Group Vision Statement . . . . . . . . . . . . . . . . 2 Group Values . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Training and Development . . . . . . . . . . . . . . 3 Our Leaders Board of Directors . . . . . . . . . . . . . . . . . . . . . . 4 Management Team . . . . . . . . . . . . . . . . . . . . . 5 Financial Highlights . . . . . . . . . . . . . . . . . . . . 6 Management Discussion & Analysis . . . . . . 8 Board of Directors’ Report . . . . . . . . . . . . . 14 Independent Auditors’ Report . . . . . . . . . . 26 Financial Statements 30 CONTENTS 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. Fromhome ownership and education to entrepreneurship, savings and investment, our purpose has always been to helpmembers 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 reaffirmour commitment to empoweringmembers, supporting families, and building generational success.
2 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
3 SEPARATE ANNUAL REPORT 2026 Training and Development Staff Training Courses During the financial year April 1, 2025 to March 31, 2026, the organization delivered a total of 51 training engagements aimed at strengthening staff capabilities across key functional areas. The training programme encompassed a broad range of topics, including regulatory compliance (AML/CFT/CPF), governance, risk management, leadership development, customer service, and sales effectiveness. In addition, employees benefited from professional development sessions in communication, presentation skills, and business writing, as well as operational training in credit underwriting, lending simulations, and problem loan management. Workplace safety, employee well-being, and ethical conduct were also reinforced through specialized training such as first aid, fire warden certification, and anti-harassment awareness. Collectively, these initiatives supported the organization’s commitment to continuous learning, enhanced performance, and the delivery of high-quality service to members. No. Training Courses 2025-2026 57 Courses 1. Absenteeism 2. Administrative Professional Day 3. AML CFT Training - Supervisors and Managers 4. AML/CFP/CPF Training 5. AML/CFT/CPF Training – All Staff 6. AML/CFT/CPF Training - Department Specific 7. Anti-Harassment, Discrimination & Bullying 8. Barbados Mission on the Seas Training Workshop: Governance in a Volatile World 9. Business Writing Training 10. Conducting Discipline Leading Difficult Conversations 11. Corporate Onboarding 12. Credit Underwriting Training - Leadership Training 13. Customer Service Excellence: Upskilling for the Service Industry 14. Disciplinary Guidelines 15. Economic Outlook 16. Effective Grievance Handling 17. Enhancing Presentation Skills 18. Financial Statements as a Governance Tool - Not an Accounting Exercise 19. Fire Warden Training 20. First Aid Refresher Training 21. First Aid Training 22. Governance Awareness for Staff and Supervisors 23. Health and Safety Committee Member Certification Part 1 24. Intro to Human Resources Management for Non-HR Professionals 25. Managing Challenging Employees: Strategies for Maintaining or Ensuring Well-Being 26. Mastercard Promotion 2026 - Fraud Management No. Training Courses 2025-2026 57 Courses 27. Mastercard Promotion 2026 - Fraud Management (Fraud Management Structure Adjustment / Train the Trainer Workshop) 28. Mastercard Promotion 2026 - Fraud Management (Rules & Tools Optimization) 29. Mortgage Lending Simulation: Risk, Affordability & Long-Term Exposure 30. Open-End Lending Simulation: Lines of Credit & Revolving Exposure 31. Personal Finance Management 32. Plain Language/Market Conduct Guidelines Training 33. Presentation Skills 34. Problem Loan Identification & Workouts Workshop 35. Public Speaking and Presentation Skills for the World of Work 36. Risk Awareness Beyond Lending 37. Robbery Attack Mitigation 38. Sales 101 39. Sales Culture On the Job Coaching & Support 40. Sales Culture Training 41. Sales Excellence Training 42. Sales Leadership Boot Camp Training 43. Sales Leadership Training 44. STARS Service Excellence Training 45. STARS Service Excellence Phase 2 46. Strategic Pathways for Credit Unions: Understanding Options, Implications and Member Outcomes 47. Strategic Planning: From Document to Daily Reality 48. Strengthening Labour Education for a Changing World of Work 49. Suspicious Transaction Reports Workshop 50. Team Building 51. Workplace Safety
4 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Our Leaders Meet the Board of Directors 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 – BA 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) 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
