13 CONSOLIDATED ANNUAL REPORT 2026 1.4 percent (2025 – a decline by 4.2 percent) while business loans contracted by $236.1 thousand (2025 - $580.9 thousand) or 9.1 percent (2025 – a decline of 18.3 percent). The Credit Union’s expansions in other key areas of its Statement of Financial Position were as follows: - Overall cash resources ended at $513.3 million (2025 – $477 million) representing growth of $36.2 million (2025 – $28.5 million) or 7.6 percent (2025 – 6.4 percent). - Total assets grew by $91.6 million (2025 – $37.6 million) or 5.1 percent (2025 – 2.8 percent). Operational performance: - The Credit Union’s net surplus increased above the prior year by $4.0 million or 77.9 percent to finish at $9.2 million as at March 31, 2026. - Total interest income was recorded at $85.7 million (2025 – $86.6 million), which was $844.4 thousand or 1.0 percent below that of the prior year. - Interest expense was reported at $18.4 million (2025 – $17.9 million), representing an increase of $468.1 thousand or 2.6 percentage above that of the prior year. - Non–interest income increased by $1.3 million (2025 – $154 thousand) or 23.2 (2025 – 2.7) percent to end the year at $7.2 million (2025 – $5.8 million). Expected credit losses of $429 thousand (2025 – $1.6 million) decreased by $1.2 million (2025 – $1.0) or 73.8 (2025 – 38.9) percent below that of the prior year, while loans on non–accrual increased from $153.2 million in 2025 to $157.7 million at March 31, 2026. - Operating expenses decreased by $1.0 million to reach $35.6 million (2025 – $36.7 million) at the end of the fiscal. Notable increases were noted in advertising costs of $307.2 thousand or 47 percent, security services of $365.2 thousand or 19.6 percent, rent of $208.8 thousand or 31.5 percent, utilities of $270 thousand or 17.5 percent, and staff and member training of $149.9 thousand or 36.5 percent. - Compensating reductions of $541.9 thousand or 28.8 percent were recorded in legal and professional fees, $332 thousand or 4.9 percent in repairs and maintenance, and $496 thousand or 12 percent in publicity and promotion. Direct cost of services also decreased by $314 thousand or 5.5 percent. Costs associated with meetings and conferences, and elected officials and committee training expenses, also recorded decreases of $258.2 thousand or 23.2 percent and $51 thousand or 17.5 percent, respectively. Snapshot of CAPITA’s performance During the financial year ending March 31, 2026, CAPITA continued to execute its strategic priorities with a strong focus on business growth, operational excellence, and digital transformation. A key initiative was the expansion of the loan portfolio, with greater emphasis placed on the business lending segment to support diversification and sustainable revenue growth. CAPITA reported total assets of $316.5 million (2025 – $328.2 million), representing a decrease of $11.7 (2025 – $7.2 million) or 3.6 percent (2025 – $2.2 percent) when compared to the prior year. Profit before levies and taxation was reported at $2.1 million (2025 – $2.2 million), representing a decrease of $65.1 thousand or 3.0 percent when compared to the prior year. Total operating expenditure for the year was $17.0 million (2025 – 14.9 million), representing an overall increase of $2.1 million or 13.9 percent when compared to the prior year. The main contributor to the net increase in total operating expenditure was the increase in staff cost, which totaled $4.6 million, representing a decrease of $983.7 thousand or 27.2 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: As at March 31, 2026, the group recorded net income before levies and taxation of $11.2 million, compared with $7.2 million in the prior year. This improvement was driven by growth in revenue streams, prudent expense management, and the Group’s ongoing focus on operational efficiency. Other income increased by $2.8 million, or 19.3 percent, while total operating expenses declined by $2.0 million, or 2.4 percent. The reduction in operating expenses was primarily attributable to a $1.1 million decrease in administrative and operating costs, complemented by a modest reduction in staff costs of $161.1 thousand, or 0.5 percent. The Group maintained a disciplined approach to credit risk management during the year. Expected credit losses on loans increased moderately to $857.9 thousand from $821.7 thousand in the prior year, representing a 4.4 percent increase and reflecting
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