BUSINESS MONDAY: Union’s assets, membership increase

AN increase in assets, growth in membership a higher net comprehensive income, and a milestone in savings by the Junior Savers, are some of the highlights of the past year’s operations of the Barbados Police Cooperative Credit Union Limited (BPCCUL).

And as the Credit Union moves forward to broaden its range of services, members will in another two weeks be issued with cards that will allow them greater access to their accounts.

These are among the main points which emerged from the annual general meeting held last week at the Prince Cave Hall, Station Hill, St. Michael.

BPCCUL President Hally Haynes, recalled that during the lockdown last year brought on by COVID 19, members had problems keeping abreast with their accounts.

He explained that they took a decision in order to deal with that situation.

“In two weeks time all members will be issued with a card to have access to their funds,” Haynes said acknowledging also they are pushing hard with this project.

An education process will hopefully start by the end of this month.

To ensure that members are not left behind in the move towards plastic technology, “the Credit Union has therefore commenced the process of formalising an agreement to supply members with prepaid cards,” Haynes said.

As for the financials and other data, assets at the end of the March 31, 2021, financial year were $34.0 million, compared to $33.0 million a year earlier.

The $24.6 million in loans to members account for the lion share of the assets. There was a further $2.6 million in cash and cash equivalents and $2.0 million worth of property plant and equipment.

Members’ savings grew by almost three per cent (or $477 768) consistent Membership  maintained its growth trajectory shown over the last five years reaching 1 538 at the end of the financial year.

Operating expenses were down 23 per cent or $177 451

Net comprehensive income for the year in review was $656 763, up from from $524 970 as at March 31, 2020.

In its report, the Board of Directors said that except for the last financial year the Credit Union processed more than 325 loan applications over a 10 year period.

The decline in applications from 13.49 per cent to 11.75 per cent in 2021, or from $776 827 to $585 111 respectively, stemmed from the impact of COVID.

The Board pointed out that in an environment where portfolios were expected to contract, gross loans showed stabilizing values towards the end of the financial year to marginally exceed $90 235.

“Notable highlights in loan activity include the mortgage lending over the financial year  and members’ renewed interest in auto loans,” said the Board.

It was also revealed that Junior savings within the institution reflected the growing trend for the net number of participants who remained in the scheme.

Savings in that category grew 3.73 per cent to close the year at $510 222.