BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2015
10
year. It impacted negatively on net income for the year by $1.4
million.
CAPITA Financial Services Inc.
For the year ended March 2015, CAPITA Financial Services
Inc. registered a consolidated pre-tax profit of $1.1 million,
representing a decrease in profitability of $246K or 18.4%
compared to the previous year.
This marginal decrease is a direct consequence of the
implementation of the asset tax on financial institutions, for
which CAPITA attracted a tax of $253K. Notwithstanding, total
interest income increased to $12.4 million from $11.4 million
in prior year.
As at March 31st, 2015 CAPITA recorded assets of $201
million, an increase of 12.1% over prior year.
Positive growth was also recorded in total loans and advances
which increased from $141 million to $160 million an increase
of 13.3%. Customer deposits moved from $137 million to
$160 million or 16.9%.
The insurance division recorded yet another good year, earning
net commissions of $743K, surpassing the 2014 earnings
by 33.5%. As of September 11, 2014 this division started
functioning as a separate brokerage entity rebranded as
CAPITA Insurance Brokers Inc. (CIB).
The performance of the Credit Union and its subsidiary is to
be highly commended given the prevailing economic climate.
MEMBER COMMITMENT
Members will always be at the heart of what we do, for it is
their committed patronage and support which has been critical
in our progress and development to date. Without them it
would not have been possible, and so wherever and whenever,
we give back with a deep sense of pride and gratitude, fully
cognizant of our responsibility.
During the year under review we provided financial and other
support to a variety of groups in the community focusing on
health, sports, education, and cultural events. Additionally, we
increased our allocation to the Scholarship and Grant funding
by $56K, thereby tangibly supporting members in their thrust
for professional development. The amount dispensed during
the year was $445K to a total of 289 applicants, compared
to 158 applicants during the previous period. This thrust was
further enhanced by the Student Loan product which was
launched in April 2014.
Members also benefited from an interest rate reduction over
the year as a result of various loan promotions with associated
special rates. Average interest rate on loans declined from
9.3% in 2014 to 8.9% at March 31st, 2015.
In addition we continued our outreach initiative to those who
had their lives disrupted through retrenchment both in the
private and public sector. We remain committed to this initiative
and to the tenets of our mission statement.
Public events such as the Annual Christmas Concert, and
GospelFest’s Sunset Concert and Members Market activities
sponsored by your Credit Union are intended to be a staple
component of our “giveback” to the community. The Members
Market initiative was conceptualized as an income generating
avenue particularly for those members who had lost their jobs.
The initiative was well received by members and the level of
patronage very heartening.
2016 AND BEYOND
Leveraging and optimizing technological solutions, including but
not limited to the mobile revolution is now par for the course.
Inventiveness, assertiveness, coupled with progressive thinking
and a willingness to embrace opportunities as they become
present will be significant to our growth and sustainability.
Our business model must therefore be more flexible and
tolerant to the new dynamics at play. Our approach to emerging
and existing population demographics with its challenges
and opportunities must therefore be meaningful, nimble and
responsive.
The technological revolution has impacted and continues to
impact our business operation. We believe that a critical aspect
of this approach must relate to reviewing existing structures
and processes, and implementing as necessary methodologies
which will support and maximize synergies within the Group
at all levels.
The Board in its deliberation has determined that given the
diverse challenges associated with the ongoing economic crisis
consideration must be given to providing a platform to assisting
members interested in micro business enterprise. To this end
an appropriation will be considered to support this initiative.
Diligent and focused reassessment of the Credit Union’s
operations at all levels to ensure sustainability and optimum
performance levels must the standard hallmark going forward.
CONDOLENCES
We extend sincere condolences to all members of the Credit
Union family who lost loved ones during the year under review.
We remember especially with deep sadness, our many members
who have been called to higher service including devoted
Credit Union representative our dear Sis. Annette Murrell, and
our dear brother, Bro. Sir L.V. Harcourt Lewis, stalwart and
unrelenting Credit Unionist.
May light perpetual shine on them.
BOARD OF DIRECTORS’ REPORT
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