BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2020 12 Throughout the financial year ended March 31, 2020, interest rates on savings and deposits trended downwards in the sector and eventually reached a low of 0.0 percent at some financial institutions at March 31, 2020. Despite this downward trend the minimum interest rate on deposits across the Group was 0.5 percent at March 31, 2020. This commitment to ensuring depositors receive a reasonable return remains a fundamental part of our member/customercentric philosophy. Net interest margin for the year was 4.54 percent as compared to 4.7percent in 2019. As a result of the enhanced growth and financial performance the Group’s levies and corporation taxes increased by $42 thousand and $196 thousand respectively and assets and corporation taxes were $842 thousand and $168 thousand respectively. Net income after taxation and levies for the year totaled $18.4 million compared to $10.7 million for the year ended March 31, 2019. Consolidated Financial Statement Highlights Revenues: For the financial year ended March 31, 2020, the Group earned total interest revenue of $106.3 million, up from $104.7 million the previous year. This represented an increase of $1.6 million or 1.6 percent over the prior year. Income generated from non-interest sources increased by $993.6 thousand or 16.9 percent from the results of prior year. Net interest income: Net interest income moved from $71.2 million in 2019 to $75.3 million at March 31, 2020. This represents an increase of $4.1 million or 5.8 percent. Net income: The Group earned a consolidated net income before levies and taxation of $19.4 million (2019 - $11.5 million). This was relatively on par with the performances of 2018 at $18.3 million and also 2019 net of the two previously noted exceptional transactions that were incurred. Income after taxation and levies were $18.4 million (2019 - $10.7 million). Operating Expenses: Total operating expenses inclusive of taxes increased from $55.2 million in 2019 million in 2020 to $57.4 million. This was principally driven by increases in Regulatory fees, members security, legal and professional fees together with increases in cost to upgrade our properties. Assets: Total assets of the Group stood at $1.7 billion at March 31, 2020. This represented an increase of $134.7 million or 8.5 percent over the previous year. At March 31, 2020, the Group’s consolidated net loans and advances stood at $1.3 billion, an increase of $76 million or 6.2 percent over prior year. Loan growth was primarily driven by increased consumer loans of $30.4 million supported by mortgages ($37. 5 million) The Group remained highly liquid with total cash resources of $308.2 million compared to $252.5 million over prior year. Asset quality: The delinquency ratio increased to 10.0 percent at the end of March 31, 2020 compared to 8.6 percent at the end of March 31, 2019. While this rate was above prior year, we recognize and acknowledge that the economic impact of the COVID-19 crisis is far reaching and profound, and the challenges our members and customers face in these uncertain times are real. We are committed to providing relief and solutions according to individual needs, and to providing assistance while working through the financial implications of the economic fallout. MANAGEMENT DISCUSSION AND ANALYSIS (Continued) 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2016 2017 2018 2019 2020 1,001,430 1,099,233 1,174,576 1,235,760 1,311,851 In BD$'000 Loans and advances 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2016 2017 2018 2019 2020 1,037,172 1,138,486 1,259,922 1,400,074 11,527,678 In BD$'000 Deposits - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2016 2017 2018 2019 2020 1,216 098 1,315,363 1,445,888 1,592,092 1,726,791 In BD$'000 Total Assets 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2016 2017 2018 2019 2020 13,182 15,953 17,367 10,744 18,395 In BD$'000 Net Income - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2016 2017 2018 2019 2020 1,216,098 1,315,363 1,445,888 1,592,092 1,726,791 In BD$'000 Total Assets 0 2,000 4,000 6,000 8,000 10,000 12,0 14,000 16,000 18,000 20,000 2016 2017 2018 2019 2020 13,182 15,953 17,367 10,744 18,395 In BD$'000 Net Inco e
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