9 SEPARATE ANNUAL REPORT 2026 Overview Our priority at the Barbados Public Workers’ Cooperative Credit Union Ltd. remains to offer best-in-class financial products and services while promoting the financial and social well-being of our members. During the year, membership increased by 3,651 members or 3.1 percent, reaching 120,908 members. This growth supported continued member engagement with 247 new loans to first-time members totalling $4.8 million. 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 were reported at $85.7 million, along with non-interest income of $7.2 million, together totalled $92.9 million for the year ended March 31, 2026, compared to $92.4 million in the prior year, representing a 0.5 percent increase. Net income for the year was reported at $9.2 million, representing an increase of $4.0 million or 77.9 percent 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. Net interest income declined by $1.3 million, or 1.9 percent, for the financial year ending March 2026. This was mainly due to interest expenses increasing by $468.1 thousand or 2.6 percent, and the decrease in total interest income of $844.4 thousand or 1.0 percent when compared to the prior year. Other Income Other income increased by $1.3 million or 23.2 percent during the financial year, to end at $7.2 million. This was primarily due to an improvement in fee income and bad debt recoveries, which increased by $480.5 thousand or 19.0 percent and $601.9 thousand or 34.1 percent, respectively. Efficiency and Expense Management The Credit Union’s strategy during the financial year centered on enriching member value through expanded services, advanced technology, and enhanced engagement initiatives. Significant investments were made to broaden the range of offerings, upgrade digital capabilities, and strengthen programs that foster deeper member connections. These efforts were designed to elevate satisfaction and build enduring loyalty, reinforcing the Credit Union’s mission to deliver competitive, memberfocused financial solutions. As a result of this strategic pivot, operating expenses fell by $1.0 million or 2.9 percent over the prior year. This decline in spending reflects the decline in cost associated with service development, infrastructure upgrades, and additional staff and member training to support the expanded offerings. The Credit Union’s efficiency ratio decreased from 90.8 percent in 2025 to 87.1 percent in 2026. Total Operating Expenses Total operating expenses for the year were reported at $64.9 million (2025 - $67.7 million), representing a decrease of $2.8 million or 4.1 percent compared to the prior year. The decrease in staff costs accounted for 1.1 million or 4.1 percent of the decrease in total operating expenditure. This was followed by other operating costs, which fell by 1.0 million or 2.9 percent, and depreciation by $631.3 thousand or 17 percent of the decrease in total operating expenses. The breakdown of the key changes in other operating expenses for 2026, with a comparison to the 2025 financial year, is outlined below: • 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 $496.1 thousand or 12 percent in publicity and promotion. Cost associated with meetings and conferences and elected officials and committee training expenses also recorded decreases of $258.2 thousand or 23.2 percent and $51.5 thousand or 17.5 percent respectively. Deposits Interest Income Loans to members 2 Interest Income
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