial liabilities measured at amortised cost comprise of members’ shares, members’ current accounts, members’ deposits, other liabilities, creditors, accruals and charges and other provisions

17b. financial instruments - fair value Measurements

frs 102 requires fair value measurements to be disclosed by the source of inputs, using a three level hierarchy:

• Quoted prices for identical instruments in active market (level 1);

• Prices of recent transactions for identical instruments and valuation techniques using observable market data (level 2); and

• Valuation techniques using unobservable market data (level 3).

The table below sets out fair value measurements using the fair value hierarchy:

There were fair value adjustments recognised in the income and expenditure account for the year ended 30 september 2025 of €36,909 (2024: €41,311).

notes to the finAnciAl stAtements contd.

18. ReseRves

19. cRediT RisK disclosuRes

in line with regulator y requirements, the credit union:

• restricts the concentration of lending by the credit union within certain sectors or to connected persons or groups (concentration limits);

• restricts the absolute amount of lending to certain sectors to a set percentage of the regulator y reser ve (large exposure limit);

• restricts the loan duration of certain loans to specified limits (maturity limits); and

• requires specified lending practices to be in place where loans are made to certain sectors such as house loans, business loans, community loans or loans to another credit union.

The carr ying amount of the loans to members represents the credit union’s maximum exposure to credit risk . The following provides information on the credit quality of loan repayments. Where loans are not impaired it is expected that the amounts repayable will be received in full

notes to the finAnciAl stAtements contd.

20. RelaTed paRTy TRansacTions

20a. loans

Loans advanced to related parties during

The related party loans stated above comprise of loans outstanding to directors and the management team (to include their family members or any business in which the directors or management team had a significant shareholding). Total loans outstanding to related parties represents 0.62% of the total loans outstanding as at 30 september 2025 (2024: 0.63%).

20b. savings

The total amount of savings held by related parties at the year end was €937,519 (2024: €975,335)

20c. TRansacTions involving diRecToRs

Cara Credit union Limited incurred expenditure from Ticcbox in respect of buildings and facilities m

2025 (2024: €8,364) Caroline sugrue (director of Cara Credit

is a director of Ticcbox

notes to the finAnciAl stAtements contd.

Cara Credit union Limited incurred expenditure from DCs group during the financial year ended 30 september 2025 of €142,481 (2024: €18,561). DCs group are energy consultants working with Cara Credit union to reduce their energy consumption and their environmental impact and to project manage Cara Credit union’s branch retrofit in Killorglin. Caroline sugrue (director of Cara Credit union) is a director of DCs group

Cara Credit union Limited incurred expenditure from Transition solutions Limited for the provision of coaching /mentoring services to members of management of €22,850 during the financial year ended 30 september 2025 (2024: €9,750). Danny Kerins (director of Cara Credit union Limited) is the principal consultant of Transition solutions Limited

21. addiTional financial insTRuMenTs disclosuRes

21a. financial Risk Management

The credit union manages its members’ shares and loans so that it earns income from the margin between interest receivable and interest payable. The main financial risks arising from the credit union’s activities are credit risk, market risk, liquidity risk and interest rate risk. The board of directors reviews and agrees policies for managing each of these risks, which are summarised below.

credit risk: Credit risk is the risk that a borrower will default on their contractual obligations relating to repayments to the credit union, resulting in financial loss. in order to manage this risk the board of directors regularly reviews and approves the credit union’s credit policy. Credit risk mitigation may include the requirement to obtain collateral as set out in the credit union’s loan policy Where collateral or guarantees are required, they are usually taken as a secondar y source of repayment in the event of the borrower’s default . The credit union maintains policies which detail the acceptability of specific classes of collateral. The principal collateral types for loans are: an attachment over members’ pledged shares; personal guarantees; and charges over assets. The nature and level of collateral required depends on a number of factors such as the term of the loan and the amount of exposure all loan applications are assessed with reference to the credit policy in force at the time. subsequently loans are regularly reviewed for any factors that may indicate that the likelihood of repayment has changed. The credit union is also exposed to counterparty credit risk pertaining to its deposit and investment portfolio. in order to manage this risk the board of directors regularly reviews and approves the credit union’s investment policy and funds are invested in compliance with this policy and regulatory guidance

