Non-Consolidated Annual Report 2015

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED NON-CONSOLIDATED ANNUAL REPORT 2015 60 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Non-consolidated Financial Statements For the year ended March 31, 2015 (Expressed in Barbados dollars) 49 24. Financial Risk Management…(continued) Market risk Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, foreign exchange rates and equity prices. The Credit Union is mainly exposed to interest rate risk. The Credit Unionʼs exposure to currency risk is minimal since it does not have any significant foreign currency denominated assets. Interest rate risk Interest rate risk is the risk of loss from the fluctuations in the future cash flows or fair values of financial instruments because of a change in market interest rates. It arises when there is a mismatch between interest-bearing assets and interest-bearing liabilities, which are subject to interest rate adjustments, within a specified period. It can be reflected as a loss of future net interest income and/or a loss of current market values. BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Non-consolidated Financial Statements For the year ended March 31, 2015 (Expressed in Barbados dollars) 50 24. Financial Risk Management…(continued) Market risk…(continued) Interest rate risk …(continued) A summary of the Credit Unionʼs interest rate gap position is as follows: 2015 Up to Within Within Over Non-interest 3 months 3-12 months 1-5 years 5 years bearing Cash resources $ 48,134,476 29,615,243 16,023,003 - - 93, Financial investments – Held-to-maturity 2,082,500 5,646,952 7,109,000 11,000,000 - 25, Loans and advances 14,231,946 25,200,556 190,162,891 516,901,546 - 746, Due from related companies - - - - 17,425,274 17, Other assets - - - - 3,937,049 3, Total assets $ 64,448,922 60,462,751 213,294,894 527,901,546 21,362,323 887, Deposits $ 431,817,993 55,072,201 256,421,519 31,804,572 - 775, Loans payable 765,343 2,332,256 13,298,434 17,049,099 - 33, Reimbursable shares - - - - 6,700,221 6, Other liabilities - - - - 7,418,620 7, Total liabilities 432,583,336 57,404,457 269,719,953 48,853,671 14,118,841 822, Interest rate gap $ (368,134,414) 3,058,294 (56,425,059) 479,047,875 7,243,482 64, 2015 Up to Within Within Over Non-interest 3 months 3-12 months 1-5 years 5 years bearing Total Cash resources $ 48,134,476 29,615,243 16,023,003 - - 93,772,722 Financial investments – Held-to-maturity 2,082,500 5,646,952 7,109,000 11,000,000 - 25,838,462 Loans and advances 14,231,946 25,200,556 190,162,891 516,901,546 - 746,496,939 Due from related companies - - - - 17,425,274 17,425,274 Other a sets - - - - 3,937,049 3,937,049 Total a sets $ 64,448,922 60,462,751 213,294,894 527,901,546 21,362,3 3 887,470,446 Deposit $ 431,817,993 55,072,201 256,421,519 31,804,572 - 775,116 85 Loans payable 765,343 2,332,256 13,298,434 17,049,099 - 33 45 132 Reimbursable shares - - - - 6,700,221 6,700,221 Other liabiliti - - - - 7,418,620 7 4 620 Total liabilities 432,583,336 57,404,457 269,71 ,953 48,853,671 14,11 ,841 822,680,258 Interest rate gap $ (368,134,414) 3,058,294 (56,425,059) 479,047,875 7,243,482 64,790,188