BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2015
10
The credit environment remained challenging in 2015.
However, the Credit Union achieved significant net loan
growth when compared to prior year. Loans grew by $62.2
million or 9.1 percent in 2015 as compared to prior year when
loans grew by $32.5 million or 4.9 percent.
NET INTEREST INCOME
Net interest income grew by $716 thousand or 1.6 percent in
2015. Total interest income grew by $1.7 million or 2.5 percent,
while total interest expense increased by $949 thousand or
4.0 percent. Interest income increased by $1.9 million or 3.0
percent in respect of interest from loans while interest from
cash deposits and investment decreased by $248 thousand or
6.4 percent during 2015.
OTHER INCOME
Other income increased by $148 thousand or 6.1 percent
during the financial year 2015 mainly due to a 42 percent
increase in income earned from bad debt recoveries ($117
thousand).
EFFICIENCY AND EXPENSE MANAGEMENT
The Credit Union’s strategy during the 2015 financial year
was one which focused heavily on efficiency and expense
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
(BPWCCUL) for the financial year ended March 31, 2015 as
compared to the financial year ended March 31, 2014.
ECONOMIC REVIEW
The global economy has to some extent come out of the
effects of the 2008-2009 recession and growth is being realized
worldwide. Barbados has been slow to emerge from the effects
of the recession and as a result the economy recorded less than
one percent growth in 2014.
With significant investment being made in the areas of tourism
and tourism related projects, international business and the
financial services sector, the Central Bank is forecasting that the
Barbados economy will return to real growth of approximately
2 percent in 2015 and 2.3 percent in 2016.
OVERVIEW
There were many challenges facing the Credit Union movement
going into the financial year ending March 2015. The two major
challenges included government’s planned retrenchment of
over three thousand public sector workers, some of whom are
members of this Credit Union and the threat of an imposition of
a 0.2 percent tax on the assets of Credit Unions. Both of these
challenges were realized and they both had varying effects on
the income of the Credit Union although proactive decisions
were taken to mitigate their impact.
During the year under review, the Credit Union continued to
grow in key aspects of its operations. Membership growth
averaged 364 per month and recorded net growth of 4,363.
Deposits grew by $53.3 million or 7.4 percent while assets grew
by $53.6 million or 6.1 percent.
The Credit Union has continued its prudent management of
delinquent loans during the financial year however, non-
performing loans increased by $4.2 million or 9.1 percent. The
delinquency rate increased from 6.6 percent at March 31, 2014
to 6.7 percent at March 31, 2015.
REVIEW OF FINANCIAL PERFORMANCE
TOTAL INCOME AND NET INCOME
Net income before levies was $11.0 million at March 31, 2015
as compared to $10.4 million at March 31, 2014. This was an
increase of $530 thousand or 5.1 percent. The asset tax levy,
which was not a factor in 2014, reduced the final net income
for 2015 to $9.6 million.
Total revenue grew by $1.8 million in 2015 moving from $69.9
million in 2014 to $71.7 million during the 2015 financial year.
0.96
1.29
1.48
1.22
1.06
2011
2012
2013
2014
2015
Return on assets (%)
10.17
13.38
14.29
11.16
9.01
2011
2012
2013
2014
2015
Return on equity (%)
0
200,000
400,000
600,000
800,000
2011
2012
2013
2014
2015
In BD$'000
0
2,000
4,000
6,000
8,000
10,000
12,000
2011
2012
2013
2014
2015
6,791
9,939
11,993
10,427
9,606
In BD$'000
Net Income
