95 SEPARATE FINANCIAL STATEMENTS 2026 Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Separate Financial Statements March 31, 2026 (expressed in Barbados dollars) 70 23 Financial risk management …continued Credit risk …continued Incorporation of Forward-Looking Information Assessment …continued Management considers that this forward-looking approach enhances the consistency, objectivity, and auditability of the expected credit loss estimation process and supports compliance with IFRS 9’s requirement to incorporate forward looking information. Exposure to credit risk before collateral held or other credit enhancements The Credit Union limits its exposure to credit risk by investing only in entities that have high credit ratings and Government of Barbados securities. Government securities are invested over a longer period than term deposits with other financial institutions which typically mature within one year. The Credit Union has invested in FVOCI equity instruments as well, which gives it an opportunity to monitor the performance of these companies over time and make economic decisions where warranted. The Credit Union has documented investment policies in place, which guide the management of credit risk on investments. Credit risk exposures relating to on-balance sheet assets are as follows: Maximum exposure 2026 $ 2025 $ Loans and advances to members: Consumer 620,850,106 612,799,329 Mortgages 553,052,835 537,537,574 Business 2,784,545 3,028,441 Financial investments: Sovereign bonds 80,857,532 37,747,126 Securitized deposits (note 21) 25,428,964 27,560,202 Cash resources 513,339,200 477,124,342 Credit risk exposures relating to off-balance sheet items as follows: Loan commitments 61,927,442 62,777,956 Total maximum exposure 1,858,240,624 1,758,574,970 The above table represents the maximum credit risk exposure of the Credit Union as of March 31, 2026 and March 31, 2025, without taking account of any collateral held or other credit enhancements attached. For statement of financial position assets, the exposures set out above are based on gross carrying amounts.
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