BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2015
62
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Consolidated Financial Statements
For the year ended March 31, 2015
(Expressed in Barbados dollars)
50
25. Financial Risk Management…(continued)
25.2 Credit risk...(continued)
Exposure to credit risk before collateral held or other credit enhancements
Maximum exposure
Credit risk exposures relating to on-balance sheet assets are as follows:
2015
2014
Loans and advances to customers:
Consumer
$
530,921,980
482,195,181
Mortgages
360,308,001
335,513,561
Business
9,390,964
2,829,672
Financial investments:
Held to maturity
25,838,462
20,395,633
Loans and receivables
3,112,780
3,181,576
Cash resources
108,772,406
122,627,943
Credit risk exposures relating to off-balance sheet items are as follows:
Loan commitments
67,712,217
61,072,869
Total maximum exposure
$ 1,106,056,810 1,027,816,435
The above table represents the maximum credit risk exposure of the Group as of March 31, 2015 and
March 31, 2014, without taking account of any collateral held or other credit enhancements attached.
For on-balance sheet assets, the exposures set out above are based on net carrying amounts as
reported in the statement of financial position.
Credit quality by class of financial assets
Loans and advances
The credit quality of the loans and advances is managed through the prudent underwriting principles
established by the Group.
Financial investments
The Group has principally invested in government bonds issued by the Government of Barbados which
in the 2014 financial year was downgraded to a BB+ rating by Standard & Poors. During the year ended
March 31, 2015, this rating was further downgraded to BB-.
Cash and balances with Central Bank
The credit quality of financial institutions holding the Groupʼs cash resources is assessed according to
the level of their credit worthiness and by comparison to other financial institutions. The Group places
its cash resources with reputable financial institutions.
