9
BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
ANNUAL REPORT 2013
AMORTIZATION OF DEFERRED EXPENSES
A noticeable decrease was seen in the amortization of deferred
expenses, these amounts represent research and development
expenditure incurred in the implementation of new and
automated services and was previously amortized over a three
year period.
In 2012 cumulative amounts from previous years were written
off with respect to amortization of deferred expenses which
totaled $1.3 million. These amounts are now expensed as
incurred; the amounts incurred and expensed in 2013 were
$180 thousand.
OPERATING LEASES
Rent expenses showed a steep increase for the 2013 income
year moving from $22 thousand in 2012 to $172 thousand in
2013. This increase was directly attributed to expansions of the
Credit Union’s branch operations at the Six Roads location as
well as the establishment of a new branch at Carlton & A1 in
Black Rock St. Michael.
STAFF COSTS
During the year, the Credit Union increased its staff complement
to strengthen its member services, financial reporting and risk
management functions as well as providing human resources
for its branch expansions. In addition, contractual salary
increases as well as higher pension plan expenses contributed
to the increase in staff costs.
TOTAL EXPENSES
Total expenses for the year under review amounted to $27.2
million, which represents a decrease of $859 thousand or
3.1 percent below the $28.1 million incurred during the
corresponding period last year.
Significantly contributing to the decrease were reductions in
other operating expenses of $1.5 million. Amortization of
deferred expenses decreased by $1.1 million while advertising
decreased by $300 thousand. However, staff costs and
depreciation increased by $518 thousand and $78 thousand
respectively.
NET OPERATING INCOME
Net operating income inclusive of loan impairment expenses
increased by $1.3 million or 3.4 percent, to end the year at
$39.3 million. Loan impairment expense was $4.8 million, up
from $3.9 million one year earlier.
The increase of $0.9 million reflects primarily the increase in the
consumer loan delinquency ratio which grew from 6.7 percent
in the prior year to 7.1 percent during the period under review.
ASSETS
At year-end the Credit Union’s asset base amounted to $827.1
million, an increase of $35.6 million or 4.5 percent. During the
year cash and cash equivalents increased by $17.9 million or
64.0 percent. In addition, financial investments classified as
held-to-maturity increased by $5.1 million or 44.7 percent.
At the end of the financial year, the net loans and advances
rose to $651.9 million, inclusive of impairment provision of
$19.6 million, as compared to $642.8 million and $16.6 million
respectively at the end of the previous year. Consumer loans
were the major engine of loan growth during the year.
ASSET QUALITY
Amid a backdrop of a prolonged recessionary period, the Credit
Union recorded an increase of seventy-five basis points in its
delinquency ratio which ended the year at 7.65 percent. The
increase was felt predominantly in the consumer segment of
the loan portfolio.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2009
2010
2011
2012
2013
486,712
545,488
606,515 642,797 651,868
In BD$'000
Loans and advances
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2009
2010
2011
2012
2013
499,745
556,123
609,705 646,435 672,403
In BD$'000
Deposits
0
1 ,000
200,000
300,000
400,000
500,000
600,000
700,000
2009
2010
2011
2012
2013
486,712
545,488
606,515 642,797 651,868
In BD$'000
Loans and advances
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2009
2010
2011
2012
2013
499,745
556,123
609,705 646,435 672,403
In BD$'000
Deposits
