9
BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2014
MANAGEMENT DISCUSSION AND ANALYSIS
expenses increased by $2.0 million or 13.6 percent above prior
year.
OPERATING LEASES
Rent expenses increased for the year ending March 31, 2014
moving from $172 thousand in 2013 to $286 thousand in
2014. 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 also contributed to the increases in staff
costs.
TOTAL EXPENSES
Total expenses for the year under review amounted to $31.3
million, which represents an increase of $4.0 million or 14.6
percent above prior year.
NET OPERATING INCOME
Net operating income inclusive of loan impairment expenses
increased by $2.4 million or 6.2 percent, to end the year at
$41.7 million. Loan impairment expense was $4.4 million, a
decline of $381 thousand or 7.9 percent below prior year.
ASSETS
At year-end the Credit Union’s asset base amounted to $876.6
million, an increase of $49.8 million or 6.0 percent. During
the financial year ending March 31, 2014 cash resources
decreased by $1.0 million or 0.9 percent. In addition, financial
investments classified as Held-to-maturity increased by $4.0
million or 24.5 percent.
At the end of the financial year, the net loans and advances
rose to $684.3 million, inclusive of an impairment provision of
$21.3 million, as compared to $651.9 million and $19.6 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 climate of uncertainty and high job losses, the Credit
Union recorded a decrease of 1.1 percent in its delinquency
ratio which ended the year at 6.6 percent compared to prior
year which was 7.7 percent.
In addition, impaired loans decreased by $4.6 million during
the 2014 financial year as compared to an increase of $5.8
million in the prior year. The Credit Union will continue to
work diligently with defaulters to offer them alternatives and
restructuring plans to enable them to restore their loans to a
state of normalcy.
In addition, support systems have been set up to help those
members who recently lost their jobs due to the on-going
retrenchment exercise in the public sector.
LIABILITIES
Deposits totaled $721.8 million and were $49.4 million or 7.3
percent higher than at the previous year-end.
Loans payable were reduced during the year to $43.7 million
from $55.4 million as a result of amounts of $11.7 million being
0
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300
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400
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500
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600
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700
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800
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2010
2011
2012
2013
2014
672
,
887
745
,
571
791
,
851
826
,
845
876
,
592
In BD$'000
Total assets
0
100
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200
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300
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400
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2010
2011
2012
2013
2014
545
,
488
606
,
515
642
,
797
651
,
868
684
,
331
In BD$'000
Loans and advances
0
100
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200
,
000
300
,
000
400
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000
500
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600
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700
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2010
2011
2012
2013
2014
556
,
123
609
,
705
646
,
435
672
,
403
721
,
76
7
In BD$'000
Deposits
0
1
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400
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2010
2011
012
2013
2014
545
,
488
606
,
515
642
,
797
651
,
868
684
,
331
In BD$'000
Loans and advances
0
100
,
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200
,
000
300
,
000
400
,
000
500
,
000
600
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700
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800
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2010
2011
2012
2013
2014
556
,
123
609
,
705
646
,
435
672
,
403
721
,
76
7
In BD$'000
Deposits
