CONTENTS Organisational Structure . . . . . . . . . . 3 Our Leaders Barbados Public Workers’ Co-operative Credit Union Limited 4 Legacy Foundation . . . . . . . . . . . . . . 6 BPW Financial Holdings Inc . . . . . . 7 CAPITA Financial Services Inc . . . . 7 CAPITA Insurance Brokers Inc . . . . 9 Consolidated Financial Highlights . 10 Management Discussion & Analysis . 12 Board of Directors’ Report . . . . . . . . 20 Independent Auditors’ Report . . . . . 32 Consolidated Financial Statements 38 Empowering Members, Supporting Families, Building Generational Success Since 1970 BPWCCUL has remained steadfast in its commitment to improving the financial well-being of its members while contributing to the strength and prosperity of our communities. Built on the principles of cooperation, trust and service, the Credit Union has evolved into one of Barbados’ most significant financial institutions, empowering generations of members to achieve their personal, family, and business aspirations. For more than five decades, we have provided accessible financial solutions, trusted guidance and opportunities that enable our members to build secure futures. From home ownership and education to entrepreneurship, savings and investment, our purpose has always been to help members transform their goals into lasting achievements. Our success is measured not only by financial performance, but by the positive impact we create in the lives of our members and the communities we serve. Every loan approved, every savings account opened and every financial milestone reached reflects our commitment to fostering economic empowerment and generational progress. As we look to the future, we remain dedicated to innovation, responsible stewardship and delivering exceptional value to our members. Together, we celebrate our achievements, embrace new opportunities and reaffirm our commitment to empowering members, supporting families, and building generational success.
2 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
3 CONSOLIDATED ANNUAL REPORT 2026 Barbados Public Workers’ Co-operative Credit Union Limited (BPWCCUL) is a member based financial cooperative It therefore serves members only and focusses on providing financial services to individuals with the main goal of service to members CAPITA Financial Services Inc (CAPITA) is a wholly owned subsidiary of BPWCCUL and provides financial services to both individuals and corporates CAPITA focusses on increasing shareholder return through the provision of competitive financial products and services CAPITA Insurance Brokers Inc (CIB) is a wholly owned subsidiary of CAPITA Financial Services Inc , setup to provide an additional source of revenue and return for its shareholders and increase the value proposition for members and clients within the Group of Companies CAPITA Insurance Brokers Inc (CIB) is a wholly owned subsidiary of CAPITA Financial Services Inc , setup to provide an additional source of revenue and return for its shareholders and increase the value proposition for members and clients within the Group of Companies Organisational Structure FINANCIAL HOLDINGS INC. BPW Legacy Foundation is a registered charity and philanthropic arm of Barbados Public Workers’ Co-operative Credit Union, its subsidiaries and associated companies BPW Financial Holdings Inc was established to hold the shares of BPWCCUL’s subsidiary CAPITA Financial Services Inc
4 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Our Leaders Meet the Board of Directors President Bro. Lindell Earle Vice-President Sis. Anne-Marie Burke Brewster Secretary Sis. Virginia I. Sandiford-Garner Director Sis. Valencia Cumberbatch Assistant Secretary Sis. Rozanne Parris-Bryan Director Bro. Gerard Prescod Director Sis. Wendy Knight-Hunte Treasurer Sis. Rochelle Belgrave Director Bro. Carl Padmore Board of Directors Bro. Lindell Earle, President – BSc - Management Studies, CGA, MBA, FCA Sis. Anne-Marie Burke Brewster, Vice-President – MSc, J.P. Sis. Rochelle Belgrave, Treasurer – BSc – Management; A.S. – Business Administration; Cert. – Auditing 1 and Basic taxation; Cert.- Enterprise Risk Management; Cert.- Compliance Risk Management Sis. Virginia I. Sandiford Garner, Secretary – MBA, Post-Graduate Diploma in Management, Certificate in Marketing, (CIM), Management Cert (CUNA). Cert.- Dynamics of Public Relations (UWI) Sis. Rozanne Parris-Bryan, Assistant Secretary – UWI – Introduction to Property & Real Estate Management; Administrative Corporate Secretary (Dist.); Cert. – Advanced Human Resources Management; Cert. – Introduction to Event Planning, IAAP – Cert. Certified Administrative Professional Bro. Gerard Prescod, Director – B.A. Political Science, MSc – Labour & Employment Relations, Dipl. – Security Administration, NEBOSH Cert. Occupational Health & Safety, Cert. – Law for Human Resources, Cert. – Administrative Management Bro. Carl Padmore, Director – BSc. – Fine Arts (Creative Arts), Cert. Corporate Governance, Cert.- Court Annex Mediation Sis. Wendy Knight-Hunte, Director – BSM, J.P. Sis. Valencia Cumberbatch, Director – BSc – Labour & Employment Relations, Bookkeeping & Accounts, Cert. – AML Money Laundering & Financial Crimes; Cert. – Entrepreneurship, Certified Credit Union Director, Governance of Credit Unions (Caribbean Corporate Governance Institute)
5 CONSOLIDATED ANNUAL REPORT 2026 Meet the ExecutiveManagement Team GroupChief ExecutiveOffice (ag) Bro. LeVere Catlyn Chief Financial Officer (ag) Sis. Krystal Shorey Chief Human Resources Officer (ag) Sis. Patricia Archer Chief Information, Communications & Technology Officer Bro. Irwin Gibson Chief Operations Officer Sis. Corinne Clarke Chief Legal, Compliance and Corporate Affairs Officer Sis. Susan Byer Chief Internal Auditor Bro. Eric Small Chief Marketing & Member/ Customer ExperienceOfficer Sis. Gail Best-Niles Executive Management Team Bro. LeVere Catlyn, Group Chief Executive Officer (ag) – MSc, CPA, CGA, CA, CCUE Sis. Gail Best-Niles, Chief Marketing & CX Officer – BSc, Adv. Dipl., MBA, MCIM Sis. Patricia Archer, Chief Human Resources Officer (ag) – Chartered Member - MCIPD, Level 7 Diploma in Human Resources Management, Post-graduate Diploma in Learning and Development Sis. Krystal Shorey, Chief Financial Officer (ag) – CPA, MSc, BSc Bro. Irwin Gibson, Chief ICT Officer – BEng, MSc., MBA Sis. Susan Byer, Chief Legal, Compliance and Corporate Affairs Officer – BSc, LLB, LPC LLM, LEC Sis. Corinne Clarke, Chief Operations Officer (ag.) – MBA, FCCA Bro. Eric Small, Chief Internal Auditor – BSc., CIA, CFE
