15 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2022 - Overall cash resources ended at $420.0 million (2021 - $387.7 million) representing growth of 8.3 percent. - Total assets grew by $96.0 million (2021 - $104.5 million) or 6.1 percent (2021 – 7.1 percent). Operational performance: - The credit union’s net surplus rebounded amid the challenges of the pandemic to grow by $2.2 million or 28.0 percent. Total interest income was recorded at $86.6 million (2021- $83.6 million) which was $3.0 million or 3.6 percent above that of the prior year. Interest expense was reported at $22.1 million (2021 - $23.2 million), which represented a $1.1 million or 1.6 percentage decline below that of the prior year. - Non-interest income increased by $858.5 thousand or 23.1 percent to end the year at $4.6 million (2020 - $3.7 million). Expected credit losses of $6.5 million decreased by $2.7 million or 29.7 percent below that of the prior year, while loans on non-accrual increased marginally from $147.0 million in 2021 to $154.4 million at March 31, 2022. - Total operating expenses reached $28.2 million (2021 - $23.9 million) at the end of the fiscal. Notable increases were reported in publicity and promotions which grew by 1.2 million or 61.0 percent, while maintenance to property and technology services increased by $1.1 million or 28.2 percent over that of the prior year. Snapshot of CAPITA’s Performance1 CAPITA Financial Services Inc.’s Group audit was not finalised and approved as at the time of this report and we are therefore unable to provide an accurate assessment of its 2022 statement of financial performance and comparisons to prior years at this time. Potential adjustments exist for interest income, ECL provisions and aged tax recoverable balances and collectively if realised these materially impact profitability. Management is currently working to reconcile these items which are currently recorded in the audit summary of unadjusted differences and their treatment will be determined by the end of the audit. Materially the final impact, whether realised or not, will be minimal to the Group consolidated position. From a statement of financial position perspective, CAPITA’s assets grew by just under 5 percent over the prior year to reach $327.7 million at March 31, 2022. The company has continued to advance its diversification into the electronic payments systems ecosystem of the financial services sector, partnering with the Co-operative and Credit Union Leagues in Barbados and St. Lucia. It has successfully deployed ATMs in St. Lucia and is currently managing a shared network solution for those participating credit unions, allowing for card interoperability between the entities. CAPITA is also embarking on upgrading the closed loop ATM card to an international Card Association branded debit card that will enable the members of participating Credit Unions to use their cards internationally, at any ATMs, POSs and online. The cards are expected to be launched during 2023. Locally, negotiations are continuing with credit unions and other entities to participate in the issuance of international Prepaid Debit Cards. This project, still in an early stage, is also scheduled for a 2023 completion. In addition to these card projects, CAPITA also recently made significant strides in being approved to be able to offer batched Automatic Clearing House (ACH) facilities to the Credit Union sector and to wider local corporate entities. These new ventures will provide additional non-interest income streams while assisting members and customers across the wider Group with being able to access a full portfolio of financial products and services. Group Performance Summary: The Group’s net income before levies and taxes for the financial year-end, March 31, 2022, was recorded at $12.2 million as compared to $10.6 million in the prior year. As economic activity increased during the fiscal and employment levels improved with persons returning to the workforce, delinquency returned to pre-Covid-19 levels. Consequently, expected credit losses relative to loans decreased from $10.2 million in 2021 to $7.5 at March 31, 2022, representing a 26.5 percent decrease. During the financial year ended March 31, 2022, the Group’s minimum deposit rate remained fixed at 0.5 percent ensuring that depositors receive a reasonable return for their patronage of the organisation. The net interest margin as a percentage of average assets stood at 3.99 percent as at March 31, 2022 compared to 3.95 percent in 2021. The Group’s levies on assets increased moderately by $32.3 thousand or 3.4 percent, while corporation taxes declined by $10.7 thousand or 10.9 percent. 2018 2019 2020 2021 2022 Deposits Deposits
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