CONTENTS Organisational Structure . . . . . . . . . . 3 Our Leaders Barbados Public Workers’ Co-operative Credit Union Limited . . . . . . . . . . . . 4 Legacy Foundation . . . . . . . . . . . . . . 6 Allied Co-Operators Incorporated . 7 BPW Financial Holdings Inc . . . . . . 8 CAPITA Financial Services Inc . . . . 8 CAPITA Insurance Brokers Inc . . . 10 Consolidated Financial Highlights . 12 Management Discussion & Analysis 14 Board of Directors’ Report . . . . . . . . 22 Independent Auditors’ Report . . . . . 38 Consolidated Financial Statements 40
2 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED FINANCIAL STATEMENTS 2025 3 Barbados Public Workers’ Co-operative Credit Union Limited (BPWCCUL) is a member based financial cooperative It therefore serves members only and focusses on providing financial services to individuals with the main goal of service to members CAPITA Financial Services Inc (CAPITA) is a wholly owned subsidiary of BPWCCUL and provides financial services to both individuals and corporates CAPITA focusses on increasing shareholder return through the provision of competitive financial products and services CAPITA Insurance Brokers Inc (CIB) is a wholly owned subsidiary of CAPITA Financial Services Inc , setup to provide an additional source of revenue and return for its shareholders and increase the value proposition for members and clients within the Group of Companies CAPITA Insurance Brokers Inc (CIB) is a wholly owned subsidiary of CAPITA Financial Services Inc , setup to provide an additional source of revenue and return for its shareholders and increase the value proposition for members and clients within the Group of Companies Organisational Structure HOLDINGS BPW Legacy Foundation is a registered charity and philanthropic arm of Barbados Public Workers’ Co-operative Credit Union, its subsidiaries and associated companies Allied Co-operators Inc (ACI) is a wholly owned subsidiary of Barbados Public Workers’ Co-operative Credit Union Ltd Through a shared services partnership with the Barbados Cooperative & Credit Union League ACI aims to provide every League Affiliated Credit Union with affordable access to best-in-class assurance services, regardless of their size BPW Financial Holdings Inc was established to hold the shares of BPWCCUL’s subsidiary CAPITA Financial Services Inc
4 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Our Leaders Meet the Board of Directors President Bro. Mark Hope Vice-President Sis Caroline Woodroffe-Holder Secretary Sis. Virginia I. Sandiford-Garner Director Bro. Lindell Earle Assistant Secretary Bro. Gerard Prescod Director Bro. Carl Padmore Director Sis. Anne-Marie Burke Brewster Treasurer Sis. Rochelle Belgrave Director Sis. Wendy Knight-Hunte Board of Directors Bro. Mark Hope, President – B.Sc., MBA, FCG, LLB, ACCD Dr. Caroline Woodroffe-Holder, Vice-President – BA - History (Hons), MEd - Educational Administration, MSc - Information and Library Science (Dist), EdD - Higher Educational Leadership Sis. Virginia I. Sandiford Garner, Secretary – CUNA Management Certificate, Cert. Marketing, MBA Sis. Rochelle Belgrave, Treasurer – A.S. – Business Administration; B.Sc. – Management, Cert. - Auditing 1 and Basic taxation; Cert. Enterprise Risk Management; Cert. Compliance Risk Management Bro. Gerard Prescod, Assistant Secretary – B.A. Political Science, M.Sc. Labour & Employment Relations, Dip. Security Administration, NEBOSH Cert. Occupational Health & Safety, Cert. Law for Human Resources, Cert. Administrative Management Sis. Wendy Knight-Hunte, Director – BSM, J.P. Sis. Anne-Marie Burke Brewster, Director – M.Sc., J.P. Bro. Carl Padmore, Director – B.Sc. Fine Arts (Creative Arts) Hons.; Cert. Corporate Governance Bro. Lindell Earle, Director – B.Sc. Management Studies, CGA, MBA, FCA
CONSOLIDATED FINANCIAL STATEMENTS 2025 5 Meet the ExecutiveManagement Team Group Chief Executive Officer Bro. Glyne Harriison Chief Financial Officer Bro. LeVere Catlyn Chief Human Resources Officer Sis. Jacqueline Caesar Chief Information, Communications & Technology Officer Bro. Irwin Gibson Chief Operations Officer (ag ) Sis. Harriett Franklin Chief Legal & Corporate Affairs Officer Sis. Natalie Holder Chief Internal Auditor Bro. Eric Small Chief Marketing & Member/ Customer ExperienceOfficer Sis. Gail Best-Niles Executive Management Team Bro. Glyne Harrison, Group Chief Executive Officer – BSc, MSc, MSc., CMA, CPA Sis. Jacqueline Caesar, Chief Human Resources Manager – MBA, BSc (Hons) Bro. LeVere Catlyn, Chief Financial Officer – MSc., CPA—CGA, CA, CCUE Bro. Irwin Gibson, Chief ICT Officer – BEng, MSc., MBA Sis. Natalie Holder, Chief Legal & Corporate Affairs Officer – LLB, LEC Sis. Harriett Franklin, Chief Operations Officer (ag.) – B.Sc, Pg. Dip, Trade Relations Bro. Eric Small, Chief Internal Auditor – BSc., CIA, CFE Sis. Gail Best-Niles, Chief Marketing & Member/Customer Experience Officer
6 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Our Leaders (Continued) Meet theManagement Team www.legacybarbados.org Meet the Board of Trustees Chairman Ms. Ayodele Burrowes Trustee Mr. Gerard Prescod Trustee Ms. Kieva Cadogan Trustee Dr. Caroline Woodroffe-Holder Trustee Mrs. Virginia I. Sandiford-Garner Programme Development Coordinator Mr. Hanif Moore
CONSOLIDATED FINANCIAL STATEMENTS 2025 7 CO-OPERATORS INCORPORATED Meet the Board of Directors Chairman Mr. Mark Hope Secretary Mr. Barry Hunte Director Ms. Rochelle Belgrave Director Mrs. Wendy Knight-Hunte Director Mr. Gerard Prescod
8 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Our Leaders (Continued) FINANCIAL HOLDINGS INC. BPW Meet the Board of Directors Meet the Board of Directors Director Mrs.Anne-Marie Burke Brewster Director Mr. Cameron Haynes Director Mr. Jaydee Bourne Secretary Mrs. Kimberley Alleyne-Pinder Chairman Mr. Mark Hope Chairman Mr. Derrick Cummins Vice-Chairman Mr. Craig Hinds Director Ms. Rochelle Belgrave Director Mrs. Arlene Miller Director Mr. Glyne Harriison Director Dr. Caroline Woodroffe-Holder
