15 CONSOLIDATED FINANCIAL STATEMENTS 2025 The Credit Union’s expansion in other key areas of its Statement of financial position were as follows: - Overall cash resources ended at $477 million (2024 - $448.5 million) representing growth of $28.5 million (2024 - $12.8 million) or 6.4 percent (2024 – 2.9) percent. - Total assets grew by $50.2 million (2024 - $37.6 million) or 2.8 percent (2024 - 2.2 percent). Operational performance: - The Credit Union’s net surplus declined below prior year by $3.6 million or 41.3 percent to finish at $5.2 million as at March 31, 2025. Total interest income was recorded at $86.6 million (2024 - $87.1 million) which was $526.1 thousand or 0.6 percent below that of the prior year. Interest expense was reported at $17.9 million (2024 - $19.6 million) representing a decline of $1.7 million or 8.9 percentage below that of the prior year. - Non-interest income increased by $154 (2024 - $796.7) thousand or 2.7 (2024 - 16.4) percent to end the year at $5.8 million (2024 - $5.7 million). Expected credit losses of $1.6 (2024 - $2.7) million decreased by $1.0 (2024 - $2.1) million or 38.9 (2024 - 26.7) percent below that of the prior year, while loans on non-accrual decreased from $172.6 million in 2024 to $153.2 million at March 31, 2025. - Total operating expenses reached $36.7 million (2024 - $34 million) at the end of the fiscal. Notable increases were reported in direct cost of services which grew by $1.7 million or 44.8 percent, publicity and promotion increased by $1.4 million or 52.6 percent over the prior year, while maintenance to property and technology services increased by $419.4 thousand or 6.5 percent over that of the prior year. Snapshot of CAPITA’s Performance CAPITA reported total assets of $328.2 million (2024 - $335) million, representing a decrease of $7.2 million or 2.2 percent when compared to the prior year. Profit before levies and taxation was reported at $2.2 (2024 - $1.9) million representing an increase of $274.6 thousand or 14.5 percent when compared to the prior year. Total operating expenditure for the year was $14.9 (2024 - 15.5) million representing an overall decrease of $562.4 thousand or 3.6 percent when compared to the prior year. The main contributor to the net decrease in total operating expenditure was the recovery of expected credit losses during the year which totaled $810 thousand. In addition, total audit fees for the year declined by $344.2 thousand or 35.9 percent. During the reporting period the company remained focused on the development of its five- year strategy plan and the introduction of a new suite of deposit products that are key to providing diversification of its funding sources, and reviewing and exploring ways to reduce delinquency and recover the current stock of non-performing loans. In addition, major emphasis was placed on reviewing the brand identity and the development of a more focused marketing strategy that will cater to the targeted customer segments. Group Performance Summary: The Group’s net income before levies and taxes for the financial year-end, March 31, 2025, was recorded at $7.2 million as compared to $11.2 million in the prior year. Some of the contributing factors resulting in the decrease in net income is the significant increase in staff cost and operating expenses for the year ended March 31, 2025 coupled with positive movements within the Group’s expected credit losses of $2.2 million. Staff cost increased by $3.2 million or 11.7 percent while operating expenses increased by $3.3 million or 7.7 percent. Expected credit losses relative to loans decreased from $3.0 million in 2024 to $821.7 thousand as at March 31, 2025, representing a 72.6 percent decrease below the prior year. During the financial year ended March 31, 2025, the Group’s minimum deposit rate remained fixed at 0.5 percent ensuring that depositors receive a return above that for similar deposits in the market. Deposits Deposits
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