6 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Our Leaders (Continued) Meet theManagement Team www.legacybarbados.org Meet the Board of Trustees Chairman Ms. Ayodele Burrowes Trustee Mr. Carl Padmore Trustee Ms. Kieva Cadogan Trustee Ms. Valencia Cumberbatch Trustee Mrs. Wendy Knight-Hunte Programme Development Coordinator Mr. Hanif Moore
7 CONSOLIDATED ANNUAL REPORT 2026 Our Leaders (Continued) FINANCIAL HOLDINGS INC. BPW Meet the Board of Directors Meet the Board of Directors Director Mrs. Kimberley Alleyne-Pinder Director Mr. Jaydee Bourne Secretary Bro. Anderson Yearwood Vice Chairman Mrs. Rozanne Parris-Bryan Chairman Mrs.Anne-Marie Burke Brewster Chairman Mr. Derrick Cummins Vice-Chairman Mrs. Arlene Miller Director Mrs. Anne-Marie Burke Brewster Director Mr. Julian Hunte Director Mr. Lindell Earle Director Ms. Valencia Cumberbatch
8 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Meet theManagement Team Chief Executive Officer Mr. Curtis Knight Operations Manager Ms. Neesa Alleyne Card Manager Mrs. Sonia Hall-Hunte Relationship Manager Mr. Mehmood Piprawala Our Leaders (Continued)
9 CONSOLIDATED ANNUAL REPORT 2026 Meet the Board of Directors Meet theManagement Team Our Leaders (Continued) INSURANCE BROKERS Director Ms. Rochelle Belgrave Director Mrs. Wendy Knight-Hunte Chairman Ms. Maureen Graham Director Mrs. Virginia I. Sandiford- Garner Director Mr. Glendon Belle Chief Executive Officer Mr. Curtis Knight
10 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Consolidated Financial Highlights Financial Highlights - Five Year Review In Bds $’000 2026 2025 2024 2023 2022 Statement of financial position: Assets Cash and equivalents 450,855 427,574 395,428 371,940 388,880 Investments 130,242 88,068 81,366 60,873 51,512 Loans to Members (net) 1,402,793 1,378,437 1,394,550 1,425,341 1,398,822 Property and Equipment 59,247 56,839 55,747 58,053 62,176 Other Assets 45,418 55,759 33,849 29,286 30,363 Total Assets 2,088,554 2,006,677 1,960,940 1,945,493 1,931,753 Liabilities and Owner's Equity Liabilities Deposits 1,824,600 1,750,586 1,714,654 1,712,183 1,699,399 External Debt 0 0 1,182 1,232 1,277 Other 58,819 57,484 49,656 44,006 45,492 1,883,419 1,808,070 1,765,492 1,757,421 1,746,168 Equity Share Capital 14,351 13,986 13,651 13,334 12,901 General& Other Reserves 189,430 183,535 180,747 175,853 171,314 Retained earnings 1,355 1,086 1,050 -1,115 1,370 Total Equity 205,136 198,607 195,448 188,072 185,585 Total Liabilities and Owner's Equity 2,088,554 2,006,677 1,960,940 1,945,493 1,931,753 Statement of income: Interest Income 99,615 99,961 101,451 105,721 103,466 Interest Expense 23,240 22,852 24,908 26,966 28,447 Net Interest Income 76,375 77,109 76,543 78,755 75,019 Other income 17,167 14,387 14,724 8,003 8,033 Net income and other income 93,542 91,496 91,267 86,758 83,052 Impairment expense 858 822 3,002 6,824 7,383 Net operating income 92,684 90,674 88,265 79,934 75,669 Total operating expenses 81,452 83,481 77,099 71,349 63,452 Net income before extra-ordinary items 11,232 7,193 11,166 8,585 12,217 Derecognition of Government Securities - Tax of Assets 1,165 1,175 1,055 940 1,081 Net income after taxes 10,068 6,018 10,111 7,645 11,136
11 CONSOLIDATED ANNUAL REPORT 2026 Consolidated Financial Highlights Financial Highlights - Five Year Review In Bds $’000 Principal Bankers Barbados Public Workers’ Co-operative Credit Union Limited - Republic Bank (Barbados) Ltd. BPW Financial Holdings Inc. - CIBC First Caribbean International Bank CAPITA Financial Services Inc. - CIBC First Caribbean International Bank CAPITA Insurance Brokers Inc. - First Citizens Bank (Barbados) Limited Auditors PricewaterhouseCoopers SRL Barbados 2026 2025 2024 2023 2022 Financial statistics in percent: Asset Growth 4.08 2.33 0.79 0.71 5.68 Loan Growth 1.77 -1.16 -2.16 1.90 5.16 Deposit Growth 4.23 2.10 0.14 0.75 5.14 Net Surplus Growth 67.29 -40.48 32.26 -31.35 16.90 Return on Assets 0.49 0.30 0.52 0.39 0.59 Return on Equity 4.99 3.05 5.27 4.09 6.61 Operating Efficiency 87.88 92.07 87.35 89.26 83.85 Net Interest Margin 3.73 3.89 3.92 4.06 3.99 2026 2025 2024 2023 2022 Other statistics Delinquency ratio (%) 13.4 13.3 14.8 13.8 13.5 # of members 120.9 117.3 113.8 111.1 107.5 # of branches 6 6 6 6 6 2026 2025 2024 2023 2022 Net income per member $83.27 $51.30 $88.85 $68.81 $103.59 2026 2025 2024 2023 2022 Members (000’S) 120.9 117.3 113.8 111.1 107.5
12 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Snapshot of Credit Union’s Performance: In 2026, the Credit Union, led by a team of dedicated professionals provided members with tailored and appropriate financial solutions to meet their needs. During the year, membership increased by 3,651 members or 3.1 percent, reaching 120,908 members. This growth supported continued deposit mobilisation and member engagement with new deposit generation of $184.8 million and 247 new loans to first-time members totaling $4.8 million. Member-related expenditures through educational grants and scholarship expenses declined by $18.0 thousand compared to the previous year; however, demand for social outreach increased by $33.5 thousand compared to the prior year. The increase in membership contributed to the Credit Union’s growth in deposits of $83.5 million (2025 – $40.8 million) or 5.3 percent (2025 – 2.7 percent). Consequently, deposit generation was $184.8 million and 247 new loans to first-time members totalling $4.8 million. At March 31, 2026, approved loan commitments and pending disbursements cumulatively totaled $61.9 million (2025 – $62.8 million), decreasing from the prior year by $850.5 thousand or 1.4 percent. During the fiscal 2026, the Credit Union’s net loans increased by $21.9 million (2025 – $3.8 million increase) or 1.9 percent (2025 – 0.3 percent). Further analysis showed that increases in mortgage loans were the primary driver of loan growth, with net mortgages growing by $14.5 million (2025 – $20.8 million) or 2.7 percent (2025 – 4.1 percent). This financial year, consumer loans grew by of $8.1 million (2025 – a decline by $25.4 million) or This section of the Barbados Public Workers’ Co–operative Credit Union Limited’s Consolidated Annual Report provides a discussion and analysis of the financial position and performance of the consolidated operations of the Barbados Public Workers’ Co– operative Credit Union Limited and its subsidiaries (“the Group”) for the financial year ended March 31, 2026 This MD&A should be read in conjunction with the audited consolidated financial statements, which have been prepared in accordance with IFRS Accounting Standards (IFRS) The Group includes the parent, Barbados Public Workers’ Co– operative Credit Union Limited and its subsidiaries Allied Co– operators Inc and BPW Financial Holdings Inc , the holding company for the CAPITA Group that includes subsidiaries