CONSOLIDATED FINANCIAL STATEMENTS 2025 9 Meet theManagement Team Director Mrs. Virginia I. Sandiford-Garner Secretary Ms. Lydia R. McCollin Chief Executive Officer Mr. Curtis Knight Operations Manager Ms. Neesa Alleyne Card Manager Mrs. Sonia Hall-Hunte Relationship Manager Mehmood Piprawala
10 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Meet the Board of Directors Meet theManagement Team Our Leaders (Continued) INSURANCE BROKERS Director Ms. Maureen Graham Director Mr. Benjamin Drakes Chairman Mr. Lindell Earle Director Mrs. Wendy Knight-Hunte Director Mr. Clint Hurley Operations Manager Ms. Cheryl Browne
12 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Consolidated Financial Highlights Financial Highlights - Five Year Review In Bds $’000 2025 2024 2023 2022 2021 Statement of financial position: Assets Cash and equivalents 427,574 395,428 371,940 388,880 362,535 Investments 88,068 81,366 60,873 51,512 51,263 Loans to Members (net) 1,378,437 1,394,550 1,425,341 1,398,822 1,330,140 Property and Equipment 56,839 55,747 58,053 62,176 61,604 Other Assets 55,759 33,849 29,286 30,363 22,357 Total Assets 2,006,677 1,960,940 1,945,493 1,931,753 1,827,899 Liabilities and Owner’s Equity Liabilities Deposits 1,750,586 1,714,654 1,712,183 1,699,399 1,616,272 External Debt - 1,182 1,232 1,277 1,317 Other 57,484 49,656 44,006 45,492 36,352 1,808,070 1,765,492 1,757,421 1,746,168 1,653,941 Equity Share Capital 13,986 13,651 13,334 12,901 12,357 General & Other Reserves 183,535 180,747 175,853 171,314 160,361 Retained earnings 1,086 1,050 -1,115 1,370 1,240 Total Equity 198,607 195,448 188,072 185,585 173,958 Total Liabilities and Owner’s Equity 2,006,677 1,960,940 1,945,493 1,931,753 1,827,899 Statement of income: Interest Income 99,961 101,451 105,721 103,466 100,004 Interest Expense 22,852 24,908 26,966 28,447 29,753 Net Interest Income 77,109 76,543 78,755 75,019 70,251 Other income 14,387 14,724 8,003 8,033 6,337 Net income and other income 91,496 91,267 86,758 83,052 76,588 Impairment expense 822 3,002 6,824 7,383 10,071 Net operating income 90,674 88,265 79,934 75,669 66,517 Total operating expenses 83,481 77,099 71,349 63,452 55,932 Net income before extra-ordinary items 7,194 11,166 8,585 12,217 10,585 Derecognition of Government Securities - - Taxes 1,175 1,055 940 1,081 1,059 Net income after taxes 6,018 10,111 7,645 11,136 9,526
CONSOLIDATED FINANCIAL STATEMENTS 2025 13 2025 2024 2023 2022 2021 Financial statistics in percent: Asset Growth 2.33 0.79 0.71 5.68 5.86 Loan Growth -1.16 -2.16 1.90 5.16 1.39 Deposit Growth 2.10 0.14 0.75 5.14 5.80 Net Surplus Growth -40.48 32.26 -31.35 16.90 -48.21 Return on Assets 0.30 0.52 0.39 0.59 0.54 Return on Equity 3.05 5.27 4.09 6.19 5.59 Operating Efficiency 92.07 87.35 89.26 83.85 84.09 Net Interest Margin 3.89 3.92 4.06 3.99 3.95 2025 2024 2023 2022 2021 Other statistics Delinquency ratio (%) 13.5 14.6 14.0 14.0 14.4 # of members 117.3 113.8 111.1 107.5 103.0 # of branches 6 6 6 6 6 2025 2024 2023 2022 2021 Net income per member $51.31 $88.85 $68.81 $103.59 $92.49 Consolidated Financial Highlights Financial Highlights - Five Year Review In Bds $’000 Principal Bankers Barbados Public Workers’ Co-operative Credit Union Limited - Republic Bank (Barbados) Ltd. BPW Financial Holdings Inc. - CIBC First Caribbean International Bank CAPITA Financial Services Inc. - CIBC First Caribbean International Bank CAPITA Insurance Brokers Inc. - First Citizens Bank (Barbados) Limited Auditors PricewaterhouseCoopers SRL Barbados
14 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED scholarship expenses rose by $51.7 thousand compared to the previous year; however, demand for social outreach fell by $112.7 thousand compared to the prior year. The increase in membership contributed to the Credit Union’s growth in deposits of $40.8 million (2024 - $23.9 million) or 2.7 percent (2024 - 1.6 percent). Consequently, deposit generation from new membership increased by $10.7 million and 177 new loans were issued totaling $3.5 million. At March 31, 2025 approved loan commitments approved and pending disbursements cumulatively totaled $62.8 million (2024 -$59.7 million) increasing from the prior year by $3 million or 5.1 percent. During the fiscal 2025, the Credit Union’s net loans fell by $3.8 million (2024 - $14.7 million increase) or 0.3 percent (2024 - 1.3 percent). Consumer loan declined by $25.4 million (2024 - $37 million) or 4.2 percent (2024 - 5.7 percent). Business loans also declined by $580.9 thousand (2024 - $552 thousand) or 18.3 percent (2024 - 14.8 percent). Demand for mortgage loans continue to increase with net mortgages growing by $20.8 million (2024 - $ 21.7 million) or 4.1 percent (2024 – 4.4) percent. Group Overview: We are a group of companies committed to enhancing the overall financial stability and development of our members and those in the wider community. We remain committed to ensuring the Group achieves sustainable growth with short and long-term strategic objectives geared towards the optimization of resources, use of green and digital technologies, enhancement of member and community relations and robust financial management. As a Group, we continue our efforts to ensure we are well equipped to overcome the challenges, especially those apparent within the Cyber-space which add great risk to the financial service sector. As we enter our fifty-fifth year as a Credit Union and fifteenth (15th) as a Group, we acknowledge and applaud the foresight and vision of our founding members, and the support of our existing members and customers without whom, this journey would not have been possible. Adoption of New Accounting Standards During the financial year ended March 31, 2025, there were no newly adopted or implemented accounting standards which had a significant impact