8
BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
ANNUAL REPORT 2013
OVERVIEW
Despite the challenges associated with increased
unemployment, rising inflation and low interest rates at
the national level, the Credit Union remained focused in its
commitment to improve the social, financial and economic
well-being of its members.
During the year under review, the Credit Union continued to
grow in key aspects of its operations including membership,
which remained strong, and deposits which attained a 4.02
percent growth together with assets which grew 4.5 percent.
However, efforts to contain loan delinquency did not meet
the desired level of success largely due to prevailing economic
conditions and resulted in increased loan impairment expenses
during the year as compared to prior year.
REVIEW OF FINANCIAL PERFORMANCE
TOTAL INCOME AND NET INCOME
Net income for 2013 was $12.1 million compared to $9.9
million in the prior year. Total revenue grew by $1.6 million
in 2013 moving from $65.9 million in 2012 to $67.5 million
during the 2013 financial year. The credit environment
remained challenging in 2013; as a consequence loan growth
declined significantly when compared to prior year. Loans grew
by $9.1 million or 1.4 percent in 2013 as compared to prior
year when loans grew by $36.3 million or 6.0 percent.
NET INTEREST INCOME
Net interest income grew by $2.2 million or 5.7 percent in
2013. Total interest income grew by $1.6 million or 2.6 percent
while total interest expense declined by $595 thousand or 2.5
percent. Interest income increased by $1.2 million or 2 percent
in respect of interest from loans while interest from cash
deposits and investments increased by $429 thousand or 12.9
percent during 2013.
OTHER INCOME
Other income declined by $9 thousand or 0.3 percent during
the financial year 2013. While income in this category showed
little growth, income from value added services grew by $54.4
thousand or 6.4 percent
EFFICIENCY AND EXPENSE MANAGEMENT
The Credit Union’s strategy during the 2013 financial year
was one which focused heavily on efficiency and expense
management while at the same time adding valued customer
service. Operating expenses were $1.5 million or 9.0 percent
below prior year.
MANAGEMENT DISCUSSION AND ANALYSIS
This section of the Annual Report provides a discussion and
analysis of the financial condition and performance of the
Barbados Public Workers’ Co-operative Credit Union Limited
(the “Credit Union”) for the financial year ended March 31,
2013 as compared to the prior financial year, ended March 31,
2012.
ECONOMIC REVIEW
The global economy is still feeling the effects of the 2008-2009
crises. However, the economic prospects have improved and
the world output growth is projected to attain 3.25 percent in
2013 and another 4 percent in 2014.
Growth will be lead mainly by emerging economies such as
China which is expected to grow by 7.7 percent in the first
quarter of 2013 and by another 8.2 percent in 2014. This will
be followed by growth in advanced economies, with some
countries in this category forecasting growth of 1.9 percent in
2013 and a further 1.1 per cent in 2014.
The local economy recorded no economic growth in 2012. This
flat growth performance was reported to have resulted from
declines in tourism, other traded services and manufacturing.
Even though real economic growth for Barbados is projected
at 0.7 percent, no significant gain in employment is expected.
However, it is forecasted that based on the current trends in
international commodity prices for food, domestic inflation
could fall to approximately 5 percent.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2009
2010
2011
2012
2013
599,364
672,887
745,571 791,473 827,069
In BD$'000
Total assets
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2009
2010
2011
2012
2013
7,415
10,175
6,791
9,939
12,082
In BD$'000
Net Income
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2009
2010
2011
2012
2013
599,364
672,887
745,571 791,473 827,069
In BD$'000
Total assets
Net Income
