17 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2022 acknowledge the efforts of staff, in particular the Collection departments in providing members with appropriate payment options during these challenging economic times. Options available for members seeking relief include • extension of loan terms • converting outstanding interest to a separate loan; and • consolidation of debt 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 $1.7 billion, an increase of $83.1 million or 5.1 percent compared to an increase of $83.6 million or 5.8 percent in the prior year. The Group’s only external borrowing was undertaken by the subsidiary, Capita Financial Services Inc. and at the end of the financial year, this remained at $1.3 million. Equity: As at March 31, 2021, the Group’s total equity rose to $185.6 million, representing an increase of $11.6 million or 4.1 percent compared to an increase of $6.8 million or 15 percent in the previous year. This increase included the issuance of $634.8 thousand in additional member shares (2021 - $430.6 thousand), and the distribution of $2.6 (2021- $3.6) million in dividends and interest rebates to members during the year. The Group’s capital adequacy ratios continue to be well above regulatory requirements. This ratio is a key measurement relative to the Group’s ability to absorb market shocks and as such is continually monitored on an ongoing basis. Economic Outlook 2022-2023 Fiscal The Central Bank of Barbados, in its January 27, 2022 Release indicated that the performance of the Barbados economy for fiscal 2022-23 will be heavily influenced by its continued vulnerability to external shocks, an acknowledging that as a tourism-dependent economy the strength of Barbados’ recovery will be intrinsically linked to that other countries ability to contain the spread of the Covid-19 pandemic. The preceding was stated within the context that the International Monetary Fund (IMF) has projected global economic growth of 4.4 percent, With increased vaccinations and the re-opening of economies to international travel the outlook for the tourism sector looks more favorable than during the height of the pandemic. As such it is anticipated that local economic activity will accelerate in the 2022 fiscal. According to the Bank all indicators are for partially strong growth in the first quarter, bolstered by the favourable impact of the influx of English visitors for the cricket tours. While the Bank has created various growth scenarios it remains optimistic that “absent the re-imposition of travel restrictions, or the deepening of the supply chain disruption, or significant geopolitical shocks, there is potential for a robust recovery leading to double-digit growth in 2022” The Government of Barbados has indicated its commitment to improving the business environment to enable further sustainable economic activity. It projects increased revenue and consequently, primary surpluses as extra-ordinary pandemic expenditures are reduced. Based on the Central Bank’s Released Government is welcoming the focus on infrastructure as a means to enhance the delivery of public services, while contributing to diversification, innovation and productivity within the economy. The Way Forward As a Group we go forward with optimism into a 2023 that is forecasted to bring about an improving operational environment underpinned by improved micro and macroeconomic conditions catalyzed by a revitalized tourism product, slowdowns in pandemic and other viral infections and projections of economic growth and related improvements in employment and domestic output. With those encouraging forecasts and signs before us, we must not forget the lessons of our Covid-19 years and the positive takeaways that came out of operating in such an environment. As a Group, all of our entities have been impacted by significant changes in their respective operating space. Manual delivery channels have been transformed to digital, and what was once considered normal and acceptable from a service delivery perspective has now become unacceptable in the face of heightened awareness and demands by members and customers who have experienced the immediacy and intimacy brought on by the Covid-19 environment. It is with this on mind that the Group’s continued focus and commitment to a common goal, and a well-articulated desired outcome is required to ensure success across all of our operating entities. 2018 2019 2020 2021 2022 Delinquency Ratio Delinquency Ratio
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