on the reporting or performance of the Group. Snapshot of Credit Union’s Performance: In 2025, the Credit Union, led by a team of dedicated professionals provided members with tailored and appropriate financial solutions to meet their needs. During the period, membership increased by 3,476 or 3.1 percent to reach 117,257. Member-related expenditures through educational grants and This section of the Barbados Public Workers’ Co-operative Credit Union Limited’s Consolidated Annual Report provides a discussion and analysis of the financial position and performance of the consolidated operations of the Barbados Public Workers’ Co-operative Credit Union Limited and its subsidiaries (“the Group”) for the financial year ended March 31, 2025 This MD&A should be read in conjunction with the audited consolidated financial statements, which have been prepared in accordance with IFRS Accounting Standards (IFRS) The Group includes the parent, Barbados Public Workers’ Co-operative Credit Union Limited and its subsidiaries Allied Co-operators Inc and BPW Financial Holdings Inc , the holding company for the CAPITA Group that includes subsidiaries Capita Financial Services Inc (“CAPITA”) and Capita Insurance Brokers Limited (“CIB”) Management Discussion & Analysis (MD&A)
15 CONSOLIDATED FINANCIAL STATEMENTS 2025 The Credit Union’s expansion in other key areas of its Statement of financial position were as follows: - Overall cash resources ended at $477 million (2024 - $448.5 million) representing growth of $28.5 million (2024 - $12.8 million) or 6.4 percent (2024 – 2.9) percent. - Total assets grew by $50.2 million (2024 - $37.6 million) or 2.8 percent (2024 - 2.2 percent). Operational performance: - The Credit Union’s net surplus declined below prior year by $3.6 million or 41.3 percent to finish at $5.2 million as at March 31, 2025. Total interest income was recorded at $86.6 million (2024 - $87.1 million) which was $526.1 thousand or 0.6 percent below that of the prior year. Interest expense was reported at $17.9 million (2024 - $19.6 million) representing a decline of $1.7 million or 8.9 percentage below that of the prior year. - Non-interest income increased by $154 (2024 - $796.7) thousand or 2.7 (2024 - 16.4) percent to end the year at $5.8 million (2024 - $5.7 million). Expected credit losses of $1.6 (2024 - $2.7) million decreased by $1.0 (2024 - $2.1) million or 38.9 (2024 - 26.7) percent below that of the prior year, while loans on non-accrual decreased from $172.6 million in 2024 to $153.2 million at March 31, 2025. - Total operating expenses reached $36.7 million (2024 - $34 million) at the end of the fiscal. Notable increases were reported in direct cost of services which grew by $1.7 million or 44.8 percent, publicity and promotion increased by $1.4 million or 52.6 percent over the prior year, while maintenance to property and technology services increased by $419.4 thousand or 6.5 percent over that of the prior year. Snapshot of CAPITA’s Performance CAPITA reported total assets of $328.2 million (2024 - $335) million, representing a decrease of $7.2 million or 2.2 percent when compared to the prior year. Profit before levies and taxation was reported at $2.2 (2024 - $1.9) million representing an increase of $274.6 thousand or 14.5 percent when compared to the prior year. Total operating expenditure for the year was $14.9 (2024 - 15.5) million representing an overall decrease of $562.4 thousand or 3.6 percent when compared to the prior year. The main contributor to the net decrease in total operating expenditure was the recovery of expected credit losses during the year which totaled $810 thousand. In addition, total audit fees for the year declined by $344.2 thousand or 35.9 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: The Group’s net income before levies and taxes for the financial year-end, March 31, 2025, was recorded at $7.2 million as compared to $11.2 million in the prior year. Some of the contributing factors resulting in the decrease in net income is the significant increase in staff cost and operating expenses for the year ended March 31, 2025 coupled with positive movements within the Group’s expected credit losses of $2.2 million. Staff cost increased by $3.2 million or 11.7 percent while operating expenses increased by $3.3 million or 7.7 percent. Expected credit losses relative to loans decreased from $3.0 million in 2024 to $821.7 thousand as at March 31, 2025, representing a 72.6 percent decrease below the prior year. During the financial year ended March 31, 2025, the Group’s minimum deposit rate remained fixed at 0.5 percent ensuring that depositors receive a return above that for similar deposits in the market. Deposits Deposits
16 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED The Group’s net interest margin as a percentage of average assets declined marginally to 3.89 percent as at March 31, 2025 compared to 3.92 percent at March 31, 2024. The Group’s levies on assets and taxation increased moderately by $54.5 thousand or 5.7 percent and by $65.7 thousand or 69.2 percent respectively. Net income after tax and levies for the year totaled $6.0 million compared to $10.1 million for the year ended March 31, 2024 which is largely driven by the increase operating costs as explained above. Consolidated Financial Statement Highlights Revenues: The Group earned total interest revenue of $100.0 million (2024 - $101.4 million) for the financial year ended March 31, 2025, representing a decrease of $1.5 million or 1.5 percent over the prior year. Deposit cost in the form of interest expense declined by $2.1 million or 8.3 percent to move from $24.9 million in 2024 to $22.8 million in 2025, in line with management’s efforts to ensure deposit are adequately priced. Net interest income moved from $76.5 million in 2024 to $77.1 million in 2025 resulting in a favorable decrease of $566.4 thousand or 0.7 