Capita Financial Services Inc (“CAPITA”) and Capita Insurance Brokers Limited (“CIB”) Group Overview: As an integrated financial services group, we remain committed to enhancing the financial well-being of our members, customers, and the wider communities we serve. Through a disciplined approach to growth, innovation, and risk management, we continue to pursue sustainable value creation while advancing our strategic objectives. Our focus remains on optimizing resources, embracing digital transformation, strengthening environmental and social responsibility initiatives, deepening member and customer engagement, and maintaining sound financial stewardship across the Group. The operating environment continues to evolve rapidly, shaped by technological advancement, changing customer expectations, increasing regulatory requirements, and emerging cybersecurity risks. In response, the Group remains focused on building resilience, enhancing operational efficiency, and investing in the systems, people, and infrastructure necessary to support long-term success. As we enter our fifty-sixth year as a Credit Union and sixteenth year as a diversified financial services Group, we proudly reflect on the vision and dedication of our founders whose foresight laid the foundation for our success. We also extend our sincere appreciation to our members, customers, employees, and stakeholders whose continued trust and support have enabled us to grow, evolve, and remain a strong and relevant institution for generations to come. Adoption of New Accounting Standards During the financial year ended March 31, 2026, there were no newly adopted or implemented accounting standards which had a significant impact on the reporting or performance of the Group. Management Discussion & Analysis (MD&A)
13 CONSOLIDATED ANNUAL REPORT 2026 1.4 percent (2025 – a decline by 4.2 percent) while business loans contracted by $236.1 thousand (2025 - $580.9 thousand) or 9.1 percent (2025 – a decline of 18.3 percent). The Credit Union’s expansions in other key areas of its Statement of Financial Position were as follows: - Overall cash resources ended at $513.3 million (2025 – $477 million) representing growth of $36.2 million (2025 – $28.5 million) or 7.6 percent (2025 – 6.4 percent). - Total assets grew by $91.6 million (2025 – $37.6 million) or 5.1 percent (2025 – 2.8 percent). Operational performance: - The Credit Union’s net surplus increased above the prior year by $4.0 million or 77.9 percent to finish at $9.2 million as at March 31, 2026. - Total interest income was recorded at $85.7 million (2025 – $86.6 million), which was $844.4 thousand or 1.0 percent below that of the prior year. - Interest expense was reported at $18.4 million (2025 – $17.9 million), representing an increase of $468.1 thousand or 2.6 percentage above that of the prior year. - Non–interest income increased by $1.3 million (2025 – $154 thousand) or 23.2 (2025 – 2.7) percent to end the year at $7.2 million (2025 – $5.8 million). Expected credit losses of $429 thousand (2025 – $1.6 million) decreased by $1.2 million (2025 – $1.0) or 73.8 (2025 – 38.9) percent below that of the prior year, while loans on non–accrual increased from $153.2 million in 2025 to $157.7 million at March 31, 2026. - Operating expenses decreased by $1.0 million to reach $35.6 million (2025 – $36.7 million) at the end of the fiscal. Notable increases were noted in advertising costs of $307.2 thousand or 47 percent, security services of $365.2 thousand or 19.6 percent, rent of $208.8 thousand or 31.5 percent, utilities of $270 thousand or 17.5 percent, and staff and member training of $149.9 thousand or 36.5 percent. - Compensating reductions of $541.9 thousand or 28.8 percent were recorded in legal and professional fees, $332 thousand or 4.9 percent in repairs and maintenance, and $496 thousand or 12 percent in publicity and promotion. Direct cost of services also decreased by $314 thousand or 5.5 percent. Costs associated with meetings and conferences, and elected officials and committee training expenses, also recorded decreases of $258.2 thousand or 23.2 percent and $51 thousand or 17.5 percent, respectively. Snapshot of CAPITA’s performance During the financial year ending March 31, 2026, CAPITA continued to execute its strategic priorities with a strong focus on business growth, operational excellence, and digital transformation. A key initiative was the expansion of the loan portfolio, with greater emphasis placed on the business lending segment to support diversification and sustainable revenue growth. CAPITA reported total assets of $316.5 million (2025 – $328.2 million), representing a decrease of $11.7 (2025 – $7.2 million) or 3.6 percent (2025 – $2.2 percent) when compared to the prior year. Profit before levies and taxation was reported at $2.1 million (2025 – $2.2 million), representing a decrease of $65.1 thousand or 3.0 percent when compared to the prior year. Total operating expenditure for the year was $17.0 million (2025 – 14.9 million), representing an overall increase of $2.1 million or 13.9 percent when compared to the prior year. The main contributor to the net increase in total operating expenditure was the increase in staff cost, which totaled $4.6 million, representing a decrease of $983.7 thousand or 27.2 percent. During the reporting period, the company remained focused on the development of its five–year strategy plan and the introduction of a new suite of deposit products that are key to providing diversification of its funding sources, and reviewing and exploring ways to reduce delinquency and recover the current stock of non–performing loans. In addition, major emphasis was placed on reviewing the brand identity and the development of a more focused marketing strategy that will cater to the targeted customer segments. Group Performance Summary: As at March 31, 2026, the group recorded net income before levies and taxation of $11.2 million, compared with $7.2 million in the prior year. This improvement was driven by growth in revenue streams, prudent expense management, and the Group’s ongoing focus on operational efficiency. Other income increased by $2.8 million, or 19.3 percent, while total operating expenses declined by $2.0 million, or 2.4 percent. The reduction in operating expenses was primarily attributable to a $1.1 million decrease in administrative and operating costs, complemented by a modest reduction in staff costs of $161.1 thousand, or 0.5 percent. The Group maintained a disciplined approach to credit risk management during the year. Expected credit losses on loans increased moderately to $857.9 thousand from $821.7 thousand in the prior year, representing a 4.4 percent increase and reflecting
