16 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED The Group’s net interest margin as a percentage of average assets declined marginally to 3.89 percent as at March 31, 2025 compared to 3.92 percent at March 31, 2024. The Group’s levies on assets and taxation increased moderately by $54.5 thousand or 5.7 percent and by $65.7 thousand or 69.2 percent respectively. Net income after tax and levies for the year totaled $6.0 million compared to $10.1 million for the year ended March 31, 2024 which is largely driven by the increase operating costs as explained above. Consolidated Financial Statement Highlights Revenues: The Group earned total interest revenue of $100.0 million (2024 - $101.4 million) for the financial year ended March 31, 2025, representing a decrease of $1.5 million or 1.5 percent over the prior year. Deposit cost in the form of interest expense declined by $2.1 million or 8.3 percent to move from $24.9 million in 2024 to $22.8 million in 2025, in line with management’s efforts to ensure deposit are adequately priced. Net interest income moved from $76.5 million in 2024 to $77.1 million in 2025 resulting in a favorable decrease of $566.4 thousand or 0.7 percent over that of the prior year while total income was reported at $114.3 million (2024- $116.2 million) representing a decline of $1.8 million (2024- $2.5 million) or 1.6 (2024- 2.3 percent) percent. Net income: The Group’s consolidated net income before levies and taxes was recorded at $11.2 (2024 - $8.6) million at March 31, 2025. Operating Expenses: Total operating expenses inclusive of taxes increased from $78.1 million in 2024 to $84.6 million in 2025 primarily driven by a 12.8 percent, or $1.1 million increase direct cost of services, an increase in publicity and of $1.6 million or 58.3 percent. Staff cost for the year stood at $30.9 million representing an increase over the prior year of $3.2 million or 11.7 percent. Assets: Total assets of the Group stood at $2 billion at March 31, 2025. This represented an increase of $45.7 (2024 - $15.4) million or 2.3 (2024 - 0.7) percent over the previous year. At March 31, 2025, the Group’s consolidated net loans and advances stood at $1.4 billion, a decrease of $16.1 million or 1.2 percent over the prior year. Home ownership remains a significant milestone within the lives of our members and customers as evident in the continued growth noted within the mortgage portfolio of the Group. The mortgage and business portfolio experienced growth of $11.2 million Deposits Total Assets 2021 2022 2023 2024 2025 2 Total Assets Net Income Total Assets Net Income Loans to members Loans to Members Management Discussion & Analysis (MD&A) (Continued)
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