Market risk: Market risk is the risk that the value of an investment will decrease. This risk can arise from fluctuations in values of, or income from, assets or changes in interest rates. The board of directors regularly reviews and approves the credit union’s investment policy and funds are invested in compliance with this policy and regulator y guidance.

liquidity risk: Liquidity risk is the risk that the credit union will not have sufficient cash resources to meet day to day running costs and repay members’ shares when demanded. The credit union’s policy is to maintain sufficient funds in liquid form at all times to ensure that it can meet its liabilities as they fall due.

interest rate risk: The credit union’s main interest rate risk arises from adverse movements in interest rates receivable which would affect investment income. The credit union reviews any potential new investment product carefully to ensure that minimum funds are locked in low yielding long term investments yet at the same time maximising investment income receivable

notes to the finAnciAl stAtements contd.

21b. liquidity risk disclosures

The credit union’s policy is to maintain sufficient funds in liquid form at all times to ensure that it can meet its liabilities as they fall due The credit union adheres on an ongoing basis to the minimum liquidity ratio and minimum short term liquidity ratio as set out in regulator y requirements.

21c. interest rate risk disclosures

The following shows the average interest rates applicable to relevant financial assets and financial liabilities

any dividend payable is at the discretion of the directors and is therefore not a financial liability of the credit union until declared and approved at the agM.

23. dividends

The directors paid dividends in respect of the financial year ended 30 september 2025 in the amount of €650,189 (0 25%) (2024: €nil) The directors propose the following distributions in respect of the year:

24. evenTs afTeR The end of The financial yeaR

There have been no significant events affecting the credit union since the year end.

The credit union has insurance against fraud in the amount of €5,200,000 (2024: €5,200,000) in compliance with section 47 of the Credit union act, 1997 (as amended).

notes to the finAnciAl stAtements contd.

27. leasing coMMiTMenTs

The credit union’s future minimum lease payments at the balance sheet date were as follows:

28. conTingenT liabiliTy

The contingent liability disclosed in prior periods, relating to funds not yet returned by the liquidators of BlackBee investments Limited, was fully resolved during the financial year. all funds have now been received by the credit union, with no further financial obligations arising. The contingent liability has therefore been derecognised, and the matter is closed

29. coMpaRaTive infoRMaTion

Comparative information has been reclassified where necessary to conform to current year presentation.

30. appRoval of financial sTaTeMenTs

The board of directors approved these financial statements for issue on 21st november 2025.

SCHEDULES TO THE INCOME & EXPENDITURE ACCOUNT

FOr the FinanCiaL year ended 30 SepteMber 2025

The following schedules do not form part of the statutor y financial statements which are the subject of the independent auditor’s report on pages 19 to 21

NOMINATIONS AND ELECTIONS

audiToRs under rule 107 (2) Cara Credit union Ltd. shall appoint an auditor in accordance with part V11 of the act, grant Thronton being eligible seeks re-election.

boaRd of diRecToRs

Directors eddie enright and Tom Lawlor, under rule 42 resign, and, being eligible seek re-election.

eddie enright

eddie has ser ved as a director of Cara Credit union since april 2016, taking on the position of Chairperson in 2022. he also sits on the risk Committee and the investment Committee. he has a degree in education & Training from nuig. he works in financial ser vices and is a Qualified financial advisor. eddie has a wide range of Management experience having worked in various roles for 35 years at the fás Training Centre in Tralee. he is a native of finuge and lives in Tralee

Tom lawlor

Tom is our longest-ser ving Director, having joined the Board in 2006. he ser ved as Treasurer in 2007 and 2008, and over the years has held numerous officer roles and contributed to many committees Tom also ser ved as Chairperson for three years, concluding his term in 2017. a retired farmer, Tom is a proud native of Ballyheigue and a passionate supporter of both the gaa and the ifa

boaRd oveRsighT coMMiTTee

John Lyons and Martina flynn, under rule 56(3) resigns and seeks re-election to the Board Oversight Committee.

John lyons

John is the Chairperson of the Board Oversight Committee. he is an accountant and a member of the association of Chartered Certified accountants, as well as a Certified accounting Technician. he holds a Diploma in applied Physics and is a qualified electrician.