14 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED continued prudence in the assessment of credit risk. During the financial year ended March 31, 2026, the Group’s minimum deposit rate remained fixed at 0.35 percent, ensuring that depositors receive a return above that for similar deposits in the market. Net interest margin, expressed as a percentage of average assets, declined slightly to 3.70 percent from 3.89 percent in the previous year, reflecting the ongoing impact of the interest rate environment and competitive market conditions. Levies on assets decreased marginally by $27.6 thousand, or 2.7 percent, while taxation increased by $16.9 thousand, or 10.5 percent, compared with the prior year. As a result of these factors, net income after taxation and levies increased significantly to $10.0 million for the year ended March 31, 2026, compared with $6.0 million in the previous year. This performance reflects the Group’s ability to generate sustainable earnings growth while maintaining disciplined cost management and sound risk oversight. Consolidated Financial Statement Highlights Revenues: The Group earned total interest revenue of $99.6 million (2025 – $100.0 million) for the financial year ended March 31, 2026, representing a decrease of $345.9 thousand or 0.3 percent over the prior year. Deposit costs in the form of interest expense increased by $388.2 thousand or 1.7 percent to move from $22.8 million in 2025 to $23.2 million in 2026, in line with management’s efforts to ensure deposits are adequately priced. Net interest income moved from $77.1 million in 2025 to $76.4 million in 2026, resulting in a decline of $734.2 thousand or 1.0 percent over that of the prior year, while total income was reported at $116.7 million (2025 – $114.3 million) representing an increase of $2.4 million (2025 – $1.8 million) or 2.13 (2025 – 1.6 percent) percent. Net income: The Group’s consolidated net income before levies and taxes was recorded at $11.2 million (2025 – $7.2 million) at March 31, 2026. Operating Expenses: Total operating expenses, inclusive of taxes decrease from $82.3 million in 2025 to $80.3 million in 2026, primarily driven by a 12.8 percent, or $1.1 million increase in the direct cost of services, an increase in publicity, and of $1.6 million or 58.3 percent. Staff cost for the year stood at $30.7 million, representing a decrease over the prior year of $161.1 thousand or 0.5 percent. Assets: Total assets of the Group stood at $2.09 billion at March 31, 2026. This represented an increase of $81.9 million (2025 – $45.7 million) or 4.1 percent (2025 – 2.3 percent) over the previous year. At March 31, 2026, the Group’s consolidated net loans and advances stood at $1.4 billion, an increase of $24.4 million or 1.7 percent over the prior year. The Group remains committed to empowering its members and customers by providing access to financial solutions that enable them to achieve their full potential and participate meaningfully in economic development across the micro, small, and medium enterprise sectors. Reflecting this commitment, the loan portfolio continued to expand during the year, supported by increased business lending activity, particularly among individual clients of CAPITA. 2022 2023 2024 2025 2026 Net Income Loans to members 3 Net Income before Levies & Taxes Management Discussion & Analysis (MD&A) (Continued) 2022 2023 2024 2025 2026 Deposits 2022 2023 2024 2025 2026 T tal Assets 2022 2023 2024 2025 2026 2 Deposits
15 CONSOLIDATED ANNUAL REPORT 2026 The consumer loan portfolio increased by $9.7 million, or 1.5 percent, while business lending recorded strong growth of $6.7 million, representing an increase of 24.0 percent. Mortgage lending also experienced modest growth of $5.9 million, or 0.8 percent. These results demonstrate the Group’s ongoing support of personal, entrepreneurial, and homeownership aspirations while contributing to broader economic activity within the communities it serves. The Group remained highly liquid with total cash resources of $484.5 million compared to $460.9 million in the prior year, representing an increase of $52.4 million or 11.4 percent. Asset quality: The Group’s non–performing loans decreased marginally by $952.6 thousand in 2026 when compared to the prior year’s decrease of $19 million. However, despite an overall increase in the loan portfolio of $24.4 million, delinquency held steady with a slight decrease in the Group’s ratio from 13.5 percent at the end of March 31, 2025, to 13.2 percent at the end of March 31, 2026. The Group remains committed to proactive delinquency management and member support, offering tailored solutions designed to promote sustainable loan repayment and preserve financial wellbeing. Relief measures available to eligible members include: • extension of loan repayment terms to enhance repayment flexibility; and • debt consolidation arrangements to streamline repayment obligations and improve cash flow management. Liabilities: The Group’s liquidity position continues to be strong and is primarily driven by the continued growth in the Group’s cash resources and the management of its working capital. Deposit growth remained steady over the period, rising by $74. million or 4.2 percent. The Group upholds a liquidity buffer to fully meet statutory reserve requirements while maintaining a designated percentage to cover on–demand deposits and ensuring a guaranteed percentage for loan commitments. At March 31, 2026 the Group’s held cash and cash equivalents of $450.9 million as compared to the prior fiscal of $427.6 million. The Group’s operations are currently 100 percent funded by its members and customers deposits. During the fiscal under review there was no external debt held by the Group Delinquency Ratio Cash and equivalent 1 Delinquency Ratio Delinquency Ratio Cash and equivalent 1 Cash and Equivalents 2022 2023 2024 2025 2026 Net Income Loans to members 3 Loans to Members Deposits 2022 2023 2024 2025 2026 Total Assets 2022 2023 2024 2025 2026 2 Total Assets
