22 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED the effectiveness of the credit risk management and collection strategies and was further supported by the implementation of a more structured and disciplined recovery framework, establishing a solid foundation for the 2026–2027 fiscal year. Within the insurance brokerage subsidiary, strategic efforts were directed toward expanding the range of products and services available to customers while strengthening collection processes to improve operational efficiency and portfolio performance. Investment in digital transformation remained a strategic priority during the year, as a number of technology initiatives aimed at modernizing financial reporting capabilities and enhancing the loan underwriting process, through greater automation and improved data management, were advanced. These projects are expected to increase operational efficiency, strengthen decision-making, and support future growth, the benefits of which are to be realized in the 2026/2027 period. Recognizing that people remain central to its success, efforts continued with the recruitment of key revenuegenerating positions across the organization. These roles are expected to drive growth in both interest and non-interest income while supporting the disciplined management of controllable operating expenses within approved budget parameters. Overall, CAPITA made meaningful progress against its strategic objectives during the year, strengthening its business model, enhancing customer experience, investing in digital capabilities, and reinforcing its operational framework to support sustainable growth and long-term value creation for its stakeholders. CAPITA’s financial position reflected a net profit of $934 thousand after taxes, total deposits in excess of $240 million, and total assets of $316.5 million at yearend. Consolidated Financial Performance The Group recorded net income of $10.1 million, a significant improvement over the prior year’s $6.0 million. This growth was driven by strong net interest income of $76.4 million and other income of $17.2 million. Despite operating expenses of $81.5 million, disciplined cost management and improved credit performance supported overall profitability. Comprehensive income totaled $8.4 million, compared to $5.5 million in 2025, reflecting higher net income and re-measurements on pension assets and equity investments. Balance Sheet Strength Total assets grew to $2.09 billion, up from $2.01 billion in 2025, fueled by increases in cash resources, financial investments, and loans and advances. Deposits rose to Board of Directors’ Report (Continued) $1.82 billion, underscoring continued member confidence. Equity strengthened to $205.1 million, compared to $198.6 million in the prior year, reflecting retained earnings growth and prudent reserve allocations. Our capital base remains robust, positioning us well for future opportunities and challenges. Cash Flow Operating activities generated $75.5 million in net cash, up from $50.9 million in 2025, supported by deposit growth and stable interest income. Investing activities reflected strategic expansion, with $10.5 million invested in property and equipment and $41.5 million in financial investments. Financing activities resulted in modest outflows, primarily due to member distributions and lease repayments. Group Strategic Outlook This performance underscores our resilience, prudent risk management, and commitment to efficiency. We remain focused on strengthening our core business, investing in digital transformation, and delivering sustainable value to stakeholders. At the same time, we continue to balance growth with prudence, building reserves, maintaining a sound capital position, and investing in technology, infrastructure, and member services to ensure long term sustainability and enhanced member value Allied Co-operators Inc. (ACI) During the reporting period, engagement by the smaller Credit Unions with ACI for services was considerably reduced. Following a comprehensive review of ACI’s operations, the Directors concluded that the organisation is no longer required in its current form. This decision was taken with the best interests of the Barbados Public Workers’ (BPW) Group of Companies in mind, ensuring that resources are directed toward initiatives that deliver the greatest value to our stakeholders. As the credit union sector continues to evolve, with many institutions merging and becoming larger, the need for a dedicated Credit Union Service Organisation (CUSO) such as ACI has diminished. Nevertheless, the Board of Directors remains confident that exploring this model provided valuable insights into how smaller Credit Unions can strengthen governance, compliance, data privacy, and regulatory readiness. Redirecting resources from ACI enables the BPW Group of Companies to concentrate on core priorities and new opportunities that will better serve both our members and the wider community. The Board is optimistic that this transition will create space for innovative approaches and partnerships that align with the evolving regulatory environment and the long term vision of the BPW Group of Companies
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