Consolidated Annual Report 2021

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2021 16 Adoption of New Accounting Standards During the fiscal ended March 31, 2021, there were no newly adopted or implemented accounting standards which had a significant impact on the reporting or performance of the Group. Snapshot of Credit Union’s Performance In 2021, we continued our positive performance of prior years in the areas of assets, deposits and membership growth. Despite increased challenging economic conditions, 2,905 additional persons selected the Barbados Public Workers’ Cooperative Credit Union Limited as their financial institution. This represented a 2.3 percent overall increase in membership over the prior year. With our success anchored to the quality of service we deliver, staff continued to focus their efforts on transforming the member experience to make the credit union the financial services provider of choice as evidenced by the 96.0 percent service rating on the annual customer satisfaction survey. The increase in membership contributed to the credit union’s deposits growing by $94.7 million (2020 - $104.6 million) or 7.4 percent (2020 - 8.9 percent). Demand for loans remained high as evidenced by gross commitments in amounts approved and pending disbursements of $103.4 million (2020 -$82.3 million) representing an overall increase of $21.1 million or 25.6 percent over the prior year. With existing mortgage rates of 4.75 percent, the demand for mortgages has increased. Overall the Credit Union’s loans approved and pending has increased, mortgages approved and pending increased by $11.8 million or 22.9 percent to reach $63.4 million, while gross commitments of consumer loans approved and pending increased from $30.7 million in the prior year to $40.0 million, reflecting a $9.3 million or 30.3 percent increase. During fiscal 2021, credit union net loans grew moderately by $8.6 million or 0.8 percent. Overall loan growth for the credit union was recorded at $18.0 million or 1.7 percent. However, the credit union’s balance sheet remained robust and was able to absorb any major shock during 2021 fiscal. - Overall cash resources ended at $387.7 million (2020 - $294.9 million) representing growth of 31.5 percent. - Asset grew by $104.5 million (2020 - $120.4 million) or 7.1 percent (2020 - 8.9 percent). - On the other hand net surplus was impacted by the challenges of the COVID-19 pandemic. Total interest income was recorded at $83.6 million which was $6.3 million or 7.0 percent below that of the prior year; interest expense was reported at $23.2 million (2020 - $23.5 million), which represented a $370 thousand decline or 1.6 percent below the prior year. - Non-interest income decreased by $791.0 thousand or 17.5 percent to end the year at $3.7 million (2020 - $4.5 million). Expected credit losses increased by $3.1 million over the prior year to reach $9.2 million, as loans on non-accrual increased from $104.6 million in 2020 to $147.0 million at March 31, 2021. - Total operating expenses reached $23.9 million (2020 - $22.5 million) at the end of the fiscal. Notable increases were reported in legal and professional fees which grew by 1.1 million or 109.9 percent, while the direct cost of services increased by $548.3 thousand or 104.1 percent. The above increases were however offset by declines in publicity and promotions of $1.1 million or 35.3 percent. Notwithstanding, the net offsetting effects of rising and falling operating line items resulted in an overall increase of $1.5 million or 6.5 percent. Snapshot of CAPITA’s performance CAPITA realized an increase in growth, whereby assets grew by $4.9 million or 1.6 percent over the prior year to reach $313.1 million at March 31, 2021. Income before levies and taxation at March 31, 2021, was approximately $2.9 million (2020 - $2.6 million) and net income after tax was $1.9 million for the 2021 fiscal period versus $1.6 million for 2020. CAPITA has made great strides as it ventures into the technological future of the financial services sector. Partnering with the Co-operative and Credit Union Leagues in Barbados and St. Lucia, CAPITA has successfully deployed several services including ATM and Debit Card solutions. In December 2019, CAPITA in conjunction with the St. Lucia Cooperative and Credit Union League created a historic milestone by launching the first ATM Network for credit unions on the island, to date enlisting nine Credit Unions. CAPITA is planning to forge ahead to offer the members of participating Credit Unions an internationally branded Debit Card that can be used at any ATMs, POSs and online anywhere the brand is accepted. In Barbados, an international Debit Card has been launched for two major Credit Unions, expanding the capacity of the previously held cards. Negotiations are underway with additional Credit Unions and other entities to participate in the issuance of the international Prepaid Debit Cards, and early indications are very encouraging. On completion of the Debit Cards project an international Credit Card project is also to be introduced to the local Credit Union sector, to assist the sector in providing a broader suite of services to their members. Group Performance Summary The Group’s net surplus for the financial year-end March 31, 2021, was recorded at $10.6 million as compared to $19.4 million in the prior year. Management Discussion and Analysis (Continued)

RkJQdWJsaXNoZXIy MTA2MDM=