16 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Equity: As at March 31, 2026, the Group’s total equity rose to $205.1 million, representing an increase of $6.5 million or 3.3 percent. This increase included the new issue of 94.7 thousand (2025 – 93.5 thousand) member shares at a total value of $473.4 thousand (2025 – $467.5 thousand) and the distribution of $2.8 million (2025 – $2.7 million) in dividends and interest rebates to members during the year. The Group’s capital adequacy ratio remained in line with the 10 percent regulatory requirement. This ratio is a key measurement relative to the Group’s ability to absorb market shocks and as such is monitored on an ongoing basis. ECONOMIC Outlook 2026 Barbados’ economic outlook for 2026 remains broadly positive, with the Central Bank of Barbados projecting continued expansion driven by tourism, construction, and business services, underpinned by sustained public and private investment and policy reforms under the BERT 2026 programme. Real GDP growth is expected in the range of roughly 2–3 percent, with stable external reserves, moderate inflation, and ongoing infrastructure and renewable energy projects supporting productive capacity and employment, although global uncertainty and geopolitical risks remain key downside factors. Within the wider Eastern Caribbean, the ECCB indicates a resilient regional outlook, with the Eastern Caribbean Currency Union (ECCU) projected to grow by about 3.3 percent in 2026, largely supported by tourism and improved financial stability, while ongoing reform efforts focus on strengthening resilience, food and energy security, and digital transformation. In St. Lucia specifically, the outlook for 2026 reflects a modest recovery trajectory, with growth expected to rebound as tourism strengthens and infrastructure projects advance, though fiscal pressures, debt vulnerabilities, and global uncertainties continue to shape the medium-term outlook. BPWCCUL Group Outlook 2026 As we look to the future, BPWCCUL remains focused on strengthening its position as a resilient, progressive, and member-focused financial institution. Rapid technological change, shifting member expectations, evolving regulatory requirements, and increasing Management Discussion & Analysis (MD&A) (Continued) cybersecurity threats continue to transform the financial services environment. In response, we are committed to enhancing our capabilities, driving innovation, and maintaining sustainable growth while ensuring that we continue to deliver value and meet the changing needs of both current and future generations of members. Digital Transformation & Member Services Digital transformation remains a key strategic priority. Building on the rollout of BimPay, we will continue enhancing member convenience through innovative digital solutions, including the introduction of online loan applications. We will also explore opportunities to leverage artificial intelligence and data analytics to improve operational efficiency, personalize member experiences, and strengthen service delivery. Cybersecurity & Data Protection Protecting member information remains paramount. We will continue investing in our cybersecurity framework, enhancing threat monitoring capabilities and strengthening our security architecture to ensure our systems remain resilient and capable of addressing evolving cyber risks. Generational Engagement & Sustainability Our long-term success depends on meeting the needs of all generations of members. While continuing to serve and support our loyal membership base, we will focus on attracting younger members through innovative products, financial education initiatives, and engagement strategies that reflect their evolving expectations. Culture & Talent Development Our people remain central to our success. We are committed to fostering a high-performance culture rooted in cooperative values, continuous learning, accountability, and employee empowerment, ensuring our teams have the skills and support needed to excel. Cooperative Principles & Future Vision Our cooperative philosophy of “people helping people” remains the foundation of everything we do. By combining these enduring values with innovation and service excellence, BPWCCUL is well-positioned to navigate future opportunities and challenges while remaining deeply connected to the members and communities we serve. MEMBERS 120,908 GROWTH +3.1% NEW MEMBERS +3,651 GROWING MEMBERSHIP STRONGER TOGETHER. GROWING TO SERVE YOU BETTER MEMBERS 120,909 3.1% TOTAL ASSETS $2.09B 4.1% TOTAL EQUITY $205.1M 3.3% CASH RESOURCES $484.5M 11.4% NET INCOME $10.0M 66.7% NET LOANS $1.4B 1.7% DEPOSITS +$74.0M 4.2% MEMBERS 120,909 TOTAL ASSETS $2.09B NET LOANS $1.4B CASH RESOURCES $484.5M NET INCOME $10.0M TOTAL EQUITY $205.1M BPWCCUL GROUP BY THE NUMBERS MORTGAGE LOANS + $14.5M 2.7% CONSUMER LOANS + $8.1M 1.4% BUSINESS LOANS 9.1% -$236.1K (CHANGE FORM PREVIOUS YEAR) EMPOWERING MEMBERS THROUGH LENDING +$21.9 MILLION TOTAL NET LOAN GROWTH 1.9% Supporting and Empowering Members. 66.7% $10.0M NET INCOME AFTER TAX NEW DEPOSITS GENERATED FIRST TIME BORROWERS NEW MEMBER LOANS $184.8M 247 $4.8M
www.publicworkers.bb +1(246) 622-9000
20 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Community Relations Our Community Relations Department continues to play a pivotal role in amplifying BPWCCUL’s social impact. Through strategic educational support, stakeholder engagement, outreach initiatives, and relationshipbuilding efforts, the Department has strengthened ties with members, partners, and the wider community, while upholding the credit union’s co-operative principles. The Department also provides administrative support to the board-appointed Social Outreach, Educational Grants and Scholarships Committee, which convened sixteen (16) times during the year to review requests for financial assistance from members. Overview Member Focused Message As we reflect on the past year, we take great pride in the continued growth and success of the Barbados Public Workers’ Co-operative Credit Union Limited (BPWCCUL). What began as a vision to empower members through co-operative finance has evolved into a dynamic institution that transforms lives across Barbados. Today, with the confidence of more than 120,908 members, we remain committed to strengthening their financial wellbeing while advancing the communities they call home. In 2026, we advanced our mission by broadening access to affordable financial solutions, introducing innovative digital tools to enhance convenience, and expanding financial literacy programs. These initiatives were not measured solely in numbers; they represented families achieving stability, entrepreneurs building businesses, and young leaders preparing for the future. Our commitment to community remains central to our identity. For BPWCCUL, community is more than the presence of financial branches; it is about fostering meaningful connections and ensuring resources are accessible to all. “ We are proud of what we have accomplished from an operational, member service and community perspective. Board of Directors’ Report President Bro. Lindell Earle
