12 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2022 Credit to non-financial private sector deposit-taking institutions fell by 1.7 percent, a marginally faster rate than recorded in 2020. Overall lending by commercial banks decreased while other financial institutions increased modestly. Commercial bank lending declined in personal loans for mortgages and credit cards, with total credit card debt declining by 13.9 percent compared to a decline of 9.8 percent for the same period in 2020. However, credit extended to business increased, particularly for utilities. A small number of loans remained under moratoria at year-end, principally in the real estate and the tourism sectors as financial institutions utilised restructuring and clients resumed payment towards loans previously under moratoria. Domestic deposits grew by 2.5 percent compared to 7.8 percent in the previous year. Household savings grew by 4.1 percent, while corporate deposits grew by 3.2 percent. Foreign currency deposits also increased and accounted for 6.4 percent of total deposits. Economic Outlook The IMF has raised its most recent global forecast for economic growth for 2022 to 4.4 percent. Barbados’ economic outlook for 2022 will be heavily influenced by its continued vulnerability to external shocks and the strength of the Barbados economic recovery, which is heavily dependent on the tourism sector, will depend on the ability of countries across the globe to control and contain the spread of the pandemic. While the situation has not yet stabilised, the outlook for the tourism sector looks more favourable now than it did a year ago, with the increased availability of vaccines and the opening of economies to international travel and business activity. However, the variability of potential re-emerging strains of the Covid 19 virus and the possible re-imposition of travel restrictions is still of some risk to this significant sector. Given the more favorable global outlook, the Central Bank of Barbados (CBB) anticipates that the improvements in economic activity witnessed in the last nine months will flow over into fiscal 2022, driven mainly by the revival of the tourism sector. All indicators point to a strong, though partial economic recovery aided by the likely influx of visitors for the English cricket tours. Additionally, continued investments in tourism and the Government’s upgrades to infrastructure (road works and housing) and other small private sector investments are expected to boost the economy further. The recent disruption in the supply chain of goods could however result in elevated inflation relative to goods and services. Overview Inspired by our slogan, “This is where you belong,” and that of credit unions worldwide, “People helping people”, we continue to make a difference in the lives of our members and the communities within which we serve. During the financial year ended March 31, 2022, the Barbados Public Workers Co-operative Credit Union Limited membership grew by 4,531 or 4.4 percent to reach 107,506. Consequently, there were 344 new loans to first-time members totalling $6.3 million and new deposits generation of $14.5 million. Member-related expenditures granted through social outreach and educational funds increased above the prior year by $51 thousand and $55 thousand, respectively. The organization is ever mindful of the challenges its members face in these tough economic times and will continue to provide the necessary assistance to its members where applicable. 6 or deposit-taking institutions fell by 1.7 percent, a d in 2020. Overall lending by commercial banks utions increased modestly. Commercial bank lending gages and credit cards, with total credit card debt to a decline of 9.8 percent for the same period in siness increased, particularly for utilities. Interest on Deposits & Loans Sources: Central Bank of Barbados A small number of loans remained under moratoria at year-end, principally in the real estate and the tourism sectors as financial institutions utilised restructuring and clients resumed payment towards loans previously under m ratoria. Domestic d posits grew by 2.5 percent compared to 7.8 percent in the previous year. Hou ehold savi gs grew by 4.1 percent, while corporate deposits grew by 3.2 percent. Foreign currency also increased and accounted for 6.4 percent of total deposits. Credit Cards Credit Unions Sources: Central Bank of Barbados Management Discussion & Analysis (MD&A) (Continued)
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