17 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2021 The economic challenges presented by the COVID 19 pandemic caused an increase in loans on non-accrual status which by extension resulted in a reduction in interest income. Throughout the financial year ended March 31, 2021, interest rates on savings and deposits trended downwards in the sector and eventually reached a low of zero percent at some financial institutions at March 31, 2021. Despite this downward pressure, the minimum interest rate on deposits across the Group was 0.5 percent at March 31, 2021. This commitment to ensuring depositors achieve a reasonable return remains a fundamental part of our member/customercentric philosophy. The net interest margin for the year was 3.9 percent as compared to 4.5 percent in 2020. The Group’s levies on assets increased by $118.3 or 14.0 percent while corporation taxes declined by $70.1 thousand or 41.7 percent. Net income after tax and levies for the year totalled $9.5 million compared to $18.4 million for the year ended March 31, 2020. Consolidated Financial Statement Highlights Revenues For the financial year ended March 31, 2021, the Group earned total interest revenue of $100.0 million, down from $106.3 million the previous year. This represented a decrease of $6.3 million or 5.9 percent when compared to the prior year. Income generated from non-interest sources decreased by $546 thousand or 7.9 percent from the results of the prior year. Net interest income Consequently, net interest income moved from $75.3 million in 2020 to $70.3 million in 2021. This represented a decrease of $5.0 million or 6.8 percent in net interest income. Net income The Group earned a consolidated net income before levies and taxes of $10.6 million (2020 - $19.4 million). This was relatively on par with the performance of 2019, where net income was reported at $11.5 million before levies and taxes. Operating Expenses Total operating expenses inclusive of taxes decreased from $57.4 million in 2020 to $57.0 million in 2021. The decrease was principally driven by a decline in staff costs of $1.7 million or 7.4 percent, while legal and professional fees increased by $1.3 million or 98.4 percent. Assets Total assets of the Group stood at $1.8 billion at March 31, 2021. This represented an increase of $101.1 million or 5.9 percent over the previous year. At March 31, 2021, the Group’s consolidated net loans and advances stood at $1.3 billion, an increase of $18.3 million or 1.4 percent over the prior year. Loan growth was primarily driven by increased mortgage loans of $47.8 million while consumer loans decreased by 29.2 million. 2017 2018 2019 2020 2021 Deposits 2017 2018 2019 2020 2021 Net Income 2017 2018 2019 2020 2021 Total Assets Deposits Net Income Total Assets
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