21 CONSOLIDATED ANNUAL REPORT 2026 During the reporting period, we proudly supported and sponsored over 102 organisations, awarded more than $275 thousand in scholarships and $181 thousand in social outreach, reinforcing our role as a partner in education, empowerment, and social progress. The below chart illustrates the breakdown of expenditure across the various categories for the financial year. BPWCCUL remains financially strong, ensuring our ability to serve members and provide support through the shifts and uncertainties of the economy. We are dedicated to equipping members with the right financial tools, access to certified financial counsellors, and personalised service to help them build and sustain a solid financial foundation. Our focus extends beyond financial transactions; we are committed to the overall well-being of our members, empowering individuals and families to achieve stability, pursue opportunities, and create brighter futures. Credit Union Performance Global economic conditions remained challenging during the current reporting period as geopolitical instability, particularly the conflict in the Middle East, disrupted trade flows, raised energy prices, and heightened uncertainty. According to the IMF’s April 2026 World Economic Outlook, global growth is projected at 3.1 percent in 2026, below pre pandemic averages, while inflationary pressures remain elevated across many regions. At the same time, the financial services sector continues to face mounting pressures, including escalating cybersecurity threats, intensifying competition from both banks and non bank lenders, rising regulatory demands, and the urgent need for digital transformation. Institutions are also competing for specialised talent in technology, compliance, and risk management. Despite these headwinds, the Barbados Public Workers’ Co operative Credit Union Ltd. remained focused on strengthening operational resilience. Our strategy emphasises reinforcing cybersecurity defences, accelerating digital transformation, investing in talent development, and maintaining financial discipline to ensure sustainable growth and prudent risk management. Against this backdrop, the financial year ended March 31, 2026, was marked by solid growth and strengthened resilience. Total assets rose to $1.90 billion, supported by higher liquidity, member lending, and strategic investments. Deposits expanded by 5.4 percent, reinforcing our core funding base, while equity improved to $202.6 million. Net income of $9.2 million reflected disciplined expense management, diversified income streams, and reduced credit risk provisions. Despite modest declines in reserves from actuarial and investment re-measurements, overall comprehensive income advanced to $7.4 million, underscoring the institution’s continued financial stability. For our members, these results translate into a stronger, more resilient Credit Union that is well positioned to meet evolving needs. Growth in lending reflects our continued support for members’ personal and professional goals, while the expansion of deposits underscores the trust placed in us as a safe and reliable financial partner. By maintaining prudent capital levels and focusing on efficiency, we are able to reinvest in services, technology, and community initiatives that directly benefit our membership. Subsidiary Performance CAPITA Financial Services Inc. (CAPITA) Group During the financial year ended March 31, 2026, CAPITA continued to execute its strategic priorities with a strong focus on business growth, operational excellence, and digital transformation. A key initiative was the expansion of the loan portfolio, with greater emphasis placed on the business lending segment to support diversification and sustainable revenue growth. CAPITA prioritized increasing non-interest income streams as part of its broader strategy to manage the rising cost of funds and strengthen overall financial performance through the rollout of its six new deposit products to serve both the retail and commercial clients. A working capital line from a local financial institution to provide a buffer was secured. Should the need arise, this balanced approach to revenue generation allows the entity to remain competitive in an evolving financial services landscape. CAPITA’s Card Services Department recorded a net positive year, driven mainly by a collaborative sales promotion with Mastercard “Spend and Win”. The campaign encouraged increased card usage among customers and contributed to growth in interchange revenue, compared with the previous financial year. This achievement underscores CAPITA’s continued commitment to enhancing the value proposition of its card products, while expanding sustainable sources of non-interest income. Enhancing the customer experience and delivery remained a central focus throughout the year. Several initiatives were undertaken, including the upgrade of its website, the launch of active social media campaigns to strengthen customer engagement and brand visibility, and the re-engineering of the term deposit onboarding process to deliver a more seamless and efficient customer journey. In addition, development commenced on an AI-powered chatbot, designed to provide customers with faster, more accessible service and an enhanced digital experience. Significant progress in the execution of its credit risk management strategy was also achieved, as focused delinquency management initiatives and enhanced recovery efforts contributed to improved oversight of the non-performing loan portfolio. A comprehensive review of the portfolio confirmed the adequacy of loan loss provisions, with no significant increase required compared to the prior year. This outcome reflects
22 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED the effectiveness of the credit risk management and collection strategies and was further supported by the implementation of a more structured and disciplined recovery framework, establishing a solid foundation for the 2026–2027 fiscal year. Within the insurance brokerage subsidiary, strategic efforts were directed toward expanding the range of products and services available to customers while strengthening collection processes to improve operational efficiency and portfolio performance. Investment in digital transformation remained a strategic priority during the year, as a number of technology initiatives aimed at modernizing financial reporting capabilities and enhancing the loan underwriting process, through greater automation and improved data management, were advanced. These projects are expected to increase operational efficiency, strengthen decision-making, and support future growth, the benefits of which are to be realized in the 2026/2027 period. Recognizing that people remain central to its success, efforts continued with