13
BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2015
Further, initiatives were undertaken during the year to leverage
Barbados’ advantage in international business and this is
expected to bear fruits in the near future.
The average unemployment rate stood at 12.5 percent, an
increase of 1.3 percent. Additionally, net public sector debt to
GDP was estimated at 73 percent compared to 67 percent a
year earlier.
Economic Outlook
Despite modest growth in 2014, the Central Bank projected
economic growth of 2 percent in 2015 and 2.3 percent in
2016.
This growth is expected to come from tourism and construction
activities which is expected to produce a spin-off effect in
wholesale, retail and business services.
Further, the Central Bank anticipates a reduction in the GDP’s
deficit by 5 percent once the new revenue measures are
implemented in 2015/2016 and current revenue measures are
extended.
Consolidated Financial Statement Highlights
Revenues
For the financial year ended March 31, 2015 the Group earned
total interest revenue of $80.9 million, up from $77.9 million
for the previous year. This represented an increase of $3.0
million or 3.9 percent for the year and is attributable to the
steady growth in both consumer and mortgage loans across
the Group.
Income generated from non-interest sources increased by
$284 thousand or 8.2 percent when compared with the
previous year, primarily as a result of increased efforts in bad
loan recoveries.
Net interest Income
Despite competitive pressures in lowering lending rates,
prudent management of the interest spread resulted in
consistent growth in net interest income during the year.
Net interest income grew by $1.0 million or 2.1 percent to
$49.8 million for the year, as a result of increased loan volumes
and a reduction in funding costs.
Net Income
The Group earned comprehensive income of $10.3 million
for the year ended March 31, 2015 compared with $10.8
million for the previous year. This represented a decline of
approximately $580 thousand or 5.4 percent under the prior
year.
Operating Expenses
Operating expenses increased from $36.1 million at March 31,
2014 to $39.8 million for 2015 and was driven principally by
the new tax on assets, increases in staff costs, rental expense
and security services.
The increase in staff costs amounted to $1.0 million and is due
to contractual salary increases and new hires in both the Credit
Union and Capita during the year.
The expansion of the Emerald City Branch, installation of two
additional ATMs and the rental of office space for staff of Capita
and the Credit Union during the year were responsible for the
notable increase in rental expense. A full year’s rent would have
been recorded during the year compared to a partial booking
in the last quarter of 2014. As a consequence, total rental costs
moved from $1.0 million in 2014 to $1.4 million for 2015.
Assets
Total assets of the Group stood at $1.1 billion at March 31,
2015. This represented an increase of $73.6 million or 7.2
percent over the previous year.
At March 31, 2015, the Group’s consolidated net loans and
advances rose to $906.1 million, as compared to $825.1
million at the end of March 31, 2014. This represented an
overall increase of $80.9 million or 9.8 percent growth in loans
compared to an increase of $50.5 million one year ago.
0
200000
2011
2012
2013
2014
2015
In
0
2000
4000
6000
8000
10000
12000
14000
2011
2012
2013
2014
2015
6,052
9,424
13,126
11,347
11,381
In BD$'000
Net Income
MANAGEMENT DISCUSSION AND ANALYSIS
(continued)
0
200000
400000
600000
800000
1000000
1200000
2011
2012
2013
2014
2015
842,307 906,565 951,285 1,017,049
1,090,678
In BD$'000
Total assets
6000
8000
10000
12000
14000
6,052
9,424
13,126
11,347
11,381
In BD$'000
Net Income
