Non-Consolidated Annual Report 2016

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED NON-CONSOLIDATED ANNUAL REPORT 2016 12 In addition, impaired loans increased by $1.8 million during the 2016 financial year as compared to an increase of $4.2 million in the prior year. The Credit Union will continue to work diligently with defaulters to offer alternatives and restructuring options to enable them to restore their loans to a state of normalcy. LIABILITIES Deposits totaled $862.9 million and were $87.8 million or 11.3 percent higher than the previous year-end. Loans payable were reduced during the year to $22.3 million from $33.4 million as a result of an $8.4 million or 6 percent rate bearing loan being repaid within the financial year. Other liabilities increased by $1.1 million or 15.4 percent compared to a decrease of $548.8 thousand in the prior year while reimbursable member shares increased by $464.9 thousand or 6.9 percent. EQUITY Total equity comprising of share capital, retained earnings, statutory and other reserves is the backbone of financial stability and allows for future growth and development. As at March 31, 2016, equity totaled $118.8 million up from $106.6 million as at March 2015. The increase of $12.2 million primarily reflects net income of $13.5 million, growth in share capital of $643.6 thousand offset by distributions to members of $2.0 million. THE WAY FORWARD The financial year ending March 31, 2017 will prove to be a time of consolidation and proactivity as the Credit Union continues to face the various challenges in the economy. To this end, we will be revisiting our core values and founding principles as we seek to enhance our members’ financial, economic and social well-being. It is envisaged that we will be providing opportunities for members to have a larger share of the distribution of net surplus at year-end in the form of dividends. Going forward, as we seek to better server you, envisage a greater level of direct member engagement and interaction through our various social outreach and educational programs. During the coming year, the Credit Union will continue to work closely with our members to create payment solutions to minimize and control delinquency while doing everything we can to help our members become financially and economically better off. MANAGEMENT DISCUSSION AND ANALYSIS (continued)