14 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED continued prudence in the assessment of credit risk. During the financial year ended March 31, 2026, the Group’s minimum deposit rate remained fixed at 0.35 percent, ensuring that depositors receive a return above that for similar deposits in the market. Net interest margin, expressed as a percentage of average assets, declined slightly to 3.70 percent from 3.89 percent in the previous year, reflecting the ongoing impact of the interest rate environment and competitive market conditions. Levies on assets decreased marginally by $27.6 thousand, or 2.7 percent, while taxation increased by $16.9 thousand, or 10.5 percent, compared with the prior year. As a result of these factors, net income after taxation and levies increased significantly to $10.0 million for the year ended March 31, 2026, compared with $6.0 million in the previous year. This performance reflects the Group’s ability to generate sustainable earnings growth while maintaining disciplined cost management and sound risk oversight. Consolidated Financial Statement Highlights Revenues: The Group earned total interest revenue of $99.6 million (2025 – $100.0 million) for the financial year ended March 31, 2026, representing a decrease of $345.9 thousand or 0.3 percent over the prior year. Deposit costs in the form of interest expense increased by $388.2 thousand or 1.7 percent to move from $22.8 million in 2025 to $23.2 million in 2026, in line with management’s efforts to ensure deposits are adequately priced. Net interest income moved from $77.1 million in 2025 to $76.4 million in 2026, resulting in a decline of $734.2 thousand or 1.0 percent over that of the prior year, while total income was reported at $116.7 million (2025 – $114.3 million) representing an increase of $2.4 million (2025 – $1.8 million) or 2.13 (2025 – 1.6 percent) percent. Net income: The Group’s consolidated net income before levies and taxes was recorded at $11.2 million (2025 – $7.2 million) at March 31, 2026. Operating Expenses: Total operating expenses, inclusive of taxes decrease from $82.3 million in 2025 to $80.3 million in 2026, primarily driven by a 12.8 percent, or $1.1 million increase in the direct cost of services, an increase in publicity, and of $1.6 million or 58.3 percent. Staff cost for the year stood at $30.7 million, representing a decrease over the prior year of $161.1 thousand or 0.5 percent. Assets: Total assets of the Group stood at $2.09 billion at March 31, 2026. This represented an increase of $81.9 million (2025 – $45.7 million) or 4.1 percent (2025 – 2.3 percent) over the previous year. At March 31, 2026, the Group’s consolidated net loans and advances stood at $1.4 billion, an increase of $24.4 million or 1.7 percent over the prior year. The Group remains committed to empowering its members and customers by providing access to financial solutions that enable them to achieve their full potential and participate meaningfully in economic development across the micro, small, and medium enterprise sectors. Reflecting this commitment, the loan portfolio continued to expand during the year, supported by increased business lending activity, particularly among individual clients of CAPITA. 2022 2023 2024 2025 2026 Net Income Loans to members 3 Net Income before Levies & Taxes Management Discussion & Analysis (MD&A) (Continued) 2022 2023 2024 2025 2026 Deposits 2022 2023 2024 2025 2026 T tal Assets 2022 2023 2024 2025 2026 2 Deposits
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