BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2016
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These initiatives enabled and sustained the trend of increase
loan demand which was realized across the Group.
The Group remained highly liquid with total cash resources
totaling $128.3 million. Financial investments increased by
$4.0 million or 13.1 percent due principally to additional
purchases of government securities during the financial year.
Asset Quality
The delinquency ratio decreased slightly from 6.7 percent
in 2015 to 6.3 percent at March 31, 2016. This is highly
commendable given the current environment and is attributable
to close monitoring of delinquent accounts, creating payment
solutions for members who are experiencing challenges
and strict adherence to credit control and underwriting
requirements.
The Group also maintained a consistent approach to the
provisioning process. This was based on thorough reviews of
individual’s credit risk and analysis of collective portfolio risk
characteristics.
A key focus of management in recent months has entailed
working proactively with members and customers to offer
financial counseling and alternative loan arrangements and
restructuring plans to assist them in maintaining a sound credit
rating and risk profile.
Liabilities
The Group’s strong liquidity position continued to be driven
by the growth in deposit liabilities. At the financial year end,
the Group’s deposits totaled $1.0 billion, an increase of $121.9
million or 13.3 percent higher than at the previous year-end.
During the year under review, the Credit Union repaid one
of its high interest rate loan facilities so as to reduce its debt
service costs and improve the overall net interest margin yield.
The Credit Union’s total loan repayment amounted to $11.2
million which was largely responsible for the reduction in loans
payable from $52.0 million at March 31, 2015 to $41.0 million
at March 31, 2016.
Equity
As at March 31, 2016, the Group’s total equity was $117.3
million, an increase of $11.8 million or 11.2 percent over
the previous year. The increase was primarily due to profits
of $13.2 million and growth in Credit Union share capital of
$643.6 thousand, net of dividend distributions of $2.0 million
paid to Credit Union members during the year.
The Group’s capital adequacy ratios were above minimum
capital requirements and these were being continuously
monitored on an on-going basis when assessing capital needs
and evaluating changes in strategic focus, risk tolerance levels,
business plans and the operating environment that might
materially affect capital adequacy.
OUTLOOK – 2016 and Beyond
In the financial sector, it is envisaged that the interest rates
on savings and deposits will continue to decline. However, the
Group will continue to prudently manage its operating cost so
that our members and customers continue to enjoy competitive
interest rates on savings and deposits.
As we look towards the future, our aim is to provide innovative
products and services, while focusing on optimal customer
satisfaction across the Group. We firmly believe that this thrust
will enable us to retain our loyalty base, while all the same
time attracting new members and customers to sustain our
continued growth.
MANAGEMENT DISCUSSION AND ANALYSIS