the recruitment of key revenuegenerating positions across the organization. These roles are expected to drive growth in both interest and non-interest income while supporting the disciplined management of controllable operating expenses within approved budget parameters. Overall, CAPITA made meaningful progress against its strategic objectives during the year, strengthening its business model, enhancing customer experience, investing in digital capabilities, and reinforcing its operational framework to support sustainable growth and long-term value creation for its stakeholders. CAPITA’s financial position reflected a net profit of $934 thousand after taxes, total deposits in excess of $240 million, and total assets of $316.5 million at yearend. Consolidated Financial Performance The Group recorded net income of $10.1 million, a significant improvement over the prior year’s $6.0 million. This growth was driven by strong net interest income of $76.4 million and other income of $17.2 million. Despite operating expenses of $81.5 million, disciplined cost management and improved credit performance supported overall profitability. Comprehensive income totaled $8.4 million, compared to $5.5 million in 2025, reflecting higher net income and re-measurements on pension assets and equity investments. Balance Sheet Strength Total assets grew to $2.09 billion, up from $2.01 billion in 2025, fueled by increases in cash resources, financial investments, and loans and advances. Deposits rose to Board of Directors’ Report (Continued) $1.82 billion, underscoring continued member confidence. Equity strengthened to $205.1 million, compared to $198.6 million in the prior year, reflecting retained earnings growth and prudent reserve allocations. Our capital base remains robust, positioning us well for future opportunities and challenges. Cash Flow Operating activities generated $75.5 million in net cash, up from $50.9 million in 2025, supported by deposit growth and stable interest income. Investing activities reflected strategic expansion, with $10.5 million invested in property and equipment and $41.5 million in financial investments. Financing activities resulted in modest outflows, primarily due to member distributions and lease repayments. Group Strategic Outlook This performance underscores our resilience, prudent risk management, and commitment to efficiency. We remain focused on strengthening our core business, investing in digital transformation, and delivering sustainable value to stakeholders. At the same time, we continue to balance growth with prudence, building reserves, maintaining a sound capital position, and investing in technology, infrastructure, and member services to ensure long term sustainability and enhanced member value Allied Co-operators Inc. (ACI) During the reporting period, engagement by the smaller Credit Unions with ACI for services was considerably reduced. Following a comprehensive review of ACI’s operations, the Directors concluded that the organisation is no longer required in its current form. This decision was taken with the best interests of the Barbados Public Workers’ (BPW) Group of Companies in mind, ensuring that resources are directed toward initiatives that deliver the greatest value to our stakeholders. As the credit union sector continues to evolve, with many institutions merging and becoming larger, the need for a dedicated Credit Union Service Organisation (CUSO) such as ACI has diminished. Nevertheless, the Board of Directors remains confident that exploring this model provided valuable insights into how smaller Credit Unions can strengthen governance, compliance, data privacy, and regulatory readiness. Redirecting resources from ACI enables the BPW Group of Companies to concentrate on core priorities and new opportunities that will better serve both our members and the wider community. The Board is optimistic that this transition will create space for innovative approaches and partnerships that align with the evolving regulatory environment and the long term vision of the BPW Group of Companies
23 CONSOLIDATED ANNUAL REPORT 2026 Legacy Foundation Legacy Foundation continues to serve as a key channel for BPWCCUL’s commitment to social development, reflecting the Credit Union’s enduring philosophy of “people helping people” and fueling transformative social development across Barbados. Through strategic investments in projects that promote wellness, empowerment and learning, the Foundation supports initiatives that bring lasting value to communities across Barbados. During the reporting period, the Foundation received expressions of interest for grant funding in various areas, and after careful review and alignment with funding priorities, the following initiatives were selected: Legacy Youth Entrepreneurship Residency: A partnership with the Hibiscus Sports & Cultural Foundation, which targets youth aged 16-25, primarily from rural communities, delivering mentorship for their entrepreneurship ventures. • The Noel Gittens & Ezra Moseley Cricket Practice Wickets – The St. Michael School: This pro-grade dual practice wicket will be used by the school and local communities to enhance cricket training. • New Growth Aquaponics & Farming Projects which teaches sustainable farming, entrepreneurship and equips the youth with green skills, boosting food production and climate resilience for the Ellerslie Secondary School and Phase II of the Ellerton Primary School. As Legacy Foundation looks to the future, it remains committed to identifying opportunities that advances their mission and expand their network of partnerships that drive real, inclusive progress. Two new projects have been approved for funding in the next fiscal, namely: • Sensory Room Refurbishment and Redevelopment Project at the Albert Cecil Graham Development Centre to create a safe, multisensory environment for children who benefit from therapeutic support, improving access to services for those with autism spectrum disorder, developmental delays and related challenges. • A Pilot Project - Legacy Music & Money Programme which is expected to use music as an entry point to improve mental well-being and self expression, through standards based training and equipping young people with the financial literacy and entrepreneurial skills needed to navigate the creative industries. The Foundation will continue to monitor the progress of funded projects and provide support as needed to ensure long-term success. BPWCCUL members, your support powers these victories! Together, we’re building a brighter Barbados! Building Organisational Capability and Workforce Excellence Throughout the fiscal year, the Group continued