13 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2020 To date, the Group has provided financial assistance to its members and customers in various forms, and as at July 31, 2020 has offered moratoriums in excess of 3,000. Providing assistance through the provision of financial counselling, alternative loan facilities and restructuring plans will remain a key focus of management going forward. Liabilities: The Group’s liquidity position continues to be strong and is primarily driven by the continued growth in deposits. At the end of the financial year, the Group’s deposits totaled $1.5 billion, an increase of $127.6 million or 9.1 percent compared to an increase of $140.2 million or 11.1 percent in prior year. The Group’s only external borrowing pertains to the subsidiary CAPITA Financial Services Inc. and at the end of the financial year, this stood at $1.3 million compared to $13.5 million in prior year. Equity: As at March 31, 2020, the Group’s total equity was $167.2 million. This is an increase of $16.0 million or 10.7 percent compared to an increase of $3.7 million or 2.5 percent in the previous year. This increase included net surplus for the year of $17.1 million, the issuance of $732 thousand in additional shares, and the distribution of $3.6 million in dividend and interest rebate to members during the year. This compared to $3.4 million in the prior year. The Group’s capital adequacy ratios continue to be well above regulatory requirements. This continues to be monitored on an on-going basis. OUTLOOK – 2020 and Beyond The 2019/20 fiscal year was a breakthrough one for the Group in many ways. The Credit Union surpassed the 100,000 members mark; CAPITA diversified its service offerings and entered into the payment systems arena; another subsidiary, Allied Co-operators Incorporated started its journey in the last quarter of the financial year, and Legacy Foundation, our philanthropic arm was relaunched at a time when the charity is needed more than ever. The COVID-19 pandemic arrived bringing significant business disruption, change and unpredictability at both the micro and macro level of our society. As a Group, we are heading into the highly unpredictable waters of fiscal year 2020/21 but we are also heading into a Golden Jubilee year with the Credit Union and CAPITA celebrating their 50th and 10th anniversary respectively. With $1.7 billion in assets and $18.4 million in consolidated income after taxes, the Group has come a far-way from its humble beginnings and continues to exhibit best in class resilience, strength and stability. These are all characteristics needed now more than ever as Barbados, the region and the world seeks to break free from the negative impacts of the pandemic. Our expectation is for a challenging anniversary year. We anticipate the economic slowdown caused by COVID-19 to continue given our reliance on travel and tourism and the impact of the current state of that sector, which may be further compounded by high levels of unemployment that will continue during the year and beyond. While we recognize that members and customers across the Group will try to honor their contractual obligations, we are not oblivious to the realities of personal circumstances and anticipate a decline in our financial performance in what will be a challenging financial environment. Our financial numbers, however, do not define who we are, as our overall value is measured by more than the size of our annual surplus. Our strong financial performances over the years, our robust liquidity and capital positions, our professional and caring staff, and our committed Board of Directors and Elected Officials have placed us in a position to not only withstand the tests that will come our way, but also to help our members find their way through it as well. We remain fully committed to this in alignment with the cooperative values and the fact that ourmembers and customers come first and foremost. We look towards 2021 with great optimism because it was in similar conditions that the Credit Union movement, and the philosophy to which we subscribe, was formed and thrived. We look forward to continued growth in our membership and customer bases and to the strengthening of those relationships as we maintain our acknowledged quality service, introduce new technologies and enter intonewproduct and service areas across the Group including access to developmental opportunities through our Member Education Relief Programme. As we head into the new fiscal year, we remain committed to ensuring the physical and financial health, safety and welfare of our members, customers and employees across the Group are not compromised. We thank you for your dedication and continued confidence in us throughout the past year and look forward to serving you as we work through the coming year together.
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