BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2015
12
LIABILITIES
Deposits totaled $775.1 million and were $53.3 million or 7.4
percent higher than at the previous year-end.
Loans payable were reduced during the year to $33.4 million
from $43.7 million as a result of $10.2 million being repaid
within the financial year. Other liabilities increased by $358
thousand or 4.5 percent compared to an increase of $3.8
million in prior year while reimbursable member shares
increased by $1.3 million or 25.2 percent.
EQUITY
Total equity comprising of share capital, retained earnings,
statutory and other reserves is the backbone of financial
stability and allows for future growth and development.
As at March 31, 2015, equity totaled $106.6 million up from
$97.8 million as at March 2014. The increase of $8.8 million
primarily reflects net income of $9.6 million, growth in share
capital of $524 thousand offset by distributions to members
of $2.0 million.
THE WAY FORWARD
The financial year ending March 31, 2016 will prove to be a
time of great consolidation and proactivity as the Credit Union
continues to face the various challenges in the economy.
One such challenge is the possibility that the eighteen month
duration of the 0.2 percent tax imposed on the assets of the
Credit Union will be extended. If this continues beyond the
original deadline, it has the potential to stem future growth as
the expense increases as assets grow.
It is anticipated that during the next financial year ending
March 2016, the Credit Union will incur an additional $1.5
million in this expense, even if the Credit Union does not
realize a net surplus.
It is also expected that the Credit Union will be subject to
increased regulatory oversight and increased competition from
players in the financial services industry stemming from the
Central Bank’s decision to deregulate interest rate on savings.
However, the Credit Union will be proactive and commit to
taking actions necessary to safeguard its assets.
The Credit Union does not anticipate the same volume of
issues regarding non-performing loans as experienced in the
reporting period. However, the Credit Union will continue
to work with our members to create payment solutions for
them, thus enabling the proper management and control of
delinquency so as to protect our assets.
MANAGEMENT DISCUSSION AND ANALYSIS
(continued)
0
200,000
400,000
600,000
800,000
2011
2012
2013
2014
2015
606,515 642,797 651,868 684,331
746,497
In BD$'000
Loans and advances
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2011
2012
2013
2014
2015
609,705 646,435 672,403
721,767
775,116
In BD$'000
Deposits