to advance its people strategy by strengthening organisational capability, enhancing employee engagement, and reinforcing a culture of accountability, performance, and member focus. Key initiatives were directed toward workforce optimisation, leadership development, employee recognition, and effective workforce governance, ensuring the organisation remains well-positioned to achieve its strategic objectives and deliver sustainable value to members and stakeholders. Key Developments Recruitment, Workforce Alignment, and Capability Building During the fiscal year, the Group strengthened its workforce through targeted recruitment and strategic workforce alignment, filling 45 positions across leadership and operational levels to support organisational priorities and future growth. A key transformation initiative was the integration of loan processing functions into the branch network, bringing decision-making and service delivery closer to members. This realignment improved operational efficiency, reduced average loan processing times to under ten days, and enhanced accountability for the member experience. The Group also continued to invest in workforce capability, focusing on leadership, service excellence, credit underwriting, compliance, governance, and people management. These investments, supported by ongoing coaching and performance management practices, have strengthened organisational capability, reinforced a culture of continuous improvement, and positioned the Group to execute its strategic agenda effectively. Together, these initiatives reflect our commitment to maintaining an agile, high-performing, and memberfocused workforce, capable of delivering sustainable value to members and stakeholders. Job Evaluation The initial phase of the job evaluation exercise was completed, and the results of the initial grading review, were implemented across the Group. An essential element of the process is the commitment to fairness and transparency, which includes providing employees with the opportunity to appeal the outcomes where there may be concerns. Despite the ongoing need to further refine certain job description reviews, we have made good progress in advancing the appeals throughout the year
24 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Board of Directors’ Report (Continued) Rewards & Recognition The THRIVE Rewards & Recognition Program, grounded in our core values, continues to be a key driver of employee engagement, appreciation, and performance excellence across the organisation. During the year, more than 69 awards were presented to team members whose exceptional service, outstanding contributions, and unwavering commitment exemplified our values in action. We celebrate employees through the THRIVE Program, which reinforces a culture of recognition, inspires high performance, and strengthens our shared commitment to organisational success. As we continue to recognise and reward excellence, THRIVE remains an important catalyst for fostering a workplace where achievement is valued, contributions are celebrated, and our values are brought to life every day. Employee Relations, Governance and Workplace Wellbeing During the period under review, we have maintained a stable and constructive industrial relations environment through ongoing engagement with employees, employee representatives, and the Barbados Workers’ Union. Continued collaboration and proactive issue resolution supported positive employee relations and organisational stability. We have strengthened our governance framework through the review and enhancement of workplace policies and procedures, ensuring alignment with legislative requirements and best practices. Investments in workplace health, safety, and wellness further improved working conditions and employee well-being. Management’s capabilities were enhanced through targeted development in employee relations, investigations, conflict resolution, and disciplinary processes, supporting consistent and effective people management. Employee concerns and workplace matters were addressed in accordance with established policies and principles of fairness, reinforcing a culture of accountability, trust, and open communication across the Group. Collectively, these initiatives demonstrate our continued commitment to building a high-performing, engaged, and resilient workforce that underpins organisational effectiveness and delivers sustained value to members and stakeholders. Digital Transformation • Digital Transformation & Member Services Our digital transformation journey is well underway. With the successful rollout of Co-optima pay, members can now enjoy greater convenience and flexibility in managing their finances. Soon, we will introduce online loan applications, enabling seamless access to credit services from anywhere. These initiatives are more than technological upgrades they are the building blocks of digital maturity. By integrating artificial intelligence and data analytics, we envision a Credit Union that will automate routine processes, anticipate members’ financial needs, and provides proactive, personalised advice through preferred channels. This evolution will free our teams to focus on complex, high-value conversations that strengthen relationships and deepen trust. • Cybersecurity & Data Protection In today’s digital economy, data is one of our members’ most valuable assets. Protecting it is not just a responsibility; it is a cornerstone of member confidence. We are moving beyond a defensive posture to a proactive stance of cyber resilience, with initiatives that include enhanced predictive threat intelligence, stronger, adaptive security architecture, and continuous system upgrades to counter evolving threats. Our commitment is clear: members must feel secure knowing their information is safeguarded at all times. • Generational Engagement & Sustainability Our membership spans generations, each with unique needs and expectations. We honour the loyalty of our long-standing members while actively engaging younger generations. This requires creative, technology-aligned financial products, relevant financial literacy programs, and communication strategies that resonate with modern aspirations. By balancing tradition with innovation, we ensure sustainability and relevance across all demographics. • Culture & Talent Development Our ambitions cannot be realized without our people. Employees are the engine of progress, and we are dedicated to fostering a culture anchored in cooperative principles. We aim to be an employer of choice, attracting, developing, and retaining top talent in a competitive market.
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