percent over that of the prior year while total income was reported at $114.3 million (2024- $116.2 million) representing a decline of $1.8 million (2024- $2.5 million) or 1.6 (2024- 2.3 percent) percent. Net income: The Group’s consolidated net income before levies and taxes was recorded at $11.2 (2024 - $8.6) million at March 31, 2025. Operating Expenses: Total operating expenses inclusive of taxes increased from $78.1 million in 2024 to $84.6 million in 2025 primarily driven by a 12.8 percent, or $1.1 million increase direct cost of services, an increase in publicity and of $1.6 million or 58.3 percent. Staff cost for the year stood at $30.9 million representing an increase over the prior year of $3.2 million or 11.7 percent. Assets: Total assets of the Group stood at $2 billion at March 31, 2025. This represented an increase of $45.7 (2024 - $15.4) million or 2.3 (2024 - 0.7) percent over the previous year. At March 31, 2025, the Group’s consolidated net loans and advances stood at $1.4 billion, a decrease of $16.1 million or 1.2 percent over the prior year. Home ownership remains a significant milestone within the lives of our members and customers as evident in the continued growth noted within the mortgage portfolio of the Group. The mortgage and business portfolio experienced growth of $11.2 million Deposits Total Assets 2021 2022 2023 2024 2025 2 Total Assets Net Income Total Assets Net Income Loans to members Loans to Members Management Discussion & Analysis (MD&A) (Continued)
17 CONSOLIDATED FINANCIAL STATEMENTS 2025 or 1.6 percent and $344.7 thousand or 1.2 percent respectively. Consumer loans declined by $29.2 million or 4.4 percent. The Group remained highly liquid with total cash resources of $462.9 million compared to $424.4 million in the prior year, representing in an increase of $38.5 million or 9.1 percent. Asset quality: The Group’s non-performing loans decreased by $19 million in 2025 compared to the prior year’s increase of $2.4 million. Despite an overall decline in the loan portfolio of $23.5 million, the decrease in the delinquent portfolio contributed greatly to the overall decrease in the Group’s delinquency ratio from 14.6 percent at the end of March 31, 2024 to 13.5 percent at the end of March 31, 2025. The Group continues to enhance it’s approach to delinquency management and seeks to provide tailored solutions to it’s members to ensure loan facilities are adequately funded. For members seeking relief, we continue to offer the below options: • extending loan terms for greater flexibility • consolidating debt to simplify repayment Liabilities: The Group’s liquidity position continues to be strong and is primarily driven by the continued growth in the Group’s cash resources and the management of its working capital. Deposit growth remained steady over the period, rising by $35.9 million or 2.1 percent. The Group upholds a liquidity buffer to fully meet statutory reserve requirements while maintaining a designated percentage to cover on-demand deposits and ensuring a guaranteed percentage for loan commitments. At March 31, 2025 the Group’s held cash and cash equivalents of $427.1 million as compared to the prior fiscal of $395.4 million. The Group’s operations are currently 100 percent funded by its members and customers deposits. During the fiscal under review all external debt held by the Group in relation to its subsidiary CAPITA were fully repaid, the amounts at March 31, 2024 totaled $1.2 million. Equity: As at March 31, 2025, the Group’s total equity rose to $198.6 million, representing an increase of $3.2 million or 1.6 percent. This increase included the new issue of 93.5 thousand (2024 - 86.3 thousand) member shares at a total value of $467.5 thousand (2024 - $431.6 thousand) and the distribution of $2.7 (2024- $2.8) million in dividends and interest rebates to members during the year. The Group’s capital adequacy ratio remained in line with the 10 percent regulatory requirement. This ratio is a key measurement relative to the Group’s ability to absorb market shocks and as such is monitored on an ongoing basis. Ecomonic Outlook 2025 fiscal As we look to the future, it is clear that a return to normalcy in the financial services sector in which we operate is not as close as would wish. Persistent inflation and geopolitical uncertainties are creating economic headwinds globally, making it necessary for us to navigate these realities while managing the unique dynamics of our tourism-dependent economies, which are always impacted by such uncertainties, against an increasingly stringent and unforgiving regulatory regime. Delinquency Ratio Loa s to members 1 Delinquency Ratio Delinquency Ratio Loans to members 1 Cash and Equivalents
18 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED In such an environment, our steps forward cannot be reactive but must be deliberate and forward-thinking, anticipating those changes that may and will come our way. For the upcoming fiscal year and beyond, we must continue our ongoing initiatives to build a more resilient, agile, and member-centric Credit Union. We will continue to work on rolling out the various aspects of our digital transformation initiative that will initially provide the groundwork for members to access modern online and mobile services. As digital transformation gives way to digital maturity, it is our intention to leverage these same platforms to create even more intelligent and personalised member experiences. We have started and will continue to explore the integration of artificial intelligence and data analytics into our operations as we envision and pursue the creation of a Credit Union that automates routine processes, anticipates members’ financial needs, and offers proactive advice through the channels members find most aligned to their needs, consequently freeing up team members to engage in the complex, high-value conversations