Non-Consolidated Annual Report 2018

14 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | NON-CONSOLIDATED ANNUAL REPORT 2018 The impact at the community level is being advanced through Legacy Foundation (Legacy), the philanthropic arm of the Barbados Public Workers’ Co-operative Credit Union Limited, its subsidiaries and associated companies. This entity was formally incorporated as a registered charity # 978, under the Barbados Charities Act on December 19, 2012, for the sole purpose of giving back, by way of projects which impact at the community rather than the individual level. The individual level is well served through our Social Outreach initiative which has been in operation for decades. Consistent with the Credit Union’s ethos Legacy’s overarching aim is to epitomize and embody the philosophy of ‘people helping people’ through programmes which assert convincingly that we are our brother’s keeper. In keeping with this philosophy, over its existence Legacy made donations to the entities listed below. Ellerton Primary School Special Unit . . . . . . . . . . . . . . . . . 201 Cancer Support Services . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Rotary Club of Barbados South – Inclusive Play Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Charles F. Broome, Legacy Foundation Resource Centre. . . . . . . . . . . . . . . . . . 201 Queen Elizabeth Hospital – Gastroenterology Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 St. Leonards’ Boy’s Secondary School – Music Technology Lab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016 QEH Dialysis Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 During the reporting period a three year Strategic Plan, spanning 2017 to 2020 was developed in addition to a Communication & Engagement Plan for the period 2017 to 2019. The strategies outlined in these plans embrace the values of the Credit Union, while achieving deeper insights in the ways, in which the Credit Union as a maturing corporate citizen can engage with the community to give back more appropriately and responsibly. During this year, two proposals were accepted and approved by Legacy, one of which was fully funded and completed. This project was accomplished in partnership with the Barbados Kidney Association and included the donation of ten dialysis chairs and an ECG machine to the Dialysis Unit at the Queen Elizabeth Hospital (QEH). In addition, Legacy has entered into an extended three-year arrangement with the Barbados Kidney Association, to support their education and outreach initiatives drawing attention to renal issues. The other project, approval of which has been agreed in principle, remains pending subject to further discussion. It is anticipated that this project will further engage the attention of Legacy during the current fiscal period. DIASPORA OUTREACH Barbadians living in the diaspora are a pivotal cog in the sustainability of our local economy. Similarly, we cannot overlook their contribution to our organization, which when assessed, is notable. An outreach initiative has been developed to support this enterprise and to date visits have been made to Atlanta, USA and Coventry, England, which yielded significant success. This initiative will continue during the course of the current financial year. EXECUTIVE APPOINTMENTS E ective May 14, 2018, Bro. Glyne Harrison joined the Credit Union, its subsidiaries and associated companies as our new Group Chief Executive O cer. We extend a warm welcome to him as he joins the family. A widely-respected executive with over thirty ( 0) years’ experience in the financial services sector, Bro. Harrison brings to our Group a proven ability in change management, organizational restructuring and optimization through e ective strategic leadership. We take this opportunity to convey our immense gratitude to our longstanding Group Chief Executive O cer, Sis. Clorinda Alleyne who will be retiring during the financial year. Sis Alleyne has left an indelible mark on the organisation, skilfully overseeing its rapid expansion, growth and continued success. Undoubtedly, she will be missed as she embarks on a new phase of life. Happy Retirement! FINANCIAL PERFORMANCE At the end of the reporting period March 1, 2018, the Credit Union’s total assets amounted to just over $1.2 billion, an increase of $112.1 million or 10.1 percent. Cash and its equivalents increased by $41.6 million or 44. percent. In addition, financial investments classified as held-to-maturity decreased by $2.5 million or 8.9 percent. Net loans andadvances tomemberswere$958.1million, inclusive of an impairment provision of $24. million, as compared to $900.4 million and $22.6 million respectively at the end of the previous year. Consistent with prior years, consumer loans remained the primary engine of loan growth. Net income was reported at $16.6 million compared to $16.0 million in the prior year, an increase of $0.6 million or .6 percent. Total revenue increased by $5.6 million or 6.5 percent, to $91.0 million during the 2018 financial year from $85. million prior year. Our subsidiary, CAPITA Financial Services Inc. (CAPITA) continued to realize steady growth since its acquisition in August 2010, recording asset growth of $15.9 million or 6.5 percent for the year, to reach $261.1 million at March 1, 2018. In addition, total consolidated assets of the Group reached $1.4 billion, reflecting growth of 9.9 percent at an average rate of $10.9 million per month. The attainment of this level of growth in these trying economic times is commendable and signals the confidence, loyalty and support which members and customers continue to place in the respective entities within the Group NEW ASSET ACQUISITION & UTILIZATION During the last quarter of the past financial year, the Credit Union completed the purchase of a commercial property, located at Lower Broad Street, Bridgetown. The immediate plan for this building once refurbished, will be the relocation of the existing Upper Broad Street branch, thereby, reducing the congestion being experienced at that branch. Employees and BOARD OF DIRECTORS REPORT (Continued)