Credit union growth in key areas

Despite increased unemployment, low interest rates and rising inflation, Barbados Public Workers’ Co-operative Credit Union Limited (BPWCCUL) said it continued to grow in key aspects of its operations.
According to the island’s largest credit union, it recorded increased loans and deposits from its 60 000-plus members.
In its annual report at the end of the 2011 financial year (March 31), BPWCCUL said interest income had reached $37.9 million, up from  $32.5 million in 2010.
“The increase of $5.4 million was the net effect of increased interest income of $10.1 million and interest expenses of $4.7 million,” the report noted.
The credit union’s total operating expenses for the year totalled $29.5 million, which represented an increase of $6.8 million, or 30 per cent, on the corresponding period for 2010.
“Significantly contributing to the increase were staff costs of $2.2 million and operating expenses of $4.3 million; these grew by 25 per cent and 36 per cent, respectively,” the financial report revealed.
Overall, BPWCCUL’s group performance resulted in net income before tax of $6.1 million  down from $9.0 million the prior year.
There was an unrealized gain during the year of $20 000 which the credit union said was reflective of changes in fair value available for sale investments.
At the end of the financial year, BPWCCUL’s asset base reached $840 million, an increase of $168.3 million, or 25.05 per cent – a direct result of the purchase of CLICO Mortgage and Finance in August 2010. It was later renamed Capita Financial Services Inc.
Regarding the outlook, BPWCCUL said it would continue to focus on mitigating risks, “improving efficiencies and assisting our members in advancing their financial positions”.
The 2011 financials received a clean audit report from auditors Ernst & Young. (GE)