5 SEPARATE ANNUAL REPORT 2026 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 Meet the Executive Management Team GroupChief ExecutiveOfficer (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 Experience Officer Sis. Gail Best-Niles
6 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Financial Highlights Financial Highlights - Five Year Review In Bds $’000 2026 2025 2024 2023 2022 Statement of financial position: Assets Cash and equivalents 425,203 388,629 365,133 356,952 376,390 Investments 220,885 179,426 158,379 113,377 69,958 Loans to Members (net) 1,149,877 1,127,964 1,131,733 1,146,391 1,114,980 Property and Equipment 51,105 47,836 46,780 48,657 51,377 Other Assets 56,043 67,691 59,335 58,364 60,493 Total Assets 1,903,113 1,811,546 1,761,360 1,723,741 1,673,198 Liabilities and Owner's Equity Liabilities Deposits 1,648,898 1,565,369 1,524,797 1,500,899 1,453,146 External Debt - - - Other 51,592 49,083 41,708 34,153 35,658 1,700,490 1,614,452 1,566,505 1,535,052 1,488,804 Equity Share Capital 14,351 13,986 13,651 13,334 12,901 Statutory & Other Reserves 180,292 176,300 175,200 170,439 166,742 Retained earnings 7,980 6,808 6,004 4,916 4,751 Total Equity 202,623 197,094 194,855 188,689 184,394 Total Liabilities and Owner's Equity 1,903,113 1,811,546 1,761,360 1,723,741 1,673,198 Statement of income: Interest Income 85,728 86,573 87,099 88,928 86,601 Interest Expense 18,366 17,898 19,644 21,273 22,139 Net Interest Income 67,362 68,675 67,455 67,655 64,462 Other income 7,165 5,817 5,663 4,867 4,580 Net income and other income 74,527 74,492 73,118 72,522 69,042 Impairment expense 429 1,636 2,676 4,766 6,498 Net operating income 74,098 72,856 70,442 67,756 62,544 Total operating expenses 64,885 67,679 61,622 59,662 52,277 Net income before extra-ordinary items 9,213 5,177 8,820 8,094 10,267 Derecognition of Government Securities Reversal of Impairment on Investment in Subsidiary 1307 Tax Assets - - - Net income after extra-ordinary items 9,213 5,177 8,820 9,401 10,267
2026 2025 2024 2023 2022 Financial statistics in percent: Asset Growth 5.05 2.85 2.18 3.02 6.09 Loan Growth 1.94 -0.33 -1.28 2.82 5.72 Deposit Growth 5.34 2.66 1.59 3.29 5.74 Net Surplus Growth 77.95 -41.30 -6.18 -8.43 28.03 Return on Assets 0.50 0.29 0.51 0.55 0.63 Return on Equity 4.61 2.64 4.60 5.04 5.74 Operating Efficiency 87.57 92.89 87.48 88.05 83.58 Net Interest Margin 3.63 3.84 3.87 3.98 3.97 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 employees # of branches 6 6 6 6 6 2026 2025 2024 2023 2022 Net income per member 76.2 44.13 77.5 84.6 95.5 7 SEPARATE ANNUAL REPORT 2026 Financial Highlights Financial Highlights - Five Year Review In Bds $’000 Principal Bankers Republic Bank (Barbados) Ltd. Auditors PricewaterhouseCoopers SRL Barbados
8 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Barbados’ Economic Performance 2026 Barbados maintained stable economic growth and low inflation throughout 2025, despite heightened global economic uncertainty and trade tensions. According to the Central Bank of Barbados, the economy demonstrated resilience, supported by strong performance across key productive sectors and sound macroeconomic management. Real Gross Domestic Product (GDP) expanded by 2.7 percent during 2025, with growth driven primarily by tourism, business and other services, construction, and agriculture. Inflationary pressures remained subdued, with the 12-month moving average inflation rate slowing to 0.7 percent by November 2025, reflecting lower international oil and freight costs. However, point-to-point inflation rose to 1.7 percent, influenced by higher housing, utility, and dining costs. Labor market conditions remained stable, with the unemployment rate at 6.6 percent at the end of the third quarter of 2025, although jobless claims experienced a modest increase during the year. Barbados’ external position remained strong. International reserves stood at approximately $3.0 billion at the end of December 2025, supported by robust tourism receipts and capital inflows related to tourism investment projects. Fiscal performance reflected continued discipline. The Government recorded a primary surplus of $541.7 million, equivalent to 3.3 percent of GDP, alongside a near-balanced fiscal position. These outcomes, combined with economic growth and GDP rebasing effects, contributed to a reduction in the debt-to-GDP ratio to 94.6 percent at the end of 2025. Financial Sector Developments The financial system remained sound and stable throughout 2025, characterized by: • Continued credit growth, particularly to the non-financial private sector, which expanded by 5.2 