that build lasting relationships. In a world where data is our members’ most valuable asset, protecting it is has to be one of our biggest commitments and areas of focus, and we must continue to enhance our security infrastructure and framework; moving from a defensive posture to a proactive stance of cyber resilience. Our focus will be on continuing our current initiatives towards enhanced predictive threat intelligence roll-outs and enhancing our security architecture to get it to a level that is as robust and dynamic as the threats it is designed to counter. This is imperative as your confidence in our ability to safeguard their information is critical to our future success. We will also strategically focus on meeting the generational needs of all of our membership demographics to ensure our long-term sustainability. Management Discussion & Analysis (MD&A) (Continued) We value the loyalty of our established members who have built this institution and who have supported us over the years. To honour their legacy, we must ensure our continuity and must actively attract and engage younger generations of members. This involves more than just digital channels; it also requires developing creative products that leverage their love of technology, creating relevant financial literacy programs, and communicating in ways that resonate with their generational aspirations. None of this will be possible without investment in our organisational culture and talent. Our people are the engine of our progress, and we are committed to providing them with the tools and environment they need to excel. To successfully execute these initiatives and achieve our plans, we must be an employer of choice, capable of attracting, developing, and retaining the best talent in a highly competitive market. Our intention is to foster a culture that is strongly anchored in the co-operative principles and ethos, where continuous learning, empowerment of our teams to allow them perform to their true potential, and accountability to the highest standards of performance by all becomes the common standard. Our cooperative principles are not relics of the past; they are the very compass that will guide us through to our desired future-state. By blending our foundational ethos of “people helping people” with a bold, forwardlooking technologically-underpinned, but peoplecentric strategy, we are confident that we will continue to navigate any tests that lie ahead, and will emerge stronger, more efficient, and more deeply connected to the members and communities we are privileged to serve. SAVE TIME ! Apply Online Save time with our hassle-free online loan application. Apply now and enjoy the convenience of a streamlined process from the comfort of your own home. Don’t waste precious time waiting in line or dealing with paperwork. Experience the power of technology and apply online today!
19 CONSOLIDATED FINANCIAL STATEMENTS 2025
20 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
21 CONSOLIDATED FINANCIAL STATEMENTS 2025
22 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Credit Union Performance The period under review was a challenging one for the board and management. This was not only a result of the weighty worldwide economic fluctuations, ongoing economic instability, or the lowered growth rates signalled by both the IMF and the World Bank, but more so because of increased threats that are becoming more routine in the financial services sector such as cybersecurity attacks and incidents, heightened and more aggressive competition from banks and other non-bank lenders, rising regulatory burdens, and the continued and increased need for more expeditious digital transformation and enhanced talent management across the credit union. In a year that saw our usual level of surplus materially impacted by several abnormal and one-off matters, we acknowledge that we were adversely affected by: • Fraud losses arising out of a sophisticated BIN attack that resulted in the compromise of some of our members’ Mastercard debit card Overview Throughout the past fiscal year our Credit Union, in line with its pivotal position within the Barbadian community, has continued to seek to bring about positive outcomes for both our members and dedicated employees. The core cooperative principles have remained the driving force behind all our endeavours, and have continued to shape our engagement with the community as will be showcased throughout this report. This period has been exceptionally dynamic with lots of unexpected and at time negatively impacting twists and turns, against which we take pride in the milestones we have reached. Building communities is one of our key principles. To do so, we strive to offer products with competitive or market leading rates that are delivered with the friendly expertise of staff who are happy to serve our approximately 120,000 members across the island. We extend our sincere gratitude for your ongoing support and reiterate our commitment to making a positive impact in our community as we look forward to the year ahead. “ We are proud of what we have accomplished from an operational, member service and community perspective Board of Directors’ Report • Increased expenses arising out of corporate redesign staff related costs • Lower than budgeted interest income from consumer loans • Loss of interest income driven by write-offs due to the fact that some of our core borrowing members had reduced jobs opportunities making it impossible at times to fulfil their financial obligations to the organisation. A review of the financial results of the year under review would show a lower than desired surplus, but normalising the organisation’s performance to account for the abnormal fraud and redesign costs that occurred during the year would show a recorded surplus from normal operations being 10% better than prior year. This is shown in the below table.