Martina flynn

Martina joined the Board Oversight Committee of Cara Credit union in March 2022. she previously ser ved as a Director of Clanmaurice Credit union, where she was a member of the investment and risk Committees.

Martina holds a Master’s degree in the histor y of family and is a Certified Public accountant. she resides in Causeway.

STANDING ORDERS

reference: recommendation 41 (b) of the planning committee;

1. voting

each member shall be entitled to one vote irrespective of his/her shareholding, in accordance with section 82(2) of the Credit union act, 1997 (as amended)

2-3 election procedure

2. elections to the board of directors, to the board oversight committee and the position of auditor shall be by majority vote and by secret ballot.

3. When nominations are announced tellers shall be appointed by the chair and ballot papers shall be distributed. nominations shall be in the following order:

(a) nominations for auditor;

(b) nominations for members of the board oversight committee;

(c) nominations for directors.

When voting is completed, the votes shall be taken and tallied by the tellers. any ballot paper which contains votes for more than the number required to be elected shall be void. all elections shall be by secret ballot and by majority vote. When the votes have been counted by the tellers, the results shall be announced by the chair. in the event that all vacancies are not filled by the first ballot further ballots shall be taken as required. in the event of an equality of votes between candidates for the remaining vacancies not filled in accordance with the above procedure one further ballot shall be taken and should that ballot fail to determine the issue, the vacancies shall be filled by lot from among such candidates having an equality of votes

4-9 Motions

4. all motions from the floor of the agM must be proposed and seconded by members present at the agM and moved by the proposer. if the proposer is absent when the motion is called, the motion shall be deemed to have failed.

5 a proposer of a motion may speak for such period as shall be at the discretion of the chair of the meeting and shall have the right of reply before the motion is put to the meeting for a vote.

6. in exercising his/her right of reply, a proposer may not introduce new material.

7. The seconder of a motion shall have such time as shall be allowed by the chair to second the motion

8 Members are entitled to speak on any such motion and must do so through the chair. all speakers to any motion shall have such time as shall be at the discretion of the chair.

9. The chair shall have the absolute right to decide at any time when a motion has been sufficiently discussed and may put the motion to the meeting giving the proposer the right of reply before doing so.

10 - 15 Miscellaneous

10. The chair of the board of directors shall be the chair of any general meeting, except where he/she is not available, in which case it shall be the vice-chair, except where he/she is not available, in which case the board shall decide amongst themselves who shall act as chair of any general meeting.

11. The chair may at his/her discretion, extend the privilege of the floor to any person who is not a member.

stAnding orders contd.

12. Matters not covered by the agenda may be introduced under ‘Other Business’ at the discretion of the chair.

13. The chairman’s decision on any matter relating to these standing Orders or interpretation of same shall be final.

14. no member shall have more than one vote on each question at any general meeting of the credit union or any adjournment thereof irrespective of his/her shareholding or the number of accounts in his/her name in the credit union provided, however, that except in voting at elections, the presiding member shall have a second or casting vote in the event of equality of voting. Voting by proxy shall be allowed only when a member other than a natural person votes through a representative, who is a member of the group, duly authorised in writing for that purpose and accepted as such by the board of directors.

15. any matter to be decided upon by vote at the agM shall, unless otherwise expressly provided for by law or the rules, be decided upon by simple majority.

16. suspension of standing orders

any one of these Orders or all of these standing Orders may be suspended on a motion to this effect receiving a two -thirds majority of those present and entitled to vote.

17. alteration of standing orders

standing Orders may be amended or altered at a general meeting and only if a motion to this effect has received a two-thirds majority of those present and voting.

18. adjournments

adjournments of the agM shall take place only in accordance with section 81(1) of the Credit union act, 1997 (as amended).

45-47 Ashe Street 67 Main Street V92 XY06 V92 F981

BALLYDUFF Mill Road Main Street V93 TP65 V92 WN72

Causeway Village Main Steet, Grove, Dingle V92 P220 V92 D456

Tel: 066 712 2373 | Email: info@caracreditunion.ie www.caracreditunion.ie