13
BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
ANNUAL REPORT 2013
Asset quality:
Amid a backdrop of a prolonged recessionary period, the Group
recorded an increase of thirty basis points in its delinquency
ratio which ended the year at 7.5 percent. The increase was
predominantly in the consumer segment of the loan portfolio.
Across the group impaired loans increased from $55.1 million
in 2012 to $59.5 million in 2013, an increase of $4.4 million.
The cumulative impairment provision at March 31, 2013 was
$20.6 million, an increase of $3.1 million net of loan write-offs
and impairment expense. Loan write-offs amounted to $1.8
million in 2013 compared with $0.8 million in 2012. Overall,
the provision for loan losses as a percentage of total gross loans
increased from 2.2 percent in 2012 to 2.6 percent in 2013.
The Group will continue during the coming months to work
diligently with defaulters to offer them alternatives and
restructuring plans so as to enable them to restore their loans
to a state of normalcy.
Liability management:
Deposit liabilities across the group totaled $772.3 million and
were $36.4 million or 4.95 percent higher than at the previous
year-end. Deposits at Capita increased by $9.7 million or 8.7
percent, while the Credit Union continued to record steady
growth with an increase of $26 million, or 4 percent over the
prior year.
Loans payable were reduced during the year to $74.5 million
from $80.1 million as a result of amounts of $5.6 million being
repaid within the financial year. Other liabilities and reimbursable
member shares grew by $1.5 million and $1.2 million or 15.8
percent and 26.3 percent respectively.
Equity:
Total equity comprised of share capital, statutory and other
reserves, and retained earnings. The consistent growth in equity
has enhanced the financial stability of the Group and provides
the foundation for future growth and development.
As at March 31, 2013, equity totaled $87.3 million up from
$75.7 million as at March 31, 2012. The increase of $11.6
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2009
2010
2011
2012
2013
486,712
545,488
712,623 749,729 774,615
In BD$'000
Loans and advances
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2009
2010
2011
2012
2013
499,745 556,123
673,773
735,909 772,320
In BD$'000
Deposits
million primarily reflects growth in retained earnings of $2.7
million, increases to statutory reserves of $8.5 million, growth
in share capital of $0.3 million.
Beyond 2013 - A transformation strategy:
The Group will continue to reposition itself to better help its
membership and customers throughout this recessionary
period.
Looking ahead, the financial year ending March 31, 2014 will
prove to be a time of innovation as the Group faces the various
challenges on the horizon.
In this current economic environment, it is more important than
ever that we earn and maintain the trust of our members and
clients, and work with them to help them grow and become
financially better off.
To this end, we are in the process of realigning our operations
to better address the needs of each member and customer. As
a result, we envisage a greater level of direct engagement and
interaction going forward as we seek to better serve you.