23 CONSOLIDATED FINANCIAL STATEMENTS 2025 Metric (‘000) Current Year Previous Year % Change Net Surplus 5,177 8,820 -41.3% Abnormal Items Redesign Costs 3,207 - - BIN attack fraud 1,294 - - Net Surplus adjusted for abnormal items 9,678 8,820 9 7% The Treasurer’s Report and the audited financial statements will provide more detailed narrative of our financial performance, measures and metrics. Subsidiary Performance Capita Financial Services Inc. (CFSI) During the reporting period, CFSI’s key focused priorities were centred around the development of its five-year strategy plan, 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. Additionally, major emphasis was placed on the completion of a review of the company’s brand identity and the development of a more focused marketing strategy to target specific customer segments. While CFSI’s revenue and profitability positions continued to be impacted by increased market competition as other financial institutions offered lower interest rates on loans and higher yielding investments products, its 2024-25 net income position recorded a healthy 21.5% year on year growth finishing at just under $1 million. Operationally, work completed on fully reviewing the non-performing loan book, resulted in significant write-back to provisions and a more defined recoveries process that will lay the foundation for fiscal year 2025/2026. Overall the company continues to maintain strong capital and favourable liquidity build-up, both of which are critical to our long-term goals. We look forward to sharing further successes with you in the coming years. Income Statement • Total interest income - $15.04 million • Total interest expense - $6.71 million • Total other income - $8.79million • Total expenses - $14.96 million • Net profit after taxes - $988.9 thousand Statement of Financial Position • Net loans and advances - $250.47 million • Total assets - $328.23 million • Total deposits - $255.68 million Allied Co-operators Inc. (ACI) During the reporting period, engagement of the smaller Credit Unions for services with ACI were considerably reduced and as a result, the Directors of ACI made the decision to reach out to the umbrella body with the view to developing ACI as a full credit union service organisation(CUSO). We are awaiting feedback from the wider sector with regard to how best a CUSO such as ACI would work to help those smaller credit unions manage areas of governance, compliance, data privacy and regulatory changes going forward. The Credit Union’s Board of Directors is of the firm belief that ACI operating as a CUSO is a benefit for smaller Credit Unions given the current regulatory environment, but is also prepared to make a decision pertaining to ACI that is in the best interest of the Barbados Public Workers’ Group of Companies should this become a protracted matter. Legacy Foundation Legacy Foundation continues to serve as a key channel for BPWCCUL’s commitment to social development, reflecting the Credit Union’s enduring philosophy of “people helping people.” Through strategic investments in projects that promote Wellness, Empowerment, and Learning, the Foundation supports initiatives that bring lasting value to communities across Barbados. During the fiscal year April 1, 2024, to March 31, 2025, the Foundation received applications for grant funding in various areas of interest. After careful
24 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED review and alignment with our funding priorities, three (3) community-based projects were successfully implemented. These projects reflect the Foundation’s holistic approach to community development— supporting youth, seniors, and vulnerable populations alike. Here’s a quick look at the impact we’ve made: • BARP Business Centre: In partnership with the Barbados Association of Retired Persons, we established a dedicated centre to empower our older adults. This space provides access to technology, skills training, and personalized support, helping seniors confidently navigate the digital world and stay active and engaged. • Sheltered Workshop – Psychiatric Hospital: This project created a supportive work environment for individuals recovering from mental health challenges. By offering vocational training and therapeutic activities, it helps promote reintegration into society, reduces stigma, and encourages long-term independence and social inclusion. • New Growth Aquaponics & Farming Project – Grantley Adams Memorial School: This innovative school-based agricultural project introduces students to aquaponics and sustainable farming. It’s a hands-on learning experience that not only boosts STEM (Science, Technology, Engineering and Maths) education and environmental stewardship but also provides fresh produce to the school and local community. Together, these three projects represent a significant investment of Barbados $207,400 in our communities. As we look ahead, Legacy Foundation remains dedicated to finding new opportunities to advance our philanthropic mandate and expand our partnerships. It is truly inspiring to see the tangible difference we are making, and we will continue to monitor the progress of these funded initiatives to ensure their long-term success and continued positive impact. Thanks you for your support and our shared commitment to building stronger communities. Updates to 2024 Key Matters of Significance The below table provides an update to the Key Matters of Significance raised by the Supervisory Committee at the last Annual General Meeting. Page Section Supervisory Committee Report Extract Status 40 3.1 Fraud Risk Management • Updating the Fraud and Whistle-blower policies • Education of staff and members • Implementation of a fraud risk awareness training • Monitoring of adherence to all policies Partially compliant 41 3.2.1 Corporate Governance Structure • ensure alignment with the demands of a DNB-SIFI and the 2023 FSC Corporate Governance Guidelines Fully Compliant 41 3,2,2 Changes to the Board of Directors and Senior Management • once a member is no longer an elected official of the BOD of the BPWCCUL, that member should not continue to have a seat on any other BPWCCUL Group BOD unless approved by the current BPWCCUL BOD Fully Compliant 42 3.2.3 Directorships on Multiple Entities • Ensure that the number of interlocking directorships that exists across the BPW Group is limited to three (3) Fully Compliant 45 3.2.4 Corporate Governance – Implementation of Members’ resolutions and motions passed at the December 2022 and January 2023 AGM • Circulation of the Member approved resolutions in print media and having them brought up for approval at a Special General Meeting; and • Provision of a step by step guide to Members to explain the process for putting forward a resolution Partially compliant Board of Directors’ Report (Continued)
