9 SEPARATE FINANCIAL STATEMENTS 2025 as non-performing loans (NPLs) fell to 3.9 percent for banks, with deposits growing 2.5 percent, particularly foreign-currency deposits, which rose 19.1 percent. Barbados’ Economic Forecast Looking ahead, Barbados is projected to achieve GDP growth of 2.7 percent for the year, led by tourism, construction, and business services. Inflation estimates have been revised upward to a range of 1.7 percent to 3.5 percent, reflecting imported inflation pressures. International reserves are expected to increase modestly, while fiscal goals remain focused on maintaining surpluses and reducing debt. Despite the positive outlook, risks persist. U.S. tariff hikes and global trade tensions pose challenges to exports and tourism, emphasising the need for Barbados to diversify its tourism markets, strengthen food security, and enhance regional collaboration to build economic resilience. In conclusion, Barbados showcased a remarkable performance in Q1 2025, with growth driven by key sectors and improved fiscal discipline. Strategic investments in infrastructure, climate resilience, and economic diversification are fundamental to sustaining progress and mitigating the impact of external uncertainties. Overview Our priority at the Barbados Public Workers’ Cooperative Credit Union Ltd. is to offer best in class financial products and services, while also promoting the financial and social wellbeing of our members. We are dedicated to adding value through our products and delivering exceptional service and support. During the period, membership increased by 3,476 or 3.1 percent to reach 117,257. Consequently, there was new deposit generation of $10.7 million and 177 new loans to first-time members totalling $3.5 million. Memberrelated expenditures through educational grants and scholarship expenses rose by $51.7 thousand compared to the previous year; however, social outreach related expenditure fell by $112.7 thousand compared to the prior year. Review of Financial Performance Total Income And Net Income Total income comprising of interest from loans and advances, and interest from cash resources and investments which jointly combined was reported at $86.6 million, along with non-interest income of $5.8 million, together totalled $92.4 million for the year ended March 31, 2025, compared to $92.8 million in the prior year, a 0.4 percentage decrease. Net income for the year was reported at $5.2 million, a decline of $3.6 million or 41.3 percent when compared to the prior year. Net Interest Income Net interest income comprises interest earnings on assets, less interest expenses paid on lease liabilities and deposits (the cost of funds). Net interest income increased by $1.2 million or 1.8 percent at the end of the financial year, March 2025, when compared to the prior financial year, March 2024. This was mainly due to interest expenses declining by $1.7 million or 8.9 percent, which was more than the decrease in total interest income of $526 thousand or 0.6 percent when compared to the prior year. Outstanding NPLs and NPL Ratios NPLs by Sector 4.1 3.9 9.7 9.0 0.0 5.0 10.0 15.0 20.0 0 200 400 600 800 1,000 Mar-20 Dec-19 Jun-20 Sep-20 Mar-21 Dec-20 Jun-21 Sep-21 Mar-22 Dec-21 Jun-22 Sep-22 Mar-23 Dec-22 Jun-23 Sep-23 Mar-24 Dec-23 Jun-24 Sep-24 Mar-25 Dec-24 % $M 0 100 200 300 400 500 600 700 800 900 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Total NPLs NPL Ratio - Banks (RHS) NPL Ratio - Finance Companies (RHS) Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 $M Other Distribution Construction Hotels and Restaurants Real Estate & Other Professional Services Individuals Source: Central Bank of Barbados KEY INDICATORS: January to March 2025 Real GDP Growth on1 Unemployment2 International Reserves 2.6 percent 0.9 percent 7.1 percent $3.4 billion Current Account t Primary Surplus (FY) Fiscal Balance (FY) Gross Public Sector Debt $52.6 million $662.8 million (4.6 percent of GDP) -$87.1 million (-0.6 percent of GDP) 102.8 percent of GDP D posits Net Income Loans to members 2 Delinquency Ratio
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