Consolidated Annual Report 2015

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED CONSOLIDATED ANNUAL REPORT 2015 10 year. It impacted negatively on net income for the year by $1.4 million. CAPITA Financial Services Inc. For the year ended March 2015, CAPITA Financial Services Inc. registered a consolidated pre-tax profit of $1.1 million, representing a decrease in profitability of $246K or 18.4% compared to the previous year. This marginal decrease is a direct consequence of the implementation of the asset tax on financial institutions, for which CAPITA attracted a tax of $253K. Notwithstanding, total interest income increased to $12.4 million from $11.4 million in prior year. As at March 31st, 2015 CAPITA recorded assets of $201 million, an increase of 12.1% over prior year. Positive growth was also recorded in total loans and advances which increased from $141 million to $160 million an increase of 13.3%. Customer deposits moved from $137 million to $160 million or 16.9%. The insurance division recorded yet another good year, earning net commissions of $743K, surpassing the 2014 earnings by 33.5%. As of September 11, 2014 this division started functioning as a separate brokerage entity rebranded as CAPITA Insurance Brokers Inc. (CIB). The performance of the Credit Union and its subsidiary is to be highly commended given the prevailing economic climate. MEMBER COMMITMENT Members will always be at the heart of what we do, for it is their committed patronage and support which has been critical in our progress and development to date. Without them it would not have been possible, and so wherever and whenever, we give back with a deep sense of pride and gratitude, fully cognizant of our responsibility. During the year under review we provided financial and other support to a variety of groups in the community focusing on health, sports, education, and cultural events. Additionally, we increased our allocation to the Scholarship and Grant funding by $56K, thereby tangibly supporting members in their thrust for professional development. The amount dispensed during the year was $445K to a total of 289 applicants, compared to 158 applicants during the previous period. This thrust was further enhanced by the Student Loan product which was launched in April 2014. Members also benefited from an interest rate reduction over the year as a result of various loan promotions with associated special rates. Average interest rate on loans declined from 9.3% in 2014 to 8.9% at March 31st, 2015. In addition we continued our outreach initiative to those who had their lives disrupted through retrenchment both in the private and public sector. We remain committed to this initiative and to the tenets of our mission statement. Public events such as the Annual Christmas Concert, and GospelFest’s Sunset Concert and Members Market activities sponsored by your Credit Union are intended to be a staple component of our “giveback” to the community. The Members Market initiative was conceptualized as an income generating avenue particularly for those members who had lost their jobs. The initiative was well received by members and the level of patronage very heartening. 2016 AND BEYOND Leveraging and optimizing technological solutions, including but not limited to the mobile revolution is now par for the course. Inventiveness, assertiveness, coupled with progressive thinking and a willingness to embrace opportunities as they become present will be significant to our growth and sustainability. Our business model must therefore be more flexible and tolerant to the new dynamics at play. Our approach to emerging and existing population demographics with its challenges and opportunities must therefore be meaningful, nimble and responsive. The technological revolution has impacted and continues to impact our business operation. We believe that a critical aspect of this approach must relate to reviewing existing structures and processes, and implementing as necessary methodologies which will support and maximize synergies within the Group at all levels. The Board in its deliberation has determined that given the diverse challenges associated with the ongoing economic crisis consideration must be given to providing a platform to assisting members interested in micro business enterprise. To this end an appropriation will be considered to support this initiative. Diligent and focused reassessment of the Credit Union’s operations at all levels to ensure sustainability and optimum performance levels must the standard hallmark going forward. CONDOLENCES We extend sincere condolences to all members of the Credit Union family who lost loved ones during the year under review. We remember especially with deep sadness, our many members who have been called to higher service including devoted Credit Union representative our dear Sis. Annette Murrell, and our dear brother, Bro. Sir L.V. Harcourt Lewis, stalwart and unrelenting Credit Unionist. May light perpetual shine on them. BOARD OF DIRECTORS’ REPORT (continued)