25 CONSOLIDATED FINANCIAL STATEMENTS 2025 Organisational Strengthening Member Centered Outlook During the year under review, we remained focused on streamlining our processes to enhance service delivery across all branches and reinforce our commitment to service excellence. A key initiative in this effort was the successful completion of service excellence training by our frontline team, rolled out under a “Set To Achieve Remarkable Service” (STARS) Program, thoughtfully and purposefully orchestrated by our in-house Human Resources Department. This training targeted critical areas such as development of staff’s personal skills to deal with members to an advanced level while enhancing member satisfaction, reducing wait times, improving turnaround times, and strengthening our brand image—key components in building a resilient and responsive service culture. To further support convenience and accessibility to our members, the Credit Union resumed pre-COVID operating hours at our satellite branches allowing members greater flexibility and ease to conduct their business with us. We also continued to invest in the future of our organization by fostering engagement with the youth demographic through our Thrift Club program. This initiative plays a vital role in building early brand identity and long-term member relationships. We are pleased to report continued year-over-year growth in program uptake, reflecting its increasing relevance and appeal. A comprehensive review of our Credit Risk Management Policy was also completed during the year. This strategic enhancement strengthens our financial position, reduces exposure to credit risk, and ensures compliance with evolving regulatory standards. In addition, it equips us to better respond to the competitive landscape and expand our suite of financial products to meet diverse member needs. Ultimately, service is not a one-time initiative—it is an enduring commitment woven into every aspect of our operations. As we move forward, we will continue to invest in our people, refine our processes, and adopt technologies that support exceptional service delivery. These ongoing efforts are essential to sustaining operational excellence, deepening brand loyalty, and fostering long-term member engagement. Talent Management & Capacity Building Over the past year, the organisation has placed a strong emphasis on strengthening our team to support member growth, improve service delivery, and align with our long-term strategic goals. This has been a core part of our broader organisational redesign, which aims to build a high-performing, member-focused culture. Strategic investments have been made in our people as our efforts have focused on building teams aligned with our values, while creating a supportive and engaging workplace environment. The following summarises key initiatives undertaken to strengthen our human capital and organisational capabilities. Key Developments Team Development and Capability Building We have implemented training programs including STARS (Set to Achieve Remarkable Service) Customer Service Training for all staff and specialized Sales Training for Relationship Officers. Training has been embedded into daily operations through coaching, performance check-ins, and real-time feedback, fostering a culture of continuous improvement and accountability. Recruitment and Workforce Alignment Our recruitment strategy has focused on filling critical skill gaps in front-facing roles, with realigned processes to strengthen our member-focused approach. Job Evaluation The job evaluation exercise continues as the final component of our corporate redesign. Significant progress has been made in discussions with the Employees’ Bargaining Unit with a commitment to reaching a timely and favourable conclusion for all parties. Rewards & Recognition The THRIVE Rewards & Recognition Program, launched in July 2024, has been implemented to show our appreciation for our 300+ employees. This program strategically supports the organisational values, by rewarding extraordinary effort and meaningful results. Industrial & Employee Relations As a result of the hiring of an Industrial Relations Manager during the period we have enhanced workplace harmony through: • Improved Grievance management training for all managers and supervisors • Direct staff engagement across all locations to address challenges and build trust • Revitalization of the Health & Safety Committee with expanded branch representation • Implementation of comprehensive safety training including fire safety, first aid, and anti-robbery measures These initiatives collectively strengthen our organisational foundation, enhance employee engagement, and position us to deliver even better service to our members as we move forward Digital Transformation We are pleased to share the progress we have made in our digital transformation journey over the past year, aimed at creating a more agile, secure, and member-
26 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Board of Directors’ Report (Continued) focused experience for all. As noted in last year’s report having partnered with Cornerstone Advisors, recognised experts in the North American credit union sector, we performed a detailed assessment of our technological needs and created a phased roadmap to address critical gaps and position the organisation for long-term success. One of our key achievements this year in moving along that transformation roadmap is a project to launch a new, modern online and mobile banking platform, designed to provide a seamless and secure experience. With advanced features such as multi-factor authentication, biometric access, and the ability to view all accounts—including joint accounts—in a single interface, members will be able to enjoy enhanced convenience and security during the course of April 2025 when these services launch. Building on this momentum, we are also preparing to introduce online loan applications and a streamlined online member application process, enabling members to complete these tasks entirely online. To further enhance security as we transition to more online delivery of services, we are implementing “3D Secure” technology to protect online card transactions by verifying cardholder identity; completion is currently scheduled to be by the end of 2025. At the subsidiary level, a website redesign project for Capita Financial Services Inc. is progressing well, with completion scheduled for the third quarter. Successful conclusion of this project will deliver a modern, intuitive platform with improved functionality and member experience. To ensure oversight and continued progress on all of our technology related projects, Management will conclude the establishment of a Transformation Council, tasked with overseeing the execution of our digital strategy, by August 2025. These initiatives collectively demonstrate our ongoing commitment to delivering value to our members and to creating a more efficient and resilient future for our Credit Union. Cybersecurity & Cyber