14 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2022 Table 1 2018 2019 2020 2021 2022 d s $958,067.00 $997,535.00 $1,046,080.00 $1,054,665.00 $1,114,980.00 $1,055,847.00 $1,175,004.00 $1,279,598.00 $1,374,306.00 $1,453,146.00 ets $1,223,643.00 $1,352,317.00 $1,472,712.00 $1,577,177.00 $1,673,198.00 est $61,438.00 $63,243.00 $66,350.00 $60,414.00 $64,462.00 hip $89,200.00 $95,000.00 $100,100.00 $103,000.00 $107,500.00 2018 2019 2020 2021 2022 LOANS AND ADVANCES 1 Loans and Advances (Net) year. This represented an increase of $60.3 million or 5.7 percent over prior year. Increases in mortgage loans were the primary driver of loan growth, with net mortgages growing by 66.6 million (2021- $36.9 million) or 17.7 percent (2021- 10.9 percent). Consumer loans declined for the second consecutive year with the decline recorded for the 2022 fiscal being 5.5 million compared to a 2021 decline of $27.9 million; 0.83 percent and 4.0 percent declines respectively. Business loans marginally increased above the prior year by $105.6 thousand (2021- ($359.2) thousand) or 2.3 percent (7.1 percent). Asset Quality Loans 90 days or more past due increased significantly during the 2021 fiscal, rising by 42.4 million or 40.6 percent. However, with the economy returning to some semblance of normalcy and unemployment levels on the decline this category of loan increased by 7.4 million or 5.0 percent to move from 147.0 million to 154.4 million as at March 31, 2022. Additionally, loans delinquent between 31 to 89 days decreased by $30.0 million or 51.5 percent to move from $58.4 million to $28.3 million, while loans less than 31 days past due increased by 90.5 million or 10.4 percent. Consequently, expected credit losses in relation to loans decreased by $2.7 million or 29.2 percent to move from 9.3 million in 2021 to 6.6 million at March 31, 2022. The delinquency rate for the fiscal was improved marginally, moving from a prior year 13.6 percent to 13.5 percent at March 31, 2022. Liabilities The organization currently maintains a higher than market rate on its core deposits to ensure its members receive a premium on their savings. This benefit to members is provided while maintaining a balance with remaining competitive and ensuring the continued financial strength and stability for which we are known; both of which were achieved. The Credit Union’s operations continued to be funded solely by membership deposits. Deposits at March 31, 2022 totaled approximately $1.5 billion representing growth of $78.8 million (2021 - $94.7 million) or 5.7 percent (2021 – 7.4 percent). During the fiscal period the average deposit cost decreased from 1.7 percent in 2021 to 1.6 percent in 2022. Other Liabilities and Reimbursable Shares Other liabilities increased by $6.0 million (2021 - $5.5 million) or 20.0 percent (2021-23.0 percent) to move from $29.7 million in 2021 to $35.7 million at March 31, 2022. Amounts due to member estates were the main contributor to growth in this area, having grown by $6.1 million (2021- 1.5 million) or 41.2 percent (2021- 11.1 percent). Given the rapid growth of this area, the organization is currently reviewing its processes to better service those members to whom these amounts are due. Equity Total equity, which comprises members’ share capital, retained earnings and statutory and other reserves, provides a safety buffer, ensures financial stability and allows for future growth and development once maintained at a significant enough level. As at March 31, 2022, total members’ equity stood at $184.4 million, up from $173.2 million as at March 31, 2021. The increase of $11.2 million was predominantly attributable to a positive net income contribution of $10.3 million, enhanced by growth in share capital of $543.7 thousand. The distributions to members during the year were approximately $2.6 million and comprised of a share dividend of $609.1 thousand and $2.0 million in interest rebate. 2018 2019 2020 2021 2022 Total Assets 2018 2019 2020 2021 2022 Deposits 2 Deposits 2018 2019 2020 2021 2022 Total Assets Deposits 2 Total Assets Management Discussion & Analysis (MD&A) (Continued)
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