percent, • Improved credit quality • Elevated but gradually moderating liquidity levels, and • Sustained profitability and strong capitalisation across institutions. These conditions supported ongoing financial intermediation and reinforced confidence in the financial system. Barbados’ Economic Forecast The Central Bank projects that Barbados will maintain its growth momentum, supported by continued expansion in tourism, construction, and business services. However, risks remain stemming from: • Global trade tensions, • External economic shocks, and • Persistent structural vulnerabilities associated with a small, open, tourism-dependent economy. Continued focus on economic diversification, fiscal discipline, and investment in resilience will be critical to sustaining long-term growth Management Discussion & Analysis (MD&A) This section of the Annual Report provides a discussion and analysis of the financial position and performance of the Barbados Public Workers’ Co-operative Credit Union Limited (BPWCCUL) for the financial year ended March 31, 2026, as compared to the financial year ended March 31, 2025. The Management Discussion and Analysis (MD&A) should be read in conjunction with the audited financial statements, which have been prepared in accordance with IFRS Accounting Standards (IFRS).
9 SEPARATE ANNUAL REPORT 2026 Overview Our priority at the Barbados Public Workers’ Cooperative Credit Union Ltd. remains to offer best-in-class financial products and services while promoting the financial and social well-being of our members. During the year, membership increased by 3,651 members or 3.1 percent, reaching 120,908 members. This growth supported continued member engagement with 247 new loans to first-time members totalling $4.8 million. Review of Financial Performance Total income and net income Total income comprising of interest from loans and advances, and interest from cash resources and investments, which jointly combined were reported at $85.7 million, along with non-interest income of $7.2 million, together totalled $92.9 million for the year ended March 31, 2026, compared to $92.4 million in the prior year, representing a 0.5 percent increase. Net income for the year was reported at $9.2 million, representing an increase of $4.0 million or 77.9 percent compared to the prior year. Net Interest Income Net interest income comprises interest earnings on assets, less interest expenses paid on lease liabilities and deposits. Net interest income declined by $1.3 million, or 1.9 percent, for the financial year ending March 2026. This was mainly due to interest expenses increasing by $468.1 thousand or 2.6 percent, and the decrease in total interest income of $844.4 thousand or 1.0 percent when compared to the prior year. Other Income Other income increased by $1.3 million or 23.2 percent during the financial year, to end at $7.2 million. This was primarily due to an improvement in fee income and bad debt recoveries, which increased by $480.5 thousand or 19.0 percent and $601.9 thousand or 34.1 percent, respectively. Efficiency and Expense Management The Credit Union’s strategy during the financial year centered on enriching member value through expanded services, advanced technology, and enhanced engagement initiatives. Significant investments were made to broaden the range of offerings, upgrade digital capabilities, and strengthen programs that foster deeper member connections. These efforts were designed to elevate satisfaction and build enduring loyalty, reinforcing the Credit Union’s mission to deliver competitive, memberfocused financial solutions. As a result of this strategic pivot, operating expenses fell by $1.0 million or 2.9 percent over the prior year. This decline in spending reflects the decline in cost associated with service development, infrastructure upgrades, and additional staff and member training to support the expanded offerings. The Credit Union’s efficiency ratio decreased from 90.8 percent in 2025 to 87.1 percent in 2026. Total Operating Expenses Total operating expenses for the year were reported at $64.9 million (2025 - $67.7 million), representing a decrease of $2.8 million or 4.1 percent compared to the prior year. The decrease in staff costs accounted for 1.1 million or 4.1 percent of the decrease in total operating expenditure. This was followed by other operating costs, which fell by 1.0 million or 2.9 percent, and depreciation by $631.3 thousand or 17 percent of the decrease in total operating expenses. The breakdown of the key changes in other operating expenses for 2026, with a comparison to the 2025 financial year, is outlined below: • 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 $496.1 thousand or 12 percent in publicity and promotion. Cost associated with meetings and conferences and elected officials and committee training expenses also recorded decreases of $258.2 thousand or 23.2 percent and $51.5 thousand or 17.5 percent respectively. Deposits Interest Income Loans to members 2 Interest Income
