23 CONSOLIDATED FINANCIAL STATEMENTS 2024 positioned to help you through these times. History has shown that when uncertainties abound, our commitment to navigating the challenges with our members become stronger and we become even more resolute in contributing to the financial well-being of our members and by extension the Barbadian community. Credit Union Performance As we provide insight into the financial performance of our Credit Union and its subsidiaries over the past year, we do so against the backdrop of dynamic economic conditions in our local market and the wider Caribbean region. The past year brought forth a mix of opportunities and challenges and on each occasion your Credit Union has demonstrated resilience and agility, resulting in a continued positive performance in line with previous years. The Treasurer’s Report and the audited financial statements will provide a detailed narrative of the financial performance during a year when management demonstrated effective control over controllable factors, and exercised prudent financial judgment in the face of revenue projections not being realised due to lower than anticipated credit growth. A snapshot of some key aspects of the financial performance over the previous reporting period is outlined below: Statement of Financial Performance • Total interest income - $87.1 million • Total interest expense - $19.4 million • Total Other income - $5.6 million • Total Operating Expenses - $61. 6 million • Net Profit - $8.7 million Statement of Financial Position • Net Loans and Advances - $1.1 billion • Total Assets - $1.8 billion • Deposits - $1.5 billion • Total Equity - $194.8 million Subsidiary Performance Capita Financial Services Inc. (CFSI) During the reporting period, CFSI continued to make significant strides towards returning to operational normalcy and strengthening its position in the market. Following the severe public scrutiny and adverse publicity experienced, CFSI took proactive measures to enhance its governance structures and processes, resulting in the subsidiary having successfully reestablished its credibility and image, reinforcing its position as a key entity within the Group, and a resilient entity dedicated to serving its customers. One of the key initiatives undertaken by the CFSI Board during the reporting period was the recruitment of a new Chief Executive Officer to lead the subsidiary into the next phase of growth and development. We are pleased to announce that an experienced executive was appointed to lead the subsidiary, bringing with him a wealth of industry knowledge and leadership acumen. Under his guidance, CFSI has formulated action plans to address areas of identified weaknesses and capitalise on opportunities for improvement. It has been a year of corrective action to stabilise the subsidiary and this has come at a cost, as business development and revenue generation was outpaced by stabilisation expenses. CFSI’s revenue and profitability position were marginally impacted by the actions of the past year and it finished the year below the budgeted projections. On the positive side, the work done to date has resulted in strong capital and liquidity build-up, both of which are critical to our long-term goals. Some key financial highlights for the past fiscal period are shown below: Statement of Financial Performance • Total interest income - $15.7 million • Total interest expense - $6.7 million • Total Other income - $8.4 million • Total Expenses - $15.5 million • Net Profit after taxes - $834.5 thousand Statement of Financial Position • Net Loans and Advances - $258.7 million • Total Assets - $335.5 million • Total Deposits - $282.8 million • Total Equity - $29.7 million Additionally, CFSI’s governance practices have been reviewed, and continue to be enhanced across the organisation to ensure compliance with regulatory requirements and best practices. As a Board, we remain committed to supporting CFSI’s growth initiatives and fostering a culture of transparency, accountability and innovation. Looking forward, CFSI is poised for future success that will add incremental value to the Group of Companies and contribute positively to the Group’s long-term
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