Incident Mitigation In 2024, we continued to take steps to ensure the integrity of your information and to ensure our systems are robust against evolving threats. We strengthened our email security by implementing advanced filtering and real-time monitoring of attachments, enabling swift responses to suspicious activities. Additionally, we migrated our email services to Microsoft 365, complemented by a cloud security platform, enhancing protection against cyber threats. We initiated the first phase of our network redesign to improve security and resilience, and to stay ahead of potential threats we deployed advanced threat detection systems capable of identifying adversarial behaviour even without malware presence. Preparedness for potential disruptions was a priority, with rigorous testing of our Disaster Recovery site ensuring minimal downtime. We also maintained and replaced computer hardware, including core banking servers, to ensure high system availability and physical resilience was enhanced through the replacement of our UPS devices and the introduction of a secure backup solution. Whistleblowing We are pleased to announce the launch of our whistleblowing framework, a secure and anonymous platform for reporting concerns developed in partnership with Navex Global, a leader in whistleblowing solutions. The framework includes confidential reporting channels such as a multilingual contact centre, web-based reporting, and anonymous submissions and is fully compliant with the Whistle-blower Protection Act, 202129. The implementation and roll-out of our whistleblowing initiative reinforces our commitment to combating corruption and unethical practices and strengthens corporate governance by encouraging transparency, accountability, and ethical behaviour across our organization. Strategically, the framework is intended to enhance stakeholder trust by ensuring concerns are addressed promptly and fairly while mitigating risks through early detection of misconduct. Community and Member Engagement We firmly believe that our success is deeply rooted in the well-being and growth of the communities we serve and in this regard the Credit Union continued to play a pivotal role in enhancing its social impact and community footprint, through a combination of strategic educational support, stakeholder engagement, outreach initiatives, and relationship-building efforts. During the year we strengthened our ties with members, partners, and the wider community in the following areas, doing so while upholding the values and cooperative principles to which we subscribe. Empowering Through Education Education remained a cornerstone of our efforts. We hosted multiple member sessions including “Maximize Your Decision-Making Power” equipping members with practical financial knowledge on estate planning and power of attorney services. Our hosted familiarisation webinars have been a valuable resource, helping both new and long-standing members maximise the benefits of their credit union membership. Additionally, we awarded $150,155 in educational grants to support tertiary studies, reflecting our commitment to lifelong learning.
27 CONSOLIDATED FINANCIAL STATEMENTS 2025 Celebrating Excellence In September, we proudly celebrated 47 young achievers at our Annual Thrift Club Academic Awards Ceremony, distributing $55,800 across categories ranging from Common Entrance to Government Scholarships. Award Category Awardees Amount Common Entrance Examinations 20 $20,000 Common Entrance Examinations (Special Awards) - $- Caribbean Secondary Education Certificate (CSEC) Examinations 12 $14,400 Caribbean Advanced Proficiency Examinations (CAPE) 10 $15,000 Government Exhibition 4 $4,200 Government Scholarship 1 $2,200 TOTAL 47 $55,800 Furthering our commitment to education, we granted two Ralph Boyce Scholarships, valued at $7,500 each, to promising university students. Community Outreach and Contributions The credit union played an active role in the community, participating in events such as Barbados Gospelfest, the National Senior Games, and the World Heart Day Luncheon. Through our sponsorships and donations program, we invested $245,785 into causes that support youth, education, health, and culture. Our social outreach efforts also provided $156,241 in direct assistance to members facing challenges, showcasing our dedication to uplifting those in need. Nurturing the Next Generation During the period changes were member-approved for by-laws 2(2) & 21 and 13-1 which has resulted in the removal of the age restriction previously required for Credit Union membership, and the introduction of a separate qualifying share for members under 16 years of age. Our Thrift Club continued to inspire and engage youth through initiatives like our summer camp and Christmas party, while our School Savers Programme expanded to four primary schools, fostering financial literacy at an early age. The Thrift Club Advisory Committee played a key role in advocating for youth services and empowering young members. Selection of a new Committee is slated for August/September 2025. There will be seven seats available to any young Credit Union member 14 to 18 years old. Committee members serve for two (2) years with the opportunity for reappointment. Strengthening Member Connections This year, we hosted our first Meet-the-Board session, creating an open and transparent dialogue between members and our leadership. We also celebrated our heritage during International Credit Union Day and various Member appreciation days across our branch network. As we look to the future, we’re focused on expanding diaspora engagement through e-newsletters, launching a national financial literacy competition, and deepening our youth programs. At BPWCCUL, community is at the heart of everything we do. Your participation and trust drive our efforts to build stronger, more resilient communities. Together, we are not just making a difference - we are shaping a brighter future for all. Regulatory Environment Review During the fiscal period, the financial landscape continued to evolve with the Financial Services Commission’s (FSC) issuance of four key regulations, which required its registrants to either enhance or revamp their operational and reporting frameworks. These regulations; the Material Changes Disclosure, Fitness and Propriety, Domestic Non-Bank Systemically Important Financial Institutions, and Technology and Cyber Risk Management Guidelines, aimed to strengthen established practices. In addition, focus on anti-money laundering/combatting financing of terrorism/combatting proliferation financing (AML/CFT/CPF) continued to be a critical aspect. The commitment by all stakeholders involved in maintaining a robust AML/CFT/CPF system within the island resulted favorably, with Barbados being removed from the Financial Action Task Force’s (FATF) Grey List in February 2024.
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