10 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Net Operating Income Net operating income increased by $1.2 million or 1.7% percent to end the year at $74.0 million. This was primarily attributed in part to a notable increase in other income of $1.3 million or 23.2 percent. Another significant development was the decline in expected credit losses (ECL), which fell by $1.2 million or 73.8 percent as of March 2026. This improvement was largely driven by the loan portfolios being assessed at discounted market values that exceeded their carrying amounts. This key factor led to a significant reduction in overall impairment losses, thereby strengthening the Credit Union’s credit risk profile. Assets Asset growth of $91.6 million or 5.1 percent was recorded for the year ended March 31, 2026, and was above the prior year’s growth of $50.2 million. The Credit Union’s assets have grown by $229.9 million or 13.7 percent over the last five years to reach $1.9 billion at March 2026. Net loans and advances to members were $1.15 billion, inclusive of the required allocation for expected credit losses, which this year carried an overall ECL allowance of $36.8 million and interest receivable from loans of $10.0 million. This compares to $1.13 billion, inclusive of an expected credit loss allowance of $35.9 million and interest receivables of $10.5 million at the end of the 2025 financial year. Net loans, therefore, increase by $21.9 million or 1.9 percent over the prior year. 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 $8.1 million (2025- a decline by $25.4 million) or 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). Asset Quality Non-performing (Stage 3) loans increased by $4.4 million or 2.9 percent greater than the prior year, while gross loans grew by $23.3 million, or 2.0%. This contributed to a 0.1 percentage point increase in the delinquency ratio for the financial year. Delinquent loans over 31 days (stages 2 & 3) increased by $6.0 million or 3.3 percent, and delinquent loans less than 31 days (stage 1) increased by $17.3 million or 1.8 percent. Despite an increase in delinquency across all stages, the credit union’s overall credit risk profile improved, as reflected by a $925.5 thousand (3.3 percent) reduction in ECL. This suggests that strong collateral quality and reliable securities helped mitigate potential losses, offsetting the impact of higher delinquency levels. Liabilities The Credit Union’s operations continued to be funded solely by member deposits, which at March 31, 2026, totalled approximately $1.6 billion, representing growth of $83.5 million (2025 - $40.6 million) or 5.3 percent (2025 Loans to members Total Assets 3 Total Assets Management Discussion & Analysis (MD&A) (Continued) Delinquency Ratio Loans to members 1 Loans to members Delinquency Ratio Deposit growth Loans to members Deposit Growth
11 SEPARATE ANNUAL REPORT 2026 – 2.7 percent). During the fiscal the average monthly deposit cost was $6.7 million as compared to the prior year of $3.4 million. The Credit Union maintains above-market rates on its core deposits, enabling members to earn a premium return compared to similar products. This approach delivers strong member value while preserving competitiveness and supporting the financial strength and stability for which the Credit Union is recognized. Total Other Liabilities Total Other liabilities increased by $2.5 million (2025 – $7.4 million) or 5.1 percent (2025- 17.7 percent) to move from $49.1 million in 2025 to $51.6 million at March 31, 2026. Major contributors to this increase were increases in reimbursable shares of $2.6 million or 8.0 percent due to member estates. Unallocated receipts to members, which are unprocessed bills and payroll payments arising out of timing differences, increased by $3.5 million or 113.4 percent. Decreases were recorded in accounts payable and accrued expenses by $3.0 million or 28.8 percent, and lease liabilities decreased by $512.7 thousand or 87.4 percent over the prior year. Equity Total equity, which comprises members’ share capital, retained earnings, and statutory and other reserves, provides a safety buffer, ensures financial stability, and allows for future growth and development. As at March 31, 2026, total members’ equity stood at $202.6 million, up from $197.1 million as at March 31, 2025. The increase of $5.5 million or 2.8 percent was predominantly attributable to the growth in the statutory and other reserves, and enhanced by the growth in retained earnings by $1.2 million or 17.2 percent. Distributions to members during the year were approximately $2.3 million, which comprised of a share dividend of $690.9 thousand or 5.0 percent and an interest rebate of $1.6 million or 2.0 percent. The Way Forward For the upcoming fiscal year and beyond, BPWCCUL will continue to strengthen its foundation as a resilient, agile, and member-centric Credit Union. Our focus is on building systems and services that anticipate change, embrace innovation, and deliver meaningful value to our members. Digital Transformation & Member Services We are advancing our digital transformation journey with the successful rollout of BimPay, our modern national payment system designed to give members greater convenience and flexibility in managing their finances. Soon, we will also introduce online loan applications, enabling members to access credit services seamlessly from anywhere. These initiatives lay the groundwork for digital maturity, where we will leverage technology to create intelligent, personalised member experiences. By integrating artificial intelligence and data analytics, we envision a Credit Union that automates routine processes, anticipates members’ financial needs, and provides proactive advice through the channels most relevant to them. This will free our teams to focus on complex, highvalue conversations that build lasting relationships. Cybersecurity & Data Protection In a world where data is one of our members’ most valuable assets, protecting it remains a top priority. We are committed to moving beyond a defensive posture to a proactive stance of cyber resilience. Our initiatives include enhanced predictive threat intelligence, stronger security architecture, and continuous upgrades to ensure our systems remain as dynamic as the threats they are designed to counter. Member confidence in our ability to safeguard their information is critical to our future success. Generational Engagement & Sustainability We are strategically focused on meeting the diverse needs of all membership demographics. We deeply value the loyalty of our long-standing members who have built and supported this institution, and we are equally committed to attracting and engaging younger generations. This means more than digital channels; it requires creative products that align with their love of technology, relevant financial literacy programs, and communication strategies that resonate with their aspirations. Culture & Talent Development None of these ambitions can be realized without investment in our people. Our employees are the engine of our 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. Continuous learning, empowerment, and accountability will be the hallmarks of our organizational culture, ensuring that every team member performs to their true potential. Cooperative Principles & Future Vision Our cooperative ethos of “people helping people” is not a relic of the past; it is the compass guiding us toward our desired future. By blending this foundational principle with bold, forward-looking strategies underpinned by technology, BPWCCUL is confident in its ability to navigate challenges, emerge stronger, and remain deeply connected to the members and communities we serve.
14 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED “ We are proud of what we have accomplished froman operational, member service and community perspective. 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. President Bro. Lindell Earle Board of Directors’ Report
15 SEPARATE 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 activity slowed in 2026 as geopolitical instability, particularly the conflict in the Middle East, disrupted trade flows, raised energy prices, and heightened uncertainty. The International Monetary Fund (IMF) projects global growth at 3.1 percent, 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 the effectiveness of the credit risk management and
16 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Board of Directors’ Report (Continued) 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 $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
17 SEPARATE 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: year: • 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
18 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 BiMPay, 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 complexed, 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.
19 SEPARATE ANNUAL REPORT 2026 Our organizational culture will be defined by continuous learning and professional growth, empowerment and accountability at all levels, and a shared commitment to excellence and service. • Co-operative Principles & Future Vision The co-operative ethos of “people helping people” is not a relic of the past, it is the compass guiding our future. By blending this timeless principle with bold, forward-looking strategies underpinned by technology, we are confident in our ability to navigate challenges with resilience, emerge stronger and more agile, and remain deeply connected to the members and communities we serve. BPWCCUL is not simply adapting to change; we are shaping it as we did more than fifty-five years ago. By investing in digital transformation, cyber resilience, generational engagement, and talent development, we are building a Credit Union that is future-ready, memberfocused, and true to its cooperative roots. National Instant Payment Initiative – BiMPay A key milestone during the year was our collaboration with the Central Bank of Barbados (CBB) as a participant in the national instant payment initiative, BiMPay. We are proud to report that the Credit Union was granted a Tier 1 license without conditions, underscoring our commitment to compliance, innovation, and leadership in the digital payments ecosystem. Through this license, the organisation is authorised to provide a wide range of payment services via its CO Optima Pay app powered by BiMPay, including: • Establishing and maintaining payment accounts • Executing payment transactions • Acquiring and issuing payment instruments • Providing money remittance services • Issuing, storing, and transferring electronic money units We have made it easier for members to send and receive payments and have their direct deposits available sooner through our CO-Optima Pay, which makes it easy to send and receive money to virtually anyone, safely and securely. This achievement strengthens our regulatory standing and enhances the value proposition for members. By leveraging BiMPay, we are advancing digital transformation in line with member expectations and positioning the Credit Union at the forefront of innovation in Barbados’ financial services sector. Regulatory Environment Review Overview of the Regulatory Landscape and the Shift to Risk- and Principles-Based Supervision The Financial Services Commission (FSC), as the integrated regulator for non-bank financial institutions, has been reshaping the operating environment for credit unions by exploring a transition toward risk- and principles-based supervision. This model shifts away from uniform, compliance-driven oversight to one that tailor regulatory scrutiny to the systemic importance of each entity. For us, as one of the large credit unions designated as Non-Bank Systemically Important Financial Institutions (NB-SIFIs) or near-NB-SIFI status, the implications are significant. However, the benefits of this approach lie in its alignment with the operational complexity of larger credit unions, while the move toward principles-based oversight places greater responsibility on us to strengthen internal governance and risk management frameworks, as prescriptive rules give way to accountability-driven standards. Enhanced Supervision of Large Credit Unions, Stakeholder Consultation, and the FSC’s Enforcement Mandate The FSC has signalled a more intensive supervisory approach for larger credit unions, engaging stakeholders across financial sectors in discussions on legislative reform, governance, and supervisory frameworks. Among the most notable developments are the shift from traditional co-operative governance towards modern accountability standards, and the planned extension of deposit insurance coverage to credit unions, through the Barbados Deposit Insurance Corporation (BDIC), which, once implemented, would enhance member confidence and institutional credibility. The Credit Union is committed to working with the regulator to ensure it aligns with its regulatory frameworks. Risk Management The BPWCCUL Group remains committed to maintaining a comprehensive risk management framework that supports effective governance, regulatory compliance, operational resilience, and sustainable growth. During the review period, the Risk Management Department continued to strengthen the foundation established by the Group’s Enterprise Risk Management (ERM) Framework, enhancing risk management practices across the organization and contributing to the achievement of the Group’s strategic objectives. As the Group expands in size, complexity, and operational scope, the importance of effective risk oversight has increased. Consequently, the Group has invested further in its risk management capabilities by expanding the Risk Management Department, increasing staffing resources, and approving additional